EPA GAD 7 79-01
June 1980
v>EPA
General Grant
Regulations and
Procedures
Applicable To
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Sec.
30.100 Purpose.
30.101 Authority.
30.105 Applicability and scope.
30.110 Publication.
30.115 Copies.
30.120 Citation.
30.125 Public comment.
30.130 Grant information.
30.135 Definitions.
30.135-1 Administrator.
30.135-2 Agency.
30.135-3 Allowable costs.
30.135-4 Applicant
30.135-5 Budget.
30.135-6 Budget period.
30.135-7 Educational institution.
30.135-8 Eligible costs.
30.135-9 Federal assistance.
30.135-10 Grant.
30 135-11 Grant agreement.
30.135-12 Grant approving official
30.135-13 Grant award official.
30.135-14 Grantee.
30.135-15 In-kind contribution.
30.135-16 Nonprofit organization.
30.133-17 Project.
30.135-18 Project costs.
30.135-19 Project officer.
30.135-20 Project period.
30 135-21 Regional Administrator
30 135-22 Subagreement.
Subpart A—Basic Policies
30.200 Grant simplification goals and
policy.
30.205 Role of EPA.
30 210 Role of the grantee.
30.215 Records of grant actions.
30 220 Consolidated grants.
30 225 Foreign grants.
30225-1 Clearance requirements.
30 225-2 Criteria for award.
30.225-3 Alienability of costs.
30.225-4 Payments.
30 230 Grants administration review.
30 235 Disclosure of information.'
30.245 Fraud and other unlawful or cor-
rupt practices.
Subpart t—Application and Award
30.300 Preapplication procedures.
30.305 A-95 procedures.
30.305-1 Specific areas of clearinghouse
evaluation.
30.305-2 Notification of intent (A-95, Part
I).
30 305-3 Time limitations.
30.305-4 EPA processing.
30.305-5 Programs requiring State plans
and jointly funded projects (A-95, Pan
III).
30.305-8 Coordination of planning in mul-
tijurisdictional areas (A-95, Part IV).
30.305-7 Confidential information.
30.305-8 Specific requirements for the
Construction Grant Program.
30.310 Unsolicited proposal.
30.315 Application requirements.
30.315-1 Signature.
30.315-2 Forms.
30.315-3 Time of iubmission.
30.315-4 Place of submission.
30.320 Use and disclosure of information.
30.325 Evaluation of application.
30,330 Supplemental information.
30,335 Criteria for award of grant.
30.340 Responsible grantee.
30.340-1 General policy.
30.340-2 Standards.
30.340-3 Determination of responsibility.
30.345 Award of grant.
30.345-1 Amount and term of grant.
30.345-2 Federal share.
30.345-3 Grant agreement.
30.345-4 Costs incurred prior to execution.
30.345-5 Effect of grant award.
30.350 Limitation on award.
30 355 Continuation grants.
Subpart C—Othef Federal tequiremenfs
30.400 General grant conditions.
30.405 Statutory conditions.
30.405-1 National Environmental Policy
Act.
30.405-2 Uniform Relocation Assistance
and Real Property Acquisition Policies
Act.
30.405-3 Civil Rights Act of 1964.
30.405-4 Federal Water Pollution Control
Act Amendments of 1972. Section 13.
30.405-5 Title IX of the Education Amend-
ments of 1972.
30.405-6 Hatch Act.
30.405-7 National Historic Preservation
Act.
30.405-8 Public Law 93-291.
30.405-9 Demonstration Cities and Metro-
politan Development Act and Intergov-
ernmental Cooperation Act.
30.405-10 Flood Disaster Protection Act.
30.405-11 Clean Air Act, Section 306.
30.405-12 Federal Water Pollution Control
Act, Section 508.
30.410 Executive Orders.
30.410-1 Executive Order 11246.
30.410-2 Executive Order 11988.
30.410-3 Executive Order 11514.
30.410-4 Executive Order 11738.
30.410-5 Executive Order 11990.
30.415 Additional requirements—Federally
assisted construction.
30.415-1 Davis Bacon Act.
30.41 i-2 The Copeland Act.
30.415-3 The Contract Work Hours and
Safety Standards Act.
30.415-4 Convict labor.
30.420 Additional requirements—all EPA
grants.
30.420-1 Prohibition against contingent
fees.
30.420-2
30.420-3
ities.
30.420-4
30.420-5
30.420-6
Officials not to benefit.
Prohibition against violating facil-
Conflict of interest.
Empioyment practices.
Conservation and efficient use of
energy.
30.425 Special conditions.
30.430 Noncompliance.
Subparl D—Patents, Data, and Copyrights
30.500 General.
30.502 Definitions.
30.505 Required provision regarding patent
and copyright infringement.
30.510 Patents and inventions.
30.515 Required patent provision.
30.520 Optional patent provision.
3C.525 Data and copyrights.
30.530 Required data and copyright provi-
sion.
30.540 Deviations.
Subparl E—Administration and Berformance of
Grants
30 600 General.
30.605 Access.
30.610 Rebudgeting of funds.
30.615 Payment.
30615-1 Method of payment.
30615-2 Cash depositories.
30.615-3 Withholding of funds.
30.615-4 Assignment.
30 620 Grant related income.
30 620-1 Proceeds from sale of real or per-
sonal property.
30 620-2 Royalties received from copy-
rights and patents.
30.620-3 Interest earned on grant funds.
30 625 Grantee publications and publicity.
30625-1 Publicity.
30625-2 Publications.
30625-3 Signs.
30 630 Surveys and questionnaires.
30.635 Reports.
30 635-1 Interim progress reports.
30 635-2 Final report.
30 635-3 Financial reports.
30 635-4 Invention reports.
Sec.
30 635 5 Property reports.
30635-6 [Reserved)
30 635-7 Compliance.
30 640 Utilization of Government procure-
ment sources.
30.645 Force account work.
Subpart F—Project Cestt
Sec.
30.700 Use of funds.
30705 Allowable costs.
30.705-1 Payment to consultants.
30.710 Federal cost principles.
30.715 Direct and indirect costs.
30.715-1 Direct costs.
30.715-2 Indirect costs.
30.720 Cost sharing.
30.725 Cost and price analysis.
30.725-1 Policy.
30.725-2 Price analysis
30.725-3 Cost analysis.
30.725-4 Requirements.
Subpart G—Grantee Accountability
30.800 Financial mi-nagement.
30.805 Records.
30.810 Property.
30.810-1 Definitions.
30.810-2 Purchase of property.
30.810-3 Property management standards.
30.810-4 Title to property.
30.810-5 Real property.
30.810-6 Federally-owned nonexpendable
personal property.
30.810-7 Nonexpendable personal property
acquired with Federal funds.
30.810-8 Expendable personal property ac-
quired with grant funds.
30.810-9 Property reports
30.815 Final settlement.
30.820 Audit.
Subpart H—Modification, Suipc-
Termination
'on and
30.900 Project changes and grant modifica-
tions.
30.900-1 Formal grant amendments.
30.900-2 Administrative grant changes.
30.900-3 Transfer of grants; change of
name agreements.
30.900-4 Grantee project changes.
30.915 Suspension of grants—stop-work
orders.
30.915-1 Use of stop-work orders.
30.915-2 Contents of stop-work orders.
30.915-3 Issuance of stop-work order.
30.915-4 Effect of stop-work order.
30.915-5 Disputes provision.
30.920 Termination of grants.
30.920-1 Termination agreement.
30.920-2 Project termination by grantee.
30.920-3 Grant termination by EPA.
30.920-4 Effect of termination.
30.920-5 Annulment of grant.
30.920-6 Disputes provision.
Subpart I—Deviations
30.1000 General.
30.1000-1 Applicability.
30.1000-2 Request for deviation.
30.1000-3 Approval of deviation.
Subpart J—Dlsputet
30.1100 Final disputes decision.
30.1105 Grantee appeal.
30.1115 Rights of the grantee and the Gov-
ernment.
30.1120 Decision of the Administrator.
30.1125 Questions of law.
30.1130 Delegation of authority.
30.1150 Appeal procedures.
Appendix A—General Grant Conditions
Appendix B—Patents and Inventions
Appendix C—Rights In data and copyrights
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ENVIRONMENTAL PROTECTION AGENCY
(40 CFR 30, Revised as of June 30, 1978)
PART 30—GENERAL GRANT
REGULATIONS AND PROCEDURES
(Editor's note: 40 CFR 30 was replaced in
its entirety by a new 40 CFR 30 on May 8,
1975, in 40 FR 20231.)
AUTHORITY: Sec. 20 and 23 of the Federal
Insecticide, Fungicide, and Rodentlclde Act,
as amended (7 U.S.C. 135); (33 U.S.C. 1261;
42 U.S.C. 241, 242b, 243, 246, 300J-1, 300J-2.
300J-3; 1857, 1891, and 3251) et seq.
§ 30.100 Purpose.
This Subchapter establishes and codi-
fies uniform policies and procedures for
all grants awarded by the U.S. Environ-
mental Protection Agency (EPA).
§ 30.101 Authority.
This Subchapter is promulgated by the
Administrator of the Environmental Pro-
tection Agency pursuant to the authority
conferred by Reorganization Plan No. 3
of 1970 and pursuant to the following
statutes which authorize the award of as-
sistance by the Environmental Protec-
tion Agency:
(a) Clean Water Act, as amended (3S
U.S.C. §§t2»tetse(j.).
[43 FR 28484, June 30. 19?8'
(b) The Clean Air Act, as amended (42
U.S.C. 1857 et seq.);
(c) The Solid Waste Disposal Act, as
amended by the Resource Conservation
and Recovery Act of 1976 (42 U.S.C. 6901
et seq.);
[42 FR 56050, October 20, 1977]
(d) The Safe Drinking Water Aci U2
U.S.C. 300J-1, 300J-2, 300J-3);
(e) Section 301 et seq. of the Public
Health Service Act, as amended (42
U.S.C. 241, 242b, 243, and 246);
(f) Sections 20 and 23 of -the Fed-
eral Insecticide, Fungicide, and Rodenti-
cide Act, as amended (7 U.S.C. 135); and
(g) Federal Grant and Cooperative
Agreement Act of.19.77 (41 U.S.C. 501);
and
OO Toxic Substances Control Act (15
DJS.C. 2601).
[43 FR 28484, June 30, 1978]
§ 30.105 Applicability and scope
(a) Parts 30 through 34 of this Subchapter
contain policies and procedures wnicb
apply to all grants made by the Environ
mental Protection Agency and are de-
signed to achieve maximum uniformity
throughout the various grant programs
*>f the Environmental Protection Agency
and, where possible, consistency with
other Federal agencies. These policies
and procedures are mandatory with
respect to all Environmental Protectio
Agency grants and apply to grants
awarded or administered within and
outside the United States, unless other-
wise specified. Supplementary policies
and procedures applicable to only certain
grant programs are issued in regulations
specifically pertaining to those programs
under Part 35 (State and Local Assist-
ance) , Part 40 (Research and Demon-
stration), Part 45 (Training) and Part
46 (Fellowships). Grants or agreements
entered into with funds under the Scien-
tific Activities Overseas Program which
utilize U.S.-owned excess foreign cur-
rencies shall not be subject to this
Subchapter.
(b) Assistance agreements designat-
ed as grants or cooperative agreements
under the Federal Grant and Coopera-
tive Agreement Act shall be subject to
part 30 and other provisions of this
subchapter which are applicable to
jrants.
[43 FR 28484, June 30, 1978]
§30.110 Publication.
This Subchapter is published (In Title
40) in the daily issue of the FEDERAL REG-
ISTER and in cumulated form in the Code
of Federal Regulations.
§30.115 Copies.
Copies of this Subchapter in FEDERAL
REGISTER and Code of Federal Regula-
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FEDERAL REGULATIONS
tions form may be purchased from the
Superintendent of Documents, Govern-
ment Printing Office, Washington, B.C.
20402.
§ 30.120 Citation
This Sdbchapter will be cited in ac-
cordance with FEDERAL REGISTER stand-
ards. For example, this section, when re-
ferred to in divisions of this Subchapter,
should be cited as "40 CFR 30.120."
§30.125 Public comment.
This Subchapter will be amended from
time to time to establish new or improved
grant policies and procedures, to simplify
and abbreviate grant application proce-
dures, to simplify and standardize grant
conditions and related requirements, to
include or provide for statutory changes,
and to improve Agency and grantee ad-
ministration of grants. Therefore, public
comment is solicited on a continuous
basis and may be addressed to the Direc-
tor, Grants Admiristration Division, En-
vironmental Protection Agency, Wash-
ington, D.C. 20460.
§30.130 Grant information.
Application forms and information
concerning Agency grants may be ob-
tained through the Grants Administra-
tion Division, Environmental Protection
Agency, Washington, D.C. 20460, or any
EPA regional grants administration of-
fice. Addresses of EPA Regional Offices
are as follows:
Region
Address
States
1 John F. Kennedy Federal Bldg., Boston, Mass. 02203.
II 26 Floral Plata, New York, N. Y. 10007
Ill 6th and Walnut, Curtis Bldg., Philadelphia, Pa.
19106.
IV 345 Courtland St, N E , Atlanta, Ga 30308
V 230 South Dearborn St., Chicago, 111. 60604
VI 1201 Elm St, Dallas, T«. 75270
VII 1735 Baltimore Ave., Kansas Cit r, Mo. 64108
VIII Lincoln Tower, 1860 Lincoln St., Denver, Colo. 80203-
IX 215 Fremont St., San Francisco, Calif 94105
X 1200 6tU Ave., Seattle, Wash. 98101.
Connecticut, Maine, Massachusetts, New Hamp-
shire, Rhode Island. Vermont.
New Jersey, New York, Puerto Rico, Virgin
Islands.
Delaware, District of Columbia, Maryland, Penn-
sylvania, Virginia, West Virginia.
Alabama, Florida, Georgia, Kentucky, Mississippi,
North Carolina, South Carolina, Tennessee.
Illinois, Indiana, Michigan, Minnesota, Ohio,
Wisconsin.
Arkansas, Louisiana, New Meiico, Oklahoma,-
Texas.
Iowa, Kansas, Missouri, Nebraska.
Colorado, Montana, North Dakota, South Dakota,
Utah, Wyoming.
Arizona, California, Hawaii, Nevada, American
Samoa, Guam, Trust Territories of Pacific
Islands, "~»y0 Island.
Alaska, Idaho, Oregon, Washington.
§ 30.135 Definitions.
All terms used in this Subchapter
which are denned in the statutes cited
in § 30.101 and which are not defined in
this Section, shall have the meaning
given to them in the relevant statutes.
As used throughout this Subchapter, the
words and terms defined in this Section
shall have the meanings set forth below,
unless (a) the context in which they are
used clearly requires a different mean-
ing, or (b) a different definition is pre-
scribed for a particular part or portion
thereof. The words and terms denned
in this Section shall have the mean-
ings set forth herein whenever used in
any correspondence, directives, orders,
or other documents of the Environmental
Protection Agency relating to grants, un-
less the context clearly requires a differ-
ent meaning.
§ 30.135-1 Administrator.
The Administrator of the Environ-
mental Protection Agency, or any per-
son authorized to act for him.
§ 30.135-3 Agency.
The United States Environmental Pro-
tection Agency (EPA).
§30.135-3 Allowable costs.
Those eligible, reasonable, necessary,
and allocable costs which are permitted
under the appropriate Federal cost prin-
ciples, in accordance with EPA policy,
within the. scope of the project and au-
thorized for EPA participation.
[41 FR 20656, May 20, 1976]
§ 30.135-4 Applicant.
Any individual, agency, or entity
which has filed a preapplication or an
application for a grant pursuant to this
Subchapter.
§ 30.135-5 Budget.
The financial plan for expenditure of
all Federal and non-Federal funds for a
project, including other Federal assist-
ance, developed by cost components in
the grant application.
§ 30 135-6 Budget period.
The period specified in the grant
agreement during which granted Fed-
eral funds are authorized to be expended,
obligated, or firmly committed by the
grantee for the purposes specified in the
grant agreement.
§ 30.135-7 Educational institutiuii.
Any institution which (a) has a fac-
ulty, (b) offers courses of instruction, and
(.c) is authorized to award a degree or
certificate upon completion of a specific
course of study.
§ 30.135-8 Eligible costs.
Those costs in which Federal partici-
pation is authorized pursuant to applica-
ble statute.
[41 FR 20656, May 20, 1976]
§ 30.135-9 Federal assistance.
The entire Federal contribution for a
project including, but not limited to, the
EPA grant amount.
§ 30.135-10 Grant.
An award of funds or other assistance
by a written grant agreement purusani
to this Subchapter, except fellowships.
§ 30. ] 35-11 Grant agreement.
The written agreement and amend-
ments thereto between EPA and a grant-
ee- in which the terms and conditions
governing the irrant are stated and
agreed to by both parties pursuant to
§ 30.345.
§30.135-12 Grant approving'ofncial.
The EPA official designated to approve
grants and take other grant related ac-
tions authorized by Environmental Pro-
tection Agency Orders or this Subchapter
(sometimes referred to as the Decision
Official).
§ 30.135-13 Grant award official.
The EPA official authorized to execute
a grant agreement on behalf of the Gov-
ernment.
§ 30.135-14 Grantee.
Any individual, agency, or entity which
has been awarded a grant pursuant to
§ 30.345.
§30.135—15 In-kind contribution.
The value of a non-cash contribution
provided by (a) the grantee, (b) other
public-agencies and institutions, (c) pri-
vate organizations and individuals, or (d)
EPA. An in-kind contribution may con-
sist of charges for real property and
equipment and value of goods and serf*
ices directly benefiting and specifically
identifiable to the grant progwn
§30,135—16 Nonprofit organization.
Any corporation, trust, foundation, or
institution (a) which is entitled to ex-
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emptson under section 501 an International organization.
(b) Grant applications for work per-
formed in the United States shall gen-
era,lly be given preference over applica-f
tions for similar work to be performed in
a foreign country.
(c) Foreign grants shall comply with
this Subchapter and shall be awarded
and administered pursuant to such ad-
ditional conditions and procedures as
may be established by EPA. Grants or
agreements entered into with funds un-
der the Scientific Activities Overseas Pro-
gram which utilize U.S.-owned excess
foreign currencies shall not be subject to
this Subchapter.
§ 30.225-1 Clearance requirements.
The total amount of foreign awards
financed by EPA during a fiscal year may
not exceed any ceilings on foreign obli-
gations which may be established for
that fiscal year by the Office of Manage-
ment and Budget. Department of State
clearance must be obtained by EPA
through the EPA Office of International
Activities prior to the award of a foreign
grant.
§ 30.22 5-2 Criteria for award.
All of the following criteria must be
met before a foreign grant may be
awarded:
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FEDERAL REGULATIONS
lowed for that part of the work per-
formed in the United States.
[43 FR 28484, June 30, 1978]
(C)l[Revoked, 41 FR 20656, May 20, 1976]
§ 30.225-4 Payments.
(a) All payments will be made In U.S.
currency unless otherwise specified In the
grant agreement. If payment is made in
foreign currency, payments will be in an
amount equal" at the time of payment to
the United States dollars awarded.
(b) Refunds and rebates should be
made in the currency of the original pay-
ment and shall be in an amount equal,
at the time of payment, to United States
dollars awarded.
§ 30.230 Grants administration review.
The Director, Grants Administration
Division, shall conduct such review, as he
deems appropriate,, of the administration
of each EPA grant program or of grants
awarded by a particular EPA office to de-
termine compliance with the policies and
procedures of this Subchapter and to de-
termine further steps necessary to imple-
ment : 30.200.
§ 30.235 Disclosure of information.
(a.) EPA policy concerning release of
information under the Freedom of In-
formation Act, 5 U.S.C. 552, is stated in
Part 2 of this Chapter. Applicants for
grants, grantees, and their contractors
should be aware that information pro-
vided to EPA is subject to disclosure to
others pursuant td the Freedom of Infor-
mation Act. In addition EPA acquires the
right, unless otherwise provided in a
grant agreement, to use and disclose
project data, pursuant to Appendix C to
this Part.
(b) Any person who submits to EPA
any Information under this Part, and
Who desires that EPA not disclose any
or all of the information, may place on
(or attach to) the information, at the
time it is submitted to EPA, a cover
sheet, stamped or typed legend, or other
suitable form of notice employing lan-
guage such as "trade secret," "proprie-
tary," or "business confidential." Alleg-
edly confidential portions of otherwise
non-confidential documents should be
clearly Identified by the business, and
may be submitted separately to facilitate
identification and handling by EPA. Ap-
plicants should also comply with further
instructions in application forms con-
cerning the assertion of confidentiality
claims! See , §5 2.203 and 2.204 of this
chapter.
[41 FR 36918, September 1, 1976]
(c) Unless a specific provision (special
condition) in the grant otherwise pro-
vides, information submitted in an ap-
plication or other submission with a re-
strictive marking will nevertheless be
subject to the Government's duty to dis-
close Information pursuant to the -Free-
dom of Information Act and the Govern-
ment's rights to utilize data pursuant to
Appendix C of this Part.
§ 30.245 Fraud and other unlawful or
corrupt practices.
(a) The award and administration of
EPA grants, and of subagreements
awarded by grantees under those grants,
must be accomplished free from bribery,
graft, kickbacks, and other corrupt prac-
tices. The grantee bears the primary re-
sponsibility for the prevention, detection
and cooperation in the prosecution of any
such conduct; Federal administrative or
other legally available remedies ~will be
pursued, however, to the extent appro-
priate. „
(b) The grantee must effectively pur-
sue available State or local legal and ad-
ministrative remedies, and take appro-
priate remedial action with respect to
any allegations or evidence of such ille-
gality or corrupt practices which are
brought to its attention. The grantee
must advise the Project Officer immedi-
ately when such allegation or evidence
comes to its attention, an4 must periodi-
cally advise the Project Officer of the
status and ultimate disposition, of any
matter, including those referred pursu-
ant to Paragraph (c) of this section.
