GRANTS ADMINISTRATION
MANUAL
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Grants Administration Division
Office of Planning and Management
U.S. ENVIRONMENTAL PROTECTION AGENCY
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regulations
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United States
Environmental Protection
Agency
Grants Administration
Division (PM-216)
Washington, DC 20460
EPA GAD/10-80-1
June 1980
^rEPA Interim Regulations
and Procedures
Applicable to
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Research
and
Demonstration
Grants

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Table of Sections
PART 40—RESEARCH AND
DEMONSTRATION GRANTS
Sec
40.100 Purpose of regulation.
40.10S Applicability and scope.
40.110 Authority.
40.115- Definitions.
40.119-1 Construction.
40.115-3 Intermunicipal agency.
40.115-3 Interstate agency.
40.115-4 Muncipallity.
40.115-5 Person.
40.115-6 State.
40.120 Publication of EPA research objec-
tives.
40.125 Grant limitations.
40.125-1 limitations on duration.
40.125-2 Limitations on assistance.
40.130 Eligibility.
40.135 Application.
40.135-1 Preappllcatlon coordination.
40.135-2 Application requirements.
40.140 Criteria for award.
40.140-1 All applications.
40.140-2 [Reserved]
40.140-3 Federal Water Pollution Control
Act
40.145 Supplemental grant conditions.
40.145-1 Resource Conservation and Re-
covery Act
40.145-2 Federal Water Pollution Control
Act
40.145-3 Projects involving construction.
40.150 . Evaluation of applications.
40.155 Availability of Information.
40.160 Reports.
40.160-1 Progress reports.
40.160-2 Financial status report
40.160-3 Reporting of Inventions.
40.160-4 Equipment report
40.160-5 Final report.
40.165 Continuation grants.
Authority: Authorities cited in 8 40.110.
Soubck 38 FR 12784. May 15. 1973. unlea
otherwise noted.

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§40.115-1
9 40.100 Purpose of regulation.
These provisions establish and
codify policies and procedures govern-
ing the award of research and demon-
stration grants by the Environmental
Protection Agency.
§ 40.10S Applicability and scope.
This part establishes mandatory
policies and procedures for all EPA re-
search and demonstration grants. The
provisions of this part supplement the
EPA general grant regulations and
procedures (40 CFR Part 30). Accord-
ingly, all EPA research and demon-
stration grants are awarded subject to
the EPA interim general grant regula-
tions and procedures (40 CFR Part 30)
and to the applicable provisions of this
Part 40.
$40,110 Authority.
EPA research and demonstration
grants are authorized under the fol-
lowing statutes:
(a)	The Clean Air Act, as amended,
42 U.S.C. 1857 et seq.
(1)	Section 103 (42 U.S.C. 1857b) au-
thorizes grants for research and dem-
-nstration projects relating to the
uses, effects, extent, prevention, and
yntrol of air pollution.
(2)	Section 104 (42 U.S.C. 1857b-l)
authorizes grants for research and de-
velopment of new and Improved meth-
ods for the prevention and control of
air pollution resulting from the com-
bustion of fuels.
(b)	The Federal Water Pollution
Control Act, as amended. Pub. L. 92-
500.
(1)	Section 104(b) (33 U.S.C. 1254(b))
authorizes grants for research and
demonstration projects relating to the
causes, effects, extent, prevention, re-
duction, and elimination of water pol-
lution.
(2)	Section 104(h) (33 U.S.C.
1254(h)) authorizes grants for re-
search and development of new and
improved methods for the prevention,
removal, reduction, and elimination of
pollution in lakes, including the unde-
sirable effects of nutrients and vegeta-
tion, and for construction of publicly
owned research facilities for such pur-
pose.
(3)	Section 104(1) (33 U.S.C. 1254(D)
authorizes grants for research, studies,
experiments, and demonstrations rela-
tive to the removal of oil from any
waters and for the prevention, control,
and elimination of oil and hazardous
substances pollution.
