-------
§40,140-1
lULijL
and Institutions; private
and Institutions; and Individ-
8004 and 8005. public
authorities or private
(2) Section
agencies and
persons. - •
(3) Section 8008, State, munblpal.
intonate or intermunicipal agencies.
(4) No grant may be made under this
Act to any private profit-making orga-
nization.
(e) The Federal Insecticide, Fungi-
cide, and Rodentidde Act, as amend-
ed—other Federal agencies, universi-
ties, or others as may be necessary to
carry out the purposes of the act
(d) The Federal Water Pollution
Control Act as amended:
(1) Section 104—colleges and uni-
versities.
(4) Section 104(s>-Instltutlons of
higher education.
(ft) Sections 108(a). 105-8tate or States or
iagency. •
tons 10S—
(8) Section 108—State, political sub-
division, interstate agency, or other
public agency, or combination thereof.
(9) Section 113—only to the State of
Alaska.
(e) The Public Health Service Act. as
amended—only to nonprofit agencies.
institutions, organizations, and to indi-
viduals.
(31 PR 13784. May 13. 1973. at amended at
40 PR 30083. May 8.1979; 43 PR 94097. Oct.
30.19771
1 49.138
I48.13S-1
Att applicants. (1) Applicants for
research and demonstration granu are
encouraged to contact EPA for further
information and titlrtincf prior to
submitting a formal application. The
EPA regional office or the laboratory
nearest the applicant will be able to
provide such assistance or to refer the
applicant to an appropriate EPA rep-
resentative.
(2) Applicants shall prepare an envi-
ronmental assessment of the proposed
project where applicable, outlining the
anticipated impact on the environ-
ment pursuant to 40 C7R. Pan 8.
tUm ffranti. All appll-
|[or demonstration grants must
_ with all applicable require-
menu of Office of Management and
Budget (OMB) Circular No. A-95 as
revised, see 1 M J08 of this subchapter.
(c) Applications for grants for dem-
onstration projects funded by the
Office of Solid Waste will be solicited
through the Department of Commerce
Business Daily, and selections will be
made on a competitive basis.
(38 PR 11784. liar ». 1973. at amended at
41 PR 30659. May 30. 1976; 43 PR MOS7.
Oct. M. ism
140.135-2 tsvlieatioe, nqoinsMaU.
All applications for research and
demonstration grants shall be submit-
ted in an original and 8 copies to the
Environmental Protection Agency.
Oranta Administration Division.
Washington. D.C. 20480. In accordance
with || 10.315 through 30.315-3.
(a) Afflieatiotu involving Attman
nttrfrcU (1) Safeguarding the rights
and welfare of human subjects In-
volved in projects supported by EPA
grants is the responsibility of the Insti-
tution which receives or Is accountable
to EPA for the funds awarded for the
support of the project.
(2) Institutions must submit to EPA.
for review, approval, and official ac-
ceptance. a written assurance of its
compliance with guidelines established
by Department of Health. Education.
and Welfare concerning protection of
human subjects. However. Institutions
which have submitted and have had
accepted, general assurance to DREW
under these guidelines will be consid-
ered as being in compliance with this
requirement These guidelines are pro-
vided in DHEW Publication No. (NIB)
72-102. the "Institutional Guide to
DHEW Policy on Protection of Human
Subjects." Copies of this publication
are available from the Superintendent
of Documents. U. & Government
Printing Office. Washington. D.C.
30430.
(3) Applicants must provide with
each proposal involving human sub-
jects a certification that It has been or
will be reviewed In accordance with
the institution's assurance. This • erti-
ficaUon must be renewed annually on
the basis of continuing review of the
supported project.
(b) Apflieationt involving labora-
tory animals. Each application for a
•project Involving the use of warm-
blooded animals shall include a writ-
ten assurance that the applicant has
registered with the Department of Ag-
riculture and Is In compliance with the
rules, regulations, and standards enun-
ciated In the Animal Welfare Act, Pub.
L. 89-554. as amended,
(O Nottct of research projtct (JVJtP).
Each application for research must in-
clude a summary (NRP) of proposed
work (300 words or less) incorporating
objectives, approach and current plans
and/or progress. Upon approval of an
application, summaries are forwarded
to the ffHilthifMiinit Bphtpnt Informa-
ment and private agencies supportlc
research and an forwarded to Invest
gators who request such information.
(d) federal Water Pollution Control
Act. (D All applications for grants
under section 105(a) must have been
approved by the appropriate State
water pollution control agency or
agencies. ...
(3) All applications for grants under
section 107. where the proposed proj-
ect will be lo-ated In the Appalachian
region, shall have been coordinated
with the Appalachian Regional Com-
mission for determination that such
demonstration project Is consistent
with the objectives of the Appalachian
Regional Development Act of 1985. as
amended.
(3fl PR 13794. May 13. 1973. at amended at
40 PR 30093. May 8.1975; 43 PR 9*097. Oct.
30.1977]
149.149 Criteria tor award.
In determining the desirability and
extent of funding for a project and the
relative merit of an application, con-
sideration will be given to the follow-
ing criteria:
149.149-1
(a) The relevancy of the proposed
project to the objectives of the EPA
research and demonstration program:
The t***"'*** feasibility of the
project:
(d] The seriousness, extent, and ur-
gency of the environmental problems
toward which the project is directed:
(e) The anticipated public benefits
to be derived from the project in rela-
tion to the coats of the project;
(f) The competency of the appli-
cant's staff and the adequacy of the
applicant's facilities and available re-
(g) The degree to which the project
can be expected to produce results
that will have general tprllntfftB to
pollution control problems nationwide:
Whether the project la consist*
ent with existing plan* or ongoing
planning for the project area at the
"at* regional, and local levels;
tion Exchange. Summaries of work hi
are exchanged with
(1) The erlstenee and extent of local
public support for the project:
(j) Whether the proposed project is
environmentally sound;
(k) Proposed cost sharing.
149.149-t (iritsnisl
I49J49-8 Peasnl Water PettatfM CM.
treiAflt.
(a) AH applications for grants under
section 10MO must provide evidence
that the proposed project will contrib-
ute to the development or demonstra-
tion of a new or Improved method of
treating Industrial wastes or otherwise
preventing pollution by industry.
which method shall have Industrywide
application;
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§40.150
(b) All applications for mots under
•ectioo 113 must include provisions for
community safe water supply systems.
toilet bathing and laundry facilities.
sewage disposal facilities and pro-
grams relating to health and hygiene.
Such projects must also be for the fur-
ther purpose of developing prelimi-
nary plans for providing such safe
water and such elimination or control
of water pollution for all native vll-
lages in the State of Alaska.
144.141 SuBvknciital gnat conditions.
In addition to the EPA general gnat
conditions (40 CFR. Part 30. Subpart
C), all grants are awarded subject to
the following requirements:
(a) The project will be conducted In
an environmentally sound manner.
(b> In addition to the notification of
project changes required pursuant to
40 CFR 30.900, prior written approval
by the grant* officer is required for
project changes which may (1) alter
the approved scope of the project. (2)
substantially alter the design of the
project, or <3> increase the amount of
Federal funds needed to complete the
project. No approval or disapproval of
a project change pursuant to 40 CFR
30.900 or this section shall commit or
obligate the United States to an lu-
cre i the amount of the grant or
pa> .ts thereunder, but. shall not
preclude submission or consideration
of a request for a grant amendment
pursuant to 40 CFR 30.900-1.
CM FR 11794. May ». 1971. M
40 FR 3COM. May a. 19791
Programs for which a Federal grant
is awarded by the Environmental Pro-
tection Agency to a State, municipal.
interstate or intermunicipal agency, or
to any public authority, agency or in-
stitution, under the Resource Conser-
vation and Recovery Act. shall be. the
subject of public participation consist-
ent with Pan 349 of this chapter.
(43 FR MOS7. Oct. SO. 19771
} 46.146-1 Federal Water PeJfatiea Cen-
tral Act.
(a) No person in the United States
shall on the ground of sex be excluded
from participation to. be denied the
benefiu of, or be subjected to discrimi-
nation under any program or activity
receiving assistance under the Act.
(b) Oranu under section 107 are
awarded subject to the conditions—<1>
that the State shall acquire any land
or interest! therein necessary for such
pro' to assure the elimination or
cor of acid or other mine water
poii^.jn; and (2) that the State shall
provide legal and practical protection
to the project area to Insure against
activities which will cause future
or other mine water pollution.
140.145-3 Project! tnvoMag CMUtrwtton.
Research and demonstration grants
for projects involving construction
shall be subject to the following condi-
tions:
' - (a) The applicant will demonstrate
to the satisfaction of the grants officer
Chat he has or will have a fee simple
or-sueh other estate or Interest in the
site of the project, and rights of
access, as the grants officer finds suffl-
•cient to assure undisturbed use and
possession for the purpose of construc-
tion and operation for the estimated
life of the project: and in the ease of
projects serving more than one mu-
. nicipality, that the participating com-
munities have surh interests or rights
as the grants officer finds sufficient to
assure their undisturbed utilization of
the project for the estimated life of
the project.
(b) Invitations for bids or requests
for proposals shall be based upon a
clear and accurate description of the
technical requirements for the materi-
al, product, or service to be procured.
Such description shall not. in competi-
tive procurements, contain features
which unduly restrict competition.
"Brand name or equal" description
may be used as a means to define the
performance or other salient require-
ments of a procurement, and when so
used the specific features of the
named brand which must be met by
offerers should be clearly specified.
(c) Positive efforts shall be made by
the grantees to utilize small business
and minority-owned business sources
of supplies and services.
Subagreements for construction
work may be negotiated when adver-
tising for competitive bids is not feasi-
ble; however, the grantee must ade-
quately demonstrate its need to con-
tract with a single or sole source. All
such BUbagreements are subject to
prior approval by the grants officer.
The construction of the project.
Including the letting of contracts in
connection therewith, shall conform
to the applicable requirements of
State, territorial, and local laws and
ordinances to the extent that such re-
quirements do not conflict with Feder-
al laws.
(h) The grantee will provide and
maintain competent and adequate en-
gineering supervision and inspection
for the project to insure that the con-
struction conforms with* the approved
plans and specifications.
(1) Any construction contract must
provide that representatives of the En-
vironmental Protection Agency, and
the State, as appropriate, will .-.have
access to the work whenever it is In
preparation or progress and that the
contractor will provide proper f
ties for such access and inspect:
The contract must also .provide __
the grants officer, the Comptroller
General of the United States, or any
authorized representative shall have
access to any books, documents.
papers, and records of the contractor
which are pertinent to the project for
the purpose of making audit, examina-
tion, excerpts, and transcriptions
thereof.
(j> The grantee agrees to construct
the project or cause it to be construct-
ed In accordance with the application.
plans and specifications, and subagree-
menu approved by EPA In the grant
agreement or amendment*.
In addition to the notification of
project changes pursuant to 40 CFR
30.900. a copy of any construction eon-
tract or modifications thereof, and of
revisions to plans and specification*
must be submitted to the grant* offi-
(U FR 1X794. May U. 1971. M
40FR300U.Mar*.197i]
149.199 BvataaUoaafavpUeatlea*.
Every application for a research or
demonstration.grant will be evaluated
by appropriate EPA staff in terms of
relevancy and the applicable criteria
set forth in 140.140. Only applications
considered relevant to EPA research
and demonstration objectives will
eelve further consideration and i
jected to additional review. Rel
will be measured by program needs
and priorities as'defined In the Agen-
cy's current planned objectives. Rel-
evancy, coupled with the results of
-------
•rt
4if
review, win provide the basis
lor funding recommendations. '
(a) #ew application*. Applications
considered relevant to SPA research
and demonstration objectives will be
reviewed for technical merit by at
leant one reviewer within EPA and at
least two reviewer* outside EPA.
Review by a National Advisory Coun-
cil it statutorily required tor radiation
grants.
Continuation application*. Con-
nuatlon applications will be reviewed
y appropriate EPA staff only. Recom-
mendation* for continuation of fund-
ing* will be bated on proiress toward
the accomplishment of the goals set
forth for the project and continued
Agency need* and priorities.
} 40.155 Amiability of informatics.
(a) The availability to the public of
Information provided to, or otherwise
obtained by, the Administrator under
this Part shall be governed by Pan 2
of this chapter.
(b) An assertion of entitlement to
confidential treatment of part or all of
the information In an application may
be made using the procedure described
In |30.23S(b>. See also 112.203 and
2.204 of this chapter.
information and data eon*
the grant application will be
external review unless devi-
ations* approved for good cause pur-
suant to 40 CFR 30.1000.
fJS fit lltM. May IS. 1§73. u amended w
40 PR 300U. Ma* a. i«S; 41 FR Milt.
Sept L IfTiJ
!4*>)M bpoftt.
•44UM-1 Procrt* reports.
The grant agreement will normally
•equire the submission of a brief prog-
ess report after the end of each quar-
er of the budget period. A monthly
Togj'ui report may be required for •
ame demonstration projects. If set
jrth in the grant agreement. Progress
»ports should fully describe in chart
r narrative format the pi ogress
:hieved in relation to the approved
rhedule and project "•n*-*""f« ftpe*
al problems or delays encountered
usi be explained. A summary prog-
« report covering all work on the
'oject to date is required to be Includ-
t with applications for continuation
•ants (see 140.10Sb). This report may
submitted one quarter prior to the
id of the budget period.
I4S.IM-] flmsciali
A financial status report must be
prepared and submitted within 00 days
after completion of the budget and
project periods In accordance with
130.635-3.
(43 m MOST. Oct. 30. IITTJ
As provided in Appendix B of 40
CFR. Part 30. Immediate and full re-
porting of all inventions to the Envi-
ronmental Protection Agency Is re-
quired. In addition:
(a) An annual invention statement Is
required with each continuation appli-
cation,
(b) A final Invention report Is re-
quired within 90 days after completion
of the project period.
When a principal Investigator
changes institutions or ceases to direct
a project, an Invention statement must
be promptly submitted with a listing
of all Inventions during hi*
tration of the grant
in m mac May is. Iff). M
40 PR SOON. Mar «. U7S3
|4fl.lM-4
At the completion or termination of
a project, the grantee will submit a
listing of all Items of equipment ac-
.quired with grant funds with an acqui-
sition cost of $300 or more and having
a useful life of more than 1 year,
I4H.IM-I
The grantee shall submit a draft of
the final report for review no later
than 90 days prior to the end of the
approved project period. The report
shall document project activities over
the entire period of grant support and
shall describe the grantee's achieve-
ments with respect to stated project
purposes and objectives. The report
shall set forth In complete detail all
technical aspects of the projects, both
negative and positive, grantee's find-
Ings, conclusions, and result*, includ-
ing. as applicable, an evaluation of the
technical effectiveness and economic
feasibility of the methods or tech-
.nlques Investigated or demonstrated.
The final report shall include EPA
comment when required by the grants
officer. Prior to the end of the project
period, one reproducible copy suitable
for printing and such other copies as
may be stipulated in the grant agree-
ment shall be transmitted to the
grants officer.
§40.145
I40.1IS CeatianiMA gnats.
• To be eligible for a continuation
tram within the approved project
period, the grantee muse
(a) Have demonstrated satisfactory
performance during all previous
budget periods: and
(b) Submit no later than 90 days
prior to the end of the budget period a
continuation application which In-
cludes a detailed summary progress
report, an estimated financial state-
ment for the current budget period, a
budget for the new budget period; and
an updated work plan revised to ae-
c?.unLler •ctu*1 P»«ress accom-
plished during the current budget
period.
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Thursday
October 16, 1984
Part III
Environmental
Protection Agency
40CFR Part 45
Training Assistance; Final PJuto
40CFR Part 4$
Fsflowship Assistance; Final Rul«
-------
-------
41QQ4 Fedtrtl
ENVIRONMENTAL WOTlCnO*
AGENCY
to manpower forecasting in the title of
thii part and in the table of contents.
CoiuUteacy With 40 CFR Pan 30.
"General Rtfuljtjoo for AtAstance
"
r»inir*AwM»«et;nn«ll
.OINCV: Eavironmental Protection
Agency.
J.CTWC Final rule.
is Hnal rule revises the
triining assistance award*.
O*TC TWs n»l« eppiies to tU Wining
auistsnce which EPA twards on or
after October 18. 1984.
Ri
Street SW., Wa
(202) 382-529*.
and procedure.
cnges
Stipend Leveb
order to
and funding
fro»
FomaaUnt
and in "f il* Clean W*»r AU.
1311- 5 C '.:«!«!• t2M. »nd 1ZB1I. *«i. NO;
.r.ci 8001 HI IN* So.id WstW Oiipowl Ac«.
!m,n,M t*2 C-S.C «n .«....,.„. Procram*
|41Y10
Assistance agreements ere
under this p«rt to support students
S«ugh traineeships for occup«t«onal
Jin/—.;...! MiniTM and IO
pollution abatement and control.
Training assistance ia available to:
(a) Assist in developing, expanding.
planning, implementing, and improving
environmental training:
(b) Increase the number of trained
pollution control and abatement
personnel;
(c) Upgrade the level of occupational
and prafeaaiona! training among State
and local environmental control
personnel:
(d) Train people to train other* in
occupations involving pollution
abatement and control: and
DBIUDVIll •"«• -~ " —- - .
(e) Bring new people into the
environmental control field.
141.111 Oetmwone.
The following definitions supP'*™"1
»+**»zz*szy£t
145.110.
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-------
Federal Register / Vol. 49. No. 203 / Thursday. October 16. 1964 /Rules and Regulations 4100*
{41.120 Appttearrt aBttiXety. .
Institutions, organizations, and
individuals are eligible for EPA training
awards as follows:
Ml Clean Air Act. Section 103(b)—Air
pollution control agencies, public and
nonprofit private agencies, institutions:
organization!, and individuals. \o
award may be made under this Act to
any private, profitmaking organization.
(bj Clean Water Act, (1) Section
l'W(bJ(3)—State wafer pollution control
agencies, interstate agencies, other
public or nonprofit private agencies.
institutions, organizations, and
individuals. No award may be made to
any private, profitmaking organization.
Ul Section 104U)(3)fA(—Public-or
private agencies and institution*, and
individual*.
(3) Sections !04(gHl) and .
>d4{gJ(3JfC>—State and interstate .
agencies, municipalities, educational
institutions and other organizations and
individuals.
(4J Sections 109, no, and ill—
Institutions of higher education, or
combinations of such institutions.
(c) Solid Waste DupotalAei ft)
Section 8001(aJ—Public or private
authorities, agencies, and institutions
and individuals. No award may be made
any private, profitmaking
rganization,
(Z) Section 7007(a>—State or interstate
agencies, municipalities, educational
institutions, and other organization*.
(d) So/0 Drinking Water ACL Section*
1442( b) and I442fd}-Public agencies.
educational institutions, and other
organitationa. No awards nay be made
ta profitmaking agencies or institutions.
Applicants must submit their request*
for assistance on EPA Form 5700-11.
"Application for Federal Assistance."
Applicants must submit the original and
two copies of the application to EPA. If
the assistance agreement is to be
awarded by EPA Headquarters, die
applicant must send the application to
the Environmental Protection Agency.
Grants Administration Division. Grants
Operation Branch (PM-216). 401 M
Street SW.. Washington. D.C 20400. If
the assistance agreement is to be
awarded by an EPA Regional Office, the
applicant must send the spplication to
the appropriate Regional Office. (OMB
clearance number 2010-0004.)
ivafcianon 91 appBcaBma.
«Consistent with 40 CFR 3&301, the
jnate EPA program office staff
view training application* in
lance with the following criteria:
(I) Relevance of proposal to Agency
objectives, priorities, achievement of
national goals and technical merit:
(2) Competency of the proposed staff
in relation to the type of project
proposed:
(3) Feasibility of the proposal:
H) Adequacy of the applicant's
resources available for the project:
(S) Amount of funds necessary for the
completion of the project;
(bj In addition, awards under section
J04[gJ(l| of the Clean Water Act. arc
subject to the following criteria:
(JJ Assessment of need for training in
a State or municipality based on
problems with existing wastewater
treatment plants, such a* violation of
discharge permit conditions, and faulty
or improper operation or maintenance.
(2) Need for operating training based
on the number of wastewater treatment
construction grants in the State.
fO.13* tWppiemenlal condibona.
'Training awards are subject to the
following conditions:
(aj Trainees must be citizen* of the
United State*, its territories, or
possession*, or lawfully admitted to the
United Slate* for permanent residence.
(b) Recipient* shall not require the
performance of personal services by
individual* receiving training at a
condition for assistance.
(c) Trainees an entitled to the normal
student holidays observed by an
academic institution, or the holiday end
vacation schedule applicable to all
trainees at a nonacademic institution.
(d) Training award* may include a
provision to pay stipends to trainees.
Stipend* must be peid under section ill
of the Clean Water Act consistent with
prevailing practice* under comparable
federally *upported program*.
(e) Training award* under section ill
of the Clean Water Act are subject to
the following condition*:
(1) Recipient* mu*t obtain the
following agreement in writing from
person* awarded scholarships for.
undergraduate study of the operation
and maintenance of treatment works:
1 **rt« to enter and remain in an
occupation involving the design, operation, or
maintenance of wastewater treatment work*
for a period of two years a/ter the
satisfactory completion of my studies under
thin program, 1 uodantaad that i/l fail 10
ptrfora this oMisaboa I may be required to
repay the amount of my scholarship.
(2) Recipients must take such action
as may be reasonably required to
enforce the condition in paragraph
(e)(l) Recipient* shall credit or pay EPA
for any repayment*.
i 41 140 tutfget an* project perfetf.
The budget and project periods for
training awards may not exceed :hr*e
years.
I4S.14I AHocaMUtyandaMowaMityor
cost*.
(«) Allocability and allowability of
costs will be determined in accordance
with 40 CFR 30.410.
(b) Costs incurred for the purchase of
land or the construction of buildings *.-«
not allowable.
|4S.tM Report*.
(a) Recipients must submit the reports
required in 40 CFR 30.505.
(b) A draft of the final project report i*
required 90 days before the end of the
project period. The recipient shall '
prepere the final projects report in
accordance with the project officer i
instructions, and submit the final proj*<::
report within 30 days after the end of :h*>
project period.
I4S.1M Continuation asafauncr
To be eligible for continuation
assistance, the recipient must:
(a ) Oemonstra te satisfactory
performance during all previous budget
periods:
(b) Include in the application a
detailed progress report showing the
progress achieved and explain special
problems or delays, a budget for the
new budget period, and a detailed work
plan for the new budget period: and
(c) Submit a preliminary financial
statement for the currant budget period
that includes esfimatea-of the amount
the recipient expects to spend by the
end of the current budget period and the
amount of any uncommitted funds
which the recipient proposes to carry
.over beyond the tern of the current
budget period.
AOCMCV TflMmO PNQQftAMS
«a*riM >»>t: •**. •*»«•;
-------
41006 F«d«til Re».
The EPA Is authorised to award
fellowships under the following statutes:
(a) Section I03(b)(3) of the Clean Air
Act as amended (42 U.S.C. 74Q3(o)(S|):
(b) Section 104(b)(9) and 1«{|)(3J(B)
of the Clean Air Act as amended (39
U.S.C U54(bKS) and 1254(g)(3)(B):
(c) Section 1442(d)(2) of the Safe
Drinking Water Act as amended (42
U.S.C 300j.l(d)(2}: and
(d) Section 8001 of the Solid Waste ^
Disposal Act as amended (42 US.C. .
8991).
149.119
Fellowships awarded under this p«
are intended to enhance the capability1
of State or local agencies responsible
for environmental pollution control or
other agvndes with similar pollution
control responsibilities; provide
educational renewal opportunities for
their career oriented personnel to
achieve additional knowledge through
academic professional training: and to
bring new people into the environmental
control Held.
148.118 Types of
WlocofofftncyfiJtowitiipttn
awarded to current or prospective
employees of a local environmental
pollution control or regulatory agency
for academic professional training in
pollution control science, engineering.
and technology and in specialty areas
supportive of pollotion abatement and
control efforts.
(b) Slat* ogtncy ffltowthipt an
awarded to current or prospective
employees of a State environmental
pollution control or regulatory agency to
provide academic professional training
in die areas of pollution abatement and
control.
(c) Specialftllowitiip* are awarded to
individuals for education and training
pollution control sdence. engineering,
aad technology and in specialty anas
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Federal Regiiter / Vol. 49. No. 203 / Thursday. October 18. 1984 / Rules and Regulations 41007
lupportivt of pollution abatement and
control efforts. • . •
f4|.fio OefWflom.
The following definitions supplement
the definitions in 40 CFR 30.200.
Full-time fellow. An individual -.
enrolled in an academic educational
program directly related to pollution
abatement and control, and taking a"
rmnumuro of 30 credit hours or an
academic workload otherwise defined
by the institution as a full-time
curriculum for a school year. The fellow
need not be pursuing • degree.
Part'timt fellow. An individual
enrolled in an academic educational
. program directly related to pollution
abatement aa control and taking at least
6 credit hour* but lei* than 30 credit
hours per school year, or an academic
workload otherwise defined by the
institution •• less than a full-time
curriculum. The fellow need not be
pursuing • degree.
Special fellow. An individual enrolled
in an educational program relating to
environmental sciences, engineering.
professional schools, and allied
sciences.
Stipend. Supplemental financial
assistance other than tuitioa fees, and
book allowance, paid directly to the
fellow.
$48.121
fa) Recipients of assistance under this
part shall be entitled to tuition and fees.
Recipients may receive an allowance for
book* aad supplies up to a maximum of
S750 for the school year for a full-time
fellow, and are entitled to the normal
student holiday* observed by the
academic institution.
(bj Recipients oft fellowships may
receive a stipend at a level determined
by the EPA program office baaed on
EPA'* needs tad resource*, aad on the
student's course load.