(c) If any allegations, evidence or even
appearance of such illegality or corrupt
practices comes to the attention of the
EPA Project Officer, he must promptly
report briefly in writing the substance of
the allegations or evidence to the Direc-
tor, EPA Security and Inspection Divi-
sion. When so advised by the Director,
EPA Security and Inspection Division, he
must bring the matter to the attention
of the grantee for action.
(d) If any allegations, eviaence or even
appearance of such illegality or corrupt
practices c^mes to the attention of any
other EPA employee, he must promptly
report briefly in writing the substance of
the allegation or evidence to the Director,
EPA Security and Inspection Division.
(e) A person, firm, or organization
which is demonstrated upon adequate
evidence to have been involved in bribery
or other unlawful or corrupt practices on
a Federally-assisted project may be de-
termined nonresponsible and ineligible by
the Director, Grant Administration Divi-
sion, or an EPA grant award or for the
award of a contract under an EPA grant,
pursuant to I 30.340-2(c). The Director,
Grants Administration Division, shall
make such determination whenever, he
determines there is adequate evidence of
such involvement, after opportunity for
conference (with right of counsel) has
been afforded to the affected person, firm,
or organization. Such determination shall
be binding upon EPA grant personnel.
The Director, Grants Administration Di-
vision, shall notify EPA grant personnel
and other appropriate persons of such
determination or of any termination,
modification, or suspension of the deter-
mination. The grantee may appeal a de-
termination of the Director, Grants Ad-
ministration Division, made pursuant to
this section (see Subpart J of this part).
Subpart B—Application and Award
§ 30.300 Preapplication procedure".
(a) informal Inquiries by potential
grant applicants prior to application sub-
mission are encouraged to expedite prep-
aration and evaluation of the grant ap-
plicatiorvdocuments. Such inquiries may
relate to procedural or substantive mat-
ters arid may range from informal tele-
phone advice to pre-arranged briefings
of individuals or classes of potential ap-
plicants. Questions should be directed to
the appropriate Environmental Protec-
tion Agency program office from which
funding is being sought or to the grants
administration office in Headquarters or
in the region in which the applicant is
located. Inquiries may be directed to
State officials for applications which in-
clude State participation in the review
process (e.g., grants for construction of
treatment works.)
(b) Submission of preapplications to
EPA is encouraged for all research, dem-
onstration, and training grant pro-
grams to (1) establish communication
between EPA and the applicant; (2) de-
termine applicant's eligibility; (3) deter-
mine how well the project can compete
with similar applications; and (4) elimi-
nate any proposal which has no chance
for funding.
(c) An applicant submitting a preap-
plication to the grants administration of-
fice shall be promptly notified that (1)
the preapplication has been received; (2)
it has been forwarded to the appropriate
program for an expression of interest,
and (3) the program office will contact
the applicant directly regarding possible
followup action.
(d) Generally, preapplication process-
ing requires 45 days and is not part of
the 90'day review period for formal grant
applications.
§ 30.305 A-95 procedures.
[41 FR 20656, May 20, 1976]
(a) Office of Management and Budget
Circular A-95 (revised) (41 FR 2052,
January 13,1976) provides for State and
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areawide clearinghouse evaluation, re-
view, and coordination of Federally-
assisted programs and projects. There-
fore, applicants applying for a planning,
program, survey, demonstration, or con-
struction grant must comply with ap-
propriate coordination procedures out-
lined in the A-95 Circular. Generally,
coordination Is required prior to sub-
mitting an application. However, in cer-
tain cases clearinghouses will be afforded
the opportunity to comment during the
initial phases of project work in con-
junction with the development of plans
and application materials.
(b) A-95 procedures include but are
actf, Wmlted fa the provisions set forth
below in § 30.305-1 through J 30.305-8.
§ 30.305—1 Specific areas of clearing-
house evaluation.
[41 FR 20656, May 20, 1976]
The following specific areas are nor-
mally considered during clearinghouse
evaluation. It should be recognized, how-
ever, that clearinghouses are responsible
for the comprehensive planning needs of
their jurisdictional area and jnay, there-
fore, consider areas other than those
listed.
(a) The extent to which the project is
consistent with or contributes to the ful-
fillment of the State, areawide, and local
comprehensive plans.
(b) The extent to which the proposed
project:
(1) Duplicates, runs counter to, or
needs to be coordinated with other proj-
ects or activities being carried out to or
affecting the area; or
<2V Might be revised to increase its
effectiveness or efficiency.
(c) The extent to which the project
contributes to the achievement of State,
areawide, and local objectives and prior-
ities relating to natural and human re-
sources and economic and community de-
velopment as specified in Section 401 of
the Intergovernmental Cooperation Act
of 1968, including:
< 1) Appropriate land uses for housing,
commercial, industrial, government, in-
stitutional, and other purposes;
(2) Wise development and considera-
tion of natural resources. Including land,
water, mineral, wildlife, and others;
(3) Balanced transportation systems,
Including highway, air, water, pedestrian,
mass transit, and other modes for the
movement of people and goods;
(4) Adequate outdoor recreation and
open space;
<5) Protection of areas of unique nat-
ural beauty, historical, archeological,
architectural, and scientific interest;
(6) Properly planned community facil-
ities, including utilities for the supply of
power, water, and communications, for
the safe disposal of wastes, and for other
purposes; and
(7) Concern for high standards of de-
sign.
(d) The extent to which the project
significantly affects the environment in-
cluding:
(1) The environmental impact of the
proposed project;
(2) Any adverse environmental effects
which cannot be avoided should the pro-
posed project be implemented;
(3) Alternatives to the proposed proj-
ect; ~
(4) The relationship between local
short term uses of man's environment
and the maintenance and enhancement
of long term productivity; and
(5) Any irreversible or irretrievable
commitments of resources which would
be involved in the proposed project or
action, should it bo implemented.
(e) The extent to which the project
contributes to more balanced patterns
of settlement and delivery of services
to all sectors of the area population, in-
. eluding minority groups.
(f) In the case of a project for which
assistance is being sought by a special
purpose unit of government, whether the
unit of general local government having
jurisdiction over the area in which "the
project is to be located has applied for
or plans to apply for assistance for the
same or a similar type project.
§ 30.305-2 Notification of intent (A-95,
Parti).
[41 FR 20656, May 20, 1976]
(a) General (for specific requirements
for the construction grants program see
§30.305-8). Applicants or potential ap-
plicants for assistance under an EPA
grant are required to notify both State
and areawide planning and development
clearinghouses, in the jurisdiction in
which the project is to be located, of their
intent to apply for EPA assistance, m the
case of an application hi any State for
an activity that is Statewide or broader
in nature (such as for various types of
research) and does not affect nor have
specific applicability to areawide or local
planning and programs, the notification
need be sent only to the State clearing-
house. Involvement of areawide clear-
inghouses in the review in such cases will
be at the initiative of the State clearing-
house. If notification of intent to apply
for EPA assistance was not furnished
the clearinghouse (s), the completed ap-
plication must be submitted to the clear-
inghouse^) prior to submission to EPA.
However, prior notification of intent to
apply is preferable to submitting the final
completed application. In addition,
grantees must notify State and areawide
clearinghouse (s) of any major modifica-
tions in a project. The current list of EPA
grant programs which must comply with
the A-95 procedures are listed below. Any
additions to this listing will be Indicated
In the Catalog of Federal Domestic As-
sistance (see J 30.305-2.c.(5)).
(1) 66.001-Air 'Pollution Control Pro-
gram Grants;
<2) 66.005-Air Pollution Control Sur-
vey and Demonstration Grants;
. (3) 66.451 Solid and Hazardous
Waste Management Program Support
Grants;
(4) 66.452 Solid Waste Management
Demonstration Grants;
(42 FR 56050, October 20, 1977]
(5> 66.418-Construction Grants for
Wastewater Treatment Works;
(6) 66.419-Water Pollution Control-
State and Interstate Program Grants;
(7) 66.420-Water Pollution Control-
State and Local Manpower Program De-
velopment;
(8) 66.426-Water Pollution Control
State and Areawide Waste Treatment
Management Planning Grants;
(9) 66.432-State Public Water System
Supervision Program Grants;
(10) 66.433-State Underground Water
Source Protection Program Grants;
(11) 66.505-Water Pollution Control-
Research, Developmental, and Demon-
stration Grants (Demonstration only);
(12) 66.506-Safe Drinking Water Re-
search and Demonstration Grants (Dem-
onstration Only);
(13) 66.600-Environmer»tal Protection
Consolidated Grants-Program Support;
(14) 66.602 Environmental Protection
Consolidated Grants—Special Purpose;
(15) 66.453 Solid Waste Management
Training Grants;
(16)66.504 Solid Waste Disposal Re-
search Grants.
(17) 66.700 Pesticides enforcement
and applicator training and certifica-
tion grant program.
(18) 66.438 Water pollution control
fit ate management assistance grants.
[43 FR 28484, June 30, 1978]
Applications from Federally recognized
Indian Tribes are excluded from this re-
quirement. However, they may voluntar-
ily participate in the procedures of this
section and are encouraged to do so. EPA
will notify the appropriate State and
areawide clearinghouse (s) of any appli-
cations from Federally recognized Indian
tribes upon their receipt.
(b) Notification will normally precede
the preparation of the application. It will
be mailed to the clearinghouse at the
earliest feasible time to assure maximum
time for effective coordination and to
avoid delay in the timely submission of
-------
FEDERAL REGULATIONS
the completed application to EPA. Ear-
liest feasible time means at such time
as the applicant determines it will de-
velop an application.
fc) The notification to each clearing-
house will be accompanied by a summary
description which should include the fol-
lowing:
(1) Identity of the applicant agency
organization, or individual.
(2) The geographic location of the
project to be assisted. A map should
be provided, if appropriate.
(3) A brief description of the proposed
project by type, purpose, general size
or scale, estimated cost, beneficiaries, or
other characteristics which will enable
the clearinghouses to identify agencies
of State or local government having
plans, programs, or projects that might
be affected by the proposed projects.
(4) A statement as to whether or not
the applicant has been advised by EPA
that he will be required to submit en-
vironmental impact information in con-
nection with the proposed project.
(5) The EPA program title and num-
ber under which assistance will be sought
as indicated in the latest Catalog of Fed-
eral Domestic Assistance (The Catalog
is issued annually in the spring and is
updated during the year). In the case of
programs not listed therein, programs
will lie identified by Public Law number
or U.S. Code citation. Applicants uncer-
tain as to appropriate program identifi-
cation should contact the EPA program
or grants administration office.
(6) The estimated date the applicant
expects to formally file an application.
(7) When available any more detailed
documentation describing the proposed
project -(e.g., plans and preapplication
material).
§ 30.305-3 r;...t. i:r..i...-iio,.~.
[41 FR 20656, May 20, 1976]
iaj Time limitations. (1) State and
areawide clearinghouse (s) may have a
period of 30 calendar days a'fter receipt
of a project notification of intent to ap-
ply for assistance in which to inform
State and rnultistata agencies and local
or regional governments or agencies that
may be affected by the project, to ar-
range, as may be necessary, to consult
with the applicant thereon and to com-
plete review and submit comments to the
applicant. If the review cannot be com-
pleted during this period, however, the
clearinghouse (s) may work with the ap-
plicant in the resolution of any problems
raised by the proposed project during the
period in which the application is being
completed. Clearinghouses are strongly
urged to notify applicants if they cannot
complete their review within the 30 day
comment period.
(2) When no notification of intent to
apply for assistance has been submitted
and the clearinghouse has received in-
stead a completed application, it may
have 60 calendar days from date of re-
ceipt to review the completed applica-
tion. However, if clearinghouses cannot
complete their reviews within a 30 cal-
endar day period they are strongly urged
to give the applicant formal notice to
that effect at the beginning of the com-
ment period. Where reviews have been
completed prior to completion of an ap-
plication, a copy of the completed ap-
plication will be supplied to the clearing-
house, upon request, when the applica-
tion is submitted to EPA.
(b) Submission of Comments. (1)
Areawide clearinghouses will include, as
attachments to their comments: (i) all
written comments submitted to the area-
wide clearinghouse by other jurisdictions,
agencies, or parties, when they are at
variance with the clearinghouse com-
ments; and (ii) a list of parties from
whom comments were solicited.
(2) Applicants will include with the
completed application all comments and
recommendations made by or through
clearinghouse(s>, with a statement that
such comments have been considered
prior to submission of the application.
Where no comments have been received
from a clearinghouse(s) a statement
must be included with the application
that the procedures outlined in this sec-
tion have been followed and that no com-
ments or recommendations have been
received
§ 30.305-4 EPA processing.
[41 FR 20656 May 20, 1976]
(a) Applications that do not evidence
that both areawide and State clearing-
houses have been given an opportunity to
review the application will be returned
to the applicant with instruction to ful-
fill the requirements of Part I of OMB
Circular A-9 5.
(b) Any comments accompanying ap-
plications must be utilized in evaluating
the applications.
(c) EPA will notify clearinghouse (s)
within seven (7) working days of any
major action taken on applications re-
viewed by the clearinghouse(s). Major
actions will include awards (including
subsequent Step 2 and Step 3 awards for
wastewater treatment projects), rejec-
tions, returns for amendments, deferrals,
or withdrawals. The standard multipur-
pose form, Standard Form 424, as pre-
scribed by Federal Management Circular
74-7, will be used for this purpose.
(d) Where a clearinghouse has rec-
ommended against approval of an ap-
plication or approval only wth specific
and major substantive chanees. and EPA
approves the project without incorporat-
ing the recommendations of the clearing-
house, EPA will provide the clearing-
house, in writing, with an explanation
therefor along with the notice of action
under subsection 30.305-4c.
(e) Where a clearinghouse has recom-
mended against approval of a project be-
cause it conflicts with or duplicates
•another Federal or Federally-assisted
project, the EPA program office review-
ing the application will consult with the
agency or agencies assisting the- refer-
enced projects prior to approving the ap-
plication.
(f) If comments accompanying an ap-
plication from a special purpose unit of
government indicate that a similar ap-
plication is forthcoming from the gen-
eral purpose unit of government In the
areas in which the applicant and/or the
proposed project is located, preference
will be given to the general purpose unit
as specified in Section 402 of the Inter-
governmental Cooperation Act of 1968.
Where such preference cannot be so ?» ,
corded, EPA will notify In writing, t-»J
unit of general local government and the
Office of Management and Budget of the
reasons therefor.
§ 30.303—5 Programs requiring state
plans and jointly funded projects (A—
95 Part III).
[41 FR 20656, May 20, 1976]
(a) Applicability. This section ap-
plies to air pollution control program
grants, water pollution control State
and interstate program grants, solid
and hazardous waste management pro-
gram support grants. State public
water system, supervision program
grants, State underground water
source protection program grants, safe
drinking water State and local pro-
gram development- grants, and envi-
ronmental protection consolidated
grants-program support to the extent
they involve State plans.
[43 PR 28484, June 30, 1978]
(b) Definitions. (1) State Plan. A State
plan is a plan prepared by a State agency
that includes any required supporting
planning reports or documentation that
Indicates the programs, projects, and
activities for which EPA funds will be
used.
(2) Jointly Funded Projects. A jointly
funded project Is a. project for which
assistance Is sought, on a combined or
coordinated basis, Involving two or more
Federal programs or funding authorises.
(c) Review. (1) Prior to funding any
grant requiring, by statute or EPA ad-
ministrative regulations, a State plan
as a condition of assistance, the EPA
program office must insure that the Gov-
-------
emor, ot his designated agency, has been
given the opportunity to comment on the
relationship of the program to be funded
to the State plan. EPA encourages the
Governor to Include the appropriate
area wide clearinghouse in State plan re-
view.
(2) Prior to funding a jointly funded
project, the EPA program office must
insure that the State and area wide clear-
inghouse (s) have been given the oppor-
tunity to comment on the relationship of
the proposed jointly funded project to
State or areawlde comprehensive plans
and programs.
(d) Time Limitations and Submission
of Comments. (1) The Governor or his
designated agency may have a period of
45 calendar days for review and com-
ment.
(2) Applicants must secure and submit
with the application comments received
pursuant to § 30.305-5c. If the applicant
tails to receive comments within the pre-
scribed 45 calendar day period, a state-
ment must be Included with the appli-
cation that the procedures outlined In
this section have been followed and no
comments or recommendations have
been received.
§ 30.305—6 Coordination of planning in
multijurisdictional areas (A—95, Part
IV).
[41 FR 20656, May 20, 1976]
(a) Applicability. This section applies
only to Water Pollution Control State
and Areawide Waste Treatment Man-
agement Planning Grants.
(b) Requirements of Applicants. (1)
Applicants for St^f ar,
-------
FEDERAL REGULATIONS
tended to result in award of an EPA
grant or contract.
(b) Unsolicited proposals received by
any organizational element of EPA shall
be forwarded immediately to the Grants
Administration Division for official re-
ceipt and processing. The Grants Admin-
istration Division will acknowledge re-
ceipt to the person or organization
submitting the proposal and transmit the
proposal to the appropriate program of-
fice for evaluation. If the program office
decides to consider the proposal for a
grant award, a grant application pur-
suant to § 30.315 will be required. If the
proposal is to be recommended for fund-
ing under the contract mechanism, ap-
propriate notification will be forwarded
from the program office to the Grants
Administration Division for closeout of
the file.
§30.315 Application requirements.
Submittals which substantially com-
ply with this Subchapter shall be deemed
to be applications. An application shall
include the completed application form,
technical documents and supplementary
materials furnished by the applicant.
Submittals which do not substantially
comply with this Subchapter shall be re-
turned to the applicant.
§ 30.315-1 Signature.
(a) Applications must be signed by the
applica^r. •:•? a person authorized to obli-
gate the applicant to the terms and con-
ditions of the grant, if approved. At least one
copy of the application must have an original
signature.
(b) Each grant application shall con-
stitute an offer to accept the require-
ments of this Subchapter and the terms
and conditions of the grant agreement.
(c) An applicant may be prosecuted
under Federal, State, or local statutes for
any false statement, misrepresentation,
or concealment made as part of an ap-
plication for EPA grant funds.
[43 FR 28484, June 30, 1978]
§ 30.315-2 Forms.
The following forms shall be used in
applying for an EPA grant.
Not applicable EPA Form
5700-33.
Type of
application
Preapplication
(optional)
Research, dem-
onsfaiion, and
training grants.
Type of applicant
Other than State
and local
EPA Form 5700-
12 (optional)
EPA Form 5700-
12.
State and local
governmental
agencies
EPA Form
5700-30.
EPA Form
5700-12 (or
EPA Form
5700-33).
Program and
planning
grants.
Consolidated EPA Form 5700- Do.
grants. 12.
Wastewater Not applicable EPA Form
treatment con- 5700-32.
structlon
grants.
Water pollution contrrt N<# ^.J:01?1
State management applicable. 5100-31.
assistance grant*
[43 FR 28484, June 30, 1978]
§30.315—3 Time of submission.
Applications should be submitted well
in advance of the desired grant award
date. Generally, processing of a complete
grant application requires 90 days after
receipt of the application by EPA.
§30.315—4 Place of submission.
Place of submission varies with type:
of grant for which application is being
made. Therefore, instructions regarding
place of submission are included in each
grant application kit.
§ 30.320 Use and disclosure of informa.
tion.
(a) All grant applications, preappli-
cations, and unsolicited proposals, when
received by EPA, constitute agency rec-
ords. As such, their release may be re-
quested by any member of 'the public
under the Freedom of Information Act,
5 U.S.C. 552, and must be disclosed to the
requester unless exempt from disclosure
under 5 U.S.C. 552(b). EPA regulations
implementing 5 U.S.C. 552 are published
in Part 2 of this Chapter.
(b) An assertion of entitlement to con-
fidential treatment of part or all of the
information in an application may be
made using the procedure described in.
§ 30.235tb). See also § § 2.203 and 2204
of this chapter.
[41 FR 36918, September 1, 1976]
(c) Any person who submits a grant
application, preapplication or unsolicited
proposal to EPA shall be deemed by EPA
to have thereby consented to review of
that application, preapplication or pro-
posal by extramural reviewers, as ap-
propriate under § 40.150(a) of this Chap-
ter, unless a specific and conspicuous
statement to the contrary appears on the
face of the document. Extramural re-
viewers' recommendations' shall not be
disclosed.
(d) If a grant or subagreement is
awarded to a submitter in response to his
application, preapplication or unsolicited
proposal, EPA shall treat the information
in the application, preapplication, un-
solicited proposal or resulting grant or
contract as available to the public and
free from any limitation on use or dis-
closure, notwithstanding any legend as-
serting a claim for nondisclosure except
to the extent otherwise expressly pro-
vided by special condition in the grant.
§ 30.325 Evaluation of application.
Each applicant shall be notified that
the application has been received arid is
in the process of evaluation pursuant to
this Subchapter. Each application shall
be subjected to a (a) preliminary admin-
istrative review to determine the com-
pleteness of the application, (b) program,
technical, and scientific evaluation to
determine the merit and relevance of the
project to EPA program objectives, (c)
budget evaluation to determine whether
proposed project costs are eligible, rea-
sonable, applicable, and allowable, and
(d) final administrative evaluation. Rec-
ommendations and comments received
as a result of extramural review pursuant
to § 40.150(a) of this Subchapter shall be
considered in the evaluation process.
§ 30.330 Supplemental information.