(4)	Section 104(r) (33 U.S.C. 1254(D)
authorized grants for the conduct of
pasic research into the structure and
function of freshwater aquatic ecosys-
tems, and to improve understanding of
the ecological characteristics neces-
sary to the maintenance of the chemi-
cal, physical, and biological Integrity
of freshwater aquatic ecosystems.
1
(5)	Section 104(s) (33 U.S.C. (s)) au-
thorizes grants to conduct and report
on interdisciplinary studies on river
systems, Including hydrology, biology,
ecology, economics, the relationship
between river uses and land uses, and
the effects of development within
river basins on river systems and on
the value of water resources and
water-related activities.
(6)	Section 105(a) (33 U.S.C. 1255(a))
authorizes grants for research and
demonstration of new or improved
methods for preventing, reducing, and
eliminating the discharge into any
waters of pollutants from sewers
which carry storm water or both
storm water and pollutants; and for
the demonstration of advanced waste
treatment and water purification
methods (including the temporary use
of new or improved chemical additives
which provide substantial immediate
Improvement to existing treatment
processes), or new or Improved meth-
ods of joint treatment systems for mu-
nicipal and industrial wastes.
(7)	Section 105(b) (33 U.S.C. 1255(b))
authorizes grants for demonstrating,
in river basins or portions thereof, ad-
vanced treatment and environmental
enhancement techniques to control
pollution from all sources, within such
basin or portions thereof, including
nonpoint sources, together with in-
stream water quality improvement
techniques.
(8)	Section 105(c) (33 U.S.C. 1255(c))
authorizes grants for research and
demonstration projects for prevention
of pollution of any waters by industry
including, but not limited to, the pre-
vention, reduction, and elimination of
the discharge of pollutants.
(9)	Section 105(e)(1) (33 U.S.C.
1255(e)(1)) authorizes grants for re-
search and demonstration projects
with respect to new and Improved
methods of preventing, reducing, and
eliminating pollution from agriculture.
(10)	Section 105(e)(2) (33 U.S.C.
1255(e)(2)) authorizes grants for dem-
onstration projects with respect to
new and improved methods of prevent-
ing, reducing, storing, collecting, treat-
ing, or otherwise eliminating pollution
from sewage in rural and other areas
where collection of sewage in conven-
tional, communitywide sewage collec-
tion systems is impractical, unecono-
mical, or otherwise infeasible, or
where soil conditions or other factors
preclude the use of septic tank' and
drainage field systems.
(11)	Section 107 (33 U.S.C. 1257) au-
thorizes grants for projects to demon-
strate comprehensive approaches to
the elimination or control of acid or
other mine water pollution resulting
from active or abandoned mining oper-
ations and other environmental pollu-
tion affecting water quality within all
or part of a watershed or river basin,
including siltation from surface
mining.
(12)	Section 108 (33 U.S.C. 1258) au-
thorizes grants for projects to demon-
strate new methods and techniques,
and to develop preliminary plans for
the elimination or control of pollution
within all or any part of the water-
sheds of the Oreat Lakes.
(13)	Section 113 (33 U.S.C. 1263) au-
thorizes grants for projects to demon-
strate methods to provide for central
community facilities for safe water
and elimination or control of pollution
in those native villages of Alaska with-
out such facilities.
(c)	The Public Health Service Act, as
amended, 42 U.S.C. 241 et seq.
(1) Section 301 (42 U.S.C. 241, 242b,
and 246) authorizes grants for re-
search relating to the human and en-
vironmental effects of radiation.
(d)	The Solid Waste Disposal Act, as
amended, by the Resource Conserva-
tion and Recovery Act of 1976 (42
U.S.C. 6901 et seq.).
(1)	Section 8001 (42 U.S.C. 6981) au-
thorizes grants for research and dem-
onstration projects relating to solid
waste.