(c) Part-time fellow* will not be paid
more than the •"•«if*uir amount paid to
an equivalent full-time fellow under the
same feUowahip* |
rei
^Blfgi
141.130
(a) All applicants for fellowship*
under tai* part mutt be:
(lj Citi*ans of the United State*, it*
territories, or possessions, or lawfully
admitted to tea United State* lor
permanent residence; and
(2) Accepted by an accredited
educational Institutional for full-time or
part-iime aoroUment for academic credit
in er dueatioaaJ prograjn directly
reiai to pollution abatement aad
mtroi.
r (b) Applicants for State or local
igency fellowships must be current or
prospective employees of a Slate or
local agency with responsibilities for
environmental pollution control, and
must be recommended by the
• administrator, or designer of the State
or local agency. The administrator, or
designee. will recommend applicants
based on the State or local need for
academic professional training which
will enhance the capability of the Slate
or local agency.
f 40.W 8uoo*««Jo«iofappOcatlc«ia.
fa) Applicant* must submit their
request* for assistance on EPA Form
5770-2. "Fellowship Application."
Applicant* must submit the original and
two copies of the application and
undergraduate or graduate transcripts.
as appropriate, to the Grants
Administration Division. Grants
Operation Branch (PM-216).
Environmental Protection Agency, 401 M
Street SW.. Washington. D.C.. 20480.
(OMB clearance number 2010-0004.)
(b) The applicant must submit
documentation to show compliance with
(he eligibility requirements in 1 46.130.
and any additional information required
by the award official. Instructions for
filing are contained in the application
kit
141.190
(a) EPA will evaluate fellowship
application* based upon:
(II Their relevance to EPA'* program
need*;
(2) The availability of funds; and
(3) EPA'* priorities.
(4) Appropriateness of the fellow'*
propo*ed course of study: *
(9) Evaluation of the applicant ia
term* of potential for study, a*
evidenced by academic record, letter* of
reference. training plan*: aad aay other
available information.
(a) The fellowship agreement I* the
written agreement, including
amendment*, between EPA and a
fallow. The agreement. EPA Form 3770-
ft. "Fellowship Agreement." will state
the term* and condition* governing tba
fellowship. (OMB clearance number
2010-0004.)
(b) EPA will not participate in coats
incurred by the fellow before both tba
award official aad the fellow *ig& tba
agreement
(c) The fallow must use the fund* for
the purposes stated ia the fellowship
agreement If the fellow fail* to comply
with tba terms aad condition* of the
award, the award official may apply the
•auction* ia 40 CFR Part 30, Subpari L
(a) The fellow must receive a formal
amendment before implementing:
(t; Changes in the objective of the
agreement
(2) Change* in the assistance amount;
(3) Substantial changes within the
scope of the agreement or
(4) Change* ia the project period.
(b) Fellow* must submit a completed
EPA Form 3770-6. "Fellowship
Amendment" (OMB clearance number
2010-0004) when requesting an
amendment to the fellowship agreement.
(c) Minor change* ia the agreement
that an consistent with the objective of
the agreement and within the scope of
the agreement do not require a formal
amendment before the fellow
implements the change. However, such
changes do not obligate EPA to provide
Federal fund* for aay costs incurred by
the fellow ia exec** of the assistance
amount unlea* the award official
approves the change in advance under
146.150(a). The fellow must ..form the
EPA project officer in writing before
implementing minor change*.
140.191 Oupptentenmuxiuiuuit*.
Recipient* of a Slate or local
fellowship receiving financial assistance
under section 1442(d)(2J of the Safe
Drinking Water Act a* amended:
•actions HM(bJ(5) aad 104(g)(3)(B) of the
Clean Water Act a* amended: and
•action 8001 of the Solid Waste Disposal
Act must agree to remain ia the
employment of the State or local agency
that recommended the recipient for an
EPA fellowship fv twice the period of
the fellowship. If tba recipient fails to
perform thia obligation tba recipient may
bt required to repay the amount of the
EPA fellowship.
|4fl,180
The applicaat accepts the fellowship
by signing aad returning the fellowship
agreement to the EPA award official
within tare* weeks after receipt, or
within aay ***TP>*OB of such time that
may be permitted by tba EPA award
official. If the applicaat doe* not sign
aad return the agreement to the award
official or raqoaat aa extension of the
acceptance time within tan* calendar
weeka after receiving the agreement, the
offer ia null and void.
140.101
(a) Full-time fellowship* will aot
exceed one year.
(b) Part-Una fellowships will not
exceed tarn yean. .
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41001 Ftdtfal R*tUttr / Vol 49. No. 203 / Thurtdiy. October 18. 1984 / Rules and Rcguiitioru
(•J The fillow must submit EPA 5770-
7 "Fellowship ActjvaUca Notice" when
they start their course of studief (OMB.
clearance number 2010-0004).
(b).if the EPA Grants Administration •
Division bat not received th« »igntd
Fcilowahip Activation Notict within lix
month* following the data of the award.
.EPA may terminal* the fellowihip.
|4C.17f CompHBon of itudln.
FlUowt mutt »ubnjt EPA Form 5770-9
"EPA Ftllowihip Ttrminibon Node*."
wfaao tha fallow complete tfaa COUTM of
aftidy. (OMB elaaraoca number 2010-
0004)
|*i,i«0 Nymtnt
(a) EPA will pay itipcndi directly to
the fellow on a monthly basil or any
other basts approved by the Project
Officer, only after EPA has received the
signed EPA Form 5770-7. "Fellowship
Activation Notice." (OMB clearance
number 2010-0004).
(b) EPA will pay tha book allowance
directly to the fellow only after EPA
receives the signed EPA Form 5770-7.
(c) EPA will pay tuition and fee* in a
lump paymeot directly to the sponsoring
institutiob only after EPA has received
the signed EPA Form 5770-7.
A»*f xen A-CnvMONMOrrAi Pwtcr
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APPENDIX H
40 CFR PART 47, "NATIONAL
ENVIRONMENTAL EDUCATION ACT
GRANTS REGULATIONS"
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Monday
March 9, 1992
Part III
Environmental
Protection Agency
40 CFR Part 47
National Environmental Education Act
Grants Regulation*; Interim Final Rule
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8380 Fadera! Register / Vol 87. No. 46 / Monday. March 9. 1992 / Rules and Regulalions
EMVWONIICKTAL PROTECTION
IAQENCY
4QCFRHrt47
National Ewlr
itsJEdu
Grants Regulations
AOOicr. Environmental Protection
Agency (EPA).
Interim final rate.
wiAct
SUMMARY: Th« Environmental Protection
Agency (EPA) U promulgating an
interim final rule on the award of •
financial aitiiUnce under section 6 of
the National Environmental Education •
Act (NEEA). This rule codifies polldM
and procedure* for financial assistance
•warded by EPA to eligible agencies,
institutions and organizations to support
projects related to environmental
education and training.
OTtCTOfMTtt EPA is publishing this
rule as an interim final role which is
effective on March 9. 1902. EPA will
accept public comments on this rule
until April ft, 1982.
AOCMUSKK Comments may be mailed
to Mr. George Walker. Office of
Environmental Education (A-107). V&
Environmental Protection Agency. 401 M
Street SW, Washington. DC 20480.
The docket for mis rule and copies of
* public comments submitted will be
available for public inspection and
copying at a reasonable fee at EPA
Headquarters Library. Public
Information Reference Unit room 2904.
401 M Street telephone (202) 2KW828.
MM tvimm MKWMATWM CONTACT:
Mr. George Walker. (202) 2WM464.
On November 16.1990. Congress
enacted and the President signed the
National Environmental Education Act
(NEEA). Public Law 101-419. In section 6
of the NEEA. it established a program
for grants aad cooperative agreements
to support prefects
environmental T'twutti'*' ""if training,
and directed EPA to fpfafiafc e regulation
to implement the Drofrsa* This
regulation implements the statutory * .
requirements of section 0 of the NEEA.
The definitions, eligibility requirements.
solicitation procedures, priorities for
award, and limits on amount of award
a:? taken directly frc^ the K^A.
The NEEA also establishes a
maximum Federal share of 75* for
demonstration protects. As a policy
•natter, to ensure that recipients are
nmitted to successful completion of
elects. EPA has decided to apply this
maximum to all types of grants bwarded
under section 8. Thus, as s general rule
allgrant recipients in this program will
be expected to provide at least a 251
match, including in-kind contributions.
In addition to the requirements of the
Act. recipients must comply with the
provisions of EPA'i general assistance
regulations at 40 CFR parts 30 and 31. as
appropriate.
This regulation applies only to the
environmental education program
established by section 6 of the NEEA. It
does not govern the Environmental
Education and Training Program to train
education professionals authorized by
section 5, nor the Internship/Fellowship
Program authorized by section 7 of the
NEEA. EPA will develop separate
guidance for these programs.
IL Executive Order 12291
Under Executive Order 12291. EPA
must judge whether a new regulation is
"major" and therefore subject to the
requirement of a Regulatory Impact
Analysis. This regulation does net
satisfy any of the criteria the Executive
Order specifies for a major rulemaking,
and therefore this is not subject to *
Regulatory Impact Analysis. .
This regulation was submitted to the
Office of Management and Budget
(OMB] for review as required by
Executive Order 12291.
EQL Papecwotk Reduction Act
The information collection
requirements in ibis rule have beta
approved by the Office of Management
and Budget (OMB] under the Paperwork
Reduction Act 44 US.C 3501«l mf. and
have been ssrignad control number
Public reporting burden for tills
collection of information is estimated at
19 hours per response. Including tats foe
reviewing Instructions, gathering
information, preparing the application
package and status reports, maintaining
records on tho data needed and
completing the collection of infonuttosv
Send comments regarding the bodes
estimate or any other aspect of tfaja
collection of information, including
suggestions for reducing this burden IDT
Chief. Information Policy Branch.
Regulatory Management Division (PM-
223Y* EPA: 401M SU SW, Weshtagto*
DC 20400, and to the Office of
Information and Regulatory Affairs. • •
Office of Management and Budget.
Washington. C 2 :::". cw'-ed
"Attention: Desk Officer for EPA."
. IV. Regulatory FUadbOiry Act
EPA did not develop a Regulatory
Flexibility Analysis for this regulafioit-
becaose it U exempt from notice and
comment rulemaking under section S53
of the APA. and therefore, is not subject
to the analytical requirements of
sections 603 and 604 of the Regulatory
Flexibility Act (S U.S.C. 803 and 604).
list of Subjects in 40 CFR Part 47
Grant programs—education. Grant
programs—environmental protection.
and Reporting and recordkeepihg
requirements.
Dated: February 27.1992.
WiBiam K. Reilly,
Administrator.
For the reasons set out in the
preamble, title 40. chapter I of the Code
of Federal Regulations is amended by
adding a new part 47 to read as follows:
PART 47—NATIONAL
ENVIRONMENTAL EDUCATION ACT
QUANTS
47.100 Purpose end scope.
47.105 Definition*.
47.110 Eligible applicants.
47J1S Award •mount and matching
requirtmenU.
47.UO Solicitation notica and proposal
4T.12S Eligible tad priority project! and
activities.
47.110 Project performance.
47.135 Disputes.
Authority: 29 UJ5.C SSOS.
§ 4v.lvO Purpose end ecope.
This regulation codifies policy and
procedures for the award of grants or
cooperative agreements under section 6
of the NEEA. Specifically, this regulation
defines eligible applicants, eligible
activities, EPA priorities for selecting
recipients, funding limits, and matching
requirements. Projects funded under this
regulation are also subject to the Code
of Federal Regulations (40 CFR) part 31
for State and local recipients, and part
90 far other than State and local
recipients. Those regulations contain
Federal audit and other general
administrative requirements. This
regulation does not apply to the
prognms fcnplemented tinder sections S
end 7 of the NEEA.
|47Jt08
(a) Enrironmenta/ education and
eovironmental education and training
Bean educational activities and training
eedfities involving elementary,
secondary, and pos*?-;r-.J^ students.
M each lams are defined in the State in
which tbay reside, and environmental
f4rr-tLM' personnel but does not
it technical training activities
directed toward environmental
management professionals or activities
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FetkraJ Register / Vol S7. No. 46 / Monday. March 9. .1992 / Rules and Regulations 8391
primarily directed toward the support of
noneducationai research and
development
(b) Federal agency or agency of the
United States means any department.
agency or other instrumentality of the
Federal Government, any independent
agency or establishment of the Federal
Government including any Government
corporation:
(c) Local education agency means any
education agency ai defined in section
168 of the Elementary and Secondary'
Education Act of 1965 (20 U-S.C 3381)
and shall include any tribal education
agency, as defined in 1 47.105(0;
(d) Not-for-profit organization means
an organization* association* or
institution described in section 30t(c)(3)
of the Internal Revenue Code of 1888.
which is exempt from taxation pursuant
to the provisions of section 301(e) of
such Code;
(e) Noncommercial education
broadcatting entities means any
noncommercial educational
broadcasting station (and/or its legal
nonprofit affiliates) as defined and
licensed by the Federal Communications
(0 Tribal education agency means a
school or community college which is
controlled by aa Indian tribe, band or
nation, including any Alaska Native
village, which is recognized as eligible
for special programs and services
provided by the United States to Indiana
because of their status as Indians and
which is not administered by the Bureau
of Indian Affairs:
* (g) Refer to 40 CFR parts 30 and 31 for
definitions for budget period, project
period, continuation award, cooperative
agreement grant agreement and other
Federal assistance terms,
147.110 __._.._
Any local education agency (including
any tribal education agency), college or
university. State education agency or
i ._« _ __. _.*_ •».
environmental agency. no«-f
organization, or
•profit
educational broadcasting entity may
submit an application to tfa*
Administrator in response to the •
solicitations described in f 47.120.
147.115 Award amount and matching
requirements.
(a) Individual awards shall not exceed
$250.000, and 25 percent of all funds
obligated under this section in a fiscal
year shall be for individual awards of
not more than $5,000.
(b) The Federal share shall hot exceed
75 percent of the total project costs. The
non-Federal share of project costs mey
be provided by in-kind contributions
and other noncash support. In cases
where the EPA determines that a
proposed project merits support and
cannot be undertaken without a higher
rate of Federal support the EPA may
approve awards with a matching
requirement other than that specified in
Ibis paragraph, including full Federal
funding.
f 47.1*9
Each fiscal year the Administrator
shall publish a solicitation for
environmental education grant
proposals. The solicitation notice shall
prescribe the information to be included
in the proposal and other information
sufficient to permit EPA to assess the
project
147.118
•Je
(a) Activities eligible for funding shall
include, but not be limited to.
environmental education and mining
programs for
(1) Design, demonstration, or
dissemination of environmental
curricula, including development of
educational tools and materials;
(2) Design and demonstration of field
methods, practices, and techniques,
including assessment of environmental
and ecological conditions and analysis
of environmental pollution problems:
(3) Projects to understand and assess
a specific environmental issue or a
specific environmental problem:
(4) Provision of training or related
education for teachers, faculty, or
related personnel in a specific
geographic area or region; and
(5) Design and demonstration of
projects to foster international
cooperation in addressing
environmental issues and problems
involving the United Stales and Canada
or Mexico.
(b) EPA shall give priority to those ..
proposals which will develop:
(1) A new or significantly improved
environmental education practice.
method, or technique: •'•
(2) An environmental education
practice, method, or technique which
may have wide application:
(3) An environmental education
practice, method, or technique which
addresses a skill or scientific field
identified as a priority in the report
which will be developed within two
years of enactment pursuant to section
9(d} of the Act and
(4) An environmental education
practice, method, or technique which
addresses an environmental issue
which, in the judgment of EPA. is of a
high priority.
§ 47*190
(a) Each project shall be performed by
the recipient or by a person satisfactory
to the recipient and to the EPA.
Workpians shall accompany ail
applications, shall identify who will be
performing activities, and shall be
approved by EPA prior to funding.
(b) Budget periods normally wiU not
exceed one year. Project periods may be
longer, and additional funding may be
awarded for continuations.
(c) Procurement procedures, which are
found in 40 CFR part 33 for ail recipients
other than State and local governments.
Procurement procedures for State and
local governments are described in 40
CFR part 31. These procedures include
provisions for small purchase
procedures*
147.131
Disputes arising under these grants
shall be governed by 40 CFR 30.1200 for
recipients other than State and local
governments and 40 CFR 31.70 for State
and local governments.
{FK Doc 02-U83 Filtd 3-S-02: &4£ «mj
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APPENDIX I
EPA ORDER 1000.25, "USE OF
RECYCLED PAPER"
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Wo.; \ 6 6
D«t.: JAN I 4 !990
Use of Recycled Paoar
1. PURPOSE . This Order establishes Agency policy to
encourage the us* of recycled paper.
2. BACKGROUND. The EPA has set a goal for the nation to
reduce and recycle twenty-five percent of municipal solid vaste
by 1992. One of the keys to making recycling successful is the
development of stable markets for products containing recovered
material*. The Federal government needs to do its part by
purchasing such products; the EPA should be a leader in this
effort. This Order promotes this end by establishing sn Agency
policy promoting the use of recycled paper.
it is Environmental Protection Agency policy
to use, and to promote the use of, recycled paper.
4.
The Procurement and Contracts
is directed to ensure that all new
Management Division (PCKD)
contracts specify that contractors use recycled paper for all
reports required for delivery to the Agency. Kbere feasible,
PCMD should seek to aodify existing contracts to include the same
requirement.
The Grant* Administration Division (GAD) is directed to
include in all nev grants and cooperative agreements a special
condition requiring that grantees and recipients of cooperative
agreement funds use recycled paper for all reports submitted to
the Agency. .
All Agency employees should be mindful of our initiatives in
the area and should do their part to reduce anjLrecyole waste.
am X
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MEMORANDUM .
SUBJECT: EPA Order on the Use of Recycled Paper
FROM: Harvey G. Pippen, Jr., Director
Grants Administration Division
TO: Assistant Regional Administrators
Regions I - X
On April 12, 1990, I issued a memorandum covering an EPA Order
on the use of recycled paper, The memorandum included a
requirement for tf^e -elusion of special condition.
Since that time, we have received several questions and
comments on the special condition. Sised on these comments, we
have revised the special condition to read as follows:
"Pursuant to EPA Order 1000.25, dated January 24. 1990,
the recipient agrees to use recycled paper I'or all
reports which are prepared as a part of this agreement
and delivered to the Agency. Thie requirement does not
apply to reports which are prepared on forms supplied by
EPA. This requirement applies even when the cost of
recycled paper is higher than that of virgin paper."
Thie new version makes it clear that the recycled paper
special condition results from ai, EPA Order, and applies only to
reports delivered to the Agency. Also, please note that this
special condition applies to all new and continuing grants and
cooperative agreements. You should begin using it as revised
immediately.
Should you have any questions or comments regarding this
matter, please call ne or have your staff contact Ton Fletcher on
382-5297.
Attachment
cc: Regional Grants Branch Chiefs, Regions I - X
bcc: Bruce Faldman
Fred Meadows
Scott KcMoran
Official H. -Pippen P. Hull B. Feldman
Reading T. Fletcher R, Johnson
Division
PM-216F:TFLETCHER:tf:801 FC:382-5297:4/24/90
C: \WP50\WPFIr,E\RECYCLE3 .MEM
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APPENDIX J
DRAFT EPA ORDER, "POLICY AND
PROCEDURES FOR FUNDING
ASSISTANCE AGREEMENTS"
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DRAFT
Classification No.: . *
Approval Date: '
POLICY AND PROCEDURES FOR FUNDING ASSISTANCE AGREEMENTS
I. PURPOSE
The purpose of this policy is to establish consistent,
standard operating procedures for Regional and Headquarters Program
Offices and Grants Management Offices (GMOs) to follow in awarding
grants. While the policy and procedures address the funding process
for all grants and cooperative agreements, it focuses primarily on
new\unique assistant programs c individual project grants and
cooperative agreements not previously funded and for which the GMOs
have limited background information. These assistance awards are
other than continuing assistance programs, are frequently new
programs, Congressional add-ons, or special projects to be funded
with the Administrator's or Regional Administrator's discretionary
funds. Currently, there is confusion regarding assistance awards
resulting from Congressional add-ons or that have no administrative
procedures in place, i.e. funds that .are unexpectedly identified
for assistance awards in the fourth quarter of the fiscal year.
In many cases, the GMO is made aware of these grants late in the
the fiscal year.
The Headquarters and Regional Program, Budget, and Grants
Management Offices are participants in this assistance funding
process. Close coordination between and understanding of roles and
responsibilities of these key participants is vital to making the
process work efficiently. The Program Office provides the funding
and is responsible for the programmatic and technical oversight of
the assistance process to ensure the purposes of the assistance
award are achieved in a timely and high quality manner. The Budget
Office maintains assistance funds availability through control of
advices of allowance and reprogrammings to the Agency's Operating
Plan. The GMOs assure the assistance application completeness by
performing and documenting an administrative and legal review of
the assistance application. To avoid an unmanageable assistance
award workload in the fourth quarter, there is a need for regular
communications and coordination of planning throughout the fiscal
year between these offices.
This policy addresses two concerns: (l) the need for
communication and early planning and scheduling for making awards,
and (2) identifying appropriate program elements, statutory
authorities, and delegations for such awards.
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II. POLICY
It is EPA policy to award assistance agreements that are
legal, administratively correct, and support the Agency's mission,
as quickly as possible after funds become available. In
furtherance of this policy, EPA establishes the following:
1. Planning and Communication. Good management practices
dictate the need for strong communication and early planning. To
facilitate better planning, the Program Offices are encouraged to
establish an annual plan and schedule for awarding their assistance
agreements and to regularly communicate that plan and schedule to
the appropriate Budget and Grants Management Offices. To promote
earlier planning and increased communication, both Headquarters and
Regional Grants Management, Budget, and Program Offices should hold
periodic meetings, initiated by the GMOs, to reduce the impact
created by last-minute, fourth-quarter awards. These last-minute
awards are often due to late reprogramming of funds 'from
Headquarters to the Regions or to grants hastily awarded to avoid
having funds carried-over and reissued for a different purpose or
Office. The Program Office must recognize that the GMO needs at
least 60 days lead time (Superfund awards require 90 days) from
receipt of application to the award date to assure award of ;a grant
by the end of the fiscal year.
2. Program Element^^fftatutorv Authority. Delegation of
Authority. The program element, statutory authority, ; and
delegation of authority are information required before EPA can
award a grant. They are documented on the EPA Assistance Agreement
- EPA Form 5700-2OA. The National Program Office will verify
statutory authority, program element, and delegation of authority
before funds are sent to the Regions to award assistance. This
information must appear in a memorandum or d-mail from the National
Program Office to the Regional Program Office prior to the
distribution of the funds. The memorandum or d-mail should be
referenced on the budget reprogramming document in IFMS.
III. DEFINITIONS
1. Approval Official. The individual within the Program
having the responsibility and delegated authority for determining
whether to fund or reject an application on the basis of
technical\programmatic considerations. The Approval Official
communicates this funding decision to the Award Official through a
Decision Memorandum.
2. Award Official. The individual who signs the assistance
agreement ensuring that all technical, legal, and administrative
evaluations have been made and that the proposed agreement is
awardable. The Award Official for regionally administered programs
is either the Regional Administrator, the Assistant Regional
-------
Administrator, or the Division Director, depending upon the region
or program. The Award Officials for Headquarters are the Branch
Chief, Grants Operations Branch, and the Branch Chief, Grants
Information and Analysis Branch, Grants Administration Division,
Office of Grants and Debarment, Office of Administration and
Resources Management.
2. Assistance Funding Process. The process by vhich
assistance funds are (1) planned in a Program Office's budget
request to OMB and Congress, (2) distributed during their operating
plan development, (3) received in an advice of allowance, (4)
committed in IFMS, and (5) ultimately routed to the appropriate
Grants Management Office for award.
, 3. Carry-over Funds. Funds that are: (1) not obligated by
the end of a fiscal year; and (2) may be obligated in the next
fiscal year according to the terms of the appropriations
legislation that ^irst made these funds available. (Ref.- EPA
Resources Management Directive System (RMDS) Chapter 2510)
4. Comptroller's Year-End close-out Procedures Guidance.
Each July, the Comptroller issues guidance entitled "FY 19— Year-
End Close-Out Procedures". This broadly distributed package
includes a schedule with cut-off dates for all end-of-year
activities associated with the Budget, Finance, and Grants
Administration Divisions and the Office of Acquisition Management.
It also includes a cut-off date (usually the last business day in
August) for all routine budget reprogrammings, beyond which, IFMS
security is modified so only reprogrammings approved on a case-by
case basis are processed by the Budget Division. This cut-off date
is imposed to encourage all offices to get their end-of-year
funding in place with sufficient lead time for processing the
commitment and obligation.
5. Cooperative Agreement. The agreement used when the
principal purpose of the relationship is the transfer of money,
property, or anything of value to a State or local government or
.other recipient in order to accomplish a public purpose of support
or stimulation authorized by Federal statute in which substantial
involvement is anticipated between EPA and the recipient during
performance of the contemplated activity. (Also known as an
assistance agreement.) (Ref. - Federal Grant and Cooperative
Agreement Act of 1977 and 40 CFR Part 31)
6. Delegation of Authority. The official basic directive to
senior Headquarters and Regional management officials to exercise
authority for the Administrator. Statutory authorities to approve
assistance agreements are assigned to EPA's Administrator and
implemented through delegation to the Regional Administrators,
National Program Managers or their designees. The Agency's
Delegation Manual identifies each delegation of authority by a
specific number. EPA's Management and Organization Division
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records all delegations of authority, except emergency\letter
delegations in the Delegation Manual and distributes them to
Regional and Headquarters offices.
7. Decision Memorandum. The Program Office's memorandum to
an Award Official containing the decision and justification for
either funding or rejecting an assistance proposal. This decision
is signed by the Approval Official or his\her respective designee.
The memorandum is sent to the Grants Management Office as part of
the assistance funding package.
8. Grant. The agreement used when the principal purpose of
the relationship is the transfer of money, property, or anything
else of value to a State or local government or other recipient in
order to accomplish a public purpose of support or stimulation
authorized by Federal statute in which no substantial Federal
involvement is anticipated. between EPA and the recipient during
performance of the contemplated activity. (Also known as an.
assistance agreement../ (Ref. - Federal Grant and Cooperative.