The applicant may, at any stage dur-
ing the evaluation process, be requested
to furnish documents or information re-
quired by this Subchapter and necessary
to complete the application. The evalua-
tion may be suspended until such addi-
tional information or documents have
been received.
§ 30.335 Criteria for award of grant.
Each application shall be evaluated in
accordance with the requirements and
criteria established pursuant to this Sub-
chapter and promulgated herein. Pro-
gram award criteria may be found in
Parts 35, 40, 45, and 46 of this Subchap-
ter. Grants may be awarded without
regard to substatutory criteria in excep-
tional cases if a deviation pursuant to
Subpart I of this Subchapter ha? been
approved.
§ 30.340 Responsible grantee.
The policy and procedures established
by this section shall be followed to deter-
-------
mine, prior to award of any grant,
whether an applicant will qualify as a
responsible grantee. A responsible
grantee is one which meets, and will
maintain for the life of the grant, the
minimum standards set forth in §30..-
340-2 and such additional standards as
may be prescribed and promulgated for a
specific purpose.
§ 30.340-1 General policy.
The award of grants to applicants who
are not responsible is a disservice to the
public, which is entitled to receive full
benefit from the award of grants for the
protection and enhancement of the en-
vironment. It frequently is inequitable
to the applicants themselves, who may
suffer hardship, sometimes even finan-
cial failure, as a result of inability to
meet grant or project requirements.
Moreover, such awards are unfair to
other competing applicants capable of
performance, and may discourage them
from applying for future grants. It is
essential, therefore, that precautions be
taken to award grants only to reliable
and capable applicants who can reason-
ably be expected to comply with grant
and project requirements.
§ 30.340-2 Standards.
To qualify as responsible, an applicant
must meet and maintain for the life of
the proposed grant the following stand-
ards as they relate to a particular
project:
(a) Have adequate financial resources
for performance, the necessary experi-
ence, organization, technical qualifica-
tions, and facilities, or a firm commit-
ment, arrangement, or ability to obtain
such (including proposed subagree-
ments);
(b) Be able to comply with the pro-
posed or required completion schedule
for the project;
(c) Have a satisfactory record of in-
tegrity, judgment, and performance, in-
cluding in particular, any prior perform-
ance upon grants and contracts from the
Federal Government;
(d) Have an adequate financial man-
agement system and audit procedure
which provides efficient- and effective
accountability and control of all prop-
erty, funds, and assets. Applicable stand-
ards are further defined in I 30.800;
-------
FEDERAL REGULATIONS
§ 30.355 Continuation grants.
(a) When an original grant award In-
cludes a provision for more than one
budget period within the project period,
EPA presumes that continuation grants
for the subsequent budget periods will
be awarded, subject to availability of
funds and Agency priorities, as deter-
mined by the Administrator, if the
grantee:
(1) Has demonstrated satisfactory
performance during all previous budget
periods; and
(2) Stibmits no later than 90 days prior
to the end of the budget period a con-
tinuation application which includes a
detailed progress report; a financial
statement for the current budget pe-
riod, including an estimate of the amount
of unspent, uncommitted funds which
will be carried over beyond the term of
the prior grant; a budget for the new
budget period; an updated work plan re-
vised to account for actual progress ac-
complished during the current budget
period; and any other reports as may be
required by the grant agreement.
(b) Review of continuation applica-
tions will be conducted expeditiously.
Generally, no extramural review will be
required.
- (c) Costs incurred after the end of the
previous budget period may be allowed
under the continuation grant provided
that no longer than 30 days has elapsed
between the end of the budget period and
the execution of the continuation grant
agreement.
Subpart C—Other Federal Requirements
§ 36.400 General grant conditions.
It shall be a condition of every EPA
grant award that the grantee comply
with the applicable provisions of this
subchapter and special conditions in
the grant agreement (see § 30.425).
[43 FR 28484, June 30, 1978]
§ 30.405 Statutory conditions.
Compliance with the following statu-
tory requirements, hi addition to such
other statutory provisions as may be
applicable to particular grants or grant-
ees or classes of grants or grantees, Is a
condition to each EPA grant.
§ 30.405-1 National Environmental Pol-
icy Act.
The National Environmental Pcflicy
Act of 1969, 42 U.S.C. 4321 et seq., as
amended, and regulations issued there-
under, 40 CFR Part 6, particularly as It
relates to the assessment of the environ-
mental impact of federally assisted proj-
ects. Where an environmental assess-
ment Is required by 40 CFR Part 6, an
adequate environmental assessment must
be prepared for each project by the
applicant or grantee.
§ 30.405-2 Uniform Relocation Assist-
ance and Real Property Acquisition
Policies Act.
The Uniform Relocation Assistance
and Real Property Acquisition Policies
Act Of 1970, 42 U.S.C. 4621 et seq., 4651
et seq., and the regulations issued there-
under, 40 CFR Part 4. Grantees must assure
that any acquisition of interest in real prop-
erty or any displacement of persons, busi-
nesses, or farm operations is conducted in
compliance with the requirements of the act
and the regulations.
[43 FR 28484, June 30, 1978]
§ 30.405-3 Civil Rights Act of 1964.
The Civil Rights Act of 1964, 42 U.S.C.
2000a et seq., as amended, and particu-
larly Title VI thereof, which provides
that no person in the United States shall
on the grounds of race, color, or national
origin be excluded from participation in,
be denied the benefits of, or be subjected
to discrimination under any program or
activity receiving Federal financial as-
sistance, as implemented by regulations
issued thereunder. 40 CFR Part 7. The
grantee must assure compliance with the
provisions of the Act and regulations.
§ 30.405-4 Federal Water Pollution
Control Act Amendments of 1972,
Section 13.
Section 13 of the Federal Water Pollu-
tion Control Act Amendments of 1972 (86
Stat. 816) provides that no person in the
United States shall on the grounds of sex
be excluded from participation in, be de-
nied the benefits of, or be subjected to
discrimination under any program or ac-
tivity receiving assistance under the Fed-
eral Water Pollution Control Act, as
amended (86 Stat. 816) or the Environ-
mental Financing Act (86 Stat. 899). The
applicant or grantee must assure compli-
ance with the provisions of section 13
and the regulations issued thereunder in-
cluding 40 CFR Part 12.
§ 30.405-5 Title IX of the Education
Amendments of 1972.
Title IX of the Education Amendments
of 1972, 20 U.S.C. 1681, et seq., provides
that no person in the United States
shall, on the basis of sex, be excluded
from participation in, be denied the
benefits of, or be subjected to discrimina-
tion under any educational program or
activity receiving Federal financial as-
sistance.
§ 30.405-6 Hatch Act.
The Hatch Act, 5 U.S.C. 1501 et seq.,
as amended, relating to certain political
activities of certain State and local em-
ployees. State and local government
grantees must ensure compliance on the
part of their employees who are covered
by the Hatch Act. A State or local officer
or employee is covered by the Hatch Act
on political activity if his principal em-
ployment is in connection with an ac-
tivity which is financed in whole or in
part by loans or grants made by the
United States or a Federal agency. He
is subject to the Act, if as a normal and
foreseeable incident to his principal job
or position, he performs duties in con-
nection with an activity financed in
whole or in part by Federal loans or
grants. Specifically excluded is an indi-
vidual who exercises no functions in
connection with that activity; or an in-
dividual employed by an educational or
research institution, establishment,
agency, or system which is supported in
whole or in part by a State or political
subdivision thereof, or by a recognized
religious, philanthropic, or cultural or-
ganization.
§ 30.405-7 National Historic Preserva-
tion Act.
The National Historic Preservation
Act of 1966, 16 U.S.C. 470 et seq., as
amended, relating to the preservation of
historic landmarks. Applicants must
consult the National Register of Historic
Places (published in the FEDERAL REGIS-
TER) to determine if a National Register
property (or one eligible for inclusion
in the Register) is located wi'thin the
area of the proposed project's environ-
mental impact and observe required
procedures.
§ 30.405-8 Public Law 93-291.
Public Law 93-291 (referred to as Ar-
cheological and Historic Preservation Act
of 1974) relating to potential loss or de-
struction of significant scientific, histori-
cal, or archeological data in connection
with Federally assisted activities.
§ 30.405-9 Demonstration Cities and
Metropolitan Development Act and
Intergovernmental Cooperation Act.
The Demonstration Cities and Metro-
politan Development Act of 1966, 42
U.S.C. 3301 et seq., as amended, and par-
ticularly Section 204 thereof, requires
that applications for Federal assistance
for a wide variety of public facilities
projects in metropolitan areas must be
accompanied by the comments of an
area wide comprehensive planning agency
covering the relationship of the proposed
project to the planned development of
the area. The Intergovernmental Coop-
10
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EPA GRANTS
eration Act of 1968, 42 U.S.C. 4201 et seq.,
as amended, requires coordination by
and among local, regional, State, and
Federal agencies with reference to plans,
programs, and development projects and
activities. Compliance with these two
Acts is ensured by adherence to proce-
dures in OMB, Circular No. A-95 (re-
vised) (38 FR 32874, Nov. 28, 1973). Ap-
plicants must follow the coordination
procedures established by that Circular
prior to submitting an application (see
§30.305).
§ 30.405-10 Flood Disaster Protection
Act.
(a) General. (1) The Flood Disaster
Protection Act of 1973 (Pub. L. 93-234,
December 31, 1973), requires grantees to
purchase flood insurance on and after
March 2, 1974, as a condition of receiving
any form of Federal assistance for cpn-
structiori"purposes or for the acquisition
of any real or nonexpendable personal
property in an identified special flood
hazard area that is located within any
community currently participating in the
National Flood Insurance Program. The
National Flood Insurance Program is a
Federal program authorized by the Na-
tional Flood Insurance Act of 1968, 42
U.S.C. 4001-4127, as amended.
(2) For any community that is not
participating in the flood insurance pro-
gram on the date of execution of the
grant agreement by both parties, the
statutory requirement for the purchase
of flood insurance does not apply. How-
ever, after July 1, 1975, or one year after
notification of identification as a flood-
prone community, whichever is later, the
requirement will apply to all identified
special flood hazard areas within the
United States, which have been deline-
ated on Flood Hazard Boundary Maps~or
Flood Insurance Rate Maps issued by the
Department of Housing and Urban De-
velopment (HUD). Thereafter, no finan-
cial assistance can legally be provided
for real or nonexpendable personal prop-
erty or for construction purposes in these
areas unless the community has entered
the program and flood insurance is pur-
chased.
(3) Regulations pertaining to the Na-
tional Flood Insurance Program are pub-
lished in Title 24 of the Code of Federal
Regulations, commencing at Part 1909.
HUD guidelines regarding the manda-
tory purchase of insurance have been
published in the FEDERAL REGISTER at 39
FR 26186-93, July 17,1974. Additional in-
formation may be obtained from the re-
gional offices of the Department of Hous-
ing and Urban Development, or from the
Federal Insurance Administration, HUD,
Washington, D.C. 20410.
(b) Wastewater treatment construc-
tion grants. (1 ^ The grantee (or the con-
struction contractor, as appropriate)
must acquire any flood insurance made
available to it under the National Flood
Insurance Act of 1968 as amended begin-
ning with the period of construction and
maintain such insurance for the entire
useful life of the project, if the total
value of insurable improvements is
$10,000 or more.
(2) The amount of insurance required
is the total project cost, excluding facili-
ties which are uninsurable under the Na-
tional Flood Insurance Program such as
bridges, dams, water and sewer lines, and
underground structures, and excluding
the cost of the land, or the maximum
limit of coverage made available to the
grantee under the National Flood Insur-
ance Act, whichever is less.
(3) The required insurance premium
for the period of construction is an allow-
able project cost.
(c) Other grant programs. (1) A
grantee must acquire and maintain any
flood insurance made available to it un-
der the National Flood Insurance Act
of 1968, as amended, if the approved
project includes (i) any construction-
type activity, or (ii) any acquisition vof
real or nonexpendable personal property,
and the total cost of such activities and
acquisition is $10,000 or more.
(2) The amount of insurance required
is the total cost of any insurable non-
expendable personal or real property ac-
quired, improved, or constructed, exclud-
ing the cost of land, with any portion of
this grant, or the maximum limit of cov-
erage made available to the grantee un-
der the National Flood Insurance Act,
as amended, whichever is less, for the
entire useful life of the property.
(3) The required insurance premium
for the period of project support is an
allowable project cost.
(4) If EPA provides financial assist-
ance for personal property to a grantee
that the Agency has previously assisted
with respect to real estate at the same
facility in the same location, EPA must
require flood insurance on the previously-
assisted building as well as on the per-
sonal property. The amount of flood in-
surance reqiured on the building will be
based upon its current value, however,
and not on the amount of assistance
previously provided.
§ 30.405-11 Clean Air Act, Section 306.
Section 306 of the Clean Air Act, 42
U.S.C. 1857h-4, as amended, prohibiting
award of assistance by way of grant,
loan, or contract to noncomplying facil-
ities (see § 30.410-4, Executive Order
11738).
§ 30.405-12 Federal Water Pollution
Control Act, Section 508.
Section 508 of the. Federal Water Pol-
lution Control Act, 33 U.S.C. 1251, as
amended, prohibiting award of assistance
by way of grant, loan, or contract to
noncomplying facilities (see § 30.410-4,
Executive Order 11738).
§ 30.410 Executive Orders.
Compliance with the following Execu-
tive Orders is a condition of each EPA
grant.
§ 30.410-1 Executive Order 11246.
Executive Order 11246 dated Septem-
ber 24, 1965, as amended, with regard to
equal employment opportunities, and all
rviles, regulations and procedures pre-
scribed pursuant thereto (40 CFR Part
8).
§ 30.410-2 Executive Order 11988.
Executive Order 11988 dated May
24, 1977, provides that each Federal
agency shall evaluate the potential ef-
fects of any actions it may take in a
floodplain. Any action taken on a
floodplain shall seek to reduce the risk
of flood loss to minimize potential
harm to people and property and to
restore and preserve the natural and
beneficial values served by the flood-
plain.
[43 FR 28484, June 30, 1978]
§ 30.410-3 Executive Order 11514.
Executive Order 11514 dated March 5,
1970, providing for the protection and
enhancement of environmental quality
in furtherance of the purpose and policy
of the National Environmental Policy
Act of 1969 (40 CFR Part 6).
§ 30.410-4 Executive Order 11738.
Executive Order 11738 dated Septem-
ber 12, 1973, which prohibits any Federal
agency, grantee, contractor, or subcon-
tractor from entering into, renewing, or
extending any nonexempt grant or sub-
agreement (contract or subcontract)
which in the performance of the grant
or subagreement utilizes any facility in-
cluded on the EPA List of Violating Fa-
cilities (40 CFR Part 15). By so doing,
the Executive Order requires compliance
with the Clean Air Act and the Federal
Water Pollution Control Act (see § 30.-
420-3).
§ 30.410-5 Executive Order 11990.
Executive Order 11990 dated May
24, 1977, provides that each Federal
agency, to the extent permitted by
law, shall avoid undertaking or provid-
ing assistance for new construction lo-
cated in wetlands unless the head of
11
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FEDERAL REGULATIONS
the agency finds that there is no prac-
ticable alternative to such construc-
tion, and that the proposed action in-
cludes all practicable measures to
minimize harm to wetlands.
[43 FR 28484, June 30, 1978]
§ 30.415 Additional requirements—fed-
erally assisted construction.
Grants for projects that involve con-
struction are subject to the following ad-
ditional requirements.
§30.415-1 Davis-Bacon Act.
The Davis-Bacon Act, as amended, 40
U.S.C. 276a et seq., and the regulations
issued thereunder, 29 CPR 5.1 et seq., re-
specting wage rates for federally assisted
construction contracts in excess of $2,000.
§ 30.415-2 The Copeland Act.
The Copeland (Anti-Kickback) Act, 18
U.S.C. 874, 40 U.S.C. 276c, and the regu-
lations issued thereunder, 29 CFR 3.1 et
seq.
§ 30.415-3 The Contract Work Hours
and Safety Standards Act.
The Contract Work Hours and Safety
Standards Act, 40 U.S.C. 327 et seq., and
the regulations issued thereunder, 29
CFR Parts 5 and 1518.
§30.415-4 Convict labor.
.Convict labor shall not he used in EPA
assisted construction unless it is labor
performed by convicts who are on work
release,-parole or probation.
§ 30.420 Additional requirements—all
EPA grants.
Compliance with the following require-
ments is a condition of each EPA grant.
§ 30.420—1 Prohibition against contin-
gent fees.
No person or agency may be employed
or reoained to solicit or secure a grant
upon an agreement or understanding for
a commission, percentage, brokerage, or
contingent fee. For violation of this pro-
hibition, EPA shall have the right to an-
nul the grant without liability or in its
discretion to deduct from the grant
award, or otherwise recover, the full
amount of any commission, percentage,
brokerage or contingent fee.
§ 30.420-2 Officials not to benefit.
No member of, or delegate to Congress
or Resident Commissioner, shall be per-
mitted to any share or part of a grant, or
to any benefit that may arise therefrom;
but this provision shall not be construed
to extend to a grant if made with a cor-
poration for its general benefit.
§ 30.420-3 Prohibition against violating
facilities.
(a) List of violating facilities. Pur-
suant to 40 CFR Part 15, the Director,
Office of Federal Activities, EPA, shall
maintain a list that includes those fa-
cilities which have been designated to be
in noncompliance with either the Clean
Air Act or the Federal Water Pollution
Control Act and with which no Federal
agency, grantee, contractor, or subcon-
tractor shall enter into, renew, or extend
any nonexempt grant, contract, or sub-
contract. For the purpose of this subsec-
tion, the term "facility" means any build-
ing, plant, installation, structure, mine,
vessel or other floating craft, location, or
site of operations owned, leased, or su-
pervised by an applicant, contractor,
subcontractor, or grantee to be utilized
in the performance of a grant, contract
or subcontract. Where a location or site
of construction or other operations con-
tains or includes more than one building,
plant, installation, or structure, the en-
tire location or site shall be deemed to
be a facility, except where the Director,
Office of Federal Activities, EPA, deter^
mines that independent facilities are co-
located in one geographic area.
(b) Exempt transactions. The follow-
ing are exempt:
(1) Grants, contracts, and subcon-
tracts not exceeding $100,000.
(2) Contracts and subcontracts for in •
definite quantities that are not antici-
pated to exceed $100,000 for any 12
month period.
(3) Grants, contracts, or subcontracts,
where the principal purpose is to assist
a facility or facilities to comply with any
Federal, State, or local law, regulation,
limitation, guideline, standard, or other
requirement relating to the abatement,
control, or prevention of environmental
pollution. This exemption does not apply
to (i) subcontracts for--materials, sup-
plies, or equipment where an existing fa-
cility is modified or altered or (ii) grants,
contracts, or subcontracts for new" con-
struction.
(4) Facilities located outside the
United States.
(5) The foregoing exemptions shall
not apply to the use of a facility that has
been convicted of a violation under sec-
tion 113(c)(l) of the Clean Air Act, or
under section 309(c) of the Federal
Water Pollution Control Act. The List of
Violating Facilities will specify which fa-
cilities have been convicted.
(c) Grant condition. No nonexempt
project work may be performed at a fa-
cility listed by the Director, Office of
Federal Activities, EPA, in violation of
the requirements of 40 CFR Part 15.
(d) Contract stipulations. Each
grantee, contractor, and subcontractor
must include or cause to be included in
every nonexempt subagreement (includ-
ing contract or subcontract) the criteria
and requirements in paragraphs (d)
through (f) of this section.
(e) Notification. Each applicant,
grantee, bidder, contractor, and subcon-
tractor must give prompt notification if
at any time prior to or after the award of
a nonexempt grant or contract, notifica-
tion is received from the Director, Office
of Federal Activities, indicating that a
facility to be utilized in the performance
of a nonexempt grant or subagreement
has been listed or is under consideration
to be listed on the EPA List of Violating
Facilities.
(1) An applicant or grantee must no-
tify the project officer.
(2) A bidder, contractor or subcontrac-
tor must notify the grantee which will
notify the Project Officer.
(f) Deferral of award,. The Director,
Office of Federal Activities, EPA may re-
quest that the award of the grant, con-
tract or subcontract be withheld for a
period not to exceed 15 working days.
(g) Compliance. Each applicant,
grantee, bidder, contractor, and subcon-
tractor must comply with all the require-
ments of Section 114 of the Clean Air
Act and section 308 of the Federal Water
Pollution Control Act relating to inspec-
tion, monitoring, entry, reports, and in-
formation as well as all other require-
ments specified in section 114 and sec-
tion 308 of the Clean Air Act and Federal
Water Pollution Control Act, respectively,
and all regulations and guidelines issued
thereunder.
(h) Failure to comply. In the event any
grantee, contractor or subcontractor fails
to comply with clean air or water, stand-
ards at any facility used in the- perform-
ance of a nonexempt grant or subagree-
ment, the grantee, contractor, or sub-
contractor shall undertake the neces-
sary corrective action to bring the facility
into compliance. If the grantee, con-
tractor, or subcontractor is unable or un-
able or unwilling to do so, the grant will
be suspended, annulled, or terminated, in
whole or in part, unless the best interests
of the Government would not thereby be
served.
§ 30.426-4 Conflict of interest.
(a) The purpose of this section is Jx)
establish policies and procedures for the
prevention of conflicts of intere&t, and the
appearance of such conflicts of interest,
involving former and current EPA em-
ployees in the award and administration
of grants. This section does not apply to
12
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former EPA employees performing duties
as an elected or appointed official or full
time employee of a State or local govern-
ment (excluding State or local institu-
tions of higher education and hospitals).
(b) It is EPA policy that personal or
organizational conflict of interest, or the
appearance of such conflict of interest, be
prevented in the award and administra-
tion of EPA grants, including subagree-
ments.