(2)	Section 8004 (42 U.S.C. 6984) au-
thorizes grants for demonstration of
new or Improved technologies for re-
source recovery.
-X3) Section 8005 (42 U.S.C. 6985) au-
thorizes grants to conduct special
studies and demonstration projects on
recovery of useful energy and materi-
als.
(4) Section 8006 (42 U.S.C. 6986) au-
thorizes grants for the demonstration
of resource recovery system or for the
construction of new or Improved solid
waste disposal facilities.
(e)	The Federal Insecticide, Fungi-
cide, and Rodenticide Act, as amended.
Pub. L. 92-516.
(1) Section 20 authorizes grants for
research in the pesticides areas with
priority given to the development of
biologically Integrated alternatives for
pest control.
(f)	The Grant Act, 42 U.S.C. 1891 et
seq., authorizes grants for basic scien-
tific research.
[38 PR 12784, May IS, 1973, as amended at
42 FR 56056, Oct. 20, 1977]
9 40.115 Definitions.
The statutes identified in {40.110
contain definitions which are not all
repeated here. The following terms
shall have the meaning set forth
below:
[42 FR 58059, Oct. 20, 19771
940.115-1 Construction.
May include the preliminary plan-
ning to determine the economic and
engineering feasibility of a facility, the
engineering, architectural, legal, fiscal,
and economic Investigations and stud-
ies, surveys, designs, plans, working
drawings, specifications, procedures,
and other action necessary to the con-
struction of a facility, the erection, ae-

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§ 40.13
quisition, alteration, remodeling. Im-
provement, or extension of a facility,
and the inspection and supervision of
the construction of a faculty.
§40.115-2 Intertnunicipal agency.
(a)	Under the Clean Air Act, an
agency of two or more municipalities
located In the same State or in differ-
ent States and having substantial
powers or duties pertaining to the pre-
vention and control of air pollution.
(b)	Under the Resource Conserva-
tion and Recovery Act, an agency es-
tablished by two or more municipal-
ities with responsibility for planning
or administration of solid waste.
(c)	In all other cases, an agency of
two or more municipalities having sub-
stantial powers or duties pertaining to
the control of pollution.
(38 FR 12784, May 15, 1973. as amended at
42 FR 560S6, Oct. 20. 1977]
940.115-3 Interstate agency.
(a) Under the Clean Air Act, an
agency established by two or more
States, or by two or more municipal-
ities located In different States, having
substantial powers or duties pertain-
ing to the prevention and control of
air pollution.
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§40.140-3
agencies, and Institutions; private
agencies and Institutions; and individ-
uals.
(2)	Section 8004 and 8005. public
agencies and authorities or private
persons.
(3)	Section 8006, State, muni' ipal,
intersate or intermunicipal agencies.
(4)	No grant may be made under this
Act to any private profit-making orga-
nization.
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§40.159
(b) All applications for grants under
section 113 must Include provisions for
community safe water supply systems,
toilets, 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 vil-
lages in the State of Alaska.
9 40.145 Supplemental grant conditions.
In addition to the EPA general grant
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 grants 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 in-
crease in the amount of the grant or
payments thereunder, but shall not
preclude submission or consideration
of a request for a grant amendment
pursuant to 40 CFR 30.900-1.
[38 FK 12784, May 15, 1973, as amended at
40 FR 20083. May 8. WW
{ 40.145-1 Resource Conservation and Re-
covery Act
Programs for which a Federal grant
is awarded by the Environmental Pro-
tection Agency to a State, municipal.
Interstate or lntermuniclpal 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 Part 249 of this chapter.
[42 PR 56057. Oct 20.1977]
§40.145-2 Federal Water Pollution Con-
trol Act
(a)	No person in the United States
shall on the ground of sex be excluded
from participation in, be denied the
benefits of, or be subjected to discrimi-
nation under any program or activity
receiving assistance under the Act.