Agreement Act of 1977 and 40 CFR Part 31.)
9. Grants Management Offices (GMO). The Headquarters and:
Regional units responsible for all business management aspects
associated with the review and negotiation of applications1 and^ the
award and administration of funded projects through audit:
resolution and final close out.
\
10. National Program Manager. The individual responsible for
management of a program on a national level.
11. Program Element. A classification within* EPA's
program\budget structure which represents a distinct program
activity. The Program Element is supported by one or more
authorizing sections of law and must be associated with the grant
statutory authority. (Appears as part of Item #39 - Fiscal Data -on
EPA's Assistance Agreement.) ...
12. Program Office. Refers to either the Headquarters
Program Office or Regional Program Office responsible for managing
the technical\programmatic aspects of a specific media program.,
13. Regional Program Manager. The individual responsible for
technical\programmatic management of an assistance program at the
regional level.
14. Statutory Authority. The section of specific authorizing
legislation providing grant-making authority to the EPA. (Appears
as Item #19 on EPA's Assistance Agreement.)
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1.
A. Program Office Responsibilities
1. The Program Office(s) should be encouraged to
establish an annual plan and schedule for recommending awards and
to regularly communicate that plan and schedule to Headquarters and
Regional Grants Management Offices. In particular, the Program
must communicate its plans for spending last-minute money to these
offices. These plans must comply with the timetables cited in the
Comptroller's Year-End Close-Out Procedures (See definition).
2. The Program Office should do as much preliminary
planning and work as possible (including a prioritized list of
potential projects and possibly completed applications and
workplans from potential recipients for these projects) in
anticipation of possible, last-minute, year-end funding.
B. Grants Management Office Responsibilities
1. The Grants Administration Division should hold
periodic meetings with the National Program Managers/Contacts and
the Budget Division to discuss proposed assistance funding plans,
schedules, and related information and then distribute that
information to both Headquarters and Regional Grants Management
Offices so they can adjust their workload.
2. The GMOs should hold periodic meetings with Program
Contacts to discuss proposed assistance funding plans and to plan
their workload.
3. The GMOs must plan their workload to allow for
processing some unexpected, last-minute, fourth-quarter awards.
2. Identifying Program Element. statutory Authority,
Delegation of Authority
A. ProgramOffice Responsibilities:
1. The National Program Manager (NPM) should notify the
Regional Program Manager (RPM) via memorandum or d-mail, whenever
the NPM initiates a reprogramming for distribution of assistance
funds to the Region. The NPM must identify the purpose of the
funding; program element; statutory authority; delegation of
authority, and an appropriate program contact person familiar with
the project in the memorandum\d-mail. The-NPM should carbon copy
kthe Headquarters Budget and Grants Management Office if the
ssistance is to be awarded from Headquarters or the Regional
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Budget and Grants Management Offices if the assistance is to be
awarded from the Region.
2. The NPM must reference the dated memorandum or d-mail
on the budget reprogramming which transmits the funds to the
Regions. This reference should be entered in the justification
section of the IFMS reprogramming document. When possible,
reprogrammings should cite the appropriate object class, i.e.
object class 25 for .acquisition and object class 41 for assistance.
3. The NPM must include the Grants Administration
Division's (GAD) Assistance Administrative Summary Sheet in program
guidance. The summary Sheet includes the program element,
statutory authority and the delegation of authority for the
respective assistance program. The NPM must submit the completed
Summary Sheet and program guidance to GAD for concurrence prior to
its issuance.
4. The Program must .dentify and verify the match
requirement(s), if any, for the assistance against the statutory
authority, program regulation, or administrative regulation for the
assistance. In addition, the program will identify and verify the
program element and delegation of authority supporting the match.
If an application will be funded under an existing
program described in the Catalogue of Federal Domestic Assistance
(CFDA), the Program must verify that the proposed activity meets
the program's eligibility criteria published in the CFDA, If the
assistance program is not in the CFDA, the Program must identify
the eligibility requirements for the award and ensure that these
eligibility requirements agree with the statutory authority and
delegation of authority under which the grant is being awarded.
5. The Program Office should coordinate with the
appropriate NPM, and Headquarters or Regional Budget Office to
provide the GMO with missing information if the GMO returns a grant
award\funding package to the Program Office because it is
incomplete regarding program element, statutory authority and
delegation of authority.
6. The Approval Official must designate the program
element, statutory authority, and delegation of authority in the
decision memorandum.
7. The Program Office should refer any legal questions
regarding eligibility to the Office of General Counsel or Regional
Counsel.
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B. Grants Management Office Responsibilities
!• The GMO provides an overall "check and balance"
function, assuring, the correctness of the program element and
statutory authority, and the existence of a delegation of authority
for the program to approve.
2. The GMO should request clarification from the Office
of General Counsel or Regional Counsel on any legal Questions
regarding eligibility. ..*"-*•
3. The GMO should return all incomplete funding\grant
packages to the Program Office and should communicate to the
Program Office the information needed to complete the package.
4. The Grants Administration Division (GAD) and GMOs,
when appropriate, must incorporate the standard operating
procedures stated in this policy into their training progress,
e.g., project officer training, and Basic Grants course.
5. GAD should verify that its Assistance Administrative
Summary Sheet appears in all program guidance.
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ASSISTANCE ADMINISTRATIVE SUMMARY SHEET
OPERATING PROGRAM\OFFICE:
2. PROGRAM CONTACT(S):
3. CATALOG OF FEDERAL DOMESTIC ASSISTANCE (CFDA) NUMBER:
4. PROGRAM TITLE:
5. PROGRAM PURPOSE:
6. ELIGIBLE APPLICANTSVRECIPIENTS:
7. TYPE OF ASSISTANCE:
Grant
Loan
Cooperative Agreement_
8. NATURE OF ASSISTANCE:
Continuing Program
Project
9. STATUTORY AUTHORITY:
Act:
Section:
10. REGULATORY AUTHORITY:
Programmatic:
Administrative:
11. COST SHARING\MATCH REQUIREMENTS:
Yes
No
MOE
BASIS OF COST SHARE\MATCHING REQUIREMENT:
Statute Program Regulation '
Program Guidance Administrative Regulation,
12. LIMITATIONS: Yes.
If yes, list the limitations:
No
13. DELEGATION OF AUTHORITY:
Delegation Number:
Tide of Delegation:
14. SUBJECT TO INTERGOVERNMENTAL REVIEW: Yes
No
15. PROGRAM CODE:
16. PROGRAM ELEMENT:
17. OBJECT CLASS:
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ASSISTANCE ADMINISTRATIVE SUMMARY SHEET INSTRUCTIONS
1. OPERATING PROGRAM OR OFFICE: (Office establishing program.)
2. PROGRAM CONTACT(S): (Name, location and phone* of Lidividual(s) who can be contacted for further
information on this program.)
3. CATALOG OF FEDERAL DOMESTIC ASSISTANCE (CFDA) NUMBER: (The cumber assigned to
•a EPA assistance program for inclusion in the government-wide catalog. Coordinate with Grants
Information and Analysis Branch, Grants Administration Division to determine if listing is required.).
4. SUGGESTED PROGRAM TITLE: (The official title of the assistance program. May or may not be
included in the Catalogue of Federal Domestic Assistance. (See #3.) Be concise and descriptive (40
characters or less).
V-
5. PURPOSE: (A ooe or two sentence summary description of eligible activities.) ,, - .. '.
6. ELIGIBLE APPLICANTS\RECIPIENTS: (Who is eligible to receive this assistance from EPA? Often]
identified in the authorizing legislation.) . ;
7. TYPE OF ASSISTANCE: (Grant, Cooperative Agreement, Loan)
8. NATURE OF ASSISTANCE: (Continuing Program; Project)
9. STATUTORY AUTHORITY: (EPA's legal authority to fund activities; cite the Act, and the;Section..
OGC will verify statutory authority to. award financial assistance as proposed and make necessary legab
determinations.)
10. REGULATORY AUTHORITY: (Cite programmatic regulations) governing the assistance program m
addition to the standard grant administrative regulations.)
11. COST-SHARING\MATCH REQUIREMENTS: (What share must the applicant contribute to the
assistance? Is it a statutory or regulatory requirement? Reminder: For those programs with no
statutory/regulatory match requirements, it is national policy to encourage a minimum five percent match
(to States/locals) to ensure the recipient's committment to the project. The five percent minimum is a
regulatory requirement for all educational and non-profit organizations per 40 CFR 30.307.)
12. LIMITATIONS: (What restrictions, if any, are there e.g., 10% statutory limitation on administrative costs
for 319(h) Non-point source gnats?)
13. DELEGATION OF AUTHORITY: (Provide number and title of Delegation of Authority(s) for these
grants. Identifies the official(s) who have the authority to approve or .reject the funding of the grant and
the official(s) who have the authority to award the grant. Management and Organization Division
coordinates Delegations of Authority for EPA.) k
14. INTERGOVERNMENTAL REVIEW: (Is this required? Executive Order 12372 provides for State's right
to review applications for Federal assistance.)
15. . PROGRAM CODEMDENTIFIER: (The administrative code that identifies the program and assures the
proper recording of the receipt of applications for assistance, their disposition, and related financial
transactions. It is an integral part of the assistance identification number. Obtain from GICS Policy
Specialist, Grants Administration Division.)
16. PROGRAM ELEMENT: (Budgetary classification which identifies the source of the'funding; is supported
by one or more authorizing sections of law and must be associated with the grant statutory authority.)
17. OBJECT CLASS: (Budgetary classification further defining the program element.)
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APPENDIX K
PERFORMANCE BASED ASSISTANCE
POLICY
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UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
WASHINGTON. DC 204«0
II
TNt AOMtMlflTHATO*
MEMORANDUM
SUBJECTS Policy on Perfornjnce-Bafed Aaaistance
FROMi Lee N. Tht
TOi Aasistan- Administrators
General Counsel
Inspector General
Aaaociate Administrator
Regional Administrators
Staff Office Directora
Division Directors
I aa pleaaed to issue the attached policy on EPA's perfor-
mance-based aaaiatanee to Statea. This policy repreaenta an
important step in the continuing effort to achieve environmental
reaults through a strong EPA/State partnership.
Our aaaistance to Statea covers a .wide range of continuing
environmental programs. In the past, the process for developing
and managing assistance agreements haa varied significantly among
programs and Regions. This policy establishes an Agency-wide
approach fccvard negotiating assistance agreements* conducting
oversight of those agreements* and responding to key oversight
findings. While the aim of the policy is a consistent approach
acroaa Agency programs* it retaina considerable flexibility for
Regiona to tailor assistance agreements to the unique environ-
mental conditions of particular States.
This policy is effective immediately. The accompanying
Question and Answer Package explains how PY'SC aasistance agree-
ments will be expected to comply wit* it and details the rationale
behind major policy componenta.
The Deputy Administrator will monitor implementation of the
Policy on Performance-Based Assistance and issue special instruc-
tions aa necessary. I expect Assistant Administrators to adviae
the Deputy Administrator of aetiona planned or taken to make their
program polieiea* guidance and procedurea fully consistent with
this policy within thirty days.
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Regional Administrators art responsible for ensuring that
their staffs and States receive, understand and begin to apolv
this policy package to their assistance activities; To assist
in its prompt and proper implementation, members of the task
force and staff instrumental in the development of this ooliev
have agreed to make Regional visits to explain and discuss it.
I would like to emend the task force that developed this
policy, whose members included managers and staff from EPA'a
Headquarters and Regions, and State Environmental Directors,
and representatives from the Washington-based Executive Branch
Organisations. I believe they have done an excellent job and
hope their effort can serve as a model for future EPA/State
decision-making. -.
I look forward to strong Agency commitment to this policy.
You can be assured of my full support as EPA and the States move
forward with its implementation.
Attachments ' -•
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POLICY ON PERFORMANCE-BASED ASSISTANCE
I am pleased to issue this EPA Policy on Porformance*Based
Assistance* This document was developed by a task fores composed
of representatives from EPA Rtadquartsrs and Regions, Stats envi-
ronmental agencies and Executive Branch Organisations to establish
.a consistent. Agency-wide approach toward negotiating and Managing
ssistanee agreements with States.
.The three major components of the policy describe how assis-
tance agreements should be negotiated, how a State's performance
against negotiated commitments should be assessed, and what actions
should be taken to reward accomplishments and correct problems.
The overall approach is one of EPA/State cooperation in setting
and attaining environmental goals through.effective State programs.
I anticipate strong Agency commitment to the principles of
this policy and look forward to the strengthening of the EPA/State
partnership I believe will result from this approach*
Lee N. Thomas
Administrator
Date
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EPA POLICY ON PERFORMANCE-BASED ASSISTANCE
PURPOSE
This policy establishes an Agency-wide approach which links
U.S. EPA's assistance funds for continuing State environmental
programs to recipient performance* The approach employs assistance
as a management tool to promote effective State environmental pro-
grams. The policy's goal is the consistent and predictable appli-
cation of the performance-baaed .approach across Agency programs
and among Regions*
Mechanisms for tying EPA assistance to a recipient's accom-
plishment of specific activities agreed to in advance are conea*..«d
in EPA's regulations governing State and Local Assistance (40 CPR
Part 35, Subpart A). The degree and manner in which EPA programs
and Regions have applied these regulations has varied greatly. ^
Through this policy*.the Agency articulates how it will consistently
manage its intergovernmental assistance*
SCOPE
EPA's Regions will be expected to implement the portions of
this policy governing the management of assistance agreements
("Oversight* and 'Consequenc.es. of Oversight* sections) upon the
policy's issuance* To the greatest extent possible* this policy
should also guide the negotiation of grants and cooperative
agreements for fiscal year 1986.
this policy.supersedes all previous policies on performance-
based assistance to the extent they conflict with the approach
outlined below* It elaborates on regulations governing State and
and Local Assistance (40 CFR Part 35, Subpart A) promulgated
October 12, 1982* and the General Regulation for Assistance Programs
(40 CFR Part 30) promulgated September 30, 1913. This policy does
not replace funding or grant/cooperative agreement requirements
established by Federal statutes or EPA regulations. States applying
for Federal financial assistance are required to have adequate
financial management systems capable of ensuring proper fiscal
control*
The policy complements and is in complete accordance with
EPA's Policy on Oversight of Delegated Programs (April 4, 19S4)
and the Policy Framework for State/EPA Enforcement "Agreements*
(June 26, 1984).
While this policy will refer to all assistance recipients as
•States* (since States receive most of IPA's assistance for con-
tinuing environmental programs), it applies equally to interstate
local agencies which receive similar support.
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PRINCIPLEJ AllD APPRdACT
PRINCIPLES
This policy on performance-based assistance it designed to
strengthen the EPA/State partnership by ensuring that EPA assis-
tance facilitates the implementation of national environmental goals
and promotes and sustains effective State environmental programs.
The policy provides a framework within which EPA and States can
clarify performance expectations and solve problems through a system
of negotiation* according to a predictable but flexible set of
national guidelines. This framework is built around several funda-
mental principles which will also guide the policy's implementation}
o EPA will use ^erformanee-based assistance as • management;
tool to promote and recognise tne effective performance '
of State environmental programs, and to ensure mutual
accountability;
-m i
o EPA Regions and programs will retain flexibility to tailor
the performance-baaed approach to their needs and the aoiiev'a
guiding principles! . *
•o States and EPA should share a common set of expectations
regarding performance commitments and likely responses
to identified problems. There should be no surprises as
EPA and States relate to each other under this policy;
irfoi
0 *" negotiating State-performance objectives* t*A and the
states win seek realistic commitments and~presume good
faith in their accomplishmenti
o EPA and the States should maintain continuous dialogue
for the rapid identification* solution and escalation
of problems to top level managers;
o EPA is fully committed to the success of State environ-
mental programs and will seek opportunities to acknowl-
edge their accomplishments.
APPROACH
The policy consists of three basic parts. The first section
describes components of assistance agreements and how they are to
b« negotiated. The second section lays out EPA'a expectation* for
tho review and evaluation of assistance agreements and escalation
of significant findings. The final section describes how EPA should
respond to the findings of oversightt rewarding strong performancei
applying corrective actions to solve problems; escalating signif-
icant conflicts to top management; and, in cases of persistent per-
formance problems* imposing sanctions*
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-3-
Clear expectations for program performance are crucial to an
effective EPA/State partnership. Annual assistance agreements pro-
vide a key vehicle for expressing these performance expectations.
Negotiated work programs, contained in an assistance ag re went, forn
a fundamental basic for evaluation of State performance*
An assistance agreement should include three components* l) a
work program; 2) identification of support (other than federal
assistance funds) a State needs from EPA to accomplish work prograa
commitments! and, 3) a monitoring and evaluation plan*
APPROACH
in
EPA will require that the top national priorities as iden 'led
Agency guidance b« explicitly addressed in all State work pro*
IBS. As EPA and States negotiate outputs, national priorities
should be tailored to the real environmental conditions of each State
and Region* ,
Assistance agreements may include outputs based on a state's
priorities if those activities promise to deliver a greater environ-
mental benefit than a national priority. State priorities should
represent only those activities allowable under Federal statutes.
The appropriate mix of national and State priorities will vary
from work program to work program* according to the unique features
of each environmental program in each State* Regional offices must
exercise their judgment and negotiate with States over whet combina-
tion of national and State priorities can deliver the greatest
environmental benefit with resources available after EPA1a top
national priorities have been addreesed*
To better facilitate the negotiation of assistance agreements,
the Agency's Operating Guidance should be strengthened through early
State involvement in defining the order and scope of Agency
•priorities, a realistic consideration of funding limitations
throughout its development, end specific identification of top
priorities by Program Offices*
The development.and oversight of an assistance agreement should
be supervised by one senior Regional manager* EPA Regional Admini-
strators are ultimately accountable for all assistance agreements
made with States and should be familiar with the significant
outputs and conditions of each agreement. They will be respon-
sible for all major assistance-related decisions*
Assistance agreements may be amended by mutual agreement of
the Regional Administrator and his/her State counterpart* A major
change in national or State priorities, environmental emergencies,
'and the discovery of greatly overestimated commitments are examples
of the types of circumstances which may necessitate renegotiation.
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HDRK PROGRAM
The writ program should specify the outputs a State win Dro-
duce under its federal assistance award (including the State match
and level of effort) and the resources and time frames for comDlitin
the outputs. • "-4n
o Outputs should be measurable commitments, reflective
to the extent possible of real environmental results.
They should be ambitious but realistic commitments —
achievable objectives rather than lofty goals.
o worn programs should focus on the objectives a State
will meet, not how the State will accomplish an output.'
*"1~
o Past performance should affect work programs. The good
or poor performance of a State (or EPA) identified through
oversight she '+ influence *he outputs and conditions
contained in the next annual assistance agreement.
o Work programs should specifically identify completion .
timeframes for outputs. EPA may also specify interim
milestones and reporting requirements based on the '
priority needs of national programs and in keeping 'with
good management practice. Reporting required under an
assistance agreement should be consistent with EPA'»
information systems. :
o States should draft their work programs but may request
assistance from EPA Regions in developing them.
o States should be encouraged to volunteer a comprehensive
work program that indicate* activities, if any, outside
those paid for with the federal and State funds Included
in the federal assistance agreement budget* Awareness
of State responsibility* not related to federal assistance
greatly enhances EPA*s understanding of the scope of
State environmental programs. Should a State choose to
submit plans for its entire program, it need not indicate
resource levels, but only program activities. EPA will
not examine these activities in the course of assistance
oversight except when neceasary to ascertain the cause
of a performance problem or to identify the corrective
action which can best address a problem.
SUPPLEMENTAL EPA SUPPORT TO STATES
An assistance agreement should describe the types of support
EPA will endeavor to provide in addition to an assistance award to
enable a State to meet its work program outputs. Regions should
consult with Headquarters about support which will require Head-
quarters action.
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-5-
o The assistance agreement should describe the specific
research, technical advice, guidance, regulations,
contractor assistance or other support EPA will furnish
States to enable them to fulfill specific work program
. outputs, making clear that accomplishment of the outputs
is contingent upon the receipt of the EPA support. If
EPA does not furnish the support described in the assistance
agreement, the State will be relieved of output commitments
contingent upon that support.
EVALUATION PLAN
The final component of an assistance agreement is a plan
for EPA's evaluation of State performance* The evaluation plan
should be mutually acceptable to EPA and a State*
o The plan should outline the schedule and scope of review
EPA will conduct and should identify areas the evaluation
will focus on* .
o An evaluation plan must specify at least one on-site
review per year, performance measures, and reporting
requirements.
ASSISTANCE OVERSIGHT
EPA should oversee assistance agreements both informally and
formally. Regions and States should maintain continuous dialogue
so that States may alert EPA to problems they are experiencing and
EPA can monitor State progress toward accomplishing outputs. EPA
should also periodically conduct a formal evaluation of State per*
formanee. Oversight should Identify the successes and problems
States have encountered in meeting their commitments. Oversight
also entails the joint analysis of identified problems to determine
their nature, cause* and appropriate solution, and the escalation
of significant findings (both positive and negative) to top managers
in the Region and the State.
APPROACH
The formal assessment of State performance under assistsnco
agreements should occur as part of EPA's comprehensive review
and evaluation of State programs. This process is governed by
EPA's Policy on Oversight of Delegated Programs which states
that evaluations should focus on overall program performance
(within a given program), rather than individual actions! they
should be based on objective measures and standards agreed to
in advance; they should be conducted on-site at lease once a
year by experienced, skilled EPA staffi they should contain no
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•6-
surprises for States regarding content or expectations? and
results should be documented in a written report.
EPA should adhere to these principles of oversight and to
the scope and schedule of evaluation agreed to in the assistance
agreement* . • _ .
FEATURES
o States are responsible for notifying EPA in a timely manner of
problems they experience in trying to accomplish their outputs.
Likewise, EPA is responsible for promptly notifying States of
its inability to supply promised support.
o Formal and informal evaluations by EPA should be constructive,
conducted in the epirit of promoting good performance through
problem-solving,-not fiult-finding.
o EPA'a review and evaluation should emphasise overall performance
within each program, concentrating on the composite picture
revealed by total outputs and the quality of accomplishments.
o EPA should focus on a State's performance against work .program
outputs and conditions unless other aspects of a State's program
(procedures, processes, other activities) must be examined to
analyze a problem or find its appropriate solution.-
6 Formal review of State performance under the assistance agreement
will entail, at a minimum, one en-site annual evaluation of each
assistance agreement.
o Review and evaluation of assistance agreements should be con-
ducted by skilled, experienced EPA evaluators.
o Oversight findings, successes as well as problems, should be
documented to establish an accurate record of State performance
over time.
.o Assistance oversight should use existing reporting and evaluation
mechanism* to the extent possible.
Or
Once the assistance oversight process has identified and
doctnented areas in which States have had success or difficulty
in meeting their commitments under the assistance agreement, EPA
should respond to those oversight findings. Potential responses
range from rewards and incentives for good performance, application
of corrective actions to solve uncovered problems, and the imposi-
tion of sanctions to address persistent, serious performance prob-
lems.
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.»o* rtaarvPQfc
Tha Aganey'a goal in providing parformanca-baaad aaaiatanca
is to promota national prograa objactivaa by aupporting affactiva
Stata anvironaantal prograas. Action* in raaponaa to ovaraight
findings will ba oriantad toward finding tha aoat affaetiva
ways to maintain or iaprova a Stata prograa1s parforaanca.
wharavar possibla, EPA ahould acknowladga axcallant parforaanca
and halp Stataa aolva problaaa which iapada parforaanca through
corractiva actions*
If problaas ragarding Stata achiavaaant of work prograa
coaaitaanta parsist, EPA ahould pursua corractiva atapa aa
nacaaaary baaad on axparianca with a givan Stata. Zn ganaral,
aanctiona ahould ba iapoaad only whan corractiva actiona hava
failad to aolva parsistant, significant parforaanca problaas.
Bafora taking any sanction against a Stata, EPA ahould raisa
tha parforaanca iasu* to tha highast lavala of tha Ragion and
Stata nacaaaary to n«yotiata an affactiva solution to tha
undarlying problaa. Sanctiona should not ba nacaaaary if both
partias ara axplicit* straightforward and raalistic in thair
axpactationa of ona anothar and approach tha aaaiatanca agraaaant
procaaa in tha apiri't of eooparation.
nrrvES .
o Mian a Stata aaats its nagotiatad coaaitaants or othar*
wiaa daaonstratas succass, tha EPA Ragional Offica
ahould taka stapa to acknowladga axcallant Stata
parforaanca at tha conclusion of tha ovarsight raviaw
or at tha and of tha' aaaiatanca agraamant pariod.
b EPA is coaaittad to publicising Stata prograa suceass.
Aasurad racognltion of a Stata1a anvironaantal aehiavaaants
ia ona of the aoat affactiva incantivas at EPA'a disposal*
Publicising aecoapliahaants also banafita Stataa with par-
foraanca problaaa by providing thaa with aodals for suecaaa.
o Zn ganaral, whan a Stata daaonatrataa ataady prograas or
a suatainad laval of high parforaanea against nagotiatad
coaaitaanta, EPA will inatituta tha moat appropriata rawarda
for achiavaaant and ineantivaa to proaota continued auecaaa.
Poasibla actiona includa but ara not limitad tot
• Raducing tha nuabar, laval, scopa and/or
fraquancy of raviawa, reporting, or in-
apaetiona to tha ainimua nacaasary for
affactiva national program aanagaaanty
- Zncraasing Stata flaxibility in using funds
for spacial proJact* or Stata prioritiaai
- Offaring financial incantivas (within axisting
rasourcas), such aa aupplaaantal funding)
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-8-
Publleising program succeeaes through joint
media presentationa, awards* apecial letters
of conn*ndation to the Governor, or technology
tranefer to othar States, EPA Regiona and
Haadquartara.