(c) Conflict of interest provisions for
EPA employees are published in 40 CFR
Part 3. In cases where an employee's ac-
tion in the review, award, or administra-
tion of a grant would create an apparent
conflict of interest, the employee shall
disqualify himself and refer any neces-
sary action to his superior.
(d) 18 U.S.C. 207 establishes penalties
for certain actions on the part of former
Federal employees.
(e) It shall be improper for a grant to be
awarded, or for a subagreement to be
awarded or approved, when the grant ap-
plicant or proposed contractor employs a
person who served in EPA as a regular
employee or as a special employee if either
one of the following conditions exist:
(1) If the grant relates to a project in
which the former EPA employee partici-
pated personally and substantially as an
EPA employee, through decision, ap-
proval, disapproval, recommendation,
and if the former EPA employee (i) was
Involved in developing or negotiating the
application for the prospective grantee;
(ii) will be involved in the management
or administration of the project, or (iii)
has a substantial financial interest (gen-
erally, a 20% or greater stock, partner-
ship, or equivalent interest);
(2) If the former EPA employee's offi-
cial duties involved, within one year prior
to the termination of his employment
with EPA, decision, approval, disap-
proval, or recommendation responsibili-
ties concerning the subject matter of the
grant or application, and the former EPA
employee, within one year following the
termination of his employment with
EPA, (i) was involved in developing or
negotiating the application for the pro-
spective grantee; (ii) will be involved in
management or administration of the
project; or (iii) has a substantial finan-
cial interest (generally a 20% or
greater stock, partnership or equivalent
interest);
[43 PR 28484, June 30, 1978]
(f) Costs incurred on grants in viola-
tion of subparagraph (e) abovs shall be
unallowable costs.
(g) Definitions pertaining to this sec-
tion may be found in 40 CPE 3.102.
(h) The provisions of this section may
be waived only by the Administrator or
Deputy Administrator (1) upon a written
determination of the General Counsel
that the award or the administration of
the project would not be likely to involve
a violation of IB U.S.C. 207 or other EPA
regulations respecting conflicts of inter-
est, 40 CFR Part 3, and (2) if the Ad-
ministrator or Deputy Administrator de-
termines that the best interests of the
Government would be served by an award
of the grant or subagreement or existing
administration of the grant in view of
the limited extent of the conflict of inter-
est and the outstanding expertise of the
former employee.
§ 30.420-5 Employment practices.
A grantee or a party to a subagreement
shall not discriminate, directly or in-
directly, on the grounds of race, color,
religion, sex, age, or national origin in
its employment practices under any proj-
ect, program, or activity receiving as-
sistance from EPA. Each grantee or party
to a subagreement shall take affirmative
steps to ensure that applicants are em-
ployed and employees are treated during
employment without regard to race,
color, religion, sex, age, or national
origin.
§ 30.420-6 Conservation and efficient
use of energy.
Grantees must participate in the Na-
tional Energy Conservation Program by
fostering, promoting, and achieving
energy conservation in their grant pro-
grams. Grantees must utilize to the
maximum practical extent the most
energy-efficient equipment, materials,
and construction and operating proce-
dures available.
§ 30.425 Special conditions.
The grant agreement or any amend-
ment thereto may include special con-
ditions necessary to assure accomplish-
ment of the project or of EPA objectives.
However, special conditions inconsistent
with the provision and intent of this
Subchapter may not be utilized.
§ 30.430 Noncompliance.
Noncompliance with the provisions
of this subchapter or of the grant
agreement shall be cause for any one
or more of the following sanctions, as
determined appropriate by the grant
award official, upon the recommenda-
tion of the Project Officer, subject to
consultation with the Office of Gener-
al Counsel:
(a) The grant may be terminated or
annulled under § 30.920 of this sub-
chapter;
(b) Project costs directly related to
the noncompliance may be disallowed;
(c) Payment otherwise due to the
grantee may be withheld (see § 30.615-
3 of this subchapter);
(d) Project work may be suspended
under §30.915 of this subchapter;
(e) A noncomplying grantee may be
found nonresponsible or ineligible for
future Federal assistance or a noncom-
plying contractor may be found nonre-
sponsible or ineligible for approval for
future contract award under EPA
grants;
(f) An injunction may be entered or
other equitable .relief afforded by a
court of appropriate jurisdiction;
(g) Such other administrative or ju-
dicial action may be instituted as may
be legally available and appropriate.
[43 FR 28484, June 30, 1978]
Subpart 0—Patents, Data, and Copyrights
§ 30.500 General.
This subpart sets forth policy and pro-
cedure regarding patents, data, and copy-
rights under EPA grants or fellowships,
and the grant clauses and regulations
which define and implement that policy.
§ 30.502 Definitions.
Definitions applicable to this Subpart
D, in addition to those in § 30.135, are
set forth in Appendixes B and C to this
Part.
§ 30.505 Required provision regarding
patent and copyright infringement.
(a) The grantee shall report ,to the
Project Officer, promptly and in reason-
able written detail, each notice or claim
of patent or copyright infringement
based on the performance of this,grant
of which the grantee has knowledge.
(b) In the event of any claim or suit
against the Government, on account of
any alleged patent or copyright infringe-
ment arising out of the performance of
this grant or out of the use of any sup-
plies furnished or work or services per-
formed hereunder, the grantee shall fur-
nish to the Government, when requested
by the Project Officer, all evidence and
information in possession of the grantee
pertaining to such suit or claim. Such
evidence and information shall be fur-
nished at the expense of the Govern-
ment except where the grantee has
agreed to indemnify the Government.
(c) The grantee shall include in each
subagreement (including any tier sub-
agreement) in excess of $10,000 a clause
substantially similar to the foregoing
provisions.
§ 30.510 Patents and inventions.
It is the policy of EPA to allocate
rights to inventions that result from fed-
13
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FEDERAL REGULATIONS
erally supported grants or fellowships in
accordance with the guidance and cri-
teria set forth in the Statement of Gov-
ernment Patent Policy by the President
of the United States on August 23, 1971
(36 PR 16887), hereinafter referred to
as "Statement." Section 1 of the State-
ment sets forth three major categories
(l(a), Kb), and l(c)) of contract or
grant objectives, and prescribes the man-
ner for allocation of rights to inventions
that result from a grant or contract
which falls within the particular cate-
gory.
(a) Under Section Ha) of the State-
ment, the United States, at the time of
grant award, normally acquires or re-
serves the right to acquire the principal
or exclusive rights to any invention made
under the grant or contract. Generally,
this is implemented by the United States
taking all domestic rights to such inven-
tion. However, section Ha) permits the
grantee in exceptional circumstances, to
acquire greater rights than a nonexclu-
sive license at the time of grant award
where the Administrator certifies that
such action will best serve the public
interest. Section Ha) aUo prescribe cir-
cumstances under which the grantee or
contractor may acquire such greater
rights after an invention is identified.
(b) Under section Kb) of the State-
ment, the grantee normally acquires
principal rights at the tir"- «f grant
award.
(c) Section He) applies to grants that
are not covered by Section Ha) or Kb),
and provides that allocation of rights is
deferred until alter inventions hav *;
identified.
§ 30.515 Required patent provision.
(a) Every EPA grant involving research,
developmental, experimental, or demon-
stration work shall be deemed subject to
Section Ha) of the Statement and shall
be subject to the patent provisions set
forth in Appendix B to this Part. The re-
quirement is not applicable to fellow-
ships.
(b) Inventions made under the Re-
source Conservation arai Brcovery Act of
1976 are subject to section 9 of the Fed-
eral Non-nuclear Energy Research and
Development Act of 1974. This is imple-
mented by Appendix B.
[42 FR 56050, October 20, 1977]
§ 30.520 Optional patent provision.
The following clause may be inserted
as a special condition in the grant agree-
ment when requested by an applicant or
grantee:
Authorization and consent. The Govern-
ment hereby gives Its authorization and con-
sent for all use and manufacture of any In-
vention described in and covered by a patent
of the United States In the performance of
this grant project or any part hereof or any
amendment hereto or any subagreement
hereunder (Including any lower tier sub-
contract) .
§ 30.525 Data and copyrights.
EPA's data policy is to expedite gen-
eral utilization or further development of
new or improved pollution prevention
and abatement technology and proce-
dures developed under EPA grants and
fellowships. Therefore, it is most impor-
tant that the results of EPA sponsored
research include data that is sufficient to
enable those skilled in the particular arear
to promptly utilize or further develop
such technology and procedures. Avail-
ability of adequate data permits ac-
curate assessment of the progress
achieved under a grant or fellowship so
that EPA priorities can be established.
Access to data accumulated by the
grantee shall be made available to the
Project Officer on request.
§ 30.530 Required data and copyright
provision.
Every EPA grant or fellowship shall be
subject to the rights in data and copy-
rights provisions set forth in Appendix C
to this Part.
§ 30.540 Deviations.
Any request for deviation from the
patent provisions in Appendix B and
from the rights in data and copyrights
provisions in Appendix C to this Part
must be submitted in writing pursuant
to Subpart I of this Regulation. No de-
viation or waiver of patent or data rights
shall be granted without the concur-
rence of the EPA Patent Counsel.
Subpart E—Administration and
Performance of Grants
§ 30.600 General.
The grantee bears primary respon-
sibility for the administration and suc-
cess of the grant project, including any
subagreements made by the grantee for
accomplishing grant objectives. Although
grantees are encouraged to seek the ad-
vice and opinions of EPA on problems
that may aris"e, the giving of such advice
shall not shift the responsibility for flnal
decisions to EPA. The primary concern
of EPA is that grant funds awarded be
used in conformance with applicable
Federal requirements to achieve grant
and program objectives and to make op-
timum contributions to the betterment
of the environment.
§ 30.605 Access.
The grantee and its contractor and
subcontractors must ensure that the
Project Officer and any authorized rep-
resentative of EPA, the Comptroller
General of the United States or the De-
partment of Labor, shall at all reason-
able times during the period of EPA
grant support and until three years fol-
lowing flnal settlement have access to the
facilities, premises and records (as de-
fined in § 30.805) related to the project.
In addition, any person designated by the
Project Officer shall have access, upon
reasonable notice to the grantee by the
Project Officer, to visit the facilities and
premises related to the project. All sub-
agreements (including any tier subagree-
ment) in excess of $10,000 are subject to
the requirements of this section and
grantees must include in all such sub-
agreements a clause which will ensure
the access required by this section.
§ 30.610 Rebudgeting of funds.
(a) Notice. Prompt notification of all
rebudgeting in excess of $1,000 is re-
quired under § 30.900(b). such notifica-
tion may be accomplished by submission
of a revised copy of the budget forms
contained in the grant a-pplication or in
a letter.
[43 FR 28484, June 30, 1978]
(b) Prior approval required. Approval
of minor adjustments to an approved
budget is not required. Prior written EPA
approval is required for any of the fol-
lowing changes under any grant except
wastewater treatment construction
grants (see Part 35, Subparts C and E of
this subchapter):
'(1) Where the total Federal 'share
exceeds $100,000 and the cumulative
amount of transfers anong cost cate-
gories or program elements exceeds or
is expected to exceed $10,000 or 5 per-
cent of the budget period costs, which-
ever is greater.
(2) Where the total Federal share is
$100,000 or less, and the cumulative
amount of transfers among cost cate-
gories or program elements exceeds or
is expected to exceed 10 percent of
such budget period costs.
[43 FR 28484, June 30, 1978]
(3) Rebudgeting which involves the
transfer of amounts budgeted for indirect
costs to absorb increases in direct costs;
(4) Rebudgeting which pertain- to the
addition of items requiring approval pur-
suant to Federal Management Circulars
73-8 and 74-4;
(5) Any transfers between construc-
tion and nonconstructkm work;
14
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(6) Any transfer of funds allotted for
training allowances (direct payments
to trainees);
[43 FR 28484, June 30, 1978]
(7) Rebudgeting which indicates the
need "or additional EPA funds.
(c) Af&rmxa. Where approval at re-
budgeting Is required, approval or disap-
proval shall be promptly communicated
In writing to the grantee within three (3)
Weeks f rcai date of receipt of notification.
§ 30.615 Payment.
All payments are made subject to such
eor-sli^ons as are Imposed by or pursuant
to this Subchapter for allowable project
costs. The payment basis and method of
payment will be set forth in the grant
agreement. Any adjustment to the
amount of payment requested by a
grantee -will be explained in writing.
§ 30.615-1 Method of payment.
[41 FR 56196, December 27, 1976]
(a) Payment for waste treatment con-
struction grants will be on a reimbursa-
ble basis (see §§35.845, 35.937-10, 35.938-6,
and 35.945).
[43 FR 28484, June 30, 1978]
, (b) Payment for other grant programs
will be on an advance basis. Grantees
must request the initial advance payment
on SF270, Request for Advance or Re-
imbursement. The initial advance will be
based on the grantee's projected cash
requirements, not to exceed the first
three months. The cash advance will be
issued either in one check or one check
each month at the agency's option. As
the grantee incurs expenditures under
the grant, the grantee will submit a re-
quest for payment at least quarterly,
but geneVally no more frequently than
monthly. This request will report cumu-
lative expenditures incurred under the
grant and the grantee's projected cash
requirements for the next advance pe-
riod. The agency will make payment for
any expenditure exceeding the previous
advance and will provide for the grant-
ee's projected cash requirements for the
next advance period.
(c) Payment for certain grants au-
thorized advance financing will be made
oy letter-of-credit. Detailed procedures
will be provided to the grantee when a
grantee meets the Tre'asury Depart-
ment's driteria for this method of pay-
ment.
(d) For grants paid on an advance ba-
sis, payments will be made in a manner
that will minimize the time elapsing be-
tween the transfer of funds from the
United States Treasury and the dis-
bursement of those funds by the grantee.
For grants which are paid on a reim-
bursable basis, payment will be made
promptly upon submission by the grantee
of the properly completed payment re-
quest. Grantees not complying with the
timing requirements under advance pay-
ment methods may be transferred to the
reimbursable payment method.
§30.615—2 Cash depositories.
(a) Physical segregation of cash de-
positories for EPA funds is neither re-
quired nor encouraged. However, a
separate bank account shall be used
when payments under a letter of credit
are made on a "checks-paid" basis in
accordance with agreements entered Into
by the grantee, EPA, and the bank
involved.
[41 FR 56196, December 27, 1976]
t, (b) Grantees are encouraged to use
minority-owned banks (a bank which
is owned by at least 50 percent minor-
ity group members). A list of minority
owned banks can be obtained from the
Office of Minority Business Enter-
prise, Department of Commerce,
Washington, D.C. 20230.
[43 FR 28484, June 30, 1978]
§ 30.615-3 Withholding of funds.
(a) It is EPA policy "that1 full and
prompt payment be made to the
grantee for eligible project costs.
Except as otherwise provided by this
subchapter, the EPA grant approving
official may only authorize the with-
olding of a grant payment where he
determines in writing that a grantee
has failed to comply with project ob-
jectives, grant award conditions, or
EPA reporting requirements. Under
such conditions, the EPA grant award
official will inform the grantee by
written notice that payments will not
be made for "obligations incurred after
a specified date until the conditions
are corrected. Such withholding shall
be limited to that amount necessary to
assure compliance.
(b) The grant approving official may
authorize withholding of payment to
the extent of any indebtedness to the
United States, unless he determines
that collection of the indebtedness will
impare accomplishment of the project
objectives and that continuation of
the project is in the best interest of
the United States.
[43 FR 28484, June 30, 1978]
§ 30.615-4 Assignment.
The right to receive payment under a
grant may not be assigned, nor may pay-
ments due under a grant be similarly
encumbered.
§ 30.620 Grant related income.
(a) "Grant related income" means-in-
come generated from charges which are
directly related to a principal project
objective (such as the sale of a solid
waste by-product or of copies of reports
or studies) except as otherwise pro vied by
statute or the grant agreement.
[43 FR 28484, June 30, 1978]
(b) Except as otherwise provided
herein a grantee is accountable to EPA
for all grant related income. Grantees
are required to record the receipt and
expenditure of all grant related income.
The net amount of such income shall be
retained by the grantee and, except as may
be otherwise provided in the grant agree-
ment, shall be used to further support the
project; or for grants with institutions of
higher education, hospitals, and other non-
profit organizations may be used to finance
the non-Federal share of the project, if ap-
proved by EPA. To the extent such funds are
not used for the project, such amounts shall
be deducted from the total project costs for
the purpose of determining the net costs on
which the EPA share will be based. In no1
event will EPA be entitled to a credit in
excess of the grant amount.
[41 FR 56196, December 27, 1976]
(c) Revenue generated under the gov-
erning powers of a State or locM govern-
ment which may have been generated
without grant support is not considered
grant related income. Such revenues
shall include fines or penalties levied
under judicial or penal power and used
as means to enforce laws; license cr per-
mit fees for the purpose of regulation,
special assessment to abate nuisances
and public irritations, inspection fees,
and taxes.
g 30.620-1 Proceeds from sale of real
or personal property.
Income derived from the sr.le of real
or personal property shall be treated iri
-accordance with 5 30.810.
§ 30.620-2 Royalties received from
copyrights and patents.
[41 FR 56196, December 27, 1976]
Unless the grant .agreement provides
otherwise, grantees (other than .profit
making) shall have no obligations to
EPA with respect to royalties they re-
ceive as a result of copyrights or patents
produced under the grant. However,
nothing in this section shall be con-
strued to diminish or eliminate any
15
-------
FEDERAL REGULATIONS
Hghts or privileges flowing to the Fed-
eral Government as a result of the pro-
visions of 40 CFR Part 30, Appendix B—
Patents and Inventions or Appendix C—
Bights in Data and Copyrights.
30.620-3 Interest earned on grant
funds.
(a) All grantees except those listed
below must return to EPA all interest
earned on Federal funds pending their
disbursement for project purposes (see
42 Comp. Gen. 289).
(b) The only grantees exempt from
this requirement are:
(DA State and any agency or instru-
mentality of a State, pending their dis-
bursement for project purposes (Sec-
tion 203 of the Intergovernmental Co-
operation Act of 1968. 42 U.S.C. 4201
etseq.); and
(2) A tribal organization (sections
102. 103. or 104 of the Indian Self De-
termination Act. Pub. L. 93-638).
[43 FR 28484, June 30, 1978]
§ 30.625 Grantee publications and pub-
licity.
Pursuant to the Government Printing
and Binding Regulations, no grant may
be awarded primarily or substantially for
the purpose of having material printed
for the use of any Federal Department
or Agency.
§ 30.625-1 Publicity.
Press releases and other public dis-
semination of information by the grantee
concerning the project work shall ac-
knowledge EPA grant support.
§ 30.625-2 Publications.
(a) Policy. EPA encourages and, when
specified in the grant agreement, may
require publication and distribution of
reports of grant activity. The prepara-
tion, content, and editing of publications
are the responsibilities of the grantee.
Except for the final report, review of
publications prior to distribution will
not normally be made by EPA. Grantees
must give notice in writing to the Project
Officer at least 30 days prior to publica-
tion or other dissemination of project
information (other than publicity) un-
less a shorter period has been approved
by the Project Officer. This notice policy
is intended to provide the EPA Project
Officer with a minimal opportunity to
discuss publication format, content, or to
coordinate appropriate Agency activi-
ties; censorship is not intended nor
permitted. This procedure does not apply
to seminars, participation on panels, re-
porting to other research sponsors, or
other similar nonpublishing activities.
(b) Acknowledgement of support. An
acknowledgement of EPA support must
be made in connection with the publish-
ing of any material based on, or devel-
oped under, a project supported by EPA.
The acknowledgement shall be in the
form of a statement substantially as
follows:
This project has been financed (In part/
entirely) with Federal funds from the En-
vironmental Protection Agency" under grant
number The contents do not neces-
sarily reflect the views and policies of the
Environmental Protection Agency, nor does
mention of trade names or commercial prod-
ucts constitute endorsement or recommenda-
tion for use.
(c) Copies of publications. Upon pub-
lication, a minimum of six copies of the
publication shall be furnished to the
Project Officer. The Project Officer shall
promptly file one copy of all publications
resulting from EPA grant support in the
official EPA grant file, EPA Headquarters
Library, and with the National Technical
Information Service, U.S. Department of
Commerce.
§ 30.625-3 Signs.
A project identification sign shall be
displayed in a prominent location at each
publicly visible project site and facility
(e.g., mobile laboratories, construction
and demolition sites, buildings in which
a substantial portion of the work is EPA-
funded, etc.). The sign must identify the
project and EPA grant support. Grantees
may obtain information pertaining to the
design and specifications for the signs
from their Project Officer. Costs of prep-
aration and erection of the project iden-
tification sign are allowable project
costs.
§ 30.630 Surveys and questionnaires.
(a) Costs associated with the collec-
tion of data or information through sur-
veys or questionnaires by a grantee (or
party to subagreement) shall be allow-
able project costs only if prior written
approval of the Project Officer has been
obtained for such survey or question-
naire. The Project Officer shall not give
such approval without the concurrence
of the EPA Headquarters Reports Man-
agement Officer to assure compliance
with the Federal Reports Act of 1942
(44 U.S.C. 3501-3511).
(b) A grantee (or party to subagree-
ment) collecting information from the
public on his own initiative may not rep-
resent that the information is being col-
lected by or for EPA without prior agency
approval. If reference is to be made to
EPA, or the purpose of the grant is for
collection of information from the pub-
lic, prior clearance of plans and report
forms must be requested by the grantee
through the Project Officer.
§ 30.635 Reports.
§ 30.635—1 Interim progress reports.
(a) It is EPA policy that where prog-
ress reports are required such reports
shall be submitted to the Project Officer
no more frequently than quarterly. Spe-
cific reporting requirements are set forth
in Parts 35. 40, and 45 of this Subchapter.