(b)	Grants under section 107 are
awarded subject to the conditions—(1)
that the State shall acquire any land
or interests therein necessary for such
project to assure the elimination or
control of acid or other mine water
pollution; and (2) that the State shall
provide legal and practical protection
to the project area to Insure against
any activities which will cause future
acid or other mine water pollution.
940.145-3 Projects involving construction.
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
that he has or will have a fee simple
or such other estate or interest in the
site of the project, and rights of
access, as the grants officer finds suffi-
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 case of
projects serving more than one mu-
nicipality, that the participating com-
munities have such 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
offerors 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.
(d)	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 subagreements are subject to
prior approval by the grants officer.
(e)	Construction work will be per-
formed by the fixed-price (lump sum)
or fixed-rate (unit price) method, or a
combination of these two methods,
unless the grants officer gives advance
written approval to use some other
method of contracting. The cost-plus-
a-percentage-of-cost method of con-
tracting shall not be used. Adequate
methods of advertising for and obtain-
ing competitive sealed bids will be em-
ployed prior to award of the construc-
tion contract. The award of the con-
tract will be made to the responsible
bidder submitting the lowest respon-
sive bid, which shall be determined
without regard to State or local law
whereby preference is given on factors
other than the specification require-
ments and the amount of bid. The
grantee must promptly transmit to the
grants officer copies of bid protests,
decisions on such protests, and related
correspondence. The grants officer
will cause appropriate review of grant-
ee procurement methods to be made.
(f) On construction contracts ex-
ceeding $100,000, each bidder must
furnish a bid guarantee equivalent to 5
percent of the bid price. In addition,
the contractor awarded the contract
must furnish performance and pay-
ment bonds, each of which shall be In
an amount not less than 100 percent
of the contract price. Construction
contracts less than $100,000 shall
follow the State or local requirements
relating to bid guarantees, perform-
ance bonds, and payment bonds.
(g> 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.
(i)	Any construction contract must
provide that representatives of the En-
vironmental Protection Agency and
the State, as appropriate, will
access to the work whenever it
preparation or progress and thaH
contractor will provide proper fa*,...-
ties for such access and inspection.
The contract must also provide that
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-
ments approved by EPA in the grant
agreement or amendments.
(k) In addition to the notification of
project changes pursuant to 40 CFR
30.900, a copy of any construction con-
tract or modifications thereof, and of
revisions to plans and specifications
must be submitted to the grants offi-
cer.
[38 FR 12784, May 15, 1973. as amended at
40 FR 20083, May 8. 1975]
9 40.150 Evaluation of applications.
Every application for a research or
demonstration grant will be evaluated
by appropriate EPA staff in terms of
relevancy and the applicable criter"
set forth in § 40.140. Only applica
considered relevant to EPA rese.
and demonstration objectives will -re-
ceive further consideration and be sub-
jected to additional review. Relevancy
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
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§ 40.165
technical review, will provide the basis
for funding recommendations.
(a)	New applications. Applications
considered relevant to EPA research
and demonstration objectives will be
reviewed for technical merit by at
least one reviewer within EPA and at
least two reviewers outside EPA.
Review by a National Advisory Coun-
cil Is statutorily required for radiation
grants.
(b)	Continuation applications. Con-
tinuation applications will be reviewed
by appropriate EPA staff only. Recom-
mendations for continuation of fund-
ing will be based on progress toward
the accomplishment of the goals set
forth for the project and continued
Agency needs and priorities.
§ 40.155 Availability of information.
(a)	The availability to the public of
information provided to, or otherwise
obtained by. the Administrator under
this Part shall be governed by Part 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
'n 9 30.235(b). See also SS 2.203 and
204 of this chapter.
(c)	All information and data con-
tained in the grant application will be
subject to external review unless devi-
ation is approved for good cause pur-
suant to 40 CFR 30.1000.