CORRECTIVE ACTIONS
o Whan oversight review uncovers a performance problea and
determines its cause, EPA and the State dust act on those
findings by taking appropriate corrective steps.
o Regions must initiate discussions with those States where
problema have emerged, and work cooperatively with them to
establish effective remedial strategies. This negotiated
strategy should specify the tine frame during which EPA win
expect the problem to be resolved, and any interim milestones
that will be necessary to monitor State progress.
o Regions and States should follow a corrective action strat-
egy based on the unique history and needs of « given State. -*
This policy does not prescribe any particular sequence of
corrective actions which mist be undertaken, nor does it
link specific corrective actions to particular types of
performance problems.
o Possible corrective actions include but are not limited tot
providing EPA technical or managerial assistance, training,
or additional resourcesi increasing the number and/or fre-
quency of reporting and oversight requirements* and shifting
State resources or otherwise renegotiating the assistance
agreement.
o If a Region is net able to provide a particular essential
type of specialised assistance to a State* the Region ahould
bring this corrective action requirement to the attention
of Headquarters program managers for action as appropriate.
o The intent of this policy is to see that EPA assumes a
constructive approach in responding to State performance
problem*. When corrective actions have failed* or IPA and
a State cannot agree on a corrective action* the Region
may consider imposing a sanction. If a sanction is contem-
plated* the performance iaaue ahould be escalated to the
highest appropriate level of EPA and the State. The follow-
ing aequence should be observed whenever possible to ensure
that aignificant problems receive prompt attention and are
solved expeditiouslyi
a. The Regional Division Director responsible for
managing the assistance agreement will rsise the
issue to the attention of the Deputy Regional
Administrator or Regional Administrator and advise
his/her State counterpart of this notification.
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The Regional Administrator will personally contact
the State Environmental Director or other appropriate
State manager to attempt to reach agreement on a
corrective action, and to discuss the contemplated
sanction.
National Program Managers should be advised of any
State program problems warranting a sanction, and
should, be notified of any final decision to take
such, action*
If negotiations between the Regional Administrator
and State counterpart fail to solve the problem,
the Regional Administrator should judge under what
circumstances notification of the Governor should
occur*
SANCTIONS
o Regional Administrators must recognise that national re-
sponsibility for any State environmental program continues "*
after the imposition of a sanction. They should make ar-
rangements for completion of crucial outstanding outputs
and should take steps to promote and sustain activities
the State is performing effectively.
o As with corrective actions, any decision to impose a
sanction must be based on EPA's particular experience
with any given State* The Regional Administrator is
responsible for determining when a problem may be signif-
icant enough to warrant such action, and for determining
the appropriate type of a*Action to apply.
•
o Current regulations detail those sanctions traditionally
available to EPA. They includes step-work actions,
withholding payment, suspension or termination of agree-
ment for cause, agreement annulment, and other appropriate
judicial or administrative actions.
o Adjusting the schedule for award or payment of assistance
funds to quarterly, semi-annual, or other similar restrictive
disbursement schedules is considered a sanction under the
terse of this policy. (The customary mechanisms for the
release of funds, such as standard letter of credit
procedures, are not affected by this policy*)
o 40 CPR Part 30 Subpart L details formal procedures for
resolving EPA/State disputes concerning assistance
agreements. These procedures provide the opportunity
for a State to document the grounds for any objections
to the imposition of a sanction and for EPA to review
its decision and address the State's objections on the
basis of a written record.
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Policy on Performance-Based Assistance
Question and Answer Package
PURPOSE
1* what is the purpose of this policy?
This policy lays out a framework for managing EPA's
assistance to States for continuing environmental programs.
It ties performance against negotiated vork program outputs to
federal financial assistance funds* It provides a consistent
approach for managing assistance programs through negotiating
work outputs* overseeing States' performance against agreed
upon commitments* solving problems through corrective action
strategies* and imposing sanctions when corrective actions
have failed or EPA and a Stato cannot agree on a corrective
action strategy*
Although the policy aims for a consistent approach toward
managing assistance agreements* it provides Regional managers
with flexibility to use their best judgment in applying the
provisions of this policy to specific conditions that exist ,
within their Regions and among programs*
TIMING
2. How will this policy affect FY'86 assistance agreements?
Any py*a< assistance agreement negotiated after the
issuance of this policy will be expected to conform to
all of its provisions*
* *
Assistance agreements for FY'86 agreed upon prior to
the issuance of the Policy on Performance-Based Assistance
will not have to be renegotiated. However* EPA's Regions
will be expected to manage those assistance agreements
according to the approach outlined in the "Oversight" and
"Consequences of Oversight" sections of the policy.
FT*If assistance agreements may be amended if a Region
and State both'agree to do so* under the terms of governing
regulations* .
All assistance agreements for PTf87 will be negotiated
and managed according to this policy.
PRIORITIES
3. Hhy should EPA assistance support some State priorities
in addition to national priorities?
"State priorities" refer to activities which are •"ow-
able for funding under federal statutes and which* «"»°"«n
not always important enough nationwide to warrant a place
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4.
on or at the top of the national priority list, arc of
great concern to a particular Stata dua to that State's
unique environmental conditions. Recognizing that aach of
EPA1s continuing environmental programs requires a combination
of Padaral and Stata resources, EPA may diract some of its
assistance to support what Statas view «« their most
significant initiatives, if those activities promise to
deliver a greater environmental benefit than a national
priority. (National priorities include Regional priorities).
In many instances, a State's priority activities will cor-
respond closely to the list of national priorities in a
given program, but the Stata nay wish to distributa rasourcas
among those activities with a slightly diffarant emphasis*
The Regions have flexibility under this policy to negotiate
support for those activities, consistent with Program
Guidance. '''•'?.. '•• ' >:
»• ., .''».- • • ?
Bow is the proper balance between national and Stata
priorities to be achieved?
The appropriate nix of national and Stata priorities ~*
will vary frosi work program to work program, according to
the unique features of each environmental program, in each
State. After ensuring that top national prioritie* as ,
identified in the Agency Operating, Guidance and Regional
Guidance are included in a work program* Regional officials
must exercise their judgment and negotiate with a State
over what combination of national and State priorities can
deliver the greatest environmental benefit,given the remaining
resources available. .
GUIDANCE , .
v'.• •
S. How should the Agency Operating Guidance be refined to
facilitate improved work planning? : %
EPA'a annual Operating Guidance should clearly arti-
culate national priorities. The Agency Priority list should
be limited to those top priorities across all media. Bach
Program. Office should also list priority activities in its'
media area, ranking them and identifying those which must
be reflected in every State work program. The Program Office
and Agency priority lists should complement one another.
EPA will involve states early on in defining the order and
scope of Agency and Program Office priorities.
EPA Regions should negotiate work program outputs based
upon priorities as identified and ranked in the Guidance.
Carefully delineated priorities will help ensure work programs
that contain clear and aeasurtable output commitments.
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ESCALATIOH
6. What 1§ the purpose of the escalation sequence outlined in
the policy?
The Policy on Performance-Based Assistance establishes
a problem-solving approach toward managing EPA assistance to
States. It has been designed to promote the prompt identi-
fication and resolution of any problems States encounter in
trying to fulfill the output commitment! they agree to meet.
The purpose in laying out a process by which issues can be
surfaced quickly up the chain of command in both Regions and
States is to ensure that significant problems receive the
prompt attention of managers capable of solving those problems
expeditiously. This sequence was included in the policy to
address concern that State performance problems too fr;^ -tly
lie unattended at the lower levels of Regions and States where
* they become bigger problems.
While this process calls for consultation with State ~m
representatives and notification of the National Program
Manager, EPA's Regions are responsible for managing the
escalation sequence and rendering any final decision to
impose a sanction*
7. Under what circumstances should the escalation sequence be
followed?
The escalation sequence was designed specifically as a
mechanism for obtaining quick decisions on whether EPA will
impose a sanction on a state demonstrating performance pro-
blems. By establishing a predictable process for addressing
these major conflicts, the policy seeks to expedite, not er.-
cumber with formality* resolution of the most serious problems
likely to be encountered in an assistance relationship. Nhile
this escalation sequence applies uniquely to decisions regarding
sanctions*- the policy encourages the escalation of any signi-
ficant information (positive and negative) regarding the per-
formance of a. State program within both Regions and States as
appropriate.
QUARTERLY DXSBORSEflCNTS
8. Why does this policy classify quarterly disbursement schedules
(or similar restrictive disbursement schedules) as sanctions?
Quarterly disbursement schedules involve awarding a
portion of a State's grant each quarter or imposing quarterly
performance-based restrictions on standard payment procedures.
The Task Poree agreed that putting States on quarterly or
semi-annual disbursement schedules makes it difficult for
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-4-
• ' *
States to plan their programs, which are generally based
a yearly cycle. The Task Force felt that this type o
would signify a lack of faith in a state's ability to parser
Consequently, the Taak Force viewed this type of action as a
sanction which would reflect a State's inability to perform
As with other sanctions, quarterly diabursement schedules,
should not be imposed before attempting to reaolve the problem
through more cooperative efforts (corrective actions) or after
a demonstration of continued past performance problems by a
State. As with all sanction decisions, the decision to place
a State on a quarterly disbursement schedule should be made
at the highest level of the Region.
A quarterly disbursement schedule signifies that the
recipient's performance would be reviewed after each quarter
to determine whether full release of funds would be made
for the next quarter. Order the policy, putting a State
on this type of schedule is considered to be a sanction.
9. Does thia policy affect draw-downs under the letter of credit"*
or other payment mechanisms?
The customary mechanisms for the release of funds are
not affected by this policy. For example, letter of credit
procedures, which are used by most Regions, provide a
system whereby the recipient may promptly obtain the funds
necessary to finance the Federal portion of a project, and
which precludes the withdrawal of funds from the Department
of the Treasury any sooner than absolutely necessary.
(Payment procedures are described* in the Assistance Admini-
stration Manual, 12/3/84, Chapter 33.) However, to the
extent that Regions Impose performance-related restrictions
on letter of cr**Ut or other payment mechanisms, these
restrictions would be considered a sanction under the policy.
10. How will this policy affect States currently on quarterly
disbursement schedules?
Currently, a number of States are on quarterly disburse-
ment schedules, primarily under the RCRA program. Thia policy
doea not prohibit the practice of imposing a quarterly schedule
on a State, but it does consider this practice a sanction.
It is not necessary to amend FY*8S or FT*!! assistance agree-
ments that already place States on quarterly disbursement
schedules. However, States should not automatically be either
extended or taken off of quarterly schedules for the following
year's grant cycle. In deciding whether to continue or dis-
continue quarterly disbursements, Regions should review state
performance. A decision to continue or discontinue a quarter
schedule should be based on the presence or absence of
performance problems, or successful or unsuccessful attempts
to resolve the problems through corrective steps* • Regional
and programatie differences call for Regional managers to
use their best judgment in making such decisions.
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-5-
11. What does this policy imply for withholding fund* Cor
problem* that are not directly related to a State'* perfor-
mance of negotiated output* under the assistance agreement?
This policy relates primarily to a State'* performance
of negotiated output* under an a**l*tance agreement. The
deciaion to withhold fund* from a State for output-related
problem* 1* a sanction which should be preceded by appropriate
corrective action* and notification of high-level manager*.
However, fund* are sometimes withheld for problem* not directly
related to a State'* accomplishment of negotiated output*
under an assistance agreenent. Thi* may occur a* a re*ult
of problem* with a State1* financial reporting and accounting
system. For problem* resulting from improper fiscal manage-
ment or administrative practice (but not directly related to
a State'* performance on work output*), the Region* may *-
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-6-
IS. How can the assistance agreement be amended?
Both the policy and the regulation allow for the assist*
ance agreement to be amended at any tiae by mutual agreement
between the Regional Administrator and the State* Either
party (State or Region) may ask for amendment of the assist-
ance agreement. (See 40 CPR Part 30-700, Subpart G.)
16. DO Regions have discretion to devise corrective action
strategiea and determine the timing and sequence of
corrective setions?
Yes. Regions should attempt to implement corrective
action- strategies which respond to the problem in a timely
and appropriate manner.
17. Why doesn't the policy deal with the 'quality? of output*?
while this Policy on Performance-Based Assistance
focuses on State performance against measureable outputs,
it complements and is in complete conformance with EPA's •
Policy on Oversight of Delegated Programs, which calls for
review and evaluation activities which ensure quality
State programs. Most of EPA's programs have instituted
evaluation programs which examine not only •beans,* but t,
the quality of those beans.: The oversight of work program
outputs should occur *s part of a comprehensive examination
of State program performance.
18. Row
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APPENDIX L
CARRYOVER POLICY (COMPTROLLER
POLICY ANNOUNCEMENT 88-09)
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UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
WASHINGTON. D.C. 204W
MAY 6
COMPTROLLER POLICY ANNOUNCEMENT
No. 86-09
OFtCE OF
AMD RESOUNCES
MANAGEMENT
MEMORANDUM
SUBJECT:
PROM: ,
TO:
Disposition
Assistance
bated Balances of
David P.
Comptroll
i
Assistant Regional (Administrators
Management Division/Directors
Senior Budget Officers
Regional Comptrollers
Financial Management Officers
This Policy Announcement clarifies EPA policies and
procedures for the disposition of unobligated balances of
assistance awards, i.e., grants and cooperative agreements.
It describes the circumstances when EPA may carry these funds
forward and provides specific procedures to ensure proper
accounting for assistance awards.
POLICIES AND PROCEDURES
There are three attachments to this Policy Announcement.
Attachments I and ZZ describe policies and procedures appli-
cable to the .disposition of these funds. These policies and
procedures address all financial assistance programs except
those funded from no-year appropriations. Guidance on two of
the no-year appropriations can be found in Comptroller Policy
and Procedure Memorandum 9-P, "Recovery and Use of construc-
tion Funds,* and .will be found in the Resources Management
Directives System 25SOD, Superfund Financial Management, which
will be issued shortly.
Attachment IZI contains examples of how this guidance
applies to specific types of assistance agreements.
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EFFECTIVE DATE '
Allowance Holders Bust ensure that assistance award's
made from their respective allowances are adninistered in
accordance with this Policy Announceaent no later than
June 30, 1988.
FOR ADDITIONAL IHFORMATION
If you would like additional inforaation on the specific
policies and procedures described in this Policy Announcement,
please contact Bob Cluck, Fiscal Policies and Procedures
Branch, Financial Management Division, at 382-5113.
Inquiries about the Agency's general policies and
procedures on -the administration of assistance projects
should be aade to Scott McMoran, Grants Policies and Proce-
dures Branch, Grants Administration Division, at 362-5293.
Questions concerning recoveries of funds under. Agency
appropriations and about the scope of this Policy Announr*r ~t
(i.e., the statutory authorities to which it applies) should
be directed to Rick Peterson, Budget Control Section, Budget
Formulation and Control Branch, at 382-4212.
"SUNSET PROVISIONS"
The guidance in this Policy Announcement will be
Incorporated in the Resources Management Directives System
(RMDS) chapter on assistance projects (RMDS Division 2550C.
Chapter 2). This chapter, which covers all financial manage-
ment guidance relevant to assistance awards, is currently •
under development and will be issued later this fiscal year;.
The RMDS chapter will supersede this document. <:
Attachments ,.
ccs Harvey Pippen .!
J. Richard Bashar
John Sandy ;i
Alvin Pesachowitx ;
Vincette L. Goerl
Tony Mustek
John Elliott
Carole Ansheles
FMD Branch Chiefs
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Attachment I
DISPOSITION OF UNOBLIGATED
Accounting for the disposition of recipients' unobligated
balances of assistance awards requires at least two actions: a
downward adjustment to one budget period's funding and a comple-
mentary accounting entry to show the disposition of those funds.
Regarding the disposition of unobligated balances of project
type assistance awards, these funds generally remain available
to recipients until the project is completed. With respect to
continuing environmental programs, funds can be made available
in subsequent budget periods only if the source appropriation
for those funds has not expired. A detailed description of these
policies is found below in Section IX. The policies are also
summarized on the chart following page 4 of this Attachment.
I. BACKGROUND AND BASIS FOR POLICIES
A. EPA Appropriations* Each year EPA receives, several
appropriations from Congress to fund the numerous programs for
which it is responsible. Besides appropriating funds to pay our
internal expenses. Congress also gives EPA appropriations that
are intended to fund a wide variety of assistance agreements
'(grants and cooperative agreements), among other things.
The. appropriations may limit the time periods within which
the funds are available for Agency obligation. Grants and co-
operative agreements are generally funded under either two-year
or "no-year" (i.e., indefinite period) appropriations.
When Congress limits the time period in which funds are
available, it increases its control over the resources available
to EPA to carry out authorised programs. If EPA does not obli-
gate appropriated funds for assistance awards or other approved
purposes during the life of the appropriation, the funds will
expire* Should Congress wish to fund activities in subsequent
periods, new funding would be provided in later appropriations.
In contrast, when Congress appropriates "no-year" funds,
these funds remain available until fully expended '-- they do
not expire. Both the Construction Grants Program and Superfund
activities have historically been funded with such appropriations.
Congress may choose to add to the Agency's "no-year" balances
through subsequent appropriations.
B. EPA Assistance Awards. When EPA awards a grant or cooperative
agreement, the agreement defines a specific "budget period" during
which the funds obligated by EPA are available to the recipient.
Assistance agreements also define the project period* which is the
length of time EPA specifies to complete the "project* described
in the agreement. The project period nay be made up of one or more
budget periods. (In some cases, such as the Asbestos school Hazard
Abatement Act program, it may be appropriate to have open-ended
work progress milestones or similar criteria.)
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The recipient (e.g., .a State or local government agency,
or a univenity) uses the EPA award as its authority to enter
into its own "obligations" £' for internal expenses, contracts.,
etc., to carry out program/project objectives during the budget
period. For various reasons, a recipient may not be able to
obligate all the funds awarded by EPA. At the end of each budget
period the recipient must report any "unused* funds to EPA on
their Financial Status Report. The "unused" amounts are shown as
the unobligated balance of Federal funds. The final disposition
of -those unobligated balances depends on several factors, as
discussed in Section ZZ below.
c. GAP Review. Zn 1984 6AO reviewed EPA compliance with the
Federal Managers Financial Integrity Act (FMFZA). In that re-
view, they raised questions about EPA's apparent inclusion of
unexpended balances carried forward to grants several years
after the source appropriation expired. As a result, in our
letter to the President on FMFIA weaknesses, we Bade a coamit-
sient to review our current practices for making recipients'
unexpended bala...js available in later budget periods. T..~
policies and procedures set out in the following sections are a
result of that review and seek to strengthen our management, of
those funds. 'r
II. GENERAL POLICIES
a. Adjustments for Unobligated Balances. EPA assistance
awards are recorded as Agency obligations in EPA's Financial
Management System (FMS). They are identified in FMS by obliga-
tion document numbers, which are derived from the assistance
identification number that EPA assigns to the assistance award.
Both a project number and budget period are encoded in this.
identifier.
When adjustments are to be made to obligation balances,
they must be supported by written amendments to the assistance
agreement that established the original obligation. Assistance
award officials must provide to their servicing financial manage-
•ent offices (FMO) copies of the documents used to effect the
amendments.
b. Decreases in Obligation Amount«. Decreases in budget
period funding levels typically occur after a budget period ends
! In order to understand and implement the policies and procedures
~" described in this document, it is very important to distinguish
between EPA obligations and recipient obligations.
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and the recipient determines what, if any, portion of the award
was unused (.i.e., unobligated by the recipient) during the budg«
period. However, decreases could be executed for various reasons
during the budget period. In either case, the adjustments oust
be properly documented and provided timely to the FMOs, as noted
above.
The financial management office (FMO) will record the
decreases in budget period funding in the Financial Management
System (FMS). The accounting procedures are outlined in section
III.of this attachment. Whether the decreases against one bud-
get period aay be available in a subsequent budget period depends
on the factors described below.
c. Disposition of Adjusted Amounts. Unobligated balances of
assistance awards from one budget period have generally been made
available in subsequent budget periods either as additional fund"
ing for the later budget period or as partial funding in lieu"oT
a like amount from a new Agency appropriation.However, before
taking either action, an award official Bust first determine
which of the fol -wing criter-'^ fit:
1. Project agreements. Project type assistance agreements
involve undertakings with a discrete outcome, product or report.
Most of £PA.'a assistance agreements awarded in Headquarters are
examples of this type, although project agreements may be made
in the regions, and by other EPA offices as well. The project
periods and funding for these projects are often provided incre-
mentally over several years. Any reports submitted at the end of
a budget period, or at any time prior to the final report, product
or outcome, would be merely informational and are not independent
or separate from the final project outcome, product or report.
Criterion: With respect to project agreements, unobligated
. funds from one budget period may be made available
in a subsequent budget period of the same project
by properly executing an assistance amendment as
long as the general project scope of work remains
unchanged. It there are major changes in the scope
of work* the unexpended balances may be carried
forward only if the source appropriation for those
. balances has not expired prior to the date of the
amendment.
2. Continuing Environmental Program and Other General Support
Assistance Agreements.In addition to project type assistance, EPA
iding for a number of environmental programs or other
The recipients are often State or local
provides funding for a
continuing activities.
governments, but may include organizations involved in general
research activities.
Criterion: With respect to program agreements, unobligated
balances from one budget period of a continuing
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environmental program or activity may bs made
available in a subsequent budget period of that
program c activity at long as: 1) the transfer
to the su-sequent budget period it aade before
the source appropriation for those fund* expires,
and 2) the assistance agreement includes a
special condition limiting the recipient's
obligation of these funds before the end of
the subsequent budget period or within one year
of the amendment, whichever is earlier.
3. Recoveries of Assistance Award Balances. If a recipient's
unobligated balances will not or cannot be available in *.•«*>»*-
qSent budget period, the downward adjustment will be considered a
recovery to the source appropriation, ,
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'
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Attachment II
PROCEDURES FOR THE DISPOSITION OF UNOBLIGATED
BALANCES OF ASSISTANCE AWARDS
I. TRANSFER OF FUNDS FROM OKE BUDGET PERIOD TO ANOTHER
Transfer! of funds from one budget period to Another must
be documented by the execution of two complementary and concur-
rent EPA Assistance Agreement/Amendments (EPA Fora 5700-20A).
(EPA'a optional amendment fora, 5700-208, or other appropriate
fora, say be used in the following procedures in lieu of the
5700-20A to amend agreements as long as the same accounting
information outlined below is included on the fora.) The
executed forms Bust be provided to the servicing financial
management office when signed both by EPA and the recipient.
The first Fora 5700-20A/B will decrease funds awarded for
the earlier budget period. For the succeeding budget period, the
second 5700-20A/B Bay: 1) provide interim funding* 2) increase
the funds availat or 3) replace "current year' (i.e., new
obligational authority) funds. In the last instance, the dis-
placed funds could be used by the regions as discretionary funding
for other approved purposes.
a. Decrease to prior budget period. In order to decrease
funds awarded for one budget period, so that they may be carried
forward to a subsequent budget period, a Form 5700-20A/B must be
completed and signed by the Award Official. If a decrease is
made before the end of the budget period, or at any time without
the support of a signed FSR or other signed authorization, the
Form 5700-20A/B aust be signed by the recipient's authorizing
official.
In lieu of the recipient official's signature on the 5700-20A/B,
an award official can use the recipient's interim or final FSR if
the FSRt 1) covers the full budget period, and 2) is signed by an
authorized recipient official. If this option is used, the award
official aust provide the FSR along with the 5700-20A/B signed
by the award official to the Financial Management official to docu-
ment the transaction.
the financial data will be entered on the Fora 5700-20A as
followsi
1) Itea 1. The assistance ID in item 1 serves as the
obligating document number for the Financial Management System
(FMS), thus serving as a.common data element for grants and
finance.
2) Item 22. The narrative in this item will include a
brief description of the action being taken by this amendment to
the original award.
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3) It«a 30. Hen 30 ("EPA Amount this Action") will
the former award, the aiiount of the decrease in *( -)" and the
amended total. [(The financial management office trill use Trans-
action code 050.2 to record the decrease in the Financial
Management System (FMS)].
4) Items 34 and 38. Iteas 34 (Recipient Contribution) and
36 (Allowable Project Cost) will be modified to •how the effect,
if any, of this amendment on these categories.
5) Item 39. Iten 39 (Fiscal) includes the standard accounting
infcreation for the funds being transferred. The amount of the ;
decrease will,be entered in parentheses in the last block on that
line.
b. Transfer to Succeeding Budget Period. A properly completed
Form 5700-20A must also be executed to make prior year balances
available, where allowable, for the recipient's obligation during
the succeeding budget period. The financial data will be entered
as follows:
1. Item 1. Again, the assistance ID will be entered here.
2* Item 22. A brief explanation of the action will be
included in the narrative.
3. Item 30. This item would be completed only if the:aaoujfe
of the award for the "current" budget period were being decreatWr
i.e., the amount being carried forward was displacing current year
funds. The amount of the decrease would be placed in "( )."
4. Item 32. This item will include the former award, if any,-'
the amount being transferred forward from the prior budget-period,
and the amended total for this category of funds. (The financial
management office will use Transaction Code 059.1 to record the
increased amount available under this obligation document number.)
5. Items 34 and 38. Items 34 (Recipient Contribution) and
38 (Allowable Project cost) will be modified to show the effect,
if any, of this action on these categories.
6. Item 39. Item 39 (Fiscal) includes the standard accounting
information for the prior budget period's funds that EPA is trans-
ferring to this budget period for the recipient's obligation. The
dollar amount being brought forward will be entered in the last
position on that line, following the other accounting data.
If the amount being transferred forward is intended to displace
amounts already awarded from current year funds, a second line of
accounting data must be entered on line 39. The data would be the
accounting information associated with the decrease, and th« aaount
of the decrease would be placed in parentheses in the final block
of that line item.
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If the less structured Fora 5700-208 is used to execute the
preceding actions, the sane indorsation au»t be contained in
readily identifiable fora on that document.
XI. DISPOSITION OF AWARD BALANCES AT END OF A CONTINUING
ENVIRONMENTAL PROGRAM OR AT EKD OF PROJECT PERIOD FOR OTHER
ASSISTANCE PROJECTS
If a continuing environmental program is terminated, or
whenever a project period ends for other types of assistance
•wards (e.g., project type agreements), the PSR for these pro-
jects Bay contain balances of Federal funds unobligated by the
recipient. In such a case, a Form S700-20A/B Bust be completed
to decrease the award by that amount. The 5700-20A/B and FSR
will be subaitted to the servicing financial management office
•o that the deobligated amount can be recorded in EPA's FKS.