(b) Between the required performance
reporting dates, the grantee shall
promptly notify the Project Officer, in
accordance with § 30.900-1, of events
which have significant impact upon the
project.
§ 30.635-2 Final report.
(a) For all EPA research, demonstra-
tion, and training grants, the grantee
sha'l prepare and submit to the Proj-
ect Officer an acceptable final report
prior to the end of the project period. An
acceptable report shall document project
activities over the entire period of grant
support and shall describe the grantee's
achievements with respect to stated proj-
ect purposes and objectives. Where ap-
propriate, the report shall set forth in
complete detail all technical aspects of
the project, both negative and positive,
grantee's findings, conclusions, and re-
sults, including, as applicable, an eval-
uation of the technical effectiveness and
economic feasibility of the methods or
techniques investigated or demonstrated.
Grantees are required to submit a draft
final report to the Project Officer at least
90 days prior to the end of the approved
project period. The final report shall ade-
quately reflect
-------
grant support, whichever occurs first, or
within such additional time as EPA may
allow for good cause
(b) For wastewater treatment con-
struction grants, the grantee is required
to submit an Outlay Report and Re-
quest for Reimbursement for Construc-
tion Programs which will also serve as
the financial report
§ 30.635—4 Invention reports.
As provided m Appendix B of this
Part, prompt reporting to the Project
Officer of all inventions is required for
EPA prants involving experimental, de-
ve.opnieuLal research or demonstration
work In addition:
(a) An annual invention statement is
required with a continuation application
A final invention report is re-
quired to be submitted to the grants ad-
ministration office within 90 days after
completion of the project period.
(c> When a project director or prin-
cipal investigator changes institutions or
ceases to direct a project, an invention
statement must be promptly submitted
to the grants administration office with
a listing of all inventions during his ad-
ministration of the grant
§ 30.635—5 Property reports.
For all EPA grants a physical in-
ventory of property shall be taken by the
graniee and the results reconciled with
the grantee's property records at least
once every 2 years The grantee shall, in
connection with the inventory, verify the
existence, current utilization, and con-
tinued need for the property.
(b) For all EPA grants except grants
for construction of waste treatment
works the grantee must submit at the
end of each project period a complete in-
ventory of all property for which the
grantee is accountable pursuant to § 30.-
810. The submission must indicate the
condition of each property item and rec-
ommendation for disposition. For the
purposes of this subsection property for
which the grantee is accountable means
(1) property for which disposition in-
structions must be requested from EPA,
or (2) property for which EPA must be
compensated for its share.
(c) For all EPA grants, grantees shall
submit an annual inventory of federally-
owned property in their possession.
[41 FR 56196, December 27, 1976]
§30.635-6 [Reserved]
[43 FR 28484, June 30, 1978]
§ 30.635—7 Compliance.
Failure to comply with these reporting
requirements in a timely manner will re-
sult in appropriate action pursuant to
§ 30.430.
§ 30.610 Utilization of Government pro-
curement sources.
(a) Use of General Services Adminis-
tration sources of supply and services by
grantees is not allowed (see 37 FR 24113.
November 14, 1972).
(b) Utilization of Government excess
property by EPA grantees is not allowed.
§ 30.645 Force account work.
(a) Except as is otherwise provided in 40
CFR 35.936-14, the grantee must obtain
specific written prior approval from the
Project Officer for the utilization of the "force
account" method (i.e., utilization of the
grantee's own employees for construc-
tion, construction-related activities, or
for facility repair or improvement) in
lieu of subagreement for any construc-
tion activity in excess of $10,000 unless
the force account method is stipulated in
the grant agreement.
(b) The Project Officer, with the
concurrence of the EPA grant approv-
ing official, max authorize in writing
the use of the force account method in
lieu of contracting if he determines,
based on the grantee's certification,
that the grantee possesses the neces-
sary competence required to accom-
plish such work and (1) the work can
be accomplished more economically by
the use of the force account method,
or (2) emergency circumstances so dic-
tate.
[43 FR 28484, June 30, 1978]
(c) Authorizations to utilize the force
account methad will identify applicable
Federal requirements and the allowa-
bility of various cost items.
Subpart f—Project Costs
g 30.700 Use of funds.
(a) All Federal assistance received
under an EPA grant shall be expended by
the grantee solely for the reasonable r.nd
eligible costs of the approved project in
accordance with the terms of the grant
agreement and this subchapter. All proj-
ect expenditures by the grantee shall be
deemed to include the Federal share.
(bi The grantee may not delegate nor
transfer his responsibility for the use of
grant funds.
(c) No profit or other increment above
cost in the nature of profit is allowed.
§ 30.705 Allowable costs.
Project costs shall be allowable if
payment is authorized by applicable
statutory provisions and the ioiJowIng
conditions ase met:
(a) The costs must be reasonable anc!
within the scope of the project;
(b) The cost is allocable to the extent
of benefit properly attributable to the
project;
(c) Such costs must be accorded con-
sistent treatment through application of
generally accepted accounting prnci-
ples;
(d) The cost must not be allocable to
or included as a cost of any other fed-
erally assisted program in any account-
ing period (either current or prior); and
(e) The cost must be in conform!^
with any limitations, conditions, or ex-
clusions set forth in the grant agreement
or this Subchapter, including appropriate
Federal cost principles of this Subpart.
§ 30.703-1 Pa> ment to consultants.
For all grants awarded by EFA, '.he
maximum daily rate paid to consu1-
tar.ts retained by EPA, grantees, or
contractors and subcontractors :if
grantees will not exceed the maximum
daily rate for GS-18. This limitation
applies only to consultation services ••.>•
designated individuals with specialized
skills \\ ho are paid at a daily or hourly
r-
propriation Act, 1978. Pub. I,. 9v>- 1'. *.
dated October 4, 1977.)
[43 FR 28484, June 30, 1S78]
§ 30.710 Federal cost principles,
The following cost principles :• • c t p-
plicable to all EPA grants and sabatene-
ments of grantees, .except as otherwise
provided by statute or this Subchapte'-:
(a) For state and local governmr.nis.
Federal Management Circular 74-4 (34
CFR Part 255) provides principle , :for
determining allowable costs for all •;; -\ UP
and subagreements awarded to Stat > and
local governments.
(b) For educational institution*!, O>
Federal Management Circular 73 '34
CFR Part 254) provides cost prir o pies
for research and development, tra':iri&,
and other educational services 'i^lei
grants and subagreements with eciooa-
tional institutions.
17
-------
FEDERAL REGULATIONS
(2) Federal Management Circular 73-6
(34 CFR Part 252) provides principles for
coordinating (i) the establishment of in-
direct cost rates for, and (ii) the auditing
of grants and subagreements with edu-
cational institutions.
(c) For other nonprofit institutions.
Department of Health, Education, and
Welfare publication OASC-5 (Revised)
will be used for grants and subagree-
ments awarded to other nonprofit ir-Jti-
tutions.
(d) For all other grants and siib-
agrsements. Federal Procurement Regu-
lations (41 CFR Ch. I, Subpart 1-15.2 or
1-15.4, as appropriate) provide, to the
greatest practical extent, comparable
principles and procedures for use in cost-
reimbursement for all other grants and.
subagreements.
[40 FB 20232. May 3. 1975, as amended at 41
PR 20C53, May 20, 197G]
§ 30.715 Direct and indirect costs.
(a) Project costs will generally be
comprised of allowable direct costs and
allowable indirect costs.
(b) Each item of cost must be treated
consistently as either a direct or an in-
direct cost.
(c) Any cost allocable to a particular
grant or cost objective under the appro-
priate Federal cost principles may not
be shifted to other Federal grant pro-
grams to overcome fund deficiencies,
avoid restrictions imposed by law or
grant agreement, or for other reasons.
§30.715-1 Direct costs.
Direct costs are those than can be
identified specifically with a particular
cost objective. These costs may be
charged directly to a project.
§ 30.715—2 Indirect costs.
[41 FR 20656, May 20, 1976]
Indirect costs are those incurred for
a common or joint purpose but benefit-
ing more than one cost objective, and not
readily identifiable to the cost objectives
specifically benefited. Federal Manage-
ment Circulars 73-6 and 74-4 govern the
methods that may be used in determin-
ing the amount of grantee departmental
indirect cost allocable to a grant pro-
gram. These directives provide for ihf
assignment of cognizance to single Fed-
eral Departments and agencies for con-
ducting indirect cost negotiations and
audits at educational institutions and
State and local governments, Procedu rf
governing the application and dispo-s;
tion of indirect costs for subagreemenus
with commercial organizations and
architectural and engineering firms are
covered by 41 CFR 1-15.2 and 1-15.4 re-
spectively. The rate(s) negotiated by the
cognizant Federal agency are normally
accepted by all Federal agencies. Orga-
nizations not covered by the above direc*
tives may have rates, established by
negotiation with EPA or another Federal
agency. The following guidance is fuir
nished:
(a) EPA uses the latest available-ne-
gotiated rate as a basis for computing
indirect costs for the applicant. .In
those cases where the indirect cost
budgeted. in the grant agreement is
based on a provisional rate, .the actual
indirect costs may be adjusted only as
follows:
(1) If a final rate is established and
that rate is less than the provisional-
rate, the indirect costs will be adjusted
downward.
(2) If a final rate is greater than the
provfsion'al' rate, the grantee may
transfer funds from the direct cosl
categories to indirect costs; however,
payment may not exceed the total ap-
proved grant amount.
[43 FR 28484, June 30, 1978]
(b) A special indirect cost rate may be
applied to a project (or portion of a
project) to be carried out at an off-cam-
pus cr off-site location. A special indirect
cost rate may be negotiated for a large
nonrecurring project when such proiecl
costs would distort the normu.1 direct cost
base used in computing the overhear1
*v
(O The following guidelines are to
be used for determining the allowabi-
lity and reimbursement of indirect
costs claimed by a grantee:
(1) For indirect costs to be allowable
under a grant, they must be provicit-d
for in the grant agreement.
(2) Provisional indirect cost rates
may be used for billing purposes under
EPA grants. Fixed or predetermined
indirect cost rates may also be used
where there is advance agreement be-
tween the grantee and the grant
award official.
(3) A separate indirect cost proposal
must be prepared for each fiscal year
for which the grantee desires to claim
indirect costs. However, there are dif-
ferent requirements for State agencies
than for local agencies with respect to
the submission of indirect cost propos-
als to the Federal Government: (i) All
State unit indirect cost proposals must
be submitted to the cognizant Federal
agency within 6 months after the close
of each fiscal year; and (ii) local unit
indirect cost proposals must be re-
tained but need not be submitted for
approval unless required for a pending
grant award or requested by the cogni-
zant Federal agency or its authorized
representative. Pertinent financial rec-
ords which substantiate the claim for
indirect cost reimbursement must be
retained by the grantee. If the re-
quired data is not retained and made
available to the auditor upon his re-
quest at the time he initiates his audit
of grant costs, the claim for indirect
costs will be disallowed for that year.
(4) The audit of an indirect cost pro-
posal will provide the basis for deter-
mining acceptaW~-Indirect cost rates.
[43 FR 28484, June 30, 1978]
§ 30.720 Cost sharing.
(a) Except as may be otherwise pro-
vided by law or this Subchapter, EPA
grantees must share project costs. If there is
no statutory matching requirement, a
grantee must contribute not less than 5%
of allowable project costs within each
budget period. Such contributions may
be reflected in either direct or indirect
-ovtv; in-kind contributions are permitted.
[41 FR 20656, May 20, 1976;
(b) Cost sharing must be negotiated
prior to award of a grant and must be
set forth in the grant agreement as a
percentage of the total allowable project
costs for each budget period. Criteria to
be used in the negotiation concerning the
extent of cost sharing may include the
benefits the grantee will derive from the
project; the financial risk the grantee
will bear; and the resources the grantee
:ias available.
(c) Contributions to cost sharing are
"illovvable only if they: Are verifiable
i;om the grantee's records; are not in-
cluded as cost sharing or matching
contributions for any other federally
assisted program; are otherwise prop-
erly allocable to the project; constitute
allowable project costs; are not paid by
the Federal Government under an-
other assistance agreement unless au-
thorized under the other agreement
and the laws and regulations it is sub-
ject to and; are provided for in the ap-
proved budget.
[43 FR 28484, June 30, 1978]
(d) Institutional cost sharing agree-
ments are not permitted.
§ 30.725 Cost and price analysis.
§ 30.725-1 Policy.
The reasonableness of the price or cost
of each grant application or negotiated
subagreement proposal must be con-
sidered. The method and degree of analy-
sis shall depend on the circumstances of
the particular grant or subagreement ac-
tion.
18
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§ 30.725-2 Price analysis.
A price-analysis is the process of exam-
ining and evaluating a prospective price
by comparison without evaluation of the
composition of separate cost elements
and proposed profit.
§ 30.725-3 Cost analysis.
A cost analysis is the process of exam-
ining, verifying and evaluating cost data
and the judgmental factors applied in
projecting from the basic cost data to a
reasonable estimated price that will be
representative at the total cost of per-
formance of the grant or negotiated sub-
agreement.
§ 30.725-4 Requirements.
(a) A formal cost analysis shall be
made and a summary of findings pre-
pared for all research, demonstration,
planning and training grant applications
deemed relevant and requesting EPA
funds in excess of $150,000 for the budget
period.
(b) A formal cost analysis shall be
made and a summary of findings pre-
pared for all grant applications from
profit making organizations deemed rele-
vant.
(c) Any other grant application or
subagreement may receive a cost analysis
where EPA's program office or grants ad-
ministration office considers it appro-
priate.
(d) Price analysis techniques may be
used instead of or to supplement cost
analysis wherever appropriate.
Subpart G—Grantee Accountability
§ 30.800 Financial management.
The grantee is responsible for main-
taining a financial management system
which shall adequately provide for:
(a) Accurate, current, and complete
disclosure of the financial results of each
grant program in accordance with EPA
reporting requirements. Accounting for
project funds will be in accordance with
generally accepted accounting principles
and practices, consistently applied, re-
gardless of the source of funds.
(b) Records which identify adequately
the source and application of funds for
grant-supported activities. These records
shall contain information pertaining to
grant awards and authorizations, obliga-
tions, unobligated balances, assets,
liabilities, outlays, and income.
(c) Effective control over and ac-
countability for all project funds, prop-
erty, and other assets. Grantees shall
adequately safeguard all such assets and
shall assure that they are used solely for
authorized projects.
(d) Comparison of actual with budg-
eted amounts for each grant. If ap-
propriate and required by the grant
agreement, relation of financial informa-
tion with performance or productivity
data, including the production of unit
cost information.
(e) Procedures to minimize the time
elapsing between the transfer of funds
from the U.S. Treasury and the disburse-
ment by the grantee, whenever funds are
advanced by the Federal Government
When advances are made by a letter-of-
credit method, the grantee shall make
drawdowns from the U.S. Treasury
through his commercial bank as close as
possible to the time of making the dis-
bursements.
(f) Procedures for determining the
allowability and allocability of costs in
accordance with the provisions of
I 30.705.
(g) Accounting records which are sup-
ported by source documentation.
(h) Audits to be made by the grantee
or at his direction to determine, at a
minimum, the fiscal integrity of finan-
cial transactions and reports, and the
compliance with the terms of the
grant agreement. Such audits shall be
made by qualified individuals who are
sufficiently independent of those who
authorize the expenditure of Federal
funds.- Audits should be made in ac-
cordance with generally accepted au-
diting standards published by the
General Accounting Office, Standards
for Audit of Governmental Organiza-
tions, Programs, Activities, and Func-
tions. It is not required that each
grant awarded a grantee be audited.
Generally, examination should be con-
ducted on an organization-wide basis.
The grantee will schedule such audits
with reasonable frequency, usually an-
nually, but not less frequently than
once every 2 years, considering the
nature, size and complexity of the ac-
tivity. The grantee shall provide EPA
with a copy of audits made by the
grantee or at his direction.
[43 FR 28484, June 30, 1978]
(i) A systematic method to assure
timely and appropriate resolution of
audit nndings and recommendations.
§ 30.805 Records.
The following record and audit policies
are applicable to all EPA grants and to
all subagreements in excess of $10,000
under grants.
(a) The grantee shall maintain books,
records, documents, and other evidence
and accounting procedures and practices,
sufficient to reflect properly (1) the
amount, receipt, and disposition by the
grantee of all assistance received for the
project, including both Federal assist-
ance and any matching share or cost
sharing, and (2) the total costs of the
project, including all direct and indirect
costs of whatever nature incurred for the
performance of the project for which the
EPA grant has been awarded. In addi-
tion, contractors of grantees, including
contractors for professional services,
shall also maintain books, documents,
papers, and records which are pertinent
to a specific EPA grant award. The fore-
going constitute "records" for the pur-
poses of this subpart.
(b) The grantee's records and the rec-
ords of his contractors, including pro*
fessional services contracts, shall be sub-
ject at all reasonable times to inspection,
copying, and audit by EPA, the Comp-
troller General of the United States, the
Department of Labor, or any authorized
representative.
(c) The grantee and contractors of
grantees shall preserve and make their
records available to EPA, the Comp-
troller General of the United States,
Department prilabor,. or any author-
ized representative until expiration of
3 years, except that (1) if any litiga-
tion, claim, or audit is started befoie
the expiration of the 3-year period,
the records shall be retained until all
litigations, claims, or audit findings in-
volving the records have been re-
solved, (2) records for nonexpendable
property acquired with Federal funds
shall be retained for 3 years after its
final disposition, and (3) when records
are transferred to or maintained by
EPA, the 3-year retention requirement
is not applicable to the grantee. The 3-
„..«, jcuenuon period starts (i) from
the date of submission of the final fi-
nancial status report for project
grants, or, for grants which are award-
ed annually, from the date of the sub-
mission of the annual financial status
report, (ii) from the date of approval
of the final payment request for the
last project of a construction grant for
WWT works, and (iii) for such longer
period, if any, as is required by appli-
cable statu' _• or lawful requirement, or
by paragraph io)(2) (i) or (ii) of this
section.
[43 FR 28484, June 30, 1978]
(i) If a grant is terminated completely
or partially, the records relating to the
work terminated shall be preserved and
made available for a period of 3 years
from the date of any resulting final ter-
mination settlement.
19
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FEDERAL REGULATIONS
(ii> Records which relate to (a'l ap-
peals under the Subpait J-Disputes, of
this Part, (6) litigation on the settle-
ment of claims arising out of the per-
formance of the project for which a grant
was awarded, or management si.mil-
anK.
The grantee's property management
standards for nonexpendable personal
property shall include as a minimum the
following elements:
(a) Accurately maintained property
records which include:
(1) A description of the property,
(2) Manufacturer's serial number,
model number, or other identification
number,
(3) Source of the property, including
contract or grant number,
(4) Whether title vests in the grantee
or the Federal Government,
(5) Acquisition date (or date received,
if the property was furnished by the
Federal Government) and cost,
(6) Location, use, condition of prop-
erty, and date the information was
reported.
[41 FR 56196, December 27, 19761
(7) Ultimate disposition data, includ-
ing sales price or the method used to
determine current fair market value
where a grantee compensates EPA for
its share.
8) Unit acquisition cost.
[41 FR 56196, December 27, 1976]
(b) A physical inventory of property
that is taken, and the results reconciled
with the property records, at least once
evory 2 years. The grantee shall, in con-
nection with the inventory, verify the
existence, current utilization, and con-
tinued need for the property.
(c) A control system which insures
adequate safeguards to prevent loss,
damage, or theft to the property. Any
loss, damage, or theft of nonexpendable
property shall be investigated and fully
documented. If the property was owned
by the Federal Government, the grantee
shall promptly notify the Project Officer.
(d) Adequate maintenance proce-
dures which insure that the property is
maintained in good condition and that
instruments used for precision measure-
ment are periodically calibrated.
(e) Proper sales procedures for un-
needed property which would provide
for competition to the extent practica-
ble and result in the highest possible
return.
(f) Identification of property owned
by the Federal Government to indicate
Federal ownership.
§ 30.810—1 Title to properly.
Except as may be otherwise provided
by law or in this Subchapter or in the
grant agreement, title to all real or per-
sonal property whose acquisition cost is
a direct cost under a grant project shall
vest in the grantee, subject to such inter-
est in the United States as may be pro-
vided for in this Subchapter or in the
grant agreement. For all property with
an acquisition cost of $10,000 or more per unit
the grantee shall assure that the interest of the
United States in the property is ade-
quately reflected and protected in com-
pliance with all recordation or registra-
tion requirements of the Uniform Com-
mercial Code or other applicable local
laws.
§30.810-5 Krai properly.
(a) The grantee shall use the re.il
property for the purpose of the original
grant.
(b) The grantee shall obtain approval
from >.PA for the use of the real property
in other projects when the piantee deter-
mines that the property is no longer-
heeded for the original grant purposes.
Use in other projects shall be limited to
those under other Federal grant pro-
grams, or programs that have purposes
consistent with those authonzeu for sup-
port by EPA.
(c) When the real property is r.o
longer needed as provided in paragraphs
ia) and 'b) of t'ais section, the grantee
shall request disposition instructions
from EPA.
(d) £13A shall observe the following
rules in the disposition instructions for
real property:
(1) In the case of real property fur-
nished by EPA or purchased wholly with
EPA funds, the grantee shall return all
such real property to the control of EPA.