C38 FR 13784, May 18, 1973. as amended at
40 FR 20083, May 8, 1975; 41 FR 38918,
Sept 1, 19781
8 40.160 Reports.
S 40.160-1 Progress reports.
The grant agreement will normally
require the submission of a brief prog-
ress report after the end of each quar-
ter of the budget period. A monthly
progress report may be required for
some demonstration projects, if set
forth in the grant agreement. Progress
reports should fully describe in chart
or narrative format the progress
achieved in relation to the approved
schedule and project milestones. Spe-
cial problems or delays encountered
must be explained. A summary prog-
ress report covering all work on the
project to date is required to be includ-
ed with applications for continuation
grants (see g 40.165b). This report may
be submitted one quarter prior to the
end of the budget period.
{ 40.180-2 Financial status report
A financial status report must be
prepared and submitted within 90 days
after completion of the budget and
project periods in accordance with
S 30.635-3.
(42 FR 56057, Oct 20. 19771
( 40.160-3 Reporting of inventions.
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.
(c)	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 his adminis-
tration of the grant.
(38 FR 12784, May 15, 1973, as amended at
40 FR 20083, May 8. 1975)
§ 40.160-4 Equipment report
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.
$ 40.160-5 Final report
The grantee shall submit a draft of
the final report for review no later
than 60 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 results. Includ-
ing, as applicable, an evaluation of the
technical effectiveness and economic
feasibility of the methods or tech-
niques 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.
5 40.165 Continuation grants.
To be eligible for a continuation
grant within the approved project
period, the grantee must:
(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 ac-
count for actual progress accom-
plished during the current budget
period.
5
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Federal Register / Vol 49, No 192 / Tuesday, October 2, 1984 / Rules and Regulations 38943
Secretary for Housing—Federal Housing
Commissioner, HUD
action: Final rule, correction
summary: This document corrects a
final rule published in the Federal
Register on Thursday, August 9, 1984 [49
FR 32016) which adds a new Part 251 to
the Code of Federal Regulations This
action is necessary to correct an
inadvertent minor error.
FOR FURTHER INFORMATION CONTACT.
Ben McKeever, Regulations Division,
Office of General Counsel. Department
of Housing and Urban Development,
Washington, D C 20410. (202) 755-7055
(This is not a toll-free telephone
number.)
Accordingly, the Department is
correcting 24 CFR Part 251, as published
at 49 FR 32016, as follows:
This amendment illustrates the
anicnded provision in Figure 6-8 Typical
the Manual on Uniform Tratfic Control
Devices as amended herein
Application—4-lane divided highway
where one roadway is closed Section
GC-1 is being revised to direct attention
to this and other typical applications of
channelizing devices
This amendment imposes no
additional costs
Deferred Actions
Action on the following requests
proposed in Docket No 03-26 are being
deferred pending availability of
additional research or study data
(1)	Request II—1 (Chng )—Specific
Service Signs
(2)	Request 11-60 (Chng )—Preferential
Lane Signing and Marking
(3)	Request 11-65 (Chng.)—Service
Signing for Liquefied Petroleum Gas
(4)	Request 11-67 (Chng )—Delete/
Modify LIMITED SIGHT
DISTANCE Sign
(5)	Request 11—76 (Chng )—Supplemental
Guide Signs for Traffic Generators
Adjacent to Freeways
(bj Request 11-77 (Chng )—Guidelines for
Selection of Control Cities
Request 11-78 (Chng )—Library
Symbol Sign
(8) Request U-83 (Chng )—Memorial
Signing for Highways
(9J Request 11-84 (Chng )—Trail Markers
on Interstates
(10)	Request Ii-85 (Chng )—Delete Word
Message Alternates to Symbols
(11)	Request 111-2 (Chng )—Delineators
on Tangent Freeways Not Required
(12)	Request 111-28 (Chng )—Chevron
Marker
(13)	Request VI-24 (Chng )—Minimum
Lamp Candlepower of Arrow Panels
Denial Actions
Based on comments received from
FHWA Docket 83-26, the FHWA has
determined to deny the following
request
Rrquest VI-21 (Chng )—Minimum
Mounting Height of Barricade
Warning Lights
This proposal would have permitted
the mounting of barricade lights in the
top rail of barricades
Information made available during
rulemaking indicates that this proposal
is not needed because manufacturers no
longer produce barrinides with lights in
the rail The FilWA is withdrawing
further consideration of tins request
In consideration of the foregoing and
ider the authority of 23 U S C 10l)(d).