The deobligated amount .would create a recovery to the source
appropriation. Detailed information on recoveries is found in
Office of the Comp'"oiler Policy and Procedure Memorandum (PPM)
13-B, "Overrun and Recovery of .rior Year Obligations." This PPM
was amended in part by the OC aemorandum of September .12, 1984,
entitled "Recertification of Funds," and is being revised.
XII. DEOBLIGATION OF EXPIRED FUNDS . .
Generally, effective management of assistance awards and
timely processing of financial reports (e.g., the FSR) both by
the recipient and by CPA can keep expired, unavailable aaounts
to a minimum. Charging outlays'first against older funding
sources of an assistance agreement, where otherwise appropriate,
is one way of avoiding the loss of funds.
In the following two instances, deobligations would be
necessary. First, an assistance recipient might submit a final
FSR for a prograa grant budget period after the Appropriation
which originally funded that budget period had expired. If the
recipient reports on that FSR that they have an unobligated
balance of Federal funds, EPA would prepare a 5700-20A to docu-
ment the decrease and to use as a basis to record a corresponding
deobligation in FMS. Second, if as a result of an audit, costs
•re disallowed and the source of funding for these costs has
expired, the amount of the receivable for the disallowed costs
would be deobligated.
IV. FUNDING BUDGET PERIODS THAT EXTEND BEYOND THE LIFE OF AN
APPROPRIATION
In some instances, aesistance project budget periods are not
concurrent with the Federal fiecal year. When they are not con-
current, a budget period could very possibly be funded by an
appropriation that expires before the budget period itself end*.
Such awards are allowable as long as EPA's obligation of the
assistance funds occurs before the source appropriation expires.
In the case of amendments transferring unobligated balances
to a subsequent budget period, the criteria in Attachment I,
Section II.c aust also be set.
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Attachment III
APPLICATION OF POLICIES AND PROCEDURES
ON THE
DISPOSITION OF RECIPIENT UNOBLIGATED BALANCES
The following examples show how EPA's policies and procedures
on the disposition of recipient unobligated balances would apply
to SPA assistance projects. In reality, of course, how these
rules apply to any specific assistance project will be affected
by many possible variables. These variables include the State
fiscal year (whether it is coincident with the Federal fiscal
year or not), the type of assistance program, differing regional
practices, when the action was taken (before or after the end of
the budget period), the options chosen for the disposition of the
funds, etc. Nevertheless, these examples should be helpful.
EXAMPLE A — Continuing Environmental Program, Unexpired
'• Appropriation
EPA awarded a $1,000,000 grant to a State for a continuing
environmental program. The one-year grant budget period covered
the grantee's fiscal year. The award was recorded as an EPA
obligation in EPA's Financial Management System (FHS).
The award was made from a regional allowance for Fiscal Year
1987, and the obligation for that award was recorded against
the 1987 account number for that program and region. (The allow-
ance was derived from the Agency's 87/88 Abatement, Compliance
and Control (AC4C) appropriation.)
The State made its own obligations against the EPA award
during the budget period. As the State needed funds to pay pro-
gram costs, it drew down funds from EPA through its letter of
credit and contributed its own required cost share.
Shortly after the end of the fiscal year, the recipient
submitted a Financial Status Report (FSR) that shows an unobli-
gated balance of 150,000 in Federal funds after paying all their
allowable costs for the budget period. The FSR thus established
at $950,000 EPA's share under the grant agreement for the State's
costs for that year. To accurately account for this assistance
award, the Region prepared a 5700-20B showing the reduction, and
provided a copy (along with a copy of the FSR) to their financial
management office (FMO). The FMO recorded the downward adjustment
using Transaction Code 050.2, and the accounting data for those
funds.
Based on earlier discussions with the State, the Region had
agreed to make the $50,000 available as additional funding in the
then-current budget period. Before the appropriation expired, an
amendment increased the current year funding.
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The amendment was provided to the FMO with the documents
effecting the decrease- The FMO recorded the increase ag-ainst
the current year obligation document number using Transaction
Code 059.1, and the accounting data for these funds.
EXAMPLE B — Continuing Environmental Program, Expired
Appropri at i on
In the previous example, all the necessary actions to sake
these funds available in the subsequent budget period, including
execution of the amendment, occurred before the appropriation
expired. Assume in Example B that there were delays in the
submission of the FSR. • ,
The. Region had intended 'to take the balances remaining from
the prior budget period and substitute them for current year
funds awarded for the grantee's ongoing budget period. The cur-
rent year funds would have then been available to the 'Region.
However, the FSR was r.^t received until after the source appro-
priation had expired. Because the appropriation had expired,
the recipient's $50,000 in unobligated balances were no longer .• •,
available to the Agency, the Region or the recipient.
To ensure proper accounting for the Agency's funds, the
award official was responsible for executing an assistance amend-
ment to document the decrease in the Agency's estimated liability
(i.e., obligation) for the assistance agreement. The amendment-
and FSR were provided to the FMO, who recorded the decrease, whic
is reflected in FMS, as a recovery to the expired appropriation.
EXAMPLE C — Project Agreement, Availability of Funds in the
Second and Later Budget Periods
The Headquarters Grants Operations Branch awarded a. research
cooperative agreement to a University tet-support investigation of
the environmental fate of certain pesticides. At the end of the
project, the recipient was required to provide a detailed final
report of the project and findings.
For effective oversight and administration, the project
period was divided into three budget periods. At the end of each
budget period, and at other times during the project, the Univer-
sity researchers would submit progress reports to EPA. These
reports merely provided information which was not independent or
separate from the final project outcome, product or report.
Using an unexpired RfcD appropriation as its source of funding,
EPA made the initial award (budget period "01") for the project
late in Fiscal Year 1986 (see Figure 1 on next page). The project
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proceeded satisfactorily during budget period "01," and the
University subaitted a continuation application for budget period
"02." EPA provided incremental funding for this project through a
continuation award (budget period "02") Bade late in Fiscal Year
1987. A third, and final, budget period vat approved in Fiscal
Year 1988 to conclude the project.
Figure 1 — Exauple B
FY 1986 :FY 1987 FY 1988 FY 1989 FY 1990
T : \ i i i r
i
i
1 *
B.P. "01* B.P. ^02
During early fiscal year 1988, the University subaitted its
final FSR for budget period "01." The FSR reported that $10,000
of the original award was unused, and requested that these funds
be »ade available in budget period "02" for continued work on the
project. Upon approve! froa the Office of Research and Develop-
ment, the award official executed an aaendaent to Bake these
funds available in addition to the previously awarded amounts for
budget period "02.* As costs were incurred and drawdowns Bade
during Fiscal Year 1988, the drawdowns were charged off first to
the funds awarded for budget period "01."
The recipient's unobligated balances for budget period "02"
were reported in budget period "03," during our Fiscal Year 1989.
Again, the balances were Bade available, but in this instance
no additional funding was required to coaplete the project. Thus,
Fiscal Year 1988 funding awarded for budget period "03" was re-
placed by the funds Bade available froa budget period "02."
The source appropriation for these "displaced* funds was the two-
year Rfcb appropriation available for obligation in Fiscal Years
1988 and 1989, and therefore these funds becaae available for
the Budget Division to recover and reissue.
The F8X for budget period "03" contained unobligated balances
'as well, but since the project was now over, the balances were
treated as recoveries to the appropriation.
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APPENDIX M
USE OF DISADVANTAGED BUSINESS
ENTERPRISES (DBE)
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UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
WASHINGTON, D.C, 20400
JAN 15.1992
THE
MEMQRAKPtM
SUBJECT: The 8% Plan for the Utilization of Disadvantage Business
Enterprises in Procurement Under/ Assistance Programs
FROM: F. Henry Habicht I
deputy Adninistra '
TO: Assistant Administrators
General Counsel
Inspector General
Associate Administrators
Regional Administrators
Staff Office Directors
Laboratory Directors
. On February 15, 1991, the Agency issued guidance entitled "FY-
91 Program for Utilization of Disadvantaged Business Enterprises in
Procurement Under Assistance Programs", That guidance implemented
the 1991 Appropriations Act, P.L. 101-507, which authorized EPA to
establish a minimum 8% goal for the use of disadvantaged business
enterprises in all procurements under its assistance programs.
In the Conference Report to EPA'a FY-92 Appropriation Act, the
conferees reaffirmed their support for this program. Based on P.L.
101-507 and the Conference Report, EPA will continue to establish
an 8% goal each fiscal year. Accordingly, the plan, as cited in my
February IS, 1991 memorandum, remains in full force and effect.
I am positive that each of you will join me in making this
commitment work. •
Should you have questions regarding the technical application
of this plan, the Office of Small and Disadvantaged Business
Utilization stands ready to offer any assistance deemed necessary.
All requests for information on this program should be directed to
John K. F.opes, Director, Office of Small and Disadvantaged Business
Utilization, or George K. Mori, Senior Program Officer. John can
be reached at FTS 365-7777 and George on 365-6301.
PIMM! m Httydid ftp*
cciCt aec.vs4.tsta
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UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
WASHINGTON, D.C. 20460
FEB I 5 1991
OFFICE OF
THEAOMNSTMTOR
MEMORANDUM '
SUBJECT: FY-91 Program for Utilization of Disadvantaged Business Enterprises
in Procurement Under Assistance Programs
FROM: F. Henry Habicht, II
Deputy Administrator . _,
W • .
TO: Assistant Administrators
General Counsel .
Inspector General
Associate Administrators
Regional Administrators
Staff Office Directors
Laboratory Directors
On November 5, 1990, President Bush signed into lav, the 1991
Appropriations Act, P.L. 101-507, which includes the appropriations for
the Environmental Protection Agency.
The Administrative Provisions of this Act contains the following
language:
"The Administrator of the Environmental Protection Agency
shall, to the fullest extent possible, ensure that at least 8 per
centum of Federal funding for prime and subcontracts awarded in
support of authorized programs, including grants, loans and contracts
for wastewater treatment and leaking underground storage tanks grants,
be made available to business concern* or other organizations owned
or controlled by socially and economically disadvantaged Individuals
(within the meaning of Section 8(a)(5) and (6) of the Small Business
Act (15 U.S.C. 637(a)(5) and (6)), including historically black
colleges and universities. For purpose of this section, economically
and socially disadvantaged individuals shall be deemed to include
women.**"
As a result of the above, EPA Is required to establish a minimum eight
percent goal on all procurements emanating from any grant, cooperative
agreement or loan awarded during FY-91. This will, of course, also
include tay new procurement unisr FY-91 grant amendments which involve
the use of additional Agency funds.
a* RtcycUd Fap*r
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The enactment of thli section will.also require grant or cooperative
agreement recipients who, In the past, have not been required to establish ,
a "fair share" objective or to report on their procurement activities,
to nov conduct both. An example of such activity will include those
recipients who heretofore cane under the authority of OMB Circular A-UO.
These recipients were primarily universities and colleges, non-profit
organizations and hospitals. As stated, these entities were required to
negotiate a "fair share" objective and to use positive efforts to assist
disadvantaged. (minority and women) businesses. However, such recipients :
were not required to report on their activities concerning these business
elements. With the passage of P.L. 101-507, these recipients are now
required to report on an annual basis. Additional information is covered
in the attachment on how a recipient may operate in order to meet the 8
percent requirements.
Congress has also directed that the Administrator shall repor* upon
conclusion of the fiscal year, the Agency's efforts in achieving the minimum
8 percent level.
A review of all program activities should be undertaken to determine the
extent in which the 8 percent goal for disadvantaged businesses may impact
your programs. A special attachment has been prepared to assist you in
assuring that you have considered all aspects on the Impact of this
section of current law on EPA's procurement under assistance programs. .:,, :
All of the requirements cited la the attachment are effective as of ,--'
October 1. 1990. ". V%
L_
X am positive that each of you will join me in making a firm commitment
to enhance the utilization of dlsadvantaged businesses, including the Histori-
cally Black Colleges and Universities in all Agency programs. Working together
we can achieve a more equitable distribution of Federal dollars to the benefit
of the underutilized segment of our Nation's economy.
(*-
The Office of Small and Disadvantaged Business Utilization (OSOBU) '
is prepared to offer technical assistance to individuals who are assigned
responsibility in these areas. All requests for Information on this '}
program should be directed to John M. Ropes, Director, OSDBU, or George '% s
Mori, Senior Program Officer. John can be reached at FTS 557-7777 and £• %
George on FTS 557-9301.
Attachment
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U.S. ENVIRONMENTAL PROTECTION AGENCY
Disadvantaged Business Enterprise Program Plan
Financial Assistance Programs
I. BACKGROUND. - • ' .
Under the.authority of Executive Orders 11625, 12432 and 12138, the
Agency established annual objectives for minority and women-owned businesses.
These objectives are accomplished by mandating that the recipient and the
prime contractor carry out six affirmative steps if any subcontracting was
to be performed.
•The Executive Orders also provided the authority for the Agency to require
quarterly reporting from the States and local governments to inform the Agency
how well they were doing in meeting their "Fair Share" objectives.
Prior to Fiscal Year 1991, the Environmental Protection Agency's (EPA's)
"Tair Share" policy r"r utilization of small, minority and women-owned «i-
nesses applied to State and local governments only and did not affect univer-
sities, colleges, hospitals and other non-profit institutions which came under
the purview of OMB Circular A-110. Under that Circular institutions of higher
education and other non-profit organizations had only to exert "positive efforts"
in their attempts to utilize small and minority businesses. 'Iditionally, all
of the non-profit institutions and universities were exempt from .any reporting
requirements.
II. GENERAL INFORMATION. • . .
A. This Plan sets forth the manner in which EPA proposes to implement
the requirements of the Administrative Provisions pertaining to the 8 percent
objective for Disadvantaged Business Enterprises, (DBEs), required by Public
Law 101-507.
. B. The Office of Small and Disadvantaged Business Utilization (OSDBU), is
responsible for developing policy and providing procedural guidance for the
.utilization of disadvantaged businesses under the Agency's financial assistance
programs.
III. SPECIFIC INFORMATION.
In EPA's FY-1991 Appropriations Act, Congress requires EPA to ensure, to
the fullest extent possible, that at least 8 percent of Federal funding for
prime and -subcontracts awarded in support of authorized EPA programs for FY-9L
go to businesses or other organizations owned or controlled by socially and
economically disadvantaged Individuals (see VII. "definition"). Accordingly,
any grant, cooperative agreement or loan awarded by EPA in FY-91 must stipulate
that a minimus objective of 81 of such funding be directed to DBEs.
To the extent that the requirements of OMB Circulars A-102 and A-110 as they.
pertain to the utilization of minority and women-owned businesses conflict with
the FY-91 Appropriations Act language, the Circular provisions are superseded.
State government agencies receiving EPA funding will be required to establish a
minimum 8Z "Fair Share" objective for disadvantaged business utilization in'
contracting for goods and services in their grants, cooperative agreements and
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loans, including State Revolving Fund (SRF) loans. Likewise, institutions
of higher education, hospitals and other non-profit organizations receiving
grants, cooperative agreements or loans, including those for research and
development (other than research awards under the Clean Air Act) will be subjec
to the same requirement; "positive"efforts" (as required in OMB Circular A-110)
for the utilization of small businesses and minority businesses are not suf-
ficient to meet the requirement of P.L. 101*507.
The Appropriations Act specifically includes Historically Black Colleges
and Universities (HBCUs) as part of the definition of DBEs. Therefore, EPA
will require that aU recipients, including institutions of higher education,
include HBCUs, in their definition of DBEs.
The following is taken verbatim from P.L. 101-507 signed by the President
on November 5, 1990.. The Administrative Provisions contains the following
language:
"The Administrator of the Environmental Protection Agency
shall, to the fullest extent possible, ensure that at least 8
percentum of Federal .funding for prime and subcontracts awarded :.
in support of authorized program:,, including grants, loans, and * . ,,
contracts for wastevater treatment and leaking underground stor- • . :,• *,
age tanks grants, be made available to business concerns or other *- *
organizations owned or controlled by socially and economically : % '
disadvantaged individuals (within the meaning of Section 8(a) (5) .-,..
and (6) of the Small Business Act (IS U.S.C 637(a) (5) and (6), :.-p ' |
including historically black colleges and universities. i "
For purposes of this section, economically and socially disad- < :
vantaged individuals shall be deemed to include women..." ' : . *
"**•-;. "£
Therefore, it is imperative that all EPA program managers understand"
that the requirements for utilization of disadvantaged businesses in the £
award of prime and subcontracts have changed considerably. » ,,'•
IV. AUTHORITY. - - -v:
The Administrative Provisions of the EPA's FY-91 Appropriations Act;
P.L. 101-507, is the Agency's statutory authority for its "Fair Share" policy
in FY-1991.
V. POLICY.
It is EPA policy that recipients of EPA financial assistance awards utilize
the services of DBEs to the maximum extent practicable. P.L. 101-507 establishes
a minimum objective of 82 of total contract and subcontract awards. It is EPA's
policy that such business entities be afforded the maximum practicable opportunity
to participate as contractors, subcontractors, suppliers and otherwise in EPA
awarded financial assistance programs. This policy applies to all contracts and
subcontracts for s'upplies, construction, equipment and services under EPA grants,
cooperative agreements or loans awarded in FY-91. For the SRF program, the policy
applies to funds orovided to States in Capitalization grant awards in FY-91. .
Recipient's small purchases are also subject to this policy.
VI. OBJECTIVE.
The objective of the Disadvantaged Business Enterprise Program Plan is to
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encourage recipients and their prime contractors to seek out DBEs as subcon-
tractors to the maximum, extent possible.
VII. DEFINITIONS.
The following definitions are used in this Plan. The definitions as
cited herein are for use of grant-making personnel and small and disad-
vantaged business utilization officers to assure consistency.
A. Dtsadvantaged Business Enterprise (QBE). DBE is a business concern
which meets the criteria of Sections 8(a) (5). and (6) of the Small Business
Act (15 U.S.C. 637(a) (5) and (6)). Sections 8(a) (5) and (6) are cited below:
1. Socially disadvantaged individuals are those who have been
subjected to racial or ethnic prejudice or cultural bias because of their
identity as a member of a group without regard to their individual qualities.
(Section 8(a> (5)).
2. Economically disadvantaged Individuals are those socially disad-
vantaged individuals whose ability tc compste in the free enterprise system has
been impaired due to diminished capital and credit opportunities, as compared
to others in the same business area who are not socially disadvantaged. In
determining the degree of diminished credit and capital opportunities, the
Small Business Administration shall consider, but not be limited, to the assets
and net worth of such socially disadvantaged individuals. In determining the
economic disadvantage of an Indian tribe, the Small Business Administration
shall consider, where available, information such as the following: The per
capita income of members of the tribe excluding judgement awards, the percental
of local Indian population below the poverty level, and the tribe's access to
capital markets. (Section 8(a) (6)).
For purposes of this definition, individuals who are socially
disadvantaged shall include the following: .
a. Black Americans.
b. Hispanic Americans.
c. Native Americans.
.' d. Indian Tribes.
. e. Asian Pacific Americans.
f. Native Hawaiian Organizations.
g. Women.
h. Historically Black Colleges and Universities.
B. Historically Black Colleges and Universities (HBCUa). The BBCUs
are identified by the Department of Education Listing of Minority Colleges
and Universities. The authority vested in the Department of Education by
law and Executive Order 12320 dated September 15, 1981, is included as
Attachment No. 1. For purposes of the above cited documentation the Depart-
ment of Education recognizes HBCUs as any institution established prior co
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1964. A copy of the listing of predominantly minority institutions,
including HBCUs is included as Attachment No. 2. • '",.'.-
C. Plan. EPA's proposed program of action for the utilization of DBEs
in financial assistance programs. The Plan will contain, as a minimum,
methods' for encouraging grant recipients and their prime contractors to
utilize DBEs. •
D. Financial Assistance. The term financial assistance is synonymous
with "grant-making" in the Act, and is meant to include any Federal support
whenever the principal purpose of the relationship is the transfer of money,
property, services, or anything .of value to a State or local" Government, or
other recipient, in order to accomplish a public purpose of support or
stimulation authorized by Federal Statute.
E. Goal. The use of the term goal or goaling is to be used synonymously
with "Fair Share" objective. A recipient's minimum objective will not be less
than 8Z of all extramural.funds contained in the award document. Recipients
must establish a separate "Fair Share" objective for both minority business
enterprises (MBEs) and women-owned businesses (WBEs). HBCUs will be included
in the MBE objective.
VIII. THE DISADVANTAGED BUSINESS ENTERPRISE PLAN FOR FINANCIAL ASSISTANCE
PROGRAMS. '
A> The Plan. EPA's plan is to require that :each financial, assistance .. ,•
agreement awarded by EPA in FX-91 contain a requirement for a minimum goal of
82 for DBEs. In order to accomplish this goal, States will have to look more,
closely at their overall spending with respect co extramural funds and to
greater emphasis on .projects where the chances to .exceed the minimum can be
pected. This will allow the recipient to lower their goal on projects having
few or no qualified DBEs available to perform the work; conversely, it will re-
quire higher goals being established in areas having substantial qualified DBEs
Recipients below the State level must use their resources wisely in order to
meet the minimus 81 goal for DBEs.
B< Implementation. With the passage of P.L.
implementation activities are now required:
101-507, the following
I. Program. Each program will need to immediately examine
its FT-91 plans for extramural expenditures to identify areas, projects and
activities that will need to direct their efforts toward complying with the'
above statutory requirements. Each grant, cooperative agreement or loan awarded
in FY-91 will contain a special coi.dition establishing a minimum goal of 82 for
the utilization of DBEs, including HBCUs, in the award of prime and subcontracts'
However, in the. SRF program, State selected equivalency loans resulting from a
Capitalization grant awarded in FY-91 are used to comply with the overall negoti-
ated "Fair Share".!amount for that grant. The SRF program also is discussed sep-
arately below.
Programs which primarily place work vith institutions of higher
education can achieve their 8Z goal by utilizing HBCUs either on a direct
basis, as part of a consortium or as a subcontractor. If an HBCU receives an
award as a recipient or as part of a consortium, a negotiated "Fair Share"
objective must be established by the HBCU or the consortium.
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..-.*. - 9 - . ' . .•
f. requiring the contractor to take the affirmative steps in
subparagraphs a. through e. of this part if subcontracts are awarded.
9. SRF equivalency loans are subject to EPA's "Fair Share" objective,
which is a minimum of 8Z, and oust comply with the requirements of paragraph B.7?
above. SRF equivalency loans are those identified as such by the State and which
equal the total amount of the Capitalization grant. States should not count re-
financing projects toward meeting their "Fair Share" objective except in unusual
cases. In such cases, prior approval must be obtained from OSDBU and the Head-
quarters program office. If a State accomplishes its "Fair Share" objective by
requiring only certain equivalency projects to undertake the six affirmative steps,
other SRF equivalency'projects are not required to undertake them. A State may,
however-, -require such other SRF equivalency projects to do so. That is the
State's prerogative and not EPA's.
10. All actions taken in carrying out the affirmative steps [see 40 CFR
§33.240, §3l.36(e), §35.6580(a) and §35.3145
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The recipient must ensure to the fullest extent possible that at
least the negotiated "Fair Share" percentage of Federal funds for
prime contracts or subcontracts for supplies, construction, equipment
or services are made available to organizations owned or controlled
by socially and economically dlsadvantaged individuals, women, and
historically black colleges and universities."
The recipient agrees to Include in its bid documents a (insert the
negotiated "Fair Share" percentages) and require all of its prime
contractors to include in their bid documents for subcontracts a
(insert the negotiated "Fair Share" percentages) "Fair Share" per-
centage.
To evaluate compliance with the "Fair Share" policy, the recipient
also agrees to comply with the six affirmative steps stated in 60
CFR §33.240, §31.36(e) or §35.65BO(a), as appropriate."
c. If the Award Official or his desigttee HAS NEGOTIATED a "Fair Share"
with the recipient for Capitalization grants use the following condition, or
equivalent. "Fair Share" for these grants must be at least 81;
"The recipient, must ensure j the fullest extent possible that at
least (Insert the negotiated "Fair Share" percentagea) of equivalency
funds for prime contracts or subcontracts for supplies, construction,
equipment or services are made available by the State and/or SET
assistance recipient to organizations owned or controlled by socially
and economically disadvantaged individuals, women and historically
black colleges and universities."
The recipient agrees to select certain equivalency projects to achiev
to the fullest extent possible, the State's "Fair Share" objective and
to require those selected equivalency projects to comply with the six
affirmative steps. The recipient agrees to require (and to assure
that the selected assistance recipients also require) that all prime
contractors include in their bid documents for subcontracts the (insert
the negotiated "Fair Share" percentage) "Fair Share" percentage.
d. If the Award Official or his deslgnee HAS NOT NEGOTIATED a "Fair
Share" with the recipient for Capitalization grants use the following condition or
equivalent. The "Fair Share" for these grants gust be at least 81;
"The recipient agrees to negotiate a "Fair Share" percentage of not
less than 8Z with EPA before the recipient begins the process to
award any contracts under this agreement.