(2) In the case of leal propeiiy pur-
chased in part with EP.* funds ,the qusr-
antee, at the direction of the Project
Officer, may:
(i) Retain title with Federal restric-
tion removed if it compensates thp Fed-
eral Government an amount computed
by applying the Federal percentage of
paiticipation in the net cost of the proj-
ect to the current fair market value of the
property, or
20
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di) Sell the property under guide-
lines provided by EPA, using proper
sales procedures that provide for com-
petition to the extent practicable and
result in the highest possible return,
and, except as provided in §30.810-
5fd)(3), pay the Federal Government
an amount computed by applying the
Federal percentage of participation in
the net cost of the project to the pro-
ceeds from sale (after deducting actual
and reasonable selling and fix-up ex-
penses, if any, from the sales pro-
ceeds), or
[43 FR 28484, June 30, 1978]
f'h) Trc~i<:fpr title of the property to
tne Federal Government with its consent
provided that in such cases the grantee
shall be entitled to compensation com-
puted by applying the grantee's percent-
age of participation in the net cost of the
project to the current fair market value
of the property.
(3) In the case of real property pur-
chased in part with EPA funds allot-
ted for purposes set forth in §35.940-
3(a), the grantee, at the direction of
the Project Officer, may sell the real
property under procedures approved
by EPA and may retain the amount of
the Federal interest, as determined in
§30.810-5(d)(2)(ii), to be used solely
for paying the eligible costs (in accord-
ance with §35.940) of the upgrading,
expansion, replacement, or reconstruc-
tion of treatment works associated
.with the project.
[43 FR 28484, June 30, 1978]
§ 30.810—6 Fedrrallj-ownetl iionONpcn Upon termination of the grant or
need for the property, such property shall
be reported to EPA for further agency
utilization or, if appropriate, for report-
ing to the Geneial Services Admin,ttia-
uon for other Federal agency utiliAition
Appropriate disposition mr.tructioi.s n.ll
be issued to the grantee alter completion
of EPA review Ur.der no circumstances
shall grantees sell Government-owned
property.
§ 30.810-7 Nonexpendable personal
property acquired with Federal
funds,
(a) Use.
(1) When nonexpendable personal
property is acquired by a grantee as a
direct cost under a grant, the grantee
shall retain the property in the grant
program for its useful life or as long as
there is a need for the property to ac-
complish the purpose of the grant pro-
gram, whichever is shorter.
(2) During the time that nonexpend-
able personal property is held for use on
the project or program for which it was
acquired, the grantee shall make it avail-
able for use on other projects or pro-
grams if such other use will not interfere
with the work on the project or program
for which the property was originally
acquired. If the property is owned by the
Federal Government, use on other ac-
tivities not sponsored l3y the Federal
Government is permissible subject to
prior approval by EPA. User charges will
be made, if appropriate.
(3) Except as may be provided in the
grant agreement, when there is no longer
a need for such property for the grant
program, the grantee may utilize the
property in the following order of pri-
ority :
(i) Other grant activities sponsored by
EPA,
(ii) Grant activities sponsored by other
Federal agencies.
[41 FR 56196, December 27, 1976]
(b1 Disposition When the grantee no
longer has need for thevproperty in any
of its Federal grant programs, property
disposition will be as follows:
<1) For all grantees except profit-
making organizations, nonexpendable
property with an acquisition cost of less
than $1,000 may be used for a grantee's
own activities without reimbursement to
the Federal Government or the grantee
may sell the property and retain the
proceeds. Profit-making organizations
may retain the property provided that
EPA is compensated for its proportionate
.share of the property Compensation
shall be computed by applying the per-
centage of EPA participation ir the cost
of the project to the fair market value of
the property
(2) Nonexpendable property with an
acquisition cost of $1,000 or more may be
retained by the grantee provided that
EPA is compensated for its proportionate
share of the current market value of the
property.
(3) When a grantee does not wish to
retain property with an acquisition cost
of $1,000 or more, as provided in para-
graph (b) (2) of this section, or when a
profit-making organization does not wish
to retain property as provided in (b) (1)
of this section, the grantee shall request
disposition instructions from EPA. EPA
shall determine whether the property
can be used to meet other Agency re
quirements; if not, EPA shall report the
availability of the property to the Gen-
eral Services Administration to deter-
mine whether a requirement for the
property exists in other Federal agencies.
(4) EPA shall observe the following
rules in the disposition instructions for
nonexpendable personal property with an
acquisition cost of $1,000 or more.
(i) EPA may waive title to the prop-
erty with all Federal restrictions and
conditions removed, if the grantee is a
nonprofit institution of higher education
or nonprofit research organization, in
accordance with the provisions of the
Grants Act (Pub L. 85-934).
(ii) EPA may instruct the grantee to
ship the property elsewhere. Compensa-
tion will be made to the grantee by the
benefiting Federal agency. Compensation
shall be computed by applying the per-
centage of the grantee's participation in
the grant program to the current fair
market value of the property, plus any
shipping or interim storage costs' in-
curred
(tin EPA may instruct the grantee to
otherwise dispose of the property Com-
pensation will be made to the grantee by
EPA Compensation shall be computed
by applying the percentage of the
grantee's participation in the grant pro-
gram to the current fair market value of
the property, plus any costs incurred in
its disposition
(iv) EPA shall issue disposition in-
structions to the grantee within 120 days.
If disposition instructions are not re-
ceived within 120 days after reporting,
the grantee shall sell the property and
reimburse EPA an amount which'is com-
puted by applying the percentage of Fed-
eral participation in the grant program
to the sales proceeds, less $100 or 10 per-
cent of the proceeds, whichever is
greater, for selling and handling
expenses.
§ 30.810—8 Expendable personal prop-
ort> acquired with (Irani fund*.
Title to expendable personal property
shall vest in the grantee upon acquisition.
If there is a residual inventory of such
property exceeding $1,000 in total aggre-
gate fair market value upon termination
or at the conclusion of the project period,
and the property is not currently needed
tor any other federally-sponsored proj-
ect or program, the grantee shall retain
the property for use on nonfederally-
sponsored activities, or sell it. but must
in either case, compensate EPA for its share. The
amount of such compensation shall be
computed by applying the percentage of
Federal participation in the net cost of
the project to the current fair market
value of the property.
[41 FR 56196, December 27, 1976]
21
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FEDERAL REGULATIONS
§ 30.810-9 Property reports.
Property reports must be furnished in
accordance with i 30.635-5.
§30.815 Final settlement.
Upon submission of the final financial
status report pursuant to § 30.635-3,
there shall be payable to the United
States as final settlement the total sum
of (a) any unexpended grant funds, (b)
any Amounts payable for equipment,
materials, or supplies, pursuant to § 30.-
810, (c) other grant related income, pur-
suant to § 30.620, and (d) an amount
equivalent to that portion or project
costs which are unallowable, in propor-
tion to the EPA share and to the extent
grant payments therefor have been
made. Any settlement made prior to the
final audit is subject to adjustment based
on the audit. Final settlement will not
be considered complete until all audit
findings, appeals, litigations, or claims
have been resolved. Any debt owed by the
grantee to the United States, and not
paid at the time of final settlement shall
be recovered from the grantee or its suc-
cessors by setoff or other action as pro-
vided by law.
§ 30.820 Aurtit.
(a) Preaward or interim audits may
be performed on grant applications and
awards.
(b) A final audit shall be requested
by the grant award official after the
submission of or the due date of the
final financial status report under
§ 30.635-3. Any .settlement made prior
to the final audit is subject to adjust-
ment based, on the audit. Grantees and
subcontractors of grantees shall pre-
serve arfti make their records available
under § 30.805.
[43 FR 28484, June 30, 1978]
Subpart H-
~Modific«it!on, Suspension and
Termination
§ 30.900 Project changes and grant
modifications.
(a) A grant modification means any
written alteration, in the grant amount,
grant terms or conditions, budget or
project period, or other administrative,
technical, or financial agreement wheth-
er accomplished by unilateral action of
the grantee or the Government in ac-
cordance with a provision of the grant
agreement or this Subchapter, or by
mutual action of the parties to the grant.
(b) The grantee must promptly notify
the Project Officer in writing (certified
mail, return receipt requested) of events
or proposed changes which may require a
grant modification, such as:
(1) Rebudgeting (see § 30.610);
(2) Changes in approved technical
plans or specifications for the project;
(3) Changes which may affect the
approved scope or objective of a project;
(4) Significant changed conditions at
the project site;
(5) Acceleration or deceleration in the
time for performance of the project, or
any major phase thereof;
(6) Changes which may increase or
substantially decrease the total cost of
a project (see § 30.900-1); or
(7) Changes in the Project Director or
other key personnel identified in the
grant agreement or a reduction in time
or effort devoted to the project on the
part of such personnel.
(c) Grant modifications are of four
general types: formal grant amendments,
administrative grant changes, transfer
of grants and change of name agree-
ments, and grantee project changes (see
§ 30.900-1 through § 30.900-4).
(d) A copy of each document pertain-
ing to grant modifications or requests
therefor (any administrative change, ap-
proved or disapproved project changes
and any letter of approval or disapproval,
grant amendment, or agreement for
transfer of a grant or change of name
agreement) shall be retained in the offi-
cial EPA grant file.
(e) The document which effects a
grant modification shall establish the
effective date of the action. If no such
date is specified, then the date of execu-
tion of the document shall be the effec-
tive date for the action.
§ 30.900—1 Formal grant amendments.
(a) Project changes which substan-
tially alter the cost or time of perform-
ance of the project or any major phase
thereof, which substantially alter the ob-
jective or scope of the project, or which
substantially reduce the time or effort
devoted to the project on the part of
key personnel will require a formal grant
amendment to increase or decrease the
dollar amount, the term, or other prin-
cipal provisions of a grant. This should
not be constructed as to apply to esti-
mated payment schedules under grants
for construction of treatment works.
(b) No formal grant amendment may
be entered into unless the Project Officer
has received timely notification of the-
proposed project change. However, if the
Project Officer determines that circum-
stances justify such action, he may re-
ceive and act upon any request for formal
grant amendment submitted (1) prior to
final payment under grants for which
payments of the Federal share have been
made by reimbursement and (2) prior to
grant closeout of other grants. Formal
grant amendments may be executed sub-
sequently only with respect to matters
which are the subject of final audit or
dispute appeals.
(c) A formal grant amendment shall
be effected only by a written amendment
to the grant agreement. Such amend-
ments shall be bilaterally executed by
the EPA grant award official and the
authorized representative of the grantee.
However, in cases where this Subchapter
or the grant agreement give the govern-
ment a unilateral right ifor example, the
suspension or termination rights set
forth in tS 30 915 and 3l).y2U, the with-
holding of grant payment pursuant to
§30.615-3, or the reduction of the grant
amount under §35.556 of this subchapter, any
such right may be exercised by the appro-
priate EPA official (generally, the grant
award official) in accordance with this Sub-
chapter.
(d) The grants administration office
shall prepare all formal grant amend-
ments after approval of the modification
by the Project Officer or Grant Approv-
ing Official, as appropriate.
§ 30.900—2 Administrative grant changes.
These changes, such as a change In
the designation of the Project Officer, or
of the office to which a report is to be
transmitted, or a change in the payment
schedule for grants for construction of
treatment works, constitute changes to
the grant agreement (but not necessarily
to the project work) and do not affect
the substantive rights of the Government
or the grantee. Such changes may be
issued unilaterally by the EPA grant
award official or Project Officer and do
not require the concurrence of the
grantee. Such changes must be in writ-
ing and will generally be effected by a
letter (certified mail, return receipt re-
quested) to the grantee.
§ 30.900-3 Transfer of grants; change
of name agreement*.
Transfers of grants and change of
name agreements require the prior writ-
ten approval of the grant award official.
The grant award official may not approve
any transfer of a grant without the con-
currence of the grant approving official
and consultation with the Regional
Counsel or the Assistant General Coun-
sel, Grants, nor may he approve any
change of name agreement without con-
sultation with the Regional Counsel or
the Assistant General Counsel, Grants.
The grants administration oilico s,aall
prepare the necessary documents upon
receipt from the Project Officer of appro-
priate information and documentation
submitted by the grantee.
22
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§ 30.900-4 Grantee project changes.
Project changes not covered by
§§30.900-1 through 30.900-3 shall be
considered grantee project changes not
requiring formal grant amendments.
(a) Bebudgeting changes may require
prior written approval pursuant to
§ 30.610.
(b) All other grantee project changes
shall be considered approved unless the
Project Officer notifies the grantee of
disapproval, with adequate explanation
of the reason therefor, or the necessity
for the execution of a grant amendment,
in writing (certified mail, return receipt
requested) not later than 3 weeks after
rertejpt of notice pursuant to i 30.900(b).
No action taken pursuant to this section
shall commit or obligate the United
States to any increase in the amount of
a grant or payments thereunder, but
shall not preclude consideration of a re-
quest for a formal grant amendment
pursuant to § 30.900-1.
§ 30.915 Suspension of grants—stop
work orders.
Work on a project or on a portion or
phase of a project for which a grant has
been awarded may be ordered stopped by .
the grant award official, except for grants
to educational institutions or nonprofit
research organizations.
§ 30.915-1 Use of stop-work orders.
Work stoppage may be required for
good cause such as default by the
grantee, failure to comply with the terms
and conditions of the grant, realignment
of programs, lack of adequate funding, or
advancements in the state of the art. In-
asmuch as stop-work orders may result
in increased costs to the Government by
reason of standby costs, such orders will
be issued only after concurrence by the
grant approving official and the Regional
Counsel or the Assistant General Coun-
sel, Grants. Generally, use of a stop-work
order will be limited to those situations
where it is advisable to suspend work on
the project or a portion or phase of the
project for important program or agency
considerations and a supplemental agree-
ment providing for such suspension is not
feasible. Although a stop-work order may
be used pending a decision to terminate
by mutual agreement or for other cause,
it will not be used in lieu of the issuance
of a termination notice after a decision
to terminate has been made.
§ 30.915-2 Contents of stop-work or-
ders.
Prior to Issuance, stop-work orders
should be discussed with the grantee and
should be appropriately modified, in the
light of such discussions. Stop-work or-
ders should include (a) a clear descrip-
tion of the work to be suspended, (b) in-
structions as to the issuance of further
orders by the grantee for materials or
services, (c) guidance as to action to be
taken on subagreements, and (d) other.
suggestions to the grantee for minimizing
costs.
§ 30.915-3 Issuance of stop-work order.
After appropriate concurrence in the
proposed action has been obtained, the
EPA grant award official may, by written
order to the grantee (certified mail, re-
turn receipt requested), require the
grantee to stop all, or any part of the
project work for a period of not more
than forty-five (45) days after the order
is delivered to the grantee, and for any
further period to which the parties may
agree. The grants administration office
shall prepare the stop-work order. Any
such order shall be specifically identified
as a stop-work order issued pursuant to
this section.
§ 30.915—4 Effect of stop-work order.
(a) Upon receipt of a stop-work order,
the grantee shall forthwith comply with
its terms and take all reasonable steps to
minimize the incurrence of costs alloca-
ble to the work covered by the order dur-
ing the period of wont stoppage. Within
the suspension period or within any ex-
tension of that period to which the par-
ties shall have agreed. EPA shall either:
(1) Cancel the stop-work order, in full
or in part,
(2) Terminate the work covered by
such order as provided in § 30.920, or
(3) Authorize resumption of work.
(b) If a stop-work order is canceled or
the period of the order or any extension
thereof expires, the grantee shall
promptly resume the previously sus-
pended work. An equitable adjustment
shall be made in the grant period, the
project period, or grant amount, or all of
these, and the grant instrument shall be
amended accordingly, if:
(1) The slop-work order results in an
increase in the time required for, or an
increase in the grantee's cost properly
allocable to the performance of any part
of the project, and
(2) The grantee asserts a written
claim for such adjustment within sixty
(60) days after the end of the period of
work stoppage. However, if the Project
Officer determines the circumstances
justify such action, he may receive and
act upon any such claim asserted in ac-
cordance with § 30.900-1 (b).
(c) If a stop-work order is not can-
celed and the grant-related project work
covered by such order is within Uie scope
of a subsequently-issued termination or-
der, the reasonable costs resulting from
the stop-work order shall be allowed in
arriving at the termination settlement.
(d) Costs incurred by the grantee or
its contractors, subcontractors, or repre-
sentatives, after a stop-vork order is de-
livered, or within any extension of the
stop-work period to which the parties
shall have agreed, with respect to the
project work suspended by such order or
agreement which are not authorized by
this Section or specifically authorized in
writing by the grant award official, shall
not be allowable costs.
§ 30.915—5 Disputes provision.
Failure to agree upon the amount of
an equitable adjustment due under a
stop-work order shall constitute a dis-
pute (see Subpart J of this part).
§ 30.920 Termination of grants.
A grant may be terminated in wnoie
or in part by the grant award official
upon the recommendation of the Project
Officer and after concurrence of the
grant approving official in the proposed
action and consultation with the Re-
gional Counsel or the Assistant General
Counsel, Grants.
§ 30.920—1 Termination agreement,
The parties may enter into an agree-
ment to terminate the grant at any time
pursuant to terms which are consistent
with this Subchapter The agreement
shall establish the effective date of ter-
mination of the project and grant, the
basis for settlement of grant termination
costs, and, the amount and date of pay-
ment d any sums due either party The
grants administration office will prepare
the termination document.
§ 30.920-2 I'roieif termination by
Rrar.ti'p.
A grantee may not unilaterally ter-
minate the project work for which a
grant has been awarded, except for good
cause. The grantee must promptly give
written notice to the Project Officer of
any complete or partial termination of
the project work by the grantee. If the
Project Officer determines, with the con-
currence of the EPA grant approving of-
ficial, that there is good cause for the
termination of all or any portion of a
project foi which the grant has been
awarded, the EPA grant award official
may enter into a termination agreement
or unilaterally terminate the grant pur-
suant to § 80 9'
-------
FEDERAL REGULATIONS
date of cessation of the project work by
the grantee. If the Project Officer, with
the concurrence of the EPA grant ap-
proving official, determines that a
grantee has ceased work on the project
without good cause, the grant award of-
ficial may unilaterally terminate the
grant pursuant to § 30.920-3 or annul the
grant pursuant to § 30.920-5.
§ 30.920-3 Grant termination by EPA.
(a) Notice of intent to terminate.
After concurrence in the issuance-of a
termination notice has been obtained
from the EPA grant approving official
and the Regional Counsel or the Assist-
ant General Counsel, Grants, the grant
award official shall give not less than ten
(10) days written notice to the grantee
(certified mail, return receipt requested)
of intent to terminate a grant in whole
or in part.
(b) Termination action. The grantee
must be afforded an opportunity for con-
sultation prior to any termination. After
the EPA grant approving official and the
Regional Council or the Assistant Gen-
eral Counsel, Grants, have been informed
of any expressed views of the grantee and
concur in the proposed termination, the
grant award official may, in writing (cer-
tified mail, return receipt requested),
terminate the grant in whole or in part.
(c) Basis for termination. A grant may
be terminated by EPA for good cause
subject to negotiation and payment of
appropriate termination settlement costs.
(d) Method of Termination. The pre-
ferred method of grant termination
shall be by mutual agreement through
a bilaterally executed grant agreement
providing for payment of termination
costs. However, if such agreement is
not feasible, then the grant award of-
ficial may unilaterally terminate the
grant, in whole or in part.
[43 FR 28484, June 30, 1978]
§ 30.920-4 Effect of termination.
Upon termination, the grantee must
refund or credit to the United States that
portion of grant funds paid or owed to
the grantee and allocable to the termi-
nated project work, except such portion
thereof as may be required to meet com-
mitments which had become firm prior
to the effective date of termination and
are otherwise allowable. The grantee
shall not make any new commitments
without EPA approval. The grantee
shall reduce the amount of outstanding
commitments insofar as possible and re-
port to the Project Officer the uncom-
mitted balance of funds awarded under
the grant. The allowability of termina-
tion costs will be determined in conform-
ance with applicable Federal cost prin-
ciples listed in § 30.710.
§ 30.920-5 Annulment of grant.
(a) The grant award official may uni-
laterally annul the grant if the Project Of-
ficer determines, with the concurrence of the
appropriate Assistant Administrator or
Regional Administrator and the Regional
Counsel or Assistant General Counsel,
Grants, that:
(1) There has been no substantial per-
formance of the project work without
good cause;
(2) There is convincing evidence the
grant was obtained by fraud; or
(3) There is convincing evidence of
gross abuse or corrupt practices in the
administration of the project.
(4) The grantee has inordinately de-
layed completion of the project with-
out good cause; or
(5) The grantee has failed to achieve
the project purpose (e.g., preparation
of a research report) or to utilize the
project (e.g., construction) to the
extent that the fundamental purpose
of the grant is frustrated.
[43 FR 28484, June 30, 1978]
(b) In addition to such remedies as
may be available to the United States
under Federal, State, or local law, all
EPA grant funds previously paid to the
grantee shall be returned or credited to
the United States, and no further pay-
ments shall be made to the grantee.
§ 30.920-6 Disputes provision.
The grantee may appeal a termina-
tion or annulment action taken pursuant
to this section isee Subpart J of this
part).
Subpart I—Deviations
§ 30.1000 General.
The Director, Grants Admimstiatioi.
Division, is authorized to approve devia-
tions from substatutory requirements of
this Subchapter or grant related require-
ments of this Chapter when he deter-
mines that such deviations are essential
to effect necessary grant actions or EPA
objectives where special circumstances
make such deviations in the best interest
of the Government.
§ 30.1000-1 Applicability.