'5. and 402(a). and the delegation of
uulhority in 49 CFR 1 4(t(b), the Federal
I lighw.iy Administration hereby adopts
The Federal Highway Administration
has determined that this document
contains neither a major rule under
Executiv e Order 12291 nor a significant
rule under the regulatory policies and
procedures of the Department of
Transportation As stated herein the
economic impact of these amendments
is so minimal as not to require
preparation of a full regulatory
evaluation For the same reasons and
under the criteria of the Regulatory
Flexibility Act, it is certified that this
action will not have a significant
economic impact on a substantial
number of small entities
List of Subjects in 23 CFR Part 625
Design standards. Grant programs—
transportation, Highway and roads,
Signs. Traffic regulations, Incorporations
by reference
PART 625— DESIGN STANDARDS FOR
HIGHWAYS
The FHWA revises § 625 3(c)(1) to
read as follows
§ 625 3 Standards, specifications, policies,
guides, and references.
*****
(c) Traffic Control (1) Manual on
Uniform Traffic Control Devices for
Streets and Highways, FHWA, 197B. as
amended, 1985 s
• * • • *
(Catalog of Federal Domestic Assistance
Program Number20 205, Highway Research.
Planning and Construction The regulations
implementing Executive Order 12372 ar.d
former OMB Circular A-95 regarding
intergovernmental consultation on Federal
programs nnd activities apply to (his
program)
Issued September 2G, 1984
L P Lamm,
Deputy Federal Highway Administrator,
federal Highway Administration
ICR Due M-2G021t-ilcd 10-1-84 8 45am|
BILLING CODE 4910-22-U
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
Office of the Assistant Secretary for
Housing—Federal Housing
Commissioner
24 CFR Part 251
I Docket No R-84-1138; FR-1198J
Coinsurance for the Construction or
Substantial Rehabilitation of
Multifamily Housing Projects;
Correction
AGENCV. Office of the Assistant
§ 251.703 [Correctedl
On page 32034, column two, § 251 703.
paragraph (a), "(a) For any units
receiving section 8 assistance, until
rents and charges for facilities and
services must" is corrected to read "(a)
To the extent that units in a project are
occupied by assisted tenants and are
subject to a section 8 Housing
Assistance Payments Contract under
Part 880, Part 881. Part 883, or Part 886,
the unit rents and charges for facilities
and services shall".
Dated September 27,1984
Donald A Frnnck,
Acting Assistant General Counsel for
Reptilationi
|m Doc 04-I30JT Filed 10-1-64 0.45 am|
BILLING CODE M10-37-M
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 30
IOA-FRL-2677-71
General Regulation for Assistance
Programs; Corrections
AGENCY. F.nv ironmcntal Protection
Agency
action: Final Rule, corrections
-------
38944 Federal Register / Vol. 49, No. 192 / Tuesday, October 2, 1984 / Rules and Regulations
Summary: This document corrects the
final General Regulation for Assistance
Programs (40 CFR Part 30) that appeared
at page 45056 in the Federal Register of
Friday, September 30,1983, (48 FR
45056). This action is necessary to.