* The recipient must ensure to the fullest extent possible that at least
(Insert the negotiated "Fair Share" percentages) of equivalency funds
for prime contracts or subcontracts for supplies, construction, equip-
• ment or services are made available by the State and/or SKF assistance
recipient to organizations owned or controlled by socially and economi-
cally diaadvantaged individuals, women and historically black colle?»s
and universities. *
- The recipient agrees to select certain equivalency projects to achieve
to the fullest extent possible, the State's "Fair Share" objective an'4
to require those selected equivalency projects to comply with the si:
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" . - 8 -
affirmative seeps. The recipient agrees to require (and to assure
that the selected assistance recipients also require) that all o^fc-"'
contractors include in their bid documents for subcontracts the i^V
(insert the negotiated "Fair Share" percentage) "Fair Share" percentage
5. Reporting Conditions. The above stated conditions (a.- d.)
must also include the following statement with the appropriate reporting require-
ments, i.e., a., b., c> or d.:
a. For Project Grant Recipients (exceptInstitutions of Higher
Education and Other Non-Profits) and Loan Recipients:
"The State and/or recipient agrees to submit a SF-334 "MBE/VBE
Utilization Under Federal Grants, Cooperative Agreements, and other
Federal Financial Assistance", to the EPA award official beginning
vith the Federal fiscal year quarter the recipient awards its first
contract and continuing until all contracts and subcontracts have
been reported. These reports must be submitted to the award official
within 30 days of the end of the Federal fiscal quarter (January 30,
April 30, July 30 and October 30)."
b. For Continuing Environmental Program Grants;
"The State and/or recipient agrees to submit a SF-334 "HBE/WBE
Utilization Under Federal Grants, Cooperative Agreements,' and other
Federal Financial Assistance", to the EPA award official .within 30
days of the end of each Federal fiscal year, i.e., by October 30th
of each year."
* " .
c. For Grants to Institutions of Higher Education and Non-Profits":
"The State and/or recipient agrees to. submit a SF-334 "MBE/VBE
Utilization Under Federal Grants, Cooperative Agreements, and other/
Federal Financial Assistance", to the EPA award official within 30
days of the end of each Federal 'Iscal year, I.e., by October 30th
of each year.
D. Responsibilities.
1. The OSDBU will provide copies of the approved Plan to all Program
and Regional offices associated with financial assistance programs.
2. Award Official or their deslgnee vill negotiate a "Fair Share" objec-
tive for each program. The negotiated "Fair Share" objective vill include separate
objectives 'for MBEs, (including HBCUs), and WBEs. Negotiated objectives should be.
developed on the-basis that the minimum can be no less than 82; however, those
States and recipients who have negotiated a higher percentage In the past should
be strongly encouraged to maintain the higher level. Percentage ranges e.g., 4-9
percent or 6-8 percent etc., are not authorized.
3. The (SDBUO) must provide the Grants Management Offices (CMOs) with :
the negotiated "Fair Share" objective for each State or other recipient at the
earliest practicable date, but in no event later than August 31st of each fiscal
year for the following year. In addition, the SDBUO will be responsible for
the following actions:
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a. Ensure chat the State or recipient la fully cognizant of the
requirements of this Plan and the necessity for compliance.
b. Follow-up with recipients if they do not submit the MBE/WBE Report •.
4. The GMOs. CMOS will:
a. Include the appropriate condition in this policy (VIII.C.)
b. Assuring the timely receipt of quarterly and/or annual reports
as required by the Conditions. Reports are due within 30 days after the close
of each Federal fiscal quarter or fiscal year, as the the casr may be.
5. Reporting. Reporting will be carried out by any entity receiving
EPA funds. Universities, Hospitals and other Non-Profit Institutions, which were
formerly not required to report are now required to report in order for the Agency
to determine if it has net the 8Z goal-for each EPA-funded program. No waivers
will be approved for reporting requirements. Quarterly or annual reporting will be
conducted by using the Standard Form 334.
6. The Clean Air Act Research Grants. The 8 percent goal for the utili-
zation of DBEs in F°A-funded procurement under assistance programs applies to
all programs, except for ..search awards funded under the Clean Air Act. The Clean
Air Act Amendments requires a 10Z goal for research programs awarded by EPA for
DBEs. This requirement will be addressed under separate cover.
2 Attachments
o
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APPENDIX N
POLICY ON THE TIMELY AWARD OF
ASSISTANCE AGREEMENTS FOR
CONTINUING ENVIRONMENTAL PROGRAMS
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SEP f 4 JS92
HSMORAimrTV
SUBJECT
Policy on the Timely Award of Assistance Funds
for Continuing Environmental Programs
CrigineJ signed by Harvey Plpp«a, ft,
FROM: Harvey G. Pippen Jr., Director
Grants Administration Division
• /
TO: Assistant Regional Administrators
Regions i-X
Attached is a policy entitled "Timely Award of Assistance
Funds for Continuing Environmental Programs." This policy is
issued in conjunction with a memorandum dated June 26, 1992, from
the Office of Comptroller which clarifies general Agency policy on
when funds are available for award.
If you have any questions concerning this matter, please
contact Bruce Feldman at 202 260-5268.
Attachment
cc: Howard Corcoran, OGC, (LE-132G)
Becky Fredericks, HQ, Budget Division (PM-225)
Kathy Payne, HQ/OW (WH-556)
Jerry Kurtzweg, HQ - Office of Air & Radiation (ANR-443)
Dick White, HQ - Pesticides & Toxic Substances (TS-788)
Judy Kertcher, HQ - Hazardous Waste (OS-110)
Doug Barrett, HQ - OC/FMD (PM-226F)
Jane Ephrimedes, HQ - OW (WH-546)
Carol. Crow, HQ - OW (WH-546)
Robbie Savage, ASWZPCA
Marian Cody, HQ, (PM-216F)
Corinne Allison, HQ, (PM-216F)
bcc: Official R. Johnson B. Feldman
Reading Grants Management Offices - Regions I-X
Division GPPB Staff GAD Branch Chiefs
PM-216F:RJohnson:RAJ:260-5296:FC 801:Disk - RJ:MEMO2.FKL
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TIMELY AWARD OP ASSISTANCE FUNDS
FOR CONTINUING ENVIRONMENTAL PROGRAMS
PART I:
PART II:
PART III!
PART IV!
PART V:
PURPOSE
POLICY
BACKGROUND
ROLES AND RESPONSIBILITIES
Appendices
o
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I. PURPOSE
The purpose of this policy is to clarify existing policy
concerning the timeliness of awarding assistance funds for
Continuing Environmental Programs. Continuing environmental
programs are generally those programs cited in 40 CFR Part 35,
Subpart A. See Appendix 3 for a listing, as of September 1992, of
Continuing Environmental Program grants.
II. POLICY
It is EPA's.policy to award assistance funds for Continuing
Environmental Programs as quickly as possible after funds become
available, in accordance with 40 CFR 35.141, "EPA Action on
Application". The procedures in this policy apply to awards made
under a normal or a late Appropriation Act as well as under a
Continuing Resolution(s).
III. BACKGROUND
During the past year, some States have rai-ad concerns about
the timing of assistance awards which fund continuing environmental
programs. Frequently EPA does not award its environmental program
grants until after the start of the grant budget year. There are
a number of causes for the delays. Two examples often cited are
confusion about when funds become available for obligation and
difficulties in work plan approvals. Due to the confusion on the
availability of funds and the degree of flexibility the Regions'
have to plan and to award grants within their quarterly Operating
Plan, the Regions frequently delay awarding grants. Additionally,
work plan negotiations between State and EPA program officials are
often not completed in a timely manner due to disagreements over
State and EPA initiatives and requirements. Such disagreements can
hold up a grant award until all work plan issues are resolved and
the work plan is approved. .
Most States, by law, cannot operate, their programs in a
deficit mode. With a tightening economy, States face laying off
workers or changing to shorter work weeks if Federal funding is
delayed for Continuing Environmental Programs. Additionally, due
to the Cash Management Improvement Act, the Agency could be liable
for interest penalties when grants are awarded late.
To help clarify EPA policies and the concepts governing the
use and availability of funds, Budget Director, Richard Brozen,
issued a policy .memorandum dated June 26, 1992, to the ARAs and
Senior Budget Officers. See Appendix 1.
Funding Availability and Flexibility
o Under an Annual Appropriation
The Office of Management and Budget has historically
apportioned funds for the AC&C account in a quarterly split of 80-
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10-5-5 percent of total (i.e. 80 percent of the funds are available
in the first quarter; 10 percent are available for the second
quarter; and five percent each are available for the remaining two
quarters of the fiscal year). The apportionment reflects the
quarterly split for the entire appropriation. During Phase III of
the President's Budget, this quarterly split is equally applied to
every program element in the appropriation. Regional Offices may
adjust the amount awarded under each program element provided the
total awards do not exceed their quarterly split.
By adjusting the Regional resources during Phase III, Regional
Comptroller Offices, working with the Regional Grant Management and
Program Offices can, to the maximum extent possible, fully fund
their continuing environmental program grants in the first quarter
while funding project grants, contracts, or lAGs later in the year.
Thus, the decision rests with the Region to determine which awards
to make using the Region's first quarter allowance of AC&C funds.
(The assumption is that sufficient resources are available to
permit the Region to fund 100 percent of fundable continuing
environmental grants.)
o Under a Continuing Resolution
Under a Continuing Resolution (CR), all affected agencies
receive limited funds based on constraints written by Congress and
OMB applicable for the time period covered by the CR.
During the CR, funds are available to the regions based on a
percentage of their total appropriation and they are not restricted
by program element or object class totals. Regional offices may
adjust the amounts funded under each program element provided the
Region does not exceed its total available allowance. Thus,
depending on its priorities and the amount of funds available, the
Region may fully fund its continuing environmental program grants
even under a CR.
PART IV. GXO ROLES AND RESPONSIBILITIES
This Section outlines the basic roles and responsibilities of
the Grants Management Office (GMO) in awarding assistance funds for
continuing environmental programs.
FUNDING AVAILABILITY
1. GMOs must coordinate with the Regional Comptroller to
ensure inclusion on distribution lists of information
received from the Office of Comptroller relating to,
assistance funds. This information includes the Regional'
Operating Plan (and any revisions) and all other
pertinent grant correspondence and policy issued by the
Office of Comptroller.
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2. GMOs must work jointly with program offices and the
Regional Comptroller to adjust individual Program
Elements within the quarterly allowance to allow to the
maximum extent practicable 100 percent funding of
acceptable grant applications for continuing
environmental programs.
3. GMOs and the Program Offices should jointly ensure grants
awards are made as soon as possible after the funds are
available to the Regional offices.
Conditional Approval. If an application is conditionally
acceptable, and only minor revisions to the workplan are
required, the award should be made as soon as possible
after'Federal funds become available, either partially
or at 100 percent. The award must include the
condition(s) which the applicant must meet -to secure
final approval and the date by which those conditions
must be met.
Disapproval. If the application cannot be either
approved or conditionally approved, and negotiations to
revise the work plan fail, the GMO working with the
program office should provide a formal written
notification to the recipient which states the reasons
for disapproval of the Application, in accordance with
40 CFR 35.141(C).
KEY MILESTONES IN THE AWARDS PROCESS
I. GMOS should coordinate with the program offices in the
forwarding of application kits and program guidance to
continuing program grants applicants. GMOs should send
application kits to continuing program grants applicants
three and one half (3 1/2) months before the end of the
current grant budget period.
2. GMOs should jointly work with the program offices to
provide a formal written notification to applicants
regarding the status of award of their continuing
environmental applications within 45 days after receipt
of the .application. This notification must include
whether the application is acceptable, conditionally
acceptable, or unacceptable and inform the applicant of
any outstanding administrative issues which would delay
award. (See Appendix 2 for a sample status report.)
3. GMOs should make their final determination on whether an
application is approved, conditionally approved, or
disapproved within 60 days of receipt of the application.
4. GMOs and the program offices should jointly ensure that
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'•
•-V
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Appendix 1
it* \
UNITED STATES FNVIRONMENTAL PROTECTION AGENCY
WASHINGTON, D.C. 204M
JUN281992
armor
M
ANOI
frfEMQRANPTJM
SUBJECT:
FROM:
TO:
(FM-225)
Assistant Regional Administrators
S«aior Budget Officen
This memo ii intended to clarify some of the geaeal polices and concepti that
govern funds availability and flexibility in the Agency when a fiscal year begins. The
"financial environment" has been rapidly changing over the-last few yon horn
EPA as well as goyemment-wide. These changes have 'nised y^**"? M to
fundamental con rpsponsihtlhins of the Agency'f i
These imnn an extremely ffwplw a*y| highly variable.
the intef-mlitionihip of four cora ftrndtog document. TUi neno piovidM «D ovirvlew .
of the ^H^'TP"**^ core rrgtoniffrflitifit Th* Budget Ptviiioo b l*ifr'*>iiflf in the.
of updating the Planning and Budget Manual and dp* Funds Control Manual which wffl
incorporate the more detailed guidance. As put of this process, I would welcome
comments and suggestions for additional clarifications, as needed.
Background
Several recent events have focused our sHiiHiuH on bow the division is
communicating resource decisions and providing information fonrarntng the nbtae of
fuodi to the Agency. First, many new and complex tews have been enacted that afoot
the Agency's funds. These include the Budget Enforcement Act of 1990,'
Financial Officer Act of 1990, Federal Credit Reform Act of 1990 and me
Management Improvement Act of 1990. Second, we have
Financial Manafeoeni Syttem (IPMS) within the la* few yean
significant impact on the flow of information concerning financial
new responsibilities for the Responsible Planning and Implementation Offleen (HHDi).
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Third, a quality action team was convened by the Office of Wastewtter Enforcement
jAd Compliance for tbe purpose of addressing State concerns on the gnats proceu.
And firsliy, w.e recognize that then has been significant turnover in the Agency'*
resource community, resulting in many new employees new to the budget wodd,
Tt has come to our attention that then are many unanswered question 01 fond
availability and flexibility. In particular, it is clear chat then has teas some confusion
about when funds become available for obligation tad how much flexfljflfty the Agency
haj in making resource management decisions. I would Uke to take advantage of these
circumstances and take a first step in providing some ^**fiffl«frff on the general
concepts, controls, and procedures which make funds available for **»t***^
AraJQabfflty of Funds
* •"'•">
At lay time, the funds available to the Agency ii governed by nor bask
documents: (1) the Congreasiooal Budget Justification; (2) tbe Appropriation Law under
which the Agency it funded; 0) the OMB ApportioomcBt; and (4) the Agency's ;
approved financial Operating Plan. la geneeal, each doooment governs § different aspect
of the Agency's cash flow and flexibility.
(1) CofljrisgkaaJ Budget Jmtjfkrttoa provide Coupes* and the AdnlnlMtoii wit
the Afcocy'i basic blueprint OB where we are apeoding our money, watt zMuki
we expect to achieve, and our accanplishrflents for the previous two fiscal yem. '
Since OMB tad Coofretf consider *Ms documeat to be te basis of our budget, '
deviation from it usually requires action- by attier Congress aad/or OMB.
(2) Appropriation Uw provides the Agency wife the basic "Hfi'i'ttrlP ertri&hed
by Congress, ft indades the total level of foads available wfthia eaoh fiaaacatl
•ceaiMtt MMJ ipaeMe friAiie* tn tti« *f**J tfcimt|Si yirfsy. ^p.^-l.tl^^
languagc, report language, aad other kfislativt Watty, n* law aoacti me
undedying structure of our appropriations account! sod Oonfraasional Bodfet
Justification with inodaVartoos spelled out fa the legislative history. The Law
provides both restrictions (account transfers; Tttvel ceittngi; PC&B floors) tad
flexibility (reprogrunming authority; appropfiation chargiaf).
(3) OMB Apportkmmeols control the rate at which obUfatioai can be made by the
Agency aad in some instance the exact purpose for tbe oMigitkira. Uanafly,
OMB apportions tbe Agency's funds by quarter. There tn, however, otber easw
where OMB limits me use of funds either throuffa a set aside (b t "caMfoiy B")
Of Lu^DUffu TOotDuCBfl CO »"^* j»i^jrt^TiQH^RMK« LJB^B IBDlBE IUA fl> IHHflH flR
^r* •••• ** m^ff *««^n*^V«^^ V*^ VMMT «§WJTV» 9m9f9gm9 • W«* • ^^•^•f • Vm^iHBW VS^W ^P> HSi^Bi^ • V
his been OMB 'i establishment ofadeao-up otegory in the SupatAad
2ODOffuOfl^&fiBiM
^
'^M%
^Bs^
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(4) Approved Financial Operating Plan implements the Congressional Budget
Justification, Appropriations Law, and OMB Apportionment. Hie
Operating Plan essentially governs the purposes for which the Agency
expends funds. The Operating Plan is the document against which the
Agency is monitored for compliance with Congressional and OMB
directives. -
In an attempt to maintain communication with the resource community and to
implement these four governing documents, the Budget Division has ««*iMtfd several
institutional methods of communication du? provide guidance as to the avtilabittty of
resources to the Afency's managers. Hie an: (1) Advice of Allowance for each
appropriation to each Responsible Planning and Implementation Officer (RPIO); (2) tn
online flMnAi Operati&g Flan contained in the t**y***d Financial M*it*to>Hfflt
System (IFMS); and (3) the Appropriations Anatysif, Bins and Reports digest
These sources of information establish spending limits at a detailed level to
ensure compliance with appropriated amounts, directives, and guidance flt|ri>v*inf
ota and redoctioni) as wen as OMB apportionment restrictions, The use and
applicability of each guidance source is dependent upon the status of the Agency's
inpropriataaai and Operating Plan.
Appropriation*
• • ~* ••»
At the hngipning of the fiscal year, the Appropriations -Law governing the Agency
will take one of two forms: either an annual Appropriations Hp covering the fufl year
or a Contimriif BueohitiOB that coven a ibctter period of time, (ff the Apacy has no
Appropriations Law, the Agency must 'shut-down' operations which is addreesed by BPA
Order on Actions in the Event of an Appropriations and/or Debt Cefltag BOatus). The
status of the Agency's appropriations significantly aflixts the level of ftm^
the Agency and the •trw*1* of flexibility with which Ae Ageocy out opefaCB, The
foUowing lays out general principles for the availabfltty offends under etch
aporopriatioii acenario and attempts to uliistrate the uteflettuOoaiiiD DctwoeB '^se
controlling ^^v^'nifnTs listed above.
One special note, however, is that the specific rules and coodifinns under which
the Agency operates can vary significantly from year to year. Coogreas end OMB
generally provide us with a complex set at rates that can he modified yearly, quarterly,
or monthly. The resource community should stay m close contact with the Budget .
Division to determine specific needs during any fiscal year and should follow the yearly
guidance and Advice of Allowance to implement the special needs identified.
o
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vailibtl * *1" M Annual Apropriation
Tte budget statutes that govern the federal budget process provide that the
Agency begins its fiscal year on October 1 with an enacted Appropriation Bfll. Once
the Appropriations Bill is signed by the President, EPA has 30 dayi to provide in
enacted Operating Plan to the Office of Management and Budget (OMB) tad the
Congress for their approval. This Operating Plan uses the Congressional Budget
Justification as its baseline and modifies it according to Congressional directives .
contained in the Appropriations Law. In addition, OMB has 30 days following
enactment to provide the Agency with the apportionment of its appropriations.
After ffltftmf"* of the annual Appropriations bul. the Comptroller transmits the
Appropriations Analysis, Bffl aad Report digest to each RPIO. Ttts digect is an anaryiU
of the Appropriations bul, its legislative history, and its requirements. TbJi l^jffp*1**^1
represents a formal delegation from tbe Comptroller to tbe BKOi of die program
responsibilities contained la our Appropriations Law aad its legislative Ustocy.
i
During the taffffrp period prior to approval of tbe enacted Cyenllng Plea, the, _-•
Operating Plan based on the President's request (Phase ID) is loaded in tbe IFMS. A :
guidance Mfp^> buri on ******* tCT%rw?in>y ftthrfff fachKHi m OMB s^sportosBaeotB is;
issued to the RPIOs on how to proceed until tbe Afency hti at tppnved Opentiag
Plan. We try to provide tbe maximum amc^ of rundt« to allow ac*mel Afency .
operations. However, RPIOt an advisedthat the- Opening Plan ta IFMS bis not been
adjusted to reflect Congressional actions or tbe foil AAnlnlsfrtsnr_«1lsnUa1i« of .
resources. Itiexefore, Agency managen must be pradeat aad oaten! m mnagjag mob*
1st quarter negates mat have been made available m the event that the mndrftarlnns
reduce tbe amounts available,...
Once tbe Operating Plan has been approved, me RPIO is notified through the
normal Advice of Allowance leoer. Ms tater sets .out the funding aveHable to tbe
allowance holders for mat quarter as well as provides guidance on me ttmiations aad
flexibilities on the use of mads (ceflings, floors, reprogramming rvmirements).
In recent yean, our annual Appropriations Bffl has not been eaected by tbe start
of the fiscal year. In this sffliation, the Agency begins the fiscal year under a GoatmgiBg
Resolution (CR). During tail time, the RPIOs are provided genenl gaideace
memoranda from the Comptroller Budget Division on the rules governing Agency
operations until we have a fun year Appropriations taw tad the nsnltmf
Operating Plan. These rules include, but are not limited to, tbe use of f
purposes for winch they were requested in the Congresakjoel Budget
as the restraints included in the Continuing Resolution, as written by
OMB's Apportionment of me Continuing Resolution funds.
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5
Generally, CRj hold the Ajency to a more restrictive level thin our proposed
President's Budget. At that more restrictive level, the Agency Is provided sufficient
funds for the time period covered by the CR. The OR, however, mtly provide* enough
funds to cover 'normal" operations. While operating under a CR, each RFIO b provided
a portion of their total appropriation to obligate. Because of the «iH*y process that
we have agreed to with OMB, the Agency maintains significant flexibility. Therefore,
monitoriDg and lockout of fuads during this time are done at the MI*** poaifltie level
for each Allowance Holder. Maximum flexibility by program element and object daw si
permitted.
Funding flexibility
During the execution phaie of the budget, the Agency out tike care to idta to
the limits and constraints of its four governing documents. Within the T%frft however
the Agency «««*>•• considerable flexibility in the me of fond*. Son* of the flexibility
ii kid out in the Agency's Appropriation Law. For example, the Afoocy fc allowed ID
reprognm Audi up to a certain level ($500,000 for FY 1992) between pragma in the
operating plan.
example of flexibility it in the quarterly „
Dating the development of the Operating Plan, the anticipated
equally applied to every program element to the appropriation.
quarterly spliti to resources may be adjusted, however, to obtain
as long ai the quarterly split at the RPIO level for that
Flexibility ii, therefore, within the limfe ettabUahed to the
Approprixtiooi Liw, and the OMB Appordflnmem. I!» afanackw and vadabies an
to nuniexoui and complex to set out specific guidance in mis memo. The atBcnoeat to
thii memo gives one specific cue example.of flodbflfcy within onr liuUtaiiuna. Wltto
these limitation*, the Agoacy doc« maintain a
Clotinf
I hope this information clarifies some of the onmfttsioo on these iianes. IB
would like your input, comments and questions regarding the type of specific
you believe would be helpful to you in managing the Agency's leeoncea.
your comments and iwpnrifft to Delia Scott, Chief, Fonnntition stnd Control
260-1176 or Becky Fredericks, Chief, Management and Policy Staff, at 260-2470.
\ , "
Attachment
Branch, at
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. €
ATTACHMENT
{•^E EXAMPLE.
„ „ «"!s» SKJS'ti'SSS.SS'-
SSSSSS?-—
.How do Agency managers operate under this scenario?
In ttumi of tt» fffof fainting drevw*i nwfrrf, ** **"? * -
limbed Appropriations Bfll (CR) aad the (antonatic CR) appoatkcnwu The fuD^ear
Appropriationj Bill btaed on the Congresaioeal Budget Juttfficttkm, aad the Opentiai
Plan, axe atiU pending. Puods are now available, however, aa U guidance and flexibility.
The Cofflptrofier/Bodfet Ptviskn imn a series of state* aad gtddnce
menunaada (or EMAIL) providiBg at much spedftc infouaaika and fcomal foadtag
guidaace as is available to EPA. Amoag other fcaajrw, this guidance aJsasLatxesnc
*- ,
2. AvBOabttity of ftiads (CR perceatage) »* the Appopri*don/Alkrwince Bolder
total level for each RHOfitegioa. Allowance Holders are act held to lower .
program element/object daai level during a CR.
•«
So, even under the most restrictive (CR) dreomstaacea, mairtm^TfaaBJ^fi
being provided within the total pool of resources avtilabk far the m&nt&iijefy
fund the highest priorities based on their own o^ermBatoL u safe nwrawmiT
or aa ACftC grant to a particular State is the highest priority, ttoea the opptrtfflty for
— • • *_ -i_».
obligation ism place.
*
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Now that • full year's appropriation is enacted, the budget planning process, jf
followed correctly should provide the Program Offices with availability of funds |
opportunities to award any priority items (e.g. grants) in the first quarter of the fiscal
year. The budget process includes steps to ensure thtt we have this flexibility.
Appropriations such as Construction Grants, Lust, AC&C and R&D are
disproportionately "front loaded" in the 1st quarter apportionment to allow Program
i/iiices to.fund Priorities (such as grants i.1 the 1st quarter should they choose to do
timing the pluses of Operating Plan development. ; .•' '
CpNCLUSlQK- ' •
In terms of proper budget planning, the following steps by the Progum Offices
will allow for priority itaou to be funded in the flm quarter
A Peyton^ dterttmriom of the Pro, Budget retomce* have beea made by the
National Program Manager and incorporated into tae OPIAN.
• • " ' * *
B. Priority Items (aucn as gnnti) have all been budgeted in the In quarter
OPLAN by the RPIO during Fhaae EL
1
C: RPIOt begin the obligating paperwork for tne priority temi as aooc aa the
year begins so it is ready to go as soon as suffkknt fundi OB,
D. Commttmenti an ememJ promptly ai soce u tbe Appropdattoci Bfll y
aigned and ZFM5 is open. . ..
E. Obligating documents are promptly rorw^flfe3 to Onott Qffloea, Coottacta
Offices, etc. for obligaiicm.
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APPENDIX O
STATE GRANTS GUIDANCE: INTEGRATION
OF POLLUTION PREVENTION
O
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OCJ_4/OLA DJV
EPA/GAD
UNTTID STATES CNVIRONItElfTAI. PROTECTION AGENCY
WASHINGTON. O.C. 20460
NQV 12 19S2
SUBJECT!
num.:
TO;
TOft
state Grants uuldance: integration of Pollution
Prevention
r. Henry Hatoicht no}
Deputy Administrator
Assistant Administrators
Regional Administrators
Attached is the n«w Agency-wide Guldoiiuu
pollution prevention into EFA'c media grant progr
in FY'94. This Guidance builds on the Agency's- pollution
prevention commitment, already reflected in many exciting
activities throughout our programs and in the States. '
.ting
, beginning
X vant to thank all those who labored 00 effectively to
develop this Guidance. The document reflects the many '
constructive comments provided by Agency headquarters. Regional
Offices, and State governments, in response to thove comments
the final product is shorter, tighter, and Jnss pr«snript:ive in
tone.