A deviation shall be considered to be
any of the following:
(a) when limitations are imposed by
this Subchapter or by grant related re-
quirements of this Chapter upon the use
of a procedure, form, grant clause, or
any other grant action, the imposition of
lesser or greater limitations,
(b) when a policy, procedure, method
or practice of administering or conduct
ing grant actions is prescribed by this
Subchapter or by grant related require-
ments of this Chapter, any policy, pro-
cedure, method, or practice inconsistent
therewith,
(c) when a prescribed grant clause is
set forth verbatim in this Subchapter,
use of a clause covering the same subject
matter which varies from, or has the
effect of alteiing, the prescribed clause
or changing its application,
(d) when a limitation on award or
grant condition is set forth in this Sub-
chapter but not for use verbatim, use of
a special condition covering the same
subject matter which is inconsistent with
the intent, principle, or substance of the
limitation or condition, or related cov-
erage of the subject matter,
(e) omission of any mandatory grant
provision,
(f) when an EPA or other form is pre-
scribed by this Subchapter, use of any
other form for the same purpose, or
(g) alteration of an EPA or other form
prescribed in this Subchapter.
§30.1000-2 Request for deviation.
A request for a deviation shall be sub-
mitted in writing to the Director, Grants
Administration Division, as far in ad-
vance as the exigencies of the situation
will permit. Each request for a deviation
shall contain as a minimum:
(a) The name of the applicant or the-
grantee and the grant identification
number of the application or grant af-
fected, and the dollar value,
(b) identification of the section of this
Subchapter or the grant related require-
ments of this Chapter from which a de-
viation is sought,
(c) an adequate description of the de-
viation and the circumstances in which
it will be used, including any pertinent
background information which will con-
tribute to a fuller understanding of the
deviation sought, and
(d) a statement as to whether the
same or a similar deviation has been re-
quested previously, and if so, circum-
stances of the previous request.
§ 30.1000-3 Approval of deviation.
Deviations may be approved only by
the Director of the Grants Administra-
tion Division or his duly authorized rep-
resentative. A copy of eax;h such written
approval shall be retained in the official
EPA grant file. Concurrence in the ap-
proval of the deviation by the appropri-
ate Assistant Admimstrator(s) is re-
quired prior to its effectiveness, where
the deviation would involve more than a
unique, special situation, e.g., will affect
grantees as a class.
24
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Subpart J—Disputes
530.1160 Final Disputes Decision.
Ca) Any dispute arising under a
grant, or any preaward dispute au-
thorized by this subchapter (see, for
example, §§35.236 and 35.960), shall be
decided, at the request of the appli-
cant or grantee, by the Grant Approv-
ing Official or by the Project Officer
{with the concurrence of the Grant
Approving Official).
(b) Each final decision must ade-
quately notify the recipient in writing
(with proof of delivery) that the deci-
sion is a final decision which shall
become final and conclusive, unless
timely appealed. The following para-
graph or alternate language approved
by the Office of General Counsel must
be utilized as the final paragraph of
each final decision letter:
This is a final Disputes-decision by me.
the Grant Approving Official. Under appli-
cable EPA regulations (see particularly Sub-
part J or 40 CFR Part 30), this decision will
be final and conclusive unless, within thirty
(.30) days from the date of receipt of this de-
cision, a brief written notice of appeal, ad-
dressed to the Administrator, Environmen-
tal Protection Agency (Attention: Office of
General Counsel), Is mailed by certified
mail (return receipt requested) or otherwise
delivered to [insert name and address of
either the Grant Approving Official or the
Project Officer, as appropriate]. (You will
be notified of further procedural require-
ments applicable to your appeal by a subse-
quent letter.) Your notice of appeal need
only indicate that an appeal is intended,
refer to this final decision by date, and
briefly state the ultimate reasons why the
decision is considered to be erroneous.
(c) An EPA official who receives a
notice of appeal from a final decision
should preserve the envelope in which
the appeal was transmitted and other
data evidencing the date of mailing of
the notice of appeal (or the date of re-
ceipt, if the notice was otherwise deliv-
ered) and should promptly forward
such information and the original of
the notice of appeal to the Office of
the General Counsel.
[43 PR 28484, June 30, 1978]
§ 30.1105 Grantee appeal.
A decision of the Project Officer made
pursuant to § 30.1100 shall be final and
conclusive unless, within thirty (30) days
from the date of receipt of such copy,
the grantee mails (certified mail, return
receipt requested) or otherwise delivers
to EPA (generaiiy, to the Project Offi-
cer) a wi liter, r.ppeal addressed to tne
Administrator.
§ 30.1115 Rights of the grantor arid the
Government.
In connects i with an appeal proceed-
ing pursuant to 5 30.1110 the grantee
shall be afforded an opportunity to be
heard, to be represented by legal counsel,
to offer evidence and testimony in sup-
port of any appeal, and to cross-examine
Government witnesses and to examine
documentation or exhibits offered in evi-
dence by the Government or admitted
to the appeal record (subject to the Gov-
ernment's right to offer its own evidence
and testimony, to cross-examine the ap-
pellant's witnesses, and to examine docu-
mentation or exhibits offered in evidence
by the appellant or admitted to the ap-
peal record). The appeal shall be deter-
mined solely upon the appeal record.
§ 30.1120 Derision of the Administrator.
The decision of the Administrator or
his duly authorized representative for
the determination of such appeal shall
be final and conclusive unless determined
by a court of competent jurisdiction to
have been fraudulent or capricious, or
arbitrary, or so grossly erroneous as to
imply bad faith, or not supported by sub-
stantial evidence.
§ 30.1125 Questions of law.
Any question of law may be considered
in connection with decisions provided
for by this Subpart. Nothing in the grant
agreement or related regulations, how-
ever, shall be construed as making final
the decision of any administrative offi-
cial, representative, or board, on a ques-
tion of law.
§ 39.1130 Delegation of authority.
The General. Counsel is authorized
to appoint hearing examiners to hear
and decide grant appeals from final
dispute'determinations under this sub-
part.
[43 FR 28484, June 30, 1978]
§ 30.1150 Appea>^rocedures.
The procedures for grant appeals
under this Bubpart shall "be those des-
ignated by the General Counsel. A
copy .ttt^suejpA procedures may be ob-
tained from the Office of General
Counsel.
[43 FR 28484, June 30, 1978]
APPENDIX A—GENERAL GRANT CONDITIONS
a. General Conditions. The grantee cove-
nants and agrees that It will expeditiously
Initiate and timely complete the project -work
for which assistance has been awarded under
this grant. In accordance with the applicable
grant provisions of 40 CFR Subchapter B.
The grantee warrants, represents, and agrees
that it, and Its contractors, subcontractors,
employees nr.tl representatives, will comply
with 40 CFR Subchapter B, the following
General Conditions, the applicable supple-
mental conditions cf 4d CFR Subchnpter B,
a.s amended, and miy Special Conditions set
Jiijth In this grant ari<.cment or any grant
iitner.dmeut.
1. Accfss. The j i.in'.re :i_:cc-> that it will
provide access to ihe facilities, pitmi^ci and
records related to the project as provided
in §5 30.605 and SO S05 01 40 CFR Subchapter
B.
2. Audit anil record.;. The grantee agiee.s
that it will maintain an adequate system
lor financial maragemont. piopeity man-
agement and grantee r.ud:t iu accordance
with §§30800 and 30810-3, and that it will
maintain, preserve cr.,1 make available to
the Government a!l project records lor the
purpose of inspection. Interim and finul
audit, and copying as jcquired by S§ 30 COS
30.305, and 30 820 or -10 CFR Suhohaptcr B
3. Reports. The grantee agrees to timely
file with EPA such reports as arc s-pecificallj
required by the grant agreement or pursuant
10 -10 CFR Subi.h-.pter B, uicl ud.-i-;. pi-j,;!i—
reports (§30035-1'). flnaiirl.il ic-pori* (^30-
635-3), invention reports (530CC5-4K piop-
erty reports (&30G35-5). relocation and ac-
quisition reports (^30.635-G) and a final
report (I 20 635-2), and that f xihne to timely
file a repcit may cause EPA to invoke the
remedies provided in 40 CFR :w 430.
4. Project changes; Grant tncd'fcc, '."o.'is.
The grantee agrees that noiiiic.uion of
project changes will be given pursuant to
40 CFR 30.000(b) and that all grant modifi-
cations \\i!l be elfected in accordance with
•10 CFR 30 900 through 30.900-4.
5. Requirements pertaining to ^derally
assisted construction. The grantee agrees
that it will comply, and that its contractors,
subcontractor, employees and representa-
tives will comply, with the requirements per-
taining to federally assisted construction
identified in 4O CFR 30 415.
6 Suspension, (a) The grantee agrees
that the grant award official may, at any
time, require the grantee to stop all, or any
part, of the work within the scope of the
project for which EPA grant assistance was
awarded, by a written stop-work order, for
a period of not more than forty-five (45)
days after the order is delivered to the
grantee, and for any further period to which
the parties may agiee. Any such order shall
be specifically identified as a stop-work
order issued pursuant to this clause. Upon
receipt of cuch an order, the grantee agrees
to forthwith comply with its terms and, take
nil reasonable steps to minimize the incur-
rence of costs allocable to the work covered
ty the order during the period of work stop-
page. This suspension aiticle shall not be
applicable to educational Institutions or
nonprofit research organizations.
(b) The grantee agrees that, within any
such suspension period, EPA may either (1)
cancel the stop-work order, in full or in part;
or (2) initiate action to terminate the grant,
in part or in full, as provided in Article 7,
below; or (3) authorize resumption of work.
(c) If a stop-work order Is canceled or it
the suspension period or any extension
thereof expires, the grantee agrees to prompt-
ly resume the previously suspended project
work.
(d) An equitable, adjustment shall be
made in the project period, budget period,
or the grant amount, or all of these as ap-
propriate, 11:
25
[Appendix A]
-------
FEDERAL REGULATIONS
(1) the stop-work order results in an
Increase In the time required for, or In the
grantee's costs properly allocable to, tne
performance of any part of the project., and
(2) the grantee asserts a written claim for
such adjustment within sixty (60) days
after the end of the period of work stoppage,
provided, That If the Project Officer deter-
mines that the circumstances Justify such
action (for example, if the Impact of cost or
time factors resulting from a stop-work
order could not have been ascertained prior
to written submission of the claim), he mav
receive and act upon any such claim as-
serted at any time prior to final payment
xinder this grant.
(e) If a stop-work order is not canceled
and grant-related project work covered by
such order is within the scope of a subse-
quently-issued termination order, the rea-
sonable costs resulting fiom the stop-work
order shall be allowed in ai riving at the
termination settlement.
(f) The grantee agreei that costs incurred
by the grantee or Us contractors, subcon-
tractors or representatives, after a stop-work
order is delivered, or within any extension
of the suspension period to which the
parties may have agreed, with respect to the
project work suspended by such order or
agreement, which are not authorized by this
aruclo or specifically author-1 1 in v.ritp;i;
by the rioject OHccr shall ii'j*, 1-c nllo'vuol'
co-;ts.
7. Termination; Annulment—ta) Gran/
Termination oy F.PA. The ,;r.n' co ..grc-es
that the grant n vard offici.tl may. jt any
lime, after writtea notice and aitir oppor-
tunity for consultation lias been aifordcd-tLi
the grantee, terminate the rptint. in v hole or
ill p.trt, through, a written terminatin'i
notice specifying the effective date ui thr-
lerminaUon action.
(1) A grant may be terminated by EPA for
good cause, subject to negotiation and p.r,-
meiit of termination settlement cost.1;.
(2) The grantee agrees that, upon such
termination, it will return or credit to the
United States that portion of grant lunds
paid or owed to the grantee and allocaole to
the terminated project work, except such por-
tion as may be required by The grantee 10
meet commitments which had become firm
prior to the effective date of termination
and are otherwise allowable.
(3) Whenever feasible, the grant av.aixi
official and the grantee shall enter Into a
termination agreemer.t as soon as possible
after any such termination action to estab-
lish the basis for settlement of grant termi-
nation costs and the amount and date of
payment of any sums due to either pjrty.
(b) Project termination by grantee.. The
grantee agrees that it will not unilaterally
terminate work on the project for which EPA
grant assistance has been awarded, except
for good cause. The grantee further agrees:
(1) that It will promptly give written
notice to the Project O!f.cer of any complete
or partial termination of the project \\cik by
the grantee, and
(2) that, if the Project Officer determine.-
that vhe grantee has terminated the project
work \\ithout good cause, the grant av j.rU
official may annul the grant and all EPA
grant funds previously paid or owing to the
grantee shall be promptly returned or
credited to the United States.
Upon request of the grantee, and if the
Project Officer determines that there is good
cause for the termination of all or any p >r-
tion of the project work for which EPA.
grant assistance has been awarded, the grant
award official and the grantee may enter Into
a written termination agreement establish-
ing the effective date of the grant and proj-
ect termination, the basis for settlement of
grant termination costs, and the amount
and date of payment of any sums due to
either party.
(c) Annulmeni. .me grantee agrees that
the grant may be annuled pursuant to 40
CFB 30.920-5.
8. Disputes, (a) Except as otherwise pro-
vided by law or regulations, any dispute
arising under this grant agreement shall bo
decided by the grant approving official or tho
Project Officer, who shall reduce his decision
to writing and mall or otherwise furnish a
copy thereof to the grantee. Such a Ce'-!siou
shall be final and conclu=ue unless, v. nhiii
thirty (30) days from the date of receipt.
the grantee mails or otherwise delivers to
EPA (generally to the Project Ofticer) a
written appeal addressed to the Administra-
tor.
(b) The decision of the Administrator or
his duly authorized representative for the
determination of such appeal shall be final
and conclusive unless determined by a court
of competent Jurisdiction to have been
fraudulent or capricious, or arbitrary, or so
grossly erroneous as to imuly bad faith, or
not supported by substantial evidence.
(c) In connection with aii uppcrl preced-
ing under this article, the gjcintee shall bo
afforded an opportunity to ! e heinl. to !;.•
represented by legal counsel, to offer evi-i
dence and testimony in support of any ap-
peal, and to cross-examine Government
witnesses and to examine documentation or
exhibits offered in evidence by the Govern-
ment or admitted to the appeal record (sub-
ject to the Government's right to offer its
own evidence and testimony, to cross-exam-
ine the appellant's witnesses, and to exam-
ine documentation or exhibits offered in
evidence by the appellant or admitted to the
appeal record). The appeal shall be deter-
mined solely upon the appeal record. In ac-
cordance with the applicable provisions of
Subpart J of Part 30 of Title 40 CFR.
(d) This "Disputes" article shall not pre-
clude consideration of any question of law
m connection with decisions provided for
by this article; provided, that nothing in
this grant or related regulations shall be
construed as making flnal the decision of
any administrative official, representative,
or board, on a question of law.
(9) Patents; rights in data, copyright.
(a) Every EPA grant involving research, de-
velopmental, experimental, or demonstra-
tion work shall be subject to the patent
provisions of Appendix B to 40 CFR Part 30.
(b) Every EPA grant shall be subject to
the rights in data, and copyright provisions
of Appendix C to 40 CFR Part 30.
10. Notice and assistance regarding patent
and copyright infringement, (a) The grantee
agrees to report to the Project Officer,
promptly and In reasonable written detail,
each notice or claim of patent or copyright
infringement based on the performance of
this grant of which the grantee has knowl-
edge.
(b) In the event of any claim or suit
against the Government, on account of an?
alleged patent or copyright infringement
arising out of the performance of this grant
or out of the use of any supplies furnished
or work or services performed hereunder,
the grantee agrees to furnish to the Govern-
ment, when requested by the Project Offi-
cer, all evidence and information in posses-
sion of the grantee pertaining to such suit
or claim. Such evidence and Information
shall be furnished at the expense of the Gov-
ernment except where the grantee has agreed
to indemnify the Government.
Note: EPA Form 5700-20, Grant Agree-
ment/Amendment was filed as part of the
original document.
APPENDIX B—PATENTS AND INVENTIONS
A. Definitions. (1) "Background Patent"
means a foreign or domestic patent (re-
gardless of its date of Issue relative to the
date of the EPA grant):
(1) Which the grantee, but not the Gov-
ernment, has the right to license to others,
and
(11) Infringement of which cannot be
avoided upon the practice- of a Subject In-
vention or Specified Work Object.
(2) "Commercial Item" means—
(1) Any machine, manufacture, or compo-
sition of matter which, at the time of a re-
quest for a license pursuant to Part D of this
Appendix, has been sold, offered for sale or
otherwise made available commercially to
the public in the regular course of busi-
ness, at terms reasonable In the circum-
stances, and
(11) Any process which, at the time of a
request for a license, is to commercial use,
or Is offered for commercial use, so the re-
sults of the process or the products pro-
duced thereby are or will be accessible to the
public at terms reasonable In the circum-
stances.
(3) "Specified Work Object" means the
specific process, method, machine, manufac-
ture or composition of matter (including
relatively minor modifications thereof) which
is the subject of the experimental, develop-
mental, research or demonstration work per-
formed under this grant.
(4) "Grantee" is the party whlcn has ac-
cepted this grant award and includes entitles
controlled by the grantee. The term "con-
trolled" means the direct or indirect owner-
ship of more than 50 percent of outstanding
stock entitled to vote for the election of
directors, or a directing Influence over such
stock; provided, however, that foreign enti-
tles not wholly owned by the grantee shall
not be considered as "controlled."
(5) "Subagreement" includes subagree-
ments at any tier under tfcis grant
(6) "Domestic" and "foreign" refer, re-
spectively, (1) to the United States of
America, including Its territories and posses-
sions, Puerto Rico and the District of Colum-
bia and (il) to countries other than the
United States of America.
(7) "Government" means the Federal Gov-
ernment of the United States of America.
(8) "Subject Invention" means any in-
vention, discovery, improverncT --• develop
ment (whether or not patentable) made In
the course of or under this grant or any sub-
agreement (at any tier) thereunder.
(9) "Made," when used in connection with
any Invention, means the conception or first
actual reduction to practice of such inven-
tion.
(10) To "practice an invention or patent"
means the right of a licensee on his own be-
half to make, have made, use or have used.
26
[Appendix B]
-------
sell or have sold, or otherwise dispose of ac-
cording to law, any machine, design, manu-
facture, oi composition of matter physlclally
embodying the invention, or to use or have
used the process or method comprising the
Invention.
(11) The phrase "to bring to the point
of practical Application" means to manu-
facture In the case of composition or prod-
uct, to use In the case of a process, or to
operate in the case of a machine and under
such conditions as to establish that the
Invention Is being worked and that its bene-
fits are reasonably accessible to the public.
(12) "Statement" means the President's
Patent Policy Statement of August 23, 1971,
36 F.R. 18839, August 26, 1971.
B. Domestic patent rights in Subject In-
sjentto-?. (1) The grantee agrees that he will
promptly disclose to the Project Officer .in
writing each Subject Invention in a manner
sufficiently complete as to technical details
to convey to one skilled In the art to which
the invention pertains a clear understanding
of the nature, purpose, operation and, as the
case may be, the physical, chemical, biologi-
cal, or electrical characteristics of the inven-
tion.. However, If any Subject Invention Is ob-
viously unpatentable under the patent laws
of the United States, such disclosure need
not be made thereon. On request of the Proj-
ect Officer, the grantee shall comment re-
specting the differences or similarities be-
tween the invention and the closest prior
art drawn to his attention.
(2) Except in the instance of a determina-
tion, pursuant to paragraph (3) of this Sec-
tion, by the Administrator to leave to the
grantee rights greater than a nonexclusive
license, the grantee agrees to grant and does
hereby grant to the Government the full and
entire domestic right, title, and interest in
the Subject Invention, subject to retention
by the grantee of a revocable, nonexclusive,
royalty-free license to practice the Subject
Invention. Any such license granted shall ex-
tend to any existing and future companies
controlled by, controlling or under common
control with the grantee and shall be as-
signable to the baccessor of the part of the
grantee's business to which such Invention
pertains. Said license to the grantee may be
revoked by the Administrator or his deslgnee
if It is determined that It Is necessary to is-
sue an exclusive license, pursuant to then
applicable Government regulations, In order
to more expedltlously bring the Invention to
commercialization; provided, however, that
the grantee shall be provided the opportunity
to present to the Administrator reasons why
said license should not be revoked.
(3) Not later than three (3) months after
the disclosure of a Subject Invention pursu-
ant to paragraph (1) of this Section, and
without regard to whether the invention is
a primary object of this grant, the grantee
may submit a request in writing to the Proj-
ect Officer for a determination by the Ad-
ministrator leaving the grantee greater rights
than that reserved to the grantee in para-
graph (2) of this Section. Such request
should set forth information and facts which
in the grantee's opinion, should Justify a
ftetermlnation that:
(i) In the case of a Subject Invention
which is clearly a primary object of this
grant, the acquisition of such greater rights
by the grantee is both consistent with the
Intent of Section l(a) of the Statement and
is either a necessary incentive to call forth
private risk capital and expense to bring the
invention to the point of practical applica-
tion or Is justified because the Government's
contribution to such invention is small com-
pared to that of the grantee; or that
(11) The Subject Invention Is not a pri-
mary object of this grant, and that the ac-
quisition of such greater rights will serve
the public Interest as expressed in the State-
ment, particularly when taking into account
the scope and nature of the grantee's stated
Intentions to bring the invention to the
point of practical application and the guide-
lines of Section l(a) of the Statement. The
Administrator will review the grantee's re-
quest for greater rights and will make a de-
termination, either granting the request in
whole or In part, or denying the request in
its entirety. The grantee will be notified of
such determination.