1.	Clarify the record keeping
requirements in | 30 500(a)(5) for
recipients subject to OMB Circular A-
110;
2.	Clarify what constitutes acceptable
time records for recipients subject to
OMB Circular A-21;
3	Incorporate the new requirements
of OMB Circular A-124 on patent rights;
4	Reference the revised OMB Circular
A-122,
5. Incorporate cross references to the
Federal Acquisition Regulation; ar.d
0. Correct typographical and other
errors in the final rule
FOR FURTHER INFORMATION CONTACT:
Richard A. Johnson, Grants
Administration Division (PM-216),
Environmental Protection Agency, 401 M
Street, SVV , Washington, D C. 20460,
(202) 382-5296.
SUPPLEMENTARY INFORMATION: In
addition to correcting typographical and
other inadvertent errors in the final rule,
this document makes the following
changes.
Section 30 308 Incurring costs.
We revised § 30 308 to allow
recipients to incur costs between the
date the award official signs the
assistance agreement and the date the
recipient signs the agreement provided
the costs are identified in the agreement
We made this change because there are
many instances when recipients need to
incur costs before both parties sign the
agreement. This provision was in the
EPA's former general grant regulation
and was inadvertently deleted from the
final rule.
Sections 30 410 and30 601 Definition
of "lobbying."
We revised these sections to reference
OMB's revised definition of "lobby.ng"
in OMB Circular A-122, Attachment B
(49 FR 18260, April 27,1984)
Section 30 500 Time records for
institutions of higher education.
We revised § 30 500(a)(5) to state that
institutions of higher education may
account for the distribution of salaries
and wages of professorial or
professional time spent on a particular
assistance program by budgeted,
planned, or assigned activity if the
system used for wages and salaries
meets the requirements in OMB Circular
A-21, Transmittal Menioiandum
Number 1, July 23,1982.
Sections 30 505, 30 1101, 30 1102, and
30 1103 Patent requirements.
We revised these sections to reference
the changes in OMB Circular A-124 and
to change the references for patent
requirements for profit making
organizations to the new Federal
Acquisition Regulation These changes
make it clear that each assistance
award is subject to the patent clause in
OMB Circular A-124, Attachment A
Section 30 505 is changed to delete the
requirement that recipients submit
periodic invention reports whether or
not the recipient has any inventions to
report, but still requires that recipients
report all inventions.
Section 30 532 Personal property
requirements.
We revised § 30 532 to make it clear
that nonprofit institutions of higher
education conducting basic or applied
research and non-profit organizations
whose primary purpose is the conduct of
scientific research are not required to
follow the personal properly disposal
requirements in § 30 532 This change is
made to comply with the requirements
in OMB Circular A-110, Attachment N
Dated September 13,1084
Howard M. Messner,
Assistant Administrator for Administration
and Resources Management
Accordingly, the following corrections
are made in FR Doc. 83-26458 appearing
on page 4*3056 in the September 30, 1383,
issue
1. On page 45062, the title of § 30 518
is changed to read: What are the
procedures for publishing scientific,
informational, and educational
documents?
2 On page 45062, the title of § 30 900
is changed to read. What measures may
EPA take for non-compliance?
3.	On page 45062, § 30 905, the title is
changed to read. May I request a review
of a termination or annulment7
4.	On page 45062, the ti'le of § 30 10G1
is changed to read: Will EPA approve
any exceptions to these regulations?
5.	On page 45062, § 30 1220, the word
"proposed" in the title is changed to
"final."
0. On page 45062, § 30 1225, the word
"proposed" in the title is changed to
"final."