With this Guidance in hand, the Agency ft»r» now tnovA quickly
to develop specific Guidance documents for our individual media
grant programs in concert with our State partnere. |
Attachment
tt'^^sf
*»<:<$&& I
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UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
WASHINGTON, D.C. 20460
NOV 1 2 1992
OFBCSOF
ItCAOMMISniATQR
State Grants Guidance : Integration of Pollution
Prevention
FROM:
TO:
F. Henry Habicht
Deputy Administrator
Assistant Administrators
Regional jtwainistrator?
This memorandum announces the Agency-vide pollution
prevention Guidance, beginning vith the FY'94 State grants cycle.
It has four goals: j
i
» Promoting pollution prevention in State programs
supported through Federal grants by establishing
National Principles to guide vorkplans negotiated
between Regional Offices and States;
• Ensuring that grant requirements as interpreted by
EPA/State vorkplans are flexible enough to support
innovative State pollution prevention activities;
• Establishing a simple accounting process to share
information on successful State projects, and identify
statutory or other barriers to funding State proposals;
and
• Building sustained state capacity in pollution |
prevention to the extent consistent vith statutory
grant requirements.
All of these objectives are subject to any statutory and
regulatory limitations that apply in specific circumstances.
The Guidance should help integrate pollution prevention into
th* Agencyfs activities as required by th* Pollution Prevention
Act of 1990. By emphasizing flexibility, the Guidance |
complements other Agency efforts to build a productive ;
environmental management system in partnership vith the States,
and Improve coordination vith existing State pollution prevention
programs. '
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In general, this Guidance applies to all of the Agency's
media-specific state grant programs, but particularly to the
following: Clean Air Act $105— Air Pollution Planning and!
Control? Resource Conservation and Recovery Aer; $3011— Hazardous
'
and Redentieide Adfc
(1)— Pesticides; Toxic Substances Conta-al it* $28— i
Enforcement and Enforcement Activities under 5313 of the |
Emergency Planning and community Right-to-Khow Act; and clean
H***r Act S106— Surface Water, S 104 (b) (3) —Wetlands and Water
Quality Management, and S3l9(h) — Non-Point Source Management.
Building oh the Agency's many successful pollution
prevention efforts, beginning in FT* 94 EPA's grant programs —
working with States— should explicitly promote pollution j
prevention in state workplans (also called agreements) . This
memorandum will be incorporated into the annual Agency Operating
Guidance as well as program-specific Guidance developed this * -M
vmter with the advice of the State/EPA Operations Committee. i«
Program Guidance, intended to tailor the Agency-wide commitment
to each grant program, will be applied by Regional offices
States in the development of grant-assisted work. j .
The national Principles stated below should help guide
development of BPA/State vorkplans. These should be reflected in
program-specif ic Guidance, weighed in workplan discussions, and
used to qualitatively assess program progress in integrating
pollution prevention. la applying these Principles, Regional
Offices should use or expand upon the menu of flexibility! options
below to respond to state needs to the extent possible. Annual
accomplishment reports, discussed below, will help assess] EPA 's
progress in supporting pollution prevention-oriented state
vorkplans and initiatives.
Kati.enal
Guidance for each grant program covered by this document
should make, clear that pollution prevention—as defined in the
Agency-wide memorandum of May 28, 1992 (attached)—is EPAfs
preferred approach to environmental management where technically
and economically feasible. Consistent with the pollution j
Prevention Act, the Guidance should further the integration of
pollution prevention into State activities—e.g. inspections and
permits—that are supported by EPA grants. While pollution
prevention is not mandated, the Principles are intended tb ensure
that it is considered fairly in EPA/State workplans. j
Specific proposals from States that are consistent with
these Principles should be considered good candidates for!funding
through the grant programs, in addition, Regional Offices should
take the initiative to suggest pollution prevention approaches,
drawing upon program-specific Guidance and implementation!
workshops. Regional Offices and states are expected to use their
-------
11/18/82 11:35 ff202725'2 0516 5 OCLA/0& DIV ^;*** EPA/GAD tfOOS
discretion in applying these Principles; they are not obligatory
elements of every negotiated workplan, but rather factors for
serious consideration in the negotiation process. j
The Principles are: i
1) The workplan applies the EPA definition of pollution
prevention (see memorandum of Hay 28, 1992) consistent with the
Pollution Prevention Act of 1990 and the 1991 SPA Pollution
Prevention Strategy. [
2) The workplan reflects an explicit preference for pollution
prevention and identifies pollution prevention activities^
products, or approaches. j
3) The workplan -Jicorporates pollution prevention as a priority
in environmental management decisions made by the grantee' as part
of the grant-assisted activities. j
4) The workplan encourages opportunities to modify existing or
to develop new equipment, technology, processes, procedures,
products, or educational or training materials to promote
pollution prevention.
5) The workplan encourages institutional coordination—including
coordination with existing State pollution prevention programs—
and multi-media opportunities for pollution prevention. |
6) The workplan complements or builds upon existing EPA j
pollution prevention projects (e.g. the work of multi-media
industry clusters such as the Source Reduction Review Project,
and the use of pollution prevention in enforcement settlements).
i
7) The workplan identifies and applies measures and ways,of
documenting pollution prevention progress as part of the grant-
assisted activities (e.g. provides opportunities for measurable
pollution prevention). |
i
8) The workplan includes activities or approaches that may serve
nationally, as innovative models for other state or local {
programs. Workplans also should encourage innovative approaches
already developed by other State or local programs, and improve
coordination to build on existing successes.
9) The workplan structures grant output information so tnat EPA
can make pollution prevention data and experience available to
other States and the Pollution Prevention Information
Clearinghouse.
Clearly, both partners must coaply with any applicable statutory
or regulatory requirements and tahe into account other factors
that may be important. Regional Offices and states may identify
-------
4
additional Principles to guide worJcplan requirements.
r
Many Regional Offices already have made adjustments to
accommodate flexibility needs. The purpose of this Guidance is
to encourage such flexibility. Whenever possible, workplans
should accommodate State flexibility needs associated with
incorporating pollution prevention approaches into their grant-
assisted activities. That means working within the parameters of
statutory and regulatory requirements to arrive at an agreement
that is practical and meets the parties1 needs. Options for
flexibility include (but are not limited to): j
a) Adjustments in numbers or types of required outputs
including, for example, (l) tradeoffs or disinvestment from
traditional requirements (non-statutory and non-regulatory]
and (2) multiple credit for a single "multi-media" j •
inspection that emphasizes pollution prevention. • ;
—An example of (1) is RCRA's RJP-Flex Guidance, which <:;
allows disinvestment from national priority activities and v %
re-investment in Regional or State priorities: up to j25% of
enforcement resources in FT'92 and '93. . j
—An example of (2) is being tested in Region One with r
Massachusetts* Blackstone project. The key issue is jnow to
"bean-count" a single multi-media Inspection claiming to
satisfy enforcement requirements under multiple statutes and
promote pollution prevention technical assistance. j
b) Adjustments in timing of non-statutory and non- j
regulatory EPA deadlines. j ..
I *
c) Identification of a percentage of funds for pollution
prevention within each media program, coordinated by a
pollution prevention office.
—For example. Region 10 has agreed to Alaska's request to
allow the State to identify 3% (5* over the next two jyears)
of grant program monies—RCRA, air, and water—for pollution
prevention, to be coordinated by the pollution prevention
office. The monies will be reflected in specific activities
reasonably: related to each program's contribution and;
statutory objectives. The annual EPA/State Agreement will
explicitly identify pollution prevention activities and
specific disinvestments in each program.
d) Adjustments in traditional or administrative procedures
or schedules to ease EPA/State interaction.
To allow EPA to evaluate progress in integrating pollution
prevention into State grant programs, each Regional off ice should
-------
li/18/82 11:56 O202 252 0516 v
OCLA'OLA-DIV
t-- EPA/GAD
provide an annual report summarizing pollution prevention1
accomplishments (e.g. activities, products, approaches, etc.), as
reflected in grants-assisted work. The report may take any form
and may draw upon reports developed to satisfy other . !
requirements. j .
|
While program-specific Guidance may elaborate further, each
report should identify: a) success stories, including innovative
State projects funded under this Guidance; and b) any barriers
(statutory or otherwise) that led a program to reject State
proposals or. to decide against including pollution prevention
approaches. In -addition, recommendations on regulatory, j
administrative, or other changes to improve flexibility would be
helpful. Your contribution of this information is key toj making
pollution prevention a reality in EPA's on-going bread and butter
work. !
Concilia
Incorporating pollution prevention into EPA's policies and
programs is a collaborative effort requiring EPA to work in
concert with our state partners. The National Principlesjand
Annual Reports described above will help us to measure our
progress and build on our successes. ' I
i
Attachment
-------
-------
APPENDIX P
SF 424, APPLICATION FORM
-------
-------
OMB A0PJO*« NO 034MOI3
F™ERAL ASSISTANCE
1 E OFBUBMJS8IOI
• Q ConwucUan
y Q NavConeruaKT
X: 1 DATE RECEIVED BY 8TA
Pn .'iMan
LJ 9*»l'UO«K) 4_ JjA^E RECEIVED BT FEDERAL AGENCY FMW* >0»niil»r ,
. [ J NO^vWfucfDfl
1 APPLICANT INFORMATION
LvgttNm:
Aodra** fonv ety. aaunty. MM*. »»»«> OB*;;
j
*. EMPLOYER IDENTIFICATION NUMBER (EIN):
•II
ft TYP£ OF APPLICATION
O "** O Conimfltlan 'IH RwMon
A lna«u« AwmrC
0 OKMJM Oufiut
B. OMKMM Amid C. tncrtm* Duuiion
n D. OtlNf (Mttdy);
• CATALOG OP FEDERAL DOMESTIC _| I
AUBTANCE NUMBER: 1 1
WfLE:
Mkk a AFFECTED B
F
f PROJECT (et&t. cmjittoi, slsiu*, nc,}'
Orpanizuionw Un«:
K«m» end u^phom nuntvr a in* pwton 10 b* aoniacwd on nun«i involving
H»woiiBUM0M««ieDew - -
7. TYPE OF APPLICANT: (MOW tfvnptoi Mtwr in bail | I
A. -SUM • M. \nttptnavtt School Diti.
B. Cownv 1. SUM ComraiM in»nutan a* Higher LMrnng
0. ToM»hp K. IndanTrb*
E. tMCilM L. IndMOu*'
F. biMnrunicvd M. Pmtt O's«na«on
1. NAME OF FEDERAL AGENCY
1 1. DESCRIPTIVE TITLE OF APPLICANTS PROJECT:
il PROPOSE 0 PROJECT: 14. CONGRESSIONAL DISTRICTS OF:
Endiig 0«t «. Appiemm ' b. PIOIM
li. ESTIMATED FUNDING: • it IS APPLICANT SUBJECT TO REVIEW BY STATE EXECUTIVE ORDER 12372 PROCESS?
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b A«*c*"
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A. YES. THIS PREAPPLCATIONyAPPLICATON'WAS MADE AVAILABLE TO THE
STATE EXECUTIVE ORDER 1M72 PROCESS FOR REVIEW ON
* 00
DATE:
*
b. NO. ("I PROGRAM IS NOT COVERED BY E.0. 12372
1 * n
II OR PROGRAM HAS NOT BEEN SELECTED BY STATE FOR REVIEW
t 00
1 ,00 IT. IS APPLICANT DELWOUENT ON ANY FEDERAL DEBT?
t £0 r"*l Y« It •>««,• aucn 10 •mMniten. j | No
M. TO THE BEST OF MY KNOWLEDGE AND BELIEF, ALL DATA W THS APPUCATtOWPREAPPUCATION ARE TRUE AND CORRECT. THE DOCUMENT HAS BEtN DULY
n*« **.«***«,« «*-*«*. 6. T,. C. T.*non.nu«.r
C • ol AumorvM R*pr«Mnutm • «. 0«« Sgncd
(REV 4.881
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-------
APPENDIX Q
LIST OF HEADQUARTERS AND REGIONAL
MBE/WBE COORDINATORS
-------
-------
Josiah N. Prlpp, SDBUO
Jamttv younger, SDBUO
U.S. Environmental Protection Agency
Region I
John p. Kennedy Federal Building
One Congreea Street
BUM ton, MA 02201
RMIPH II
Dana P. Will lama, SDBUO
U.S. Environmental protection Agency
Region II
Jacob X. Javitta Peder?\ Building
25 Federal Plaza
New York. NY 10278
Mary Zlelinski, SDBUO
U.S. Environmental Protection Agtmcy
Region III
641 Chestnut Building
Philadelphia, PA 10107
*v
James P. ravoro, SDBtin
U.S. Environmental Protection Agency
Region IV
34S Courtland Street. KB
Atlanta, GA 30365
MQIOM V
Robert Richardsnn, SDBUO
U.S. Environmental Protection Agency
Region V
i? West Jackson Boulevard
Chicago, IL 6060*- 3507
(€17) S65-326S
PAX (617) btiS-3346
(617) 565-3427
FAX (C17)
PAX
(212) 564-8218
1212) 264-8100
PAX
(215) 597-6795
(215) 597-6170
PAX
FAX
(404) 347-22UO
(404) 347-1043
(317) 353-56-7
(312) 353-909*
-------
Mta J. Brown,
U.S. Environmental Protection Agency
Region VI _ Tower at Fountain Place
First incemtate Bank Tower
12th Floor, Suite 1200
1445 ROB 8 Avenue
Sin... TX 75202-2733
(21*)
(214) 655-2146
wnalo Mayberry, SDBUO
Srol Rompage. «nBUO
U.S. Environmental Protection Agency
Region VII
726 Minnesota Avenue.
City. KS *«101
, SDBUO
0.3. Environmental wotecUon Agency
_ _-t __ »»TT T •
et, Suite 500
80702-2405
BifllflH VIT1
Maurice
Denver, CO
Mike Schulz, SDBUO
U.S. Bnvironmtntal Protection Agency
Region IX
75 Hawthorne flt£** 1Q5
San Praneisco, CA 94105
UQIflUK
Marie T.. McPeak
U.S. Environmental Protection Agency
Reqion X
1200 Sixth Avenue
Seattle, WA 98101
(913)
(913) 551-734C
FAX 1913) 551-7579
(303) 294-75061
PAX (303) 294-llSy
(415)
FAX (415) 744-1676
(206)
FAX (206) 553-4957
-------
PUD
Norm White, SUBUO
U.S. Environmental Protection Agency
Cincinnati Contracts Management Division
Cincinnati, OH 45268
QSSSB. (A-149C)
toarge K. Mori
D. Near
(OS 200}
Jan Baker
Btate StevolviBo Fund (WH-547)
Kii. Parber
(PM-216F)
T.upe Saldana, 9DBUO
Richard Johnson
Mark Gordon
132G)
(919) 366-2024
PAX (919) 366-2004
(703) 30S-6301
(7Cm 3US-5023
VAX (703) 30S-C4G2
(202) 260-2180
PAX (202) 260-4386
(202) 260-3973
PAX (202) 260-0116
(202)
(202) 260-5296
FAX (202) 260-1828
(202) 260-8886
PAX (202) 260-8392
TOTflL P.04 "
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-------
APPENDIX R
OFFICIAL PROJECT AND GMO FILES
-------
-------
-OFFICIAL EPA PROJECT FILE
Project File: The official file developed and maintained by the Project Officer to serve
as a collection of documents and or items that provide programmatic and/or fiscal
information on the purpose, performance and history of an award to a sepcific
recipient.
Contents:
Parti
1) Copy of application and any application amendments with
Work Plan/Budget (copy)
2) Administrative Review Checklist signed by the Grants
Specialist and the Project Officer (copy)
3) Quality Assurance documentation
Partll
1) Correspondence relating to the application and/or
summaries of same
2) Application reviews, in-house and extramural
3} Programmatic reviews
4) Program Program memo regarding funding recommendation
to Regional Administrator
Part III
A copy of Assistance Agreement and any amendments (a copy
of agreement should be retained until a signed original is
returned by recipient to the Grants Management Office (GMO).
Part IV
1) Copies of Correspondence relating to the awards
A. Award letter
B. Acceptance letter
C. Close-out letter
-------
2) Correspondence concerning negotiations and agreements '.
**»«• ' "
3) Recipient requests for deviation; EPA approval or denial
4) Correspondence concerning continuation or renewal of
project
5) Site visit reports
6) Administrative reports
7} Stop-work order and related correspondence
8) Correspondence concerning termination actions
9) Correspondence concerning disputes and appeals
10) Final determinations
11) Audit reports '
12) Regional and General Counsel opinions
'
13) End of year evaluation
PartV
1) Reimbursement requests (copy)
2) Payment vouchers (copy)
3) Financial Status Reports (copy)
4) Automated Clearinghouse Authorization (copy)
5) Increase and decrease amendments (copy).
6) Close-out checklist/memo (copy)
7) Commitment Notices (copy)
PartVi
Technical Reports - if the report is too bulky, place it in an accordian file
and rubber band it to the six part file. If it is a film, computerized disk, etc.. a document
spelling out its location must be filed in this section.
-------
OFFICIAL EPA GMO FILE
Official EPA GMO File: The official file developed and maintained by the Grants
Management Office to serve as a composite collection of documents and or items that
provide programmatic and fiscal information on the purpose, performance and history
of an award to a specific recipient.
Contents:
Part I
Part II
1) Complete application and eny application amendments (original
signed)
2} Administrative Review Checklist (original signed by Grants Specialist
and the Project Officer).
3) Procurement System Certification (original signed)
4) Governor's letter and certification for Superfund enforcement.
5) Ami-Lobbying Certification (original signed)
6) Debarment/Suspension Certification (original signed)
1) Correspondence relating to the application (copy)
2) Applciation reviews, in-house and extramural (copy)
3) Programmatic reviews (copy)
*
4) Program memo regarding funding recommendation (copy)
Part III
Assistance Agreements and any amendments (a copy of agreement
should be retained until a signed original is returned by the
recipient)
-------
Paniv
1) Correspondence relating to the awards
A. Award letter
B. Acceptance tetter
C. Interim close-out letter
D. Close-out letter
2) Correspondence concerning negotiations and agreements
3) Recipient requests for deviation; EPA approval or denial
4) Correspondence concerning continuation or renewal of project
5) Site visit reports
6) Administrative reports
7) stop-work order and rotated correspondence
8) Correspondence concerning termination actions
9) Correspondence concerning disputes and appeals
10) Final determinations
11) Annulment •
12) Requests for audit
13) Audit reports
14) Correspondence related to audit reports and resolution of audit
findings
15) Regional and General Counsel opinions
16) Interim and final audit reports, comments and resolution
17) Final disputes decision and any appeal or reconsideration
determination/resolution documents
Part V
1) Reimbursement requests
-------
2) Payment vouchers
3) Financial Status Reports
4) Automated Clearinghouse Authorization (ACH)
5) Increases and decreases
6) Close-out check list
7) Commitment Notices
Part VI
Funding recap
-------
-------
APPENDIX S
FINAL CLOSEOUT POLICY FOR ASSISTANCE
AGREEMENTS
-------
-------
EPA CLOSEOUT POLICY FOR GRANTS AND
COOPERATIVE AGREEMENTS
Introduction
Parti: .'Purpose and Objectives . '
Pat II: Basic Gaseout Requirements for Grants and Cooperative Agreements
A. Roles and Responsibilities
B. GICS Requirements
C. Notification and Follow Up
Part IH: Program Specific Requirements
A. State Revolving Fund Program
B. Superfitnd
C. Construction Grants
Part IV: Record Retention Requirements
Part V: Audit Resolution and Disputes
Appendix Ar Listing of Existing EPA Closeout Regulations. Policies, and Related Guidance
Appendix B: Listing of GICS Data Elements Used in Closeout
Appendix C: types of Construction Grant A\vards
-------
-------
AUG 2 7 1992
MEMORANDUM
Harvey G.' Pippen, Jr., Directojt*"c-
Grants Administration
SUBJECT: Final Closeout Policy For Assistance Agreements
FROM:
TO: Assistant Regional Administrators
Grants Management Offices
Regions I-OC
Millie Lee, Chief, Grants Operations Branch
Carlene Foushee, Acting Chief, Grants Information and
Analysis Branch
We are pleased to issue the attached final Closeout Policy.
This policy establishes EPA's closeout requirements for closing
out completed grants and cooperative agreements and deobligating
unliquidated obligations for all of EPA's assistance programs.
This policy represents the combined efforts of all of the members
of the Closeout/Deobligation task force ever the past year. He
greatly appreciate their time and many contributions in developing
this policy document.
We strongly encourage you to use the policy and again
emphasize the importance of continuously closing out completed
projects and deobligating unliquidated obligations in a timely
manner. Closeout is an essential function of prudent grants
administration.
Finally, ve ask that you develop your .;*n specific Regional
(wr headquarters) procedures to implement the closeout requirements
in this policy.
If you have any questions regarding this policy, please
contact Bruce Feldaan on 260-5268.
Attachment
CCi
official
Reading
Division
K. Ross
L. Ross
M. Lee
R. Johnson
S. McMoran
C. Allison
R. Mitchell
A. Mason
C. Fousbee
B. Feldman
M. Cody
E. Haffa
C. Thomas
v. Martin
R. Meunier
Taskforce Members
PM-216F: V.Martin:RM 801 FC:260-9294:8/14/92
-------
PARTI PURPOSE AND OBJECTIVE
The purpose of this document is to establish EPA policy for closing out completed giants
and cooperative agreements for all EPA Assistance Programs.
Closeout is the systematic process by which EPA determines that all required technical
work under a grant or cooperative agreement has been completed by the recipient and EPA, and
all applicable administrative requirements met. Protection of the government's interest and
prudent grants administrative practices require that sufficient time and effort be devoted to the
closeout process.
This document includes the closeout requirements basic to all grants and cooperative
agreements, the roles and responsibilities of EPA and its recipients, and the specific closeout
requirements unique to the Superfund, Construction Grants, and the State Revolving Fund (SRF)
Programs. .
The procedures to follow for timely closeout of all completed projects are contained in
40 CFR Part 31 Subpart D, 40 CFR Part 30 Subpart H, 40 CFR Part 35.6780, and the EPA *
Assistance Administration Manual (Chapter 40). This policy supplements and clarifies lexisting
agency closeout policy.
EPA should close out Don-construction grant projects within 180 days after receip^B
of all required reports and other dellverabks. Delays can unnecessarily tie up obligated but^
unexpended funds. Also, closeout becomes more difficult with the passage of time because
persons responsible for managing various aspects of a project may resign, retire, or transfer;
memories of events are less clear; the interests of the Project Officer and Project Manager may '
shift to other priorities; and award documents may become tost or destroyed.
For Construction Grants, closeout should occur within six months of the last grant action
which can be any one of the following acuons:
• Final audit resolution
' . Project screenout
• Project returned unaudited by OIG
i
• Administrative completion for grants less than $1 million
• Regional or Headquarters issuance of a decision of an appeal filed in accordance
with 40 CFR Parts 30 and 31.
• Final debt collection, forgiveness of debt or dismissal of debt.
-------
PART H BASIC CLOSEOUT REQUIREMENTS FOR GRANTS AND
COOPERATIVE AGREEMENTS
A. Roles and Responsibilities
t
This section outlines Jhe basic closeout roles and responsibilities of the Recipient, the
Program Office, the Grants Management Office (GMO) and the Financial Management Office
(FMO).
Recipient '
1. Complete all work satisfactorily and timely as specified in the assistance agreement.
2. Submit the following required reports to EPA within 90 days after the project completion
date:
o Final Technical Report '
o Final Financial Status Report (Standard Form 269 or 269 A)
o Federally Owned Property Report, if applicable
o Invention Disclosure Report (EPA Form 3340-3), if applicable
o . Final Request for Payment (Standard. Form 270), if applicable
o Final EPA ACH Payment Request, if applicable
o Outlay Report and Request for Reimbursement (Standard Form 271), if
applicable
o Property Inventory of all Federally Owned Property, if applicable
o Final Minority Business Enterprise/Women Business Enterprise Report (Standard
Form 334), if applicable
3. Submit a written request to EPA's award official to request an extension of time to the
90 day period required for submittal of the FSR (or other required reports), along with
a justification for the extension.
4. Submit all manuals, plans, specifications, data, or other deliverables as required in the
assistance agreement to EPA, or make the deliverables available for EPA inspection.
The Program Office (Project Officer)
^
1. Review and approve all technical reports, including final technical/performance reports
in accordance with the requirements of the award and the statement of work.
-------
2. Ensure that any/all deliverable* required under the award are received when required by'
the award, and are acceptable.
3. Certify to the GMO within 90 days of completion of the project that all work has been
satisfactorily completed. For continuing programs, specific work elements may be
earned forward and funded in the next year provided the recipient submits an application
with an acceptable workplan. For additional information, refer to Comptroller Policy
Announcement N. 88-09, "Disposition of Unobligated Balance of Assistance Awards.'
4. Certify to the GMO within 90 days of project completion that all tehnical (programmatic)
award conditions have been met.
The Grants Management Office (GMO)
1. Ensure receipt of final certification of project completion from the project officer, receipt
of all required reports including the final FSR, MBE/WBE, invention disclosure, and
Federally owned property reports, and compliance with all terms and conditions of the
grant. *
I W
2. Provide property disposition instructions (as necessary) to recipients, and ensure
receipt/acceptability of property inventory report; and ensure reimbursement to EPA of
its proportionate share of equipment or supply inventories, if applicable..