(4) In the event greater rights In any Sub-
ject Invention are vested in or granted to the
grantee pursuant to paragraph (3) of this
Section:
(1) The grantee's rights in such inventions
shall, as a minimum, be subject to a non-
exclusive, nontransferable, paid-up license to
the Government to practice the Invention
throughout the world by or on behalf of the
Government (including any Government
agency) and States and domestic municipal
governments, unless the Administrator deter-
mines that it would not be in the public
interest to acquire the license for the States
and domestic municipal governments; and
said license shall include the right to sub-
llcense any foreign government pursuant to
any existing or future treaty or agreement if
the Administrator determines it would be
In the national Interest to acquire this right;
and
(11) The grantee further agrees to and does
hereby grant to the Government the right to
require the granting of a license to a respon-
sible appllcant(s) under any such invention:
(a) On a nonexclusive or exclusive basis
on terms that are reasonable under the cir-
cumstances, unless the grantee, its licensees
or its assignees demonstrate to the Govern-
ment, at the Government's request, that ef-
fective steps have been taken within three
(3) years after a patent was Issued on any
such Invention to bring it to the point of
practical application, or that It has been
made available for licensing royalty-free or
In ttrn\~ that are reasonable iu the circum-
stances, or cat. show cau^y why the time
period The license shall extend to existing and
any future companies controlled by, con-
trol I'ng or under common control with the
grameo, and shSll he assignable to the suc-
cessor of the part of the grantee's business to
which such invention pertains.
(2) The grantee may request the forelgm
rights to a Subject Invention at any time
.subsequent to the reporting of such inven-
tion The respa.ise to -uch request and notl-
firat.on ths-r&jf to the grantee will not be
\i:ir<.MVir.i>>:y delayed The Government will
•i-aive title to the grantee to such Subject
Invention in foreign countries In which the
Government will not file an application for
a pat«:,c for such invention, or otherwise se-
cure proi«ctior. therefor Whenever the
granVe is authorized to file In any foreign
country the Government will not thereafter
procc'-U with -Ming in r.JCh country except on
the v,Ti'Uc:i ALjrvcmem cf the grantee, unless
such p.uthoii/.atlon has been revoked pur-
suant to paragraph (3) oi this Section.
(3) In the event the grantee is authorized
to file a foreign patent application on a Sub-
ject Invention the Government agrees that
it will us? Its beet efforts not to publish a
description of such Invention until a United
States or foreign application on such inven-
tion Is filed, whichever is earlier, but neither
the Government, Its officers, agents, or em-
ployees t>hall be liable for .\: inadvertent
publication thereof. If the crrantee is au-
27
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FEDERAL REGULATIONS
thorized to file In any foreign country, he
shall, on request of the Project Officer, fur-
nUli to the Government a patent specifica-
tsor. In English within six (6) months after
such aut.homation is granted, prior to any
foreign filing and without add!tonal com-
pensaton. The Project. Officer, after concur-
rence by the EPA. Patent Counsel, may revoke
iuoh authorization on failure orj the part
of the grantee to file any such foreign appli-
cation within nine (9) months after such
authorization has been granted.
(4) If the grantee files patent applications
m foreign countries pursuant to authoriza-
tion granted under paragraph (2) of this
section, the grantee agrees to grant to the
«ovenune-nt an Irrevocable, nonexclusive,
paid-up license to practice by or on its be-
half the .invention under any patents which
oay Issue thereon In any foreign country.
Such license shall include the right to issue
sublicenses pursuant to any existing or fu-
ture treaties or agreements between the Gov-
ernment and a foreign government for uses
of such foreign government, provided the
AdmlnlstrAtor determines that it is in the
national interest to acquire such right to
sublicens*
(5) In the event the Government or the
grantee elects not to continue prosecuting
any foreign application or to maintain any
foreign pjtent on a Subject Indention, the
other party shall be notified no less than
sixty (60) days before the expiration of the
response period or maintenance tax due date,
and upon written request, shall execute such
instruments (prepared by the party wishing
to continue the prosecution or to maintain
such patent) as are necessary to enable such
party to carry out its wishes in this regard.
D. license.'! under background patents. (1)
The grantee agrees that he will make his
Background Patent(s) available for use in
conjunction with a Subject Invention or
Specified Work Object for use m the specific
Aeld of technology in which the purpose of
this grant or the work called for or required
there under fails This may be dona (1) by
mailing available, in quality, quantity, and
price all of which are reasonable to the cir-
cumstance;, an embodiment of the Subject
Invention or Specified Work Object, which
incorporates the invention covered by such
Background Patent, as a Commercial Item,
or (U) by the sale of an embodiment of such
Background Patent as a Commercial Item in
P. forT! which can be employed in the prac-
tice of a Subject Invention or Specified Work
Object or CAP. be so employed with relatively
minor ir.o-'Uucations, or (ill) by the licensing
o- the domestic Background Patent (s) at
rcifjonat'le royalty to responsible apphcani.5
on tneir •• 'jqurst
(2) tf *,(\P Administrator determines after
f-, hearing tuat the quality, quantity, o; price
of enl>cM::::eTits of the Subject Invention 01
Speclurd Work Object sold or otherwise ir.r.ue
ava.iab'.e eo:«.-ne:cUlly as set forth in (D)
ll)(l> is ur.r{ technology In which the purpose of
tlus f'Tirt or tr.c wort celled for thereunder
faiii, a .o' for me 'n connection u->t?i (I) a
Sptc!fi«! WC'-k Object, or ', >U a S'.'hject
JnvenMon.
(3)(i) When a license to practice a do-
mestic Background Patent in conjunction
with a Subject Invention or Specified Work
Object is requested in writing by a respon-
sible applicant, for use In the specific field
of technology in which the purpose of this
grant or the wor/c called for thereunder falls..
and such Background Patent is not available
as set forth in D(l) (1) or (ii), th.5 grantee
shall have six (6) months from the date of
his receipt of s.uch request to ueclde whether
to make such Background Patent so avail-
able The grantee shall promptly notify EPA
in writing of any request for a license to
practice a Background Patent in conjunction
with a Subject Invention or Specified Work
Object, which the grantee or his exclusive
licensee wish to attempt to make available
as set forth in D(l) (i)or(ir).
(11) If the grantee decides to make such
domestic Background Patent so available
either by himself or by an exclusive licensee1.
he shall so notify the Administrator within
the said six (6) months, whereupon the Ad-
ministrator shall then designate the reason-
able time within which the grantee must
make such Background Patent available i;i
reasonable quantity and quality, and at a
reasonable price, [f the grantee or his ex-
clusive licensee decides not to make such
Background Patent so available, or fs.ll.-, to
make it available within the time designated
by the Administrator, the Background Patent
shall be licensed to a responsible applicant at
reasonable terms, including a reasonable
royalty, in conjunction with (a) a Specir-.eJ
Wort; Object, or (b) a Subject !>:• ontlon, aad
may be limited to the specific ;i3ld of tech-
nology in which the purpoce of this grant or
the work called for thereunder falls.
(ill) The grantee agiees to grant cr hp.ve
granted to a designated applicant, upon the
written request o{ the Goverr.-.:e:it, a inn-
exclusive licence at reasonable terms, Includ-
ing reasonable royalties, under nny foreign
Background Patent m furU.e.ance of any
treaty or agreement between the Governmont
of the United States and a foreign govern-
ment for practice by or on the behalf of
such foreign government, if an embodiment
of the Background Patent ii not commer-
cially available In that country, provided,
however, that no such license will be required
unless t'-e Administrator determines that
Issuance of such license Is in the national
interest. Such license may be limited by the
licensor to the practice of such Background
Patent In conjunction with a Subject In-
vention or a Specified Work Object and ior
use in only the specific field of technology in
winch the purpose or this grant or tht wor*
called for thereunder falls
(iv) The grantee agrees it will not seek m-
Junctive relief or other prohibition of the use
of the invention In enforcing its rights
against any re--,ponslb!e applicant for such.
license and that r, will not Joi". with others
In any such action It is understood anj
agreed tn.U the foregoing shall not affect the
f.rantee't> right to injunctlve relief or other
prohibition of the use of Background Patents
m areas not connected with the practice of a
Subject Invention or Specified Work Object
in the specific field of technology in which
ihe purpose of tills "rant or the work c?.lled
for thereunder failb. or where the grantee
has made available a Commercla; Item aj set
nut m parhgraph D(l) (i) or (:H
(4) For use in the specl^c field of tecr-
•lology in which the purpose of this grai t
or the work called for thereunder falls, and
In conjunction with a Subject Invention or
a Specified Work Object, the grantee agrees
to grant to the Government a license under
any Background Patent. Such license shall
be nonexclusive, nontransferable, royalty-free
and worldwide to practice such patent which
is not available as a Commercial Item as
specified in Paragraph D(l)(ll) for use of
the Federal Government in connection with
pilot plants, demonstration plants, test beds,
and test modules. For all other Government
uses, any royalty charged the Government
under such license shall be reasonable and
shall give due credit and allowance for trie
Government's contribution, if any, toward
the making, commercial development, or en-
hancement of the invention(s) covered by
the Background Patent.
(5) Any license granted under a process
Background Patent for use with a specified
Work Object shall be additionally limited to
employment of the Background Patent under
conditions and parameters reasonably equiv-
alent to those called for or employed under
this grant.
(6) It is understood and agreed that the
grantee's obligation tc grant licenses under
Background Patents shall be limited to the
extent of the grantee's right to grant the
same without breaching any unexpired con-
tract It had entered into prior to this grant
or prior to the identification of a Background
Patent, or without incurring any obligation
to another solely on account of said grant
However, where such obligation is the pay-
ment of royalties or other compensation, the
grantee's obligation to license his Background
Patents shall continue and the reasonable
license terms shall include such payments
by the applicant as will at least fully com-
pensate the grantee under said obligation
to another
(7) On the request of the Project Officer,
the grantee shall identify and describe any
license agreement which would limit his right
to grant licenses under any Background
Patent.
(8) In the event the grantee has a parent
or an affiliated company, which has the right
to license a patent which would be a Back-
ground Patent if owned by the grantee, but
which Is not available as a Commercial Item
as specified in paragraph E>(1) (1) or (ii),and
a qualified applicant requests a license under
such patent for use in the specific field of
technology in which the purpose of this
contract or the work called for thereunder
falls, and in connection with the use of a
Subject Invention or Specified Work Object,
the grantee shall, at the written request of
the Government, recommend to his parent
company, or affiliated company, as the case
may be, the granting of the requested li-
cense on reasonable terms, including reason-
able royalties, and actively assist and par-
ticipate with the Government and such ap-
plicant, as to technical matters and in liai-
son functions between the parties, as may
reasonably be required in connection with
any negotiations for issuance of such li-
cense."For the purpose of thij bubpnidgraph,
(1) a parent company is one which owns or
controls, through direct or indirect owner-
ship of more than 50 percent of the outstand-
ing stock entitled to vote for the election
of directors, another company or other en-
tity, and (ii) affiliated companies are com-
panies or other entities owned or controlled
by the same parent company.
-------
£ Related inventions At the request of
i.he Project Officer made during or subsequent
to the term of this grant including any ex-
tensions for additional research and develop-
ment work, the grantee shall furnish infor-
mation concerning any invention which ap-
pears to the Project Officer to reasonably
have the possibility of being a Subject In-
vention
All information supplied by the grantee
hereunder shall be of such nature and char-
acter as to enable the Project Officer, with
the concurrence of the EPA Patent Counsel.
reasonably to ascertain whether or not the
invention concerned is a Subject Invention
Failure to furnish such information called
for herein shall, in anv subsequent proceed-
ing, place on the grantee the burden of go-
ing forward with the evidence to establish
that such invention Is not a Subject Inven-
tion If such evidence is not then presented,
the invention shall be deemed to be a Sub-
ject Invention. After receipt of Information
furnished pursuant hereto, the Project Officer
shall not unduly delay rendering his opinion
on the matter The Project Officer's decision
shall be subject to the Disputes Clause of
the grant The grantee may furnish the in-
formation required under this Section E as
grantee confidential Information, which
shall be identified as such.
F. General provisions. (1) The grantee shall
obtain the execution of and deliver to the
Project Officer any document, including
domestic patent applications (see B(5) here-
of) , relating to Subject Inventions as the
Project Officer may require under the terms
hereof to enable the Government to file and
prosecute patent applications therefor in any
country and to evidence and preserve its
rights. Each party hereto agrees to execute
and deliver to the other party on its request
suitable documents to evidence and preserve
license rights derived from this Appendix
(2) The Government and the grantee shall
promptly notify each other of the filing of
a patent application on a Subject Invention
in any country, identifying the country or
countries in which such filing occurs and the
date and serial number of the application,
and on request shall furnish a copy of such
application to the other party and a copy
of any action on such patent application
by any Patent Office and the responses there-
to. Any applications or responses furnished
shall be kepf confidential, unless the Gov-
ernment has title to the invention.
(3) Any other provisions of this Appendix
notwithstanding, the Project Officer, or any
authorized EPA representative shall, until
the expiration of three (3) years after sub-
mission of the final financial status report
under this grant, have the right to examine
in confidence any books, records, documents,
and other supporting data of the grantee
which the Project Officer or any authorized
EPA representative shall reasonably deem
directly pertinent to the discovery or identifi-
cation of Subject Inventions or to the com-
pliance by the grantee with the requirements
of this Appendix
(4) Notwithstanding the grant of a license
under any patents to the Government pursu-
ant to any provisions of this Appendix, the
Government shall not be prevented from
contesting the validity, enforceability, scope,
or title of such licensed patent.
(5) The grantee shall furnish to the
Project Officer every 12 months, or earlier as
may be agreed In this grant (the initial pe-
riod shall commence with the date of award
of this grant) an Interim report listing all
Subject Inventions required to be disclosed
which were made during the interim report-
ing period or certify that there are no such
unreported inventions.
(6) The grantee shall submit a final re-
port under this grant listing all Subject In-
ventions required to be disclosed which were
made in the course of the work, performed
under this grant, and all subagreements sub-
ject to this Appendix If to the best of the
grantee's knowledge and belief, no Subtect
Inventions have resulted from this grant the
grantee shall so certify to the Project Officer.
If there are no such subagreements, a. nega-
tive report is required
(7) The Interim and final reports sub-
mitted under F (5) and (6) and Subject In-
vention disclosures required under B(i)
shall be submitted on EPA forms which will
be furnished by the Project Officer on re-
quest.'Any equivalent form approved by the
Project Officer with the concurrence of the
EPA Patent Counsel may be used in lieu of
EPA forms Such reports and disclosures shall
be submitted in triplicate.
(8) Any action required by or of the Gov-
ernment under this patent provision shall be
undertaken by the Project Officer or other
authorized EPA official as Its duly authorized
representative unless otherwise stated.
(9) The Government may duplicate and
disclose reports and disclosures of Subject
Inventions required to be furnished by the
grantee pursuant to this Appendix without
additional compensation
(10) The grantees shall furnish to the
Project Officer, In writing, and as soon as
practicable, information as to the date and
identity of any first public use, sale or pub-
lication of any Subject Invention made by or
known to the grantee, or of any contem-
plated publication of the grantee.
(11) The Administrator shall determine
the responsibility of an applicant for a
license under any provision of this patent
provision when this matter Is in dispute and
his determination thereof shall be final and
binding.
(12) The grantee shall furnish promptly
to the Project Officer or other authorized EPA
official on request an Irrevocable power to In-
spect and make copies of each U.S patent
application filed by or on behalf of the
grantee covering any Subject Invention.
(13) The grantee shall Include in the first
paragraph In any U.S patent application
which it may file on a Subject Invention the
following statement:
This Invention resulted from work done
under Grant No with the Environmen-
tal Protection Agency and Is subject to the
terms and provisions of said Grant
(14) All Information furnished In confi-
dence pursuant to this Appendix shall be
clearly identified by an appropriate written
legend Such information shall be subject to
the provisions of the Freedom of Information
Act, 5 tT.S.C. 552, and shall In any event cease
to be confidential if it is or becomes generally
available to the public, or has been made or
becomes available to the Government (1)
from other sources, or (ii) by the grantee
without limitation as to use, or was already
known to the Government when furnished to
It.
(15) Any action by the Project Officer af-
fecting the disposition of rights to patents
or Inventions pursuant to this Appendix
shall be taken only after review by the Office
of Genera) Counsel
C Warranties (1) The grantee warrants
that whenever he has divested himself of the
right to license any Background Patent (or
any invention owned by the grantee which
could become the subject of a Background
Patent) prior to the date of this grant, such
divestment was not done to avoid the licens-
ing requirements set forth In Section D of
this Appendix After a Background Patent, or
invention which could become the subject
of a Background Patent, is Identified, the
grantee shall take no action which shall im-
pair the performance of his obligation to
issue Background Patent licenses pursuant to
this grant
(2) The grantee warrants that he will take
no action which will impair his obligation to
assign to the Government any invention first
actually conceived or reduced to practice in
the cov.rsu of or under this grant
13 i 1 hf grantee u.irrar.*s that he has full
a'lthc i .t;. to make ob!'gation^ of th^ Appen-
dix efTrrtr.e by reason of a^reemer:•- v ith all
of the p?i.-'..r.nel, including consultant* who
m!<:ht reasonably be expected to maVtc inven-
tions, pnd who will be employed, in uork on
thf project for which the grar.t has been
av.aided to assign to the grantee all discov-
eries and inventions made within the scope of
th'-ir employment
K Subavreerncnts This Aooendin shall be
included in any subagreement over S10.000
under this grant where a purpose of the sub-
apeeinent is the ronduct of experimental de-
velopmental, research, or demonstration
wf-i: xinless the Grant Approving O.Ticial
with t'ie concurrence of the EPA Patent
Counsc', authoilzes the omission or modifica-
tiun o: this Appendix The grantee shall not
acquire any right.- to Subject Inventions
made under such subayrpement for his own
use (ai distinguished from such rights as may
be required solely to fullfil his grant obliga-
tions to the Government in performance of
this grant). Upon completion of work under
such a subagreement, the grantee shall
promptly notify the Project Officer In-writing
of such completion, and shall upon request
furnish a copy of the subagreement to the
Project Officer The grantee hereby assigns
to the Government all rights of the grantee
to enforce the obligations of the party to
such subagreement with respect to Subject
Inventions, Background Patents, and pursu-
ant to Section E of this Appendix The
grantee shall cooperate with the Government
at the Government's request and expense in
any legal action to secure .the Government's
rights.
APPENDIX C—RIGHTS IN DATA AND COPYBICHTS
I 1 The term "Subject Data" as used herein
includes writings, technical reports, sound
recordings, magnetic recordings, computer
programs, computerized data bases, pictorial
reproductions, plans, drawings, specifications.
or other graphical representations, and works
of any similar nature (whether or not copy-
rlghtedj'which are submitted with a proposal
or grant application or which are specified to
be delivered under this grant or which are
developed or produced and paid for under
this grant The term does not Include finan-
cial reports, cost analyses, and other Infor-
mation Incidental to grant administration
2 Fxcept as may otherwise be provided in
the grant agreement, when publications,
29
[Appendix Cl
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FEDERAL REGULATIONS
films, or similar materials are developed di-
rectly or Indirectly from a project supported
by the Environmental Protection Aaencv.
the author Is free to arrange for copyright
without approval However, such materials
shall Include acknowledgement of EPA
grant assistance. The grantee agrees to and
does hereby grant to the Government, and
to its officers, agents, and employees acting
wlthia the scope of their official duties, a
royalt} -free, nonexclusive, and Irrevocable
license throughout the world for Govern-
ment purposes to publish, translate, repro-
duce, deliver, perform dispose of, and to
authorize others so to do. all Subject Data,
or copyrlghtable material based on such
data, now or hereafter covered by copyright
3 The grantee shall not include In the
Subject Data any copyrighted matter, wlth-
o\.t the written r.ppro.al of the Projc-ct Of-
ficer, unless he provides the Guvernmenf
with the written perntislon of the cop>
right owner for the Government to use^such
copyrighted ma'.u-r in the manner provided
in Article 2 above
4 The gnu,tee shall report to the Project
Officer, promptly nnd In reasonable written
detail, each notice or claim of copyright
infringement received by the grantee with
respect to all Subject Data delivered under
this grant
5. Nothing contained In this Appendix
shall imply a license to the Government un-
der any patent or be construed as affecting
the scope of any license or other rights
otherwise granted to the Government under
any patent
6 Unless otherwise limited below, the
Government may, without additional com-
pensation to the grantee, duplicate, use. and
disclose In nny manner and for any purpose
whatoever, ar.d liave others so do, all Sub-
ject Data.
7 Notwithstanding any provisions of this
grant concerning Inspection and acceptance,
the Government shall have the right at any
time to modify, remove, obliterate, or ignore
any marking not authorized by the terms of
this grant on any piece of Subject Data fur-
nished under this grant.
8. Data need not be furnished for stand-
ard commercial Items or services which are
normally or have been sold or offered to the
public commercially by any supplier -and
which are Incorporated as component parts
In or to be used with the product or process
being developed or Investigated. If In lieu
thereof Identification of source and char-
acteristics (including performance speriaca-
tloiis, when necessary) sufficient to enable
the Government to procure the part or an
adequate substitute, are furnished; and fur-
ther, proprietary data need not be furnished
for other Items or processes which were de-
veloped at private expense and previously
sold or offered for sale or commercially prac-
ticed in the case of a process, including
mine.- modifications thereof, which are in
corpo-ated as component parts In or to b<
used v.lth the product or process being de-
veloped or Investigated, if in lieu there^' :he
grantee shall identify such other Itei or
processes and that "proprietary data" jer-
talnlng thereto which Is necessary to er, .ble
reproduction or manufacture of the Iwra
or performance of the process. For the pur-
pose of this clause, "proprietary data"
means data providing Information concern-
ing the details or a grantee's secrets of
manufacture, such as may be contained in
but not limited to his manufacturing meth-
ods or processes, treatment and chemical
composition of materials, plant layout and
tooling, to the extent that such Information
Is not readily disclosed by Inspection or
analysis of the product Itself and to the
extent that the grantee has protected such
Information fro*n unrestricted use by others.
30
•fcu.S. GOVERNMENT PRINTING OFMCEi 1979-281-147/79
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