3. . Receive and approve the Final Financial Status Report (except for construction grants)
and:
*
o ensure timely receipt and distribute copies to program and finance offices as
necessary;
o review and analyze FSR's contents, induing recipient's cost share;
o maintain/update current information in the Grants Information and Control System
(GICS),i.e.,FINANCIAL-STATUS-CODE,FINANCIAL-STATUS.DATE,and
ACTION-CODE;
o ensure that financial data on FSR is reconciled with the Integrated Financial
Management System (CFMS);
o determine allowability of any reported indirect costs based on the provisions of
the assistance agreement and the final negotiated indirect cost rate;
o determine amount of any unliquidated obligations and/or funds owed to EPA by
the recipient and provide instructions to the FMO for the disposition of those
funds.
-------
'5
4. Request final audit (if applicable and required for closeout)
5. Prepare close-out amendment.
o Ensure receipt of request for final payment; review and approve appropriateness
of such payments and notify the FMO to process or deny the payment.
o Ensure compliance with Agency's carryover policy.
o Ensure that the FMO makes necessary adjustments to IFMS and deobligates
any unliquidated obligations as appropriate.
o Complete Assistance Adjustment Notice (EPA Form 5700-42) or Assistance
Amendment and distribute to FMO and Program Offices.
6. Prepare close-out letter
v o Issue final close-out letter to recipient and provide .copies to the appropriate
Project Officer and FMO.
7. Retire file and follow appropriate record retention requirements. (See page 11, Part IV)
Financial Management Office (FMO)
1. Assist GMO in reconciling IFMS data with reported FSR data.
2. Review close-out amendment and either deobligate any unliquidated
obligations, or bill the retipier: for any funds Hue EPA; establish an accounts
receivable if appropriate and perform follow-up collection efforts.
3. Make necessary entries to IFMS for any deobtigations and collections.
4. Approve/process final payment request.
B. Tht Grants Information and Control Systems (GICS) Requirtmtnts
The Grants Information and Control System (GICS) is EPA's official assistance
information management system and plays an integral part in the closeout process. It provides
grants managers with information to manage and track progress on grant agreements. The
system contains a collection of closeout data elements to track a grant's progress through the
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closeout process. Giant specialists update the closeout milestones in GICS by accessing the
appropriate closeout screens in EPA's Automated Grants Document Systems, i.e. the Regional
Automated Grants Document System (RAGDS), the Headquarters Automated Grants Document
System (HAGDS), the Fellowship Automated Document System (FADS), and the Interagency
Agreement Management System (IAMS), as each milestone is achieved. The most frequently
used closeout milestones for non-construction grants are incorporated into a Table below
Appendix B contains definitions for these milestones and general information on the closeout
screens used for Construction Grants. Further information on these data elements can be found
in the GICS Data Dictionary [GIRD] and the Headquarters and Regional procedural manuals.
COMP-LTR-SENT-CODE/DATE (Ml)
FINANCIAL-STATUS-CODE/DATE (MS)
REAL-PROPERTY-CODE/DATE (L7)
PERS-PROPERTY-CODE/DATE (U)
INVENTION-CODE/DATE (L4)
FINAL-REPORT-CODE/DATE (L8)
AUDIT-REQUEST-DATE (N8)
AUDIT-RESULTS-CODE (N9)
FINAL-AUDIT-DATE (91)
ACTION-CODE/DATE
C. Notification and FoUow Up
I. Closeout Notification
Monthly
The GMO should provide each Grants Specialist a Grants Information and
Control Systems (GICS) printout each month which identifies those
projects/agreements that are in the closeout process or are scheduled to end in the
next 90*120 days. These printouts (Status Report of Projects Completed But Hot
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2.
Closed Out) list projects in sequence by project-end-date and indicate the status
of each milestone. event leading to close out and the date that it was entered as
such.
90 Davs Before End of Project Period . .
The Grants Specialist prepares for the EPA Project Officer a "completion alert"
90 days before the end of the project period. The memo requests information on
.whether the project/budget period needs to be extended !or if the assistance award
can be closed out.
Follow up Schedule
Davs after Completion.
A letter requesting the necessary closeout reports should be mailed to the individual who
accepted the most recent award document on behalf of the recipient, with a copy to the
EPA Project Officer.
90 Days after Completion
The recipient will submit final progress (technical) reports to the Project Officer 90 days
after the project's completion or end date, whichever comes first and notify the GMO of
their receipt and acceptability. Other reports, including the final Financial Status
Reports, are also due within 90 days, and should be submitted to the Grants Specialist.
The Grants Specialist will then review those projects that have overdue reports (over 90
days) and determine whether another followup letter should be sent to the recipient. This
letter must be tailored to address specific deficiencies of the project, e.g., what required
deliverables were not received and are overdue? A copy of this letter should also be sent
totheFMO\PO.
120 Davs after Completion
If the recipient has not provided the information required for closeout 4 months after
completion of the project, the Grants Specialist should confer with the Project Officer
and send another follow-up letter. This letter shall be signed by the RA/ARA or
Director, GAD (for headquarters projects), and addressed to the head of the recipient
organization, with a copy to the FMOVPO. It should provide a chronology of earlier
efforts to obtain the materials required by the agreement, enclose a copy of previous
reminders and follow-up correspondence, and establish a specific date (suggest 2 to 3
weeks) for receipt of a response.
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8
180 Davs after Completion
Closeout should be completed within 6 months (180 days) after the end of the agreement.
When closeout has been completed, the Award Official should provide the recipient with
the closeout letter or a letter of final determination, with copies to the FMO and PO.
(See Disputes Section in Part V) ;
! ?
Part ED: Program Specific Requirements
A. State Revolving Fund Loan Program
This section defines the basic policy on the timing of capitalization grant closeout and
highlights specific SRF requirements. Capitalization closeout procedures parallel closeout
procedures for continuing program grants.
In general, closeout will occur at the end of each capitalization grant's budget period, i.e.
.when all the cash is drawn down from that grant providing, however, that the audit for the State
fiscal year in which the last cash draw occurred has been issued and any findings resolved '
Closing a capitalization grant will not mean that all statutory work and regulatory requirements
have been satisfied.1 Nor will closeout indicate that all the "work' agreed to in the assistance ;
agreement has been completed or that all the loans have been repaid. Rather, closeout will
indicate that EPA is satisfied that the State has established a viable and fiscally sound SRF loan
program. EPA will assure continued compliance with statutory and regulatory requirements by
reviewing a State's Intended Use Plan [40 CFR 35.3150], reviewing a State's Annual Report
[CWA Title VI, §606
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recipients. Recipients of other Superfund giants, such as; Research and Development; and
Technical Assistance Grants (TAG), follow the closebut requirements for project-specific grants.
Superfund Cooperative Agreements
Superfund response Cooperative Agreements (CAs) provide funding from EPA to conduct
the response activity at a Superfund site. These CAs can provide funding for the following types
of activities:
Prt-Remedlal Activities
Remedial Response
Activities
Other Activities
Preliminary Assessment
(PA)
Site Investigation (SI)
Hazardous Ranking System
(HRS)
Remedial Investigation (RI)
Feasibility Study (FS)
Remedy Selection/Record of
Decision (ROD)
Remedial Design (RD)
Remedial Action (RA)
Removal Program
Core Program
Enforcement
Support Agency
In a Superfund CA, closeout of the CA usually occurs when all work* as specified in the
scope of work, has been completed. Due to the complexity and "umbrella-like' structure of
Superfund CAs, closeout can often become an unduly complicated situation, with many activities
taking place over extended periods of tune. To improve our management of Superfund CA
closeout, it is desirable to close out each diverse activity or operable unit as it is completed. As
each 'activity or operable unit is completed, the activity would be designated as an "Activity
Completion" and the same steps in the closeout process would be followed. In the case of a
pre-remedial or a remedial CA, as each activity (or operable unit) is completed, activity
completion (or operable unit completion) should take place for that discrete activity. This
approach is a more manageable way to ultimately achieve closeout of the entire agreement.
Since many Superfund CAs last for many yean and may include more than one site, it
is important to initiate completion by activity, site, or operable unit This will simplify the
administrative closeout process later on when the entire agreement is closed out, and will help
the cost recovery effort which may begin before all activities at the site are complete or when
all sites under the multi-site are complete.
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For a Superfund site-specific CA, if the CA is terminated when a responsible party takes
over the cleanup or the lead changes from State to EPA, the CA should be closed out and any
unliquidated obligations balance should be de-obligated.
A Superfund Core Program cooperative agreement provides funds to a State or Indian
Tribe to conduct CERCLA implementation activities that are not assignable to specific sites, but
are intended to support a State's (or Indian Tribe's) ability to participate in the CERCLA
response program. In the Core Program, the CA is closed out when the activities identified in
the scope of work are completed. Likewise for Enforcement, Support Agency, or Removal
cooperative agreements. When all required work as specified in the scope of work has been
completed, the CA should be closed out To close out a Superfund CA, the GMO and PO must
follow the requirements specified in Part H.
C. Construction Grants
• ' . -~
Construction Grants are awarded to local municipalities to fund construction of waste
water treatment plants. It is EPA policy to close out construction grants promptly; funds not
needed on one project can be deobligated and reallotted to finance other treatment works
projects. The Construction Grants Program is also different from other EPA programs because
this is a delegated program. EPA is responsible for overall program management but most of
the day-to-day administrative duties have been delegated to the State water pollution control
agencies or the US Army Corps of Engineers. EPA Regional Offices retain some project-related
decision authorities that are not legally delegable. •
Eligible activities funded by construction grants can include facility plans (Step 1), plans
and specifications (Step 2), and the building of a treatment plant (Step 3). A full listing of the
different types of construction grants is included in Appendix C.
KEY COMPLETION/CLOSEOUr MILESTONES
Physical Completion: When the scope of the work is completed. For Steps 1 & 2,
project completion and physical completion are synonymous. (For steps 2+3, 3, 7 £ 9
project completion, physical completion, and construction completion are synonymous.)
Initiation of Operations (IO): When the wastewater treatment works becomes capable of
operating for the purposes planned, designed and built. (Steps 3, 2+3,7 & 9)
Project Performance Certification: One year after IO, the grantee certifies that the
treatment facility is meeting project performance standards. (Steps 3, 2+3,7 & 9)
Please note that the project cannot be sent to audit until the certification is received.
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Administration Completion: All.administrative aspects of the project have been
completed, final payment has been requested, eligible costs have been determined, all
grant conditions have been satisfied and the audit has been requested. Ail excess balances
(unliquidated obligations) should be deobligated at this point.
Audit: Project is sent to the Office of Audit, Office of Inspector General (OIG) for audit.
Audit Resolution: Audit resolution occurs when one of the following actions have
been performed by the Regional Office:
• o
o
Issuance of a final determination letter to the recipient.
Submission of a valid response to the OIG
recommendations contained in the final audit report.
all findings and
Closeout: Ail administrative activities have been completed, including corrective actions
and debt collection; the reviewing agency issues a standard doseout letter to the recipient
and me grant project file is sent to record storage.
•••NOTE***
The time between physical completion and administrative completion can be no less than 14
months because the project performance certification period is one year after physical completion and
initiation of operations. The project can not be sent to audit until after project certification. If the IG,
accepts the project for audit, it may be 24 months before the final audit report is issued.
PART IV: RECORD RETENTION REQUIREMENTS
EPA's Uniform Administrative Requirements for Giants and Cooperative Agreements to
State and Local Governments (40 CFR Part 31.42) establishes minimum records retention
requirements for all assistance recipients. In general, a recipient must retain all financial
records, supporting documents, accounting books and other evidence of assisted activities for
three yean from the date of the final Financial Status Report submission. If any litigation, claim.
or audit is started before the expiration of the three year period, the recipient must maintain all
appropriate records until these actions are completed and all issues resolved. The retention
period starts on the day the recipient submits its final Financial Status Report A recipient may
always choose to implement stricter or longer retention periods to meet their own needs. For
construction grants, the retention period starts the day the grantee submits the final payment
request. For the SRF Program, official records include copies of the State/EPA agreements.
SRF Intended Use Plans, SRF Operating Agreements, SRF Annual Reports, and SRF Program
Evaluation Reports. Only the grant agreement can be retired after grant closeout. All other
documents must be retained for Program Management purposes.
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Superfund Assistance Agrtemtnts
* For reciptents'records, the length of retention is 10 yean from the date
of submission of the final FSR (unless otherwise directed by the award official).
* For EPA's records, the retention period is 30 yean after closeout of the
assistance agreement. . .
Construction Assistance Agreements
* For recipients, the retention period is 3 years from the date of the final payment
request . .
* For EPA's records, the retention period is 20 years from the date of submission
of the final payment request.
AIX Other Assistance Agrtemtnts
* For recipients, the length of retention is 3 yean from the date of
submission of the final FSR. , . . ,
* For EPA's records, the retention period is 7 yean after closeout of the assistance
agreement.
PART V: AUDIT RESOLUTION AND DISPUTES
A. Audit Resolution - General Information
EPA Order 2750.2A (Management of EPA Audit Report, ^ .d Followup Actions) states that
audit resolution must occur within ISO days of the final audit report issuance. Resolving audit
findings, issues or exceptions is a multi-step process involving many different offices. Audits
which cannot be resolved at the Regional or Headquarters level between the OIG and the Audit
. Action Official are referred to EPA's Audit Resolution Board.
EPA relies primarily on Single Audits of recipients carried out in accordance with the
requirements of the Single Audit Act and Federal Audit policy expressed in OMB Circulars A-
128 and A-133. Consistent with that policy, most assistance agreements will JJQI receive
individual final audits. A final audit is usually not a prerequisite for closeout.
All Superfund Cooperative Agreements are subject to audit by the Office of Inspector
General. Projects may be audited prior to or even after closeout. The Program Office is usually
responsible for requesting an audit. Closeout of all completed phases of response activities
should be undertaken regardless of whether or not an audit is actually performed. However, any
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13
findings/issues arising from an audit must be resolved before the cooperative agreement can be
officially closed out.
. For Construction Grants, an audit request is sent to the appropriate Divisional Inspector
General for Audit who determines if an audit will be conducted. For more detailed information
on the steps involved in this process, refer to the appropriate Construction Grant Program Audit
and Closeout Procedures.
The OIG will normally audit construction grants according to criteria published in the OIG
Manual, Chapter 102 - Audit Planning Appendix 6, Issued October 1984 and revised June 5
1990. .; -
If the OIG (EPA, contract CPA firm, State Auditor, or GAO) conducts an audit, the
project cannot be closed out until the final audit is completed, all findings and recommendations
are resolved, corrective actions are completed, and any outstanding debts are collected.
B. Disputes • ..
Definition
Disputes are petitions of review filed by recipients asking EPA to reconsider decisions
affecting assistance agreements.
Many (but not all) disputes between recipients and EPA concern the eligibility or
aUowability of a project or portions of a project for reimbursement by EPA under the provisions
of the assistance agreement, usually resulting from an audit or other determination by EPA's
award official.
Authority
Disagreements between EPA and applicants/recipients should be resolved at the lowest
possible level by the EPA Project Officer and the appropriate Grants Specialist having the
authority to resolve the dispute.
The applicable regulations depend on the award date of the grant agreement or
amendment. If die award, date is before October 1, 1988, 40 CFR Pan 30 Subpart L applies.
If the award date is after October 1, 1988, 40 CFR Pan 31 Subpart F applies. Disputants may
not ask EPA to review the following Agency actions:
1. Denials of requests for a deviation under 40 CFR Pan 30, Subpart J;
2. Bid protest decisions under 40 CFR Pans 31/33;
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14
3. National Environmental Policy Act decisions under 40 CFR Part 6;
-4. Advanced wastewater treatment decisions of the Administrator;
S. Policy decisions of the EPA Audit Resolution Board; and
6. Debarment/suspension actions taken by the Director, Grants Adrr justration Division.
Role of the Disputes Decision Official
The Award Official may act as the Disputes Decision Official (DDO) or appoint a senior
EPA Official who is knowledgeable about EPA's assistance programs as the DDO. The DDO
reviews and issues the final decision for all disputes. If an applicant or recipient disagrees with
the Regional DDO's decision, the disputant may file a request for a review with the Regional
Administrator (RA), who will in turn issue a written determination.
If an applicant or recipient disagrees with a RA's decision, they may request a review
by the appropriate Assistant Administrator (AA). The AA in the appropriate media Program.
Office has the authority to review appeals of RA decisions. The AA will analyze the request
to determine if it warrants further review. The AA will then notify the recipient in writing off
their decision to review or not to review the disputed action. In the limited number of cases
which are reviewed, the AA will also provide the results of the review at this time. The
recipient may request reconsideration of any decision of the RA or AA.
Impact of Disputes on
Disputes can be very resource intensive and will bring the audit decision-making process
under closer scrutiny. It is for this reason that the Audit Action Official should resolve all audit
fihdir^s and avoid incomplete final determination letters (see Pan V Audit Section). Inadequate
or incomplete audit resolution can increase the number of disputes filed by recipients.
Unresolved disputes further delay closeout of the award until the action or claim is settled.
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APPENDIX A
LISTING OF EXISTING EPA CLOSEOUT REGULATIONS, POLICIES, AND RELATED
GUIDANCE
(1) 40 CFR Part 4 (Uniform Relocation Assistance), or 49 CFR Part 24 if applicable;
(2) 40 CFR Fait 30 (for non-State and local government recipients);
(3) 40 CFR Part 31 (for State and local governments);
(4) 40 CFR Part 32 (Debarment and Suspension);
(5) 40 CFR Part 33 (Procurement for non-State and local government recipients);
(6) 40 CFR Part 34 (Restriction on Lobbying, interim final rule);
(7) 40 CFR Part 35 (State and Local Assistance);
(8) 40 CFR Pan 40 (Research and Demonstration Grants);
(9) 40 CFR Parts 45 and 46 (Training and Fellowship grants);
.^ (10) OMB Circulars A-102 (Grants and Cooperative Agreements to State and Local
•• Governments) and A-128 (Audits of State and Local Governments);
(11) OMB Circulars A-l 10 (Grants and Cooperative Agreements with Institutions of Higher
Education, Hospitals and Other Nonprofit Organizations), A-133 (Audits of Institutions
of Higher Education and Other Nonprofit Institutions), and A-21 (Cost Principles for
Universities; . .
(12) OMB Circulars A-87 (Cost Principles for State and Local Governments) and A-122
(Cost Principles for Nonprofit Organizations);
(13) Policy on Performance-Based Assistance (EPA policy memorandum dated May 31,
1985);
(14) Comptroller Policy Announcement No. 88-09 (Disposition of Unobligated Balance of
Assistance Awards);
(15) EPA Directive 2750 (Management of EPA Audit Reports and Follow-up Actions).
(16) Chapter 40 of EPA's Assistance Administration Manual
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(17) Construction grants Program For Municipal Wastewater Treatment Works Handbook
Procedures
(18) CG-250, Managing Construction Projects Student Manual' and
(19) The Strategy Paper for Closing Out the Construction r,n.nt p^ram dated to/90 and
formally released January, 1991. ?.
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17
APPENDIX B
GICS DATA ELEMENTS FOR CLOSING OUT NON-CONSTRUCTION GRANTS
GICS contains a series of data elements used to track grant closeout. This appendix
provides definitions and applicable codes for the most commonly used data elements.
Note: not all closeout data elements are available in RAGDS, FADS, or LAMS. It is
GAD's intention to revise the GICS Data Dictionary and appropriate screens in the
Automated Grants Document Systems to make all standard closeout data elements
universally available.
COMP-LTR-SENT-CODE/DATE
A code indicating the most recent completion/follow-up letter sent to the recipient
For purposes of Closebut the following codes are applicable:
A Pre-completion reminder mailed
B Completion reminder mailed
C Reminders) to signatory of agreement
D Warning to President/chief officer of recipient organization
X Final determination recommendation prepared by Grants Operations Branch and
forwarded for required approvals/concurrences
FINANCIAL-STATUS-CODE/DATE
A code indicating the status of the final financial status report (report of expenditures)
submitted by the recipient The dite related to this code is contained in Final Financial
Status Report Date (Ref No M5-A, Financial-Status-Date).
For purposes of Closeout the following codes are applicable:
DE Financial status report approved; FMC, Las Vegas requested to deobligate
DR Financial status report approved; EPA owes recipient; Recipient advised to draw
down
NA Not applicable to this project/budget period
OU Financial status report approved; Recipient owes EPA; Requested to submit
refund or adjust letter of credit .
FU Financial status report approved; Recipient has paid EPA
RA Received an acceptable/approved report; Zero unobligated balance
RP Received report/acceptability to be determined
RU Received an unacceptable report; Follow-up to recipient initiated
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' • - •• . -is . ;
PERS-PROPERTY-CODE/DATE
A code indicating the status of the personal property or equipment inventory purchased
under a grant. The date related to this code is contained in Personal Property Inventory
Date (Ref No L2-A, Pers-Property-Date).
For purposes of Closeout the following codes are applicable:
DI Disposition instructions issued; further action required
DW Disposition instructions being withheld by Grants Administration Staff
DX Disposition instructions executed/completed; no further property action required
NA Not applicable to this project
PD Project Officer provided disposition recommendation
. PR Project Officer received report; Grants Administration staff awaiting disposition
RF Received and forwarded to Project Officer
RN Received negative report
RP Received positive report
REAL-PROPERTY-CODE/DATE :
A code indicating the status of the real property inventory purchased under a grant. The
date related to this code is contained in Real Piopeity Inventory Date.(Ref No L7-A,
Real-Property-Date).
For purposes of Closeout the following codes are applicable: .
f
DI Disposition instructions issued; further action required
DW Disposition instructions bew^ withheld
DX Disposition instructions executed/completed; no further property action required
NA Not applicable to this project
PD Project Officer provided disposition recommendation
PR Project Officer received report; awaiting disposition recommendation
RF Received and forwarded to Project Officer
RN Received negative report
RP Received positive report
INVENTION-CODE/DATE
A code indicating the status of the invention report. The date related to this code is
contained in Invention Report Status Date.
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For purposes of Closeout the following codes are applicable:
NA Not applicable to this project/budget period
RF Received and forwarded to Office of General Counsel
RN Received negative report
RF Received positive report
nNAL-REPORT-CODE/DATE
A code indicating the status of the final report. The dale related to this code is
contained in Final Report Status Date (Ref No L8-A, Final-Report-Date).
For purposes of Closeout the following codes are applicable:
AA Report approved; confirmation in official project file; EPA Report Publication
Number assigned and recorded in Report Publication Number (Ref No 40-A,
Publication-No)
NA Not applicable to this project
PR Project Officer received report; awaiting peer review/approval; (Consider
applicability of entering code "PR" in Action Step Code (Ref No 23-A,
Action-Code) and date in Action Step Date (Ref No 24-A, Action-Date))
- RF Received and forwarded to Project Officer
RU Received an unacceptable report; follow-up to recipient initiated
AUDIT-REQUEST-DATE
The date of the request for a financial audit of a non-Construction grant Use of this
element is limited to grants meeting certain select cnu-ria and is not applicable to Single
Audits. For Regions using Audit Request Code (Audit-Request-Code, Ref No N8-A),
this is the date related to the code contained in that element
Positions 1-2 - Year
• 3-4 -Month
" 5-6-Day
AUDITS-RESULTS-CODE
A code indicating the status of the completion of the financial audit of a
non-Construction grant This element is not used for Single Audits. The date related
to mis code is contained in Audit Completion Date (Ref No N9-A, Audit-Results-Date).
For purposes of Closeout the following codes are applicable:
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CA Cost analysis
FA Final audit
IA Interim audit
RN Received notice of cancellation of audit request
RP Received audit report
FENAL-AUDIT-DATE ^
The date a final audit is resolved satisfactorily.
Positions 1-2 - Year
" 3-4.- Month
' 5-6-Day
ACTION-CODE/DATE
A code which identifies the current status and/or disposition of a prospective project,
application, or active or completed project for which financial assistance has been
requested or given. Codes are from the GICS-ACTION-CODE-TABLE [not GICS-
ACTION-CODE-NON-TABLE] The date related to this code is contained in Action
Step Date.
For purposes of Closeout the following codes are applicable:
FA Completion of all administrative work connected with an assistance agreement
by the administering office. Applicable only to WWT Construction and State
Revolving Fund (Project level).
FC Completed assistance agreement closed erf For EPA assistance agreements,
letter issued by EPA to the recipient closing out the agreement .
FD Project completion: For assistance programs administered in Headquarters, the
award official (Chief, Grants Operations Branch) has issued final determination
to the recipient.
ER Project dose-out complete except for approval of final project report and final
disposition of property, if any. Applicable only to assistance programs
administered in Headquarters.
FT Assistance terminated by EPA before completion. Termination letter sent from
Grants Operations Branch or appropriate Regional grants administration staff to
the recipient.
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GICS SCREENS FOR CLOSING OUT CONSTRUCTION GRANTS
Qoseout milestones for construction grants are found on a number of different screens
inGICS. Screens include:
* Post Award/Targeting (PTN) which tracks the completion of certain activities
such as WWT Start, Initiation of Operation, development of the O&M Manual,
Initiation of Administrative Completion. . .
n.
* Project Completion (PCN) which tracks a grant's progress through Physical
Completion and Administrative Completion.
* Payment Data (PDN) which tracks cumulative payment data.
Because Construction Grants is a delegated program, data entry can take place at the delegated
State or in the Regional office. Regional procedures vary greatly.
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•' . 22
APPENDIX C ' *-•
of Construction Grant Awards
Step 1: Development of a facilities plan. No new awards were issued after 12/29/81. It is
EPA policy that all Step 1 projects should have been completed by 9/30/85.
Step 2: Preparation of plans and specifications for a treatment works. No new awards were
issued after 12/29/81. It is EPA policy that all step 2 projects should have been completed by
9/30/85.
Step 3: Building of treatment works and related services and supplies.
Step 2-4-3: Combination design and building of a treatment works and building related
services and supplies.
Step 7: Combination design and building of a treatment works wherein a grantee awards a.
single contract for designing and building a treatment works.
Step 9: Construction of a State training wastewater facility combining design and-building for;
operations and maintenance personnel.
«US COVtXMMINT HUNTING O"l« :i»3-"?-3!B-*591''
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