§30 102 (Corrected]
7 On page 45063, § 30 102(g) add a
comma after the word "Compensation '
§ 30,200 (Corrected]
8. On page 45063, § 30 200, the
definition for "Continuation award' is
revised to read as follows
Continuation Award An assistance
agreement after the initial award, for a
project which has more than one budget
period in its approved project period, or
annual awards, after the first award, to
State, Interstate, or local agencies for
continuing environmental programs (sre
§ 30 306)
9	On page 45063. § 30 200, the title of
the definition of Foreign grants is
changed to Foreign awards
§ 30 202 [Corrected]
10	On page 45064, § 30 302(c). the last
line is changed to read.	
fellowships, training, special
investigations, surveys, studies, and
most training assistance "
§ 30 302 [Corrected]
11	On page 45065, § 30 302(d)(2). the
becond to last line is changed by adding
the word "quality" after the word
"recipient's "
§ 30 306 [Corrected]
12	On page 45065, § 30 306(a), in 1-nes
9 and 15 the words "make" and
"award," respectively are changed to
"makes" and "awards "
13	On page 45065. § 30 306fb)(5) is
charged to read "An invention report,
applicable,	
§ 30 307 [Corrected]
14. On page 45065, § 30 307(a)(2). the
fourth line is changed to add a comma
artcr the word "Compensation "
15 On page 45065, § 30 308 is
corrected to read as follows
§ 30 308 When may I begin Incurring
costs?
(a)	Except as permitted in § 30 306(d),
paragraph (b) of this section, or other
EPA regulations, the award official and
you must sign the EPA assistance
agreement before you incur costs
(b)	You may incur costs between the
date the award official signs the
assis'ance agreement and you sign the
agreement, provided the costs are
identified in the agreement and you do
not change the agreement
§ 30 410 [Corrected]
lo On page 45066, § 30 410(c) is
changed to read-
(c)	Other non-profit institutions must
use OMB Circular A-122, as revised,
17	On page 45066, § 30 410(d) is
changed to read
(d)	Puifit-makhig Organizations must
use Federal Acquisition Regulation 48
CFR Subparts 31 1 and 31 2,
§ 30 500 [ Corrected ]
18	On page 45066, § 30 500(a)(5) is
changed to read
-------
Federal Register / Vol 49, No 192 / Tuesday, October 2. 1984 / Rules and Regulations 38945
.(5) Time records and other supporting
Ha Institutions of higher education
ITiaj account for the distribution of
salaries and wages of professorial or
professional staff by budgeted, planned
or assigned work activity if the systpm
for wages and salaries meets the
requirements in OMB Circular A-21,
§30.501 [Corrected]
19	On page 45067, § 30 501(d), line
one is changed to read "(d) If litigation,
a claim, a dispute under Subpart L,
or * *
20	On page 45067, § 30 501(d). line
five, substitute the word "dispute' for
the word "appeal "
g 30 503 [Corrected]
21	On page 45067, § 30 503(e). line
three, add the word "treatment" after
the word "wastewater"
§30.505 [Corrected]
22	On page 45068. § 30 505(b). line
four, add the word "ard" after the vord
' period."
23	On page 45068, § 30 505(c). is
revised to read as follows
S 30 505 What reports mu3t I submit?
• • • • *
(c) Invention Reports You must report
| inventions to the award official (see
ibpart K for details)
« * • « •
§30 518 [Corrected]
24	On page 45068, § 30 518(d), second
line, the spelling of the word "refereed"
is corrected
25	On page 45068, § 30 510(d). last
I.ne. the spelling of the word
"endorsement" is corrected
§ 30 530 [Corrected]
26	On page 45069, § 30 530(a) line two
is changed by inserting the words
"conducting basic or applied research'
«fter the word "education "
§30 53 [Corrected]
27	On page 45069, § 30 531. line two is
(.hanged by inserting the words
"conducting basic or applied research"
after the word "education "
28	On page 45069, § 30 532, the fust
paragraph is changed by adding the
following two sentences before the first
sentence in the opening paragraph
"Nonprofit institutions of higher
education conducting basic or applied
research and nonprofit organizations
whose primary purpose is the conduct of
scientific research are exempt from the
following requirements All other
n'Cipients must comply with the
llowing requirements "
29	On page 45070, § 30 532(b) is
i hanged to read
§ 30 532 How do I dispose of personal
property?
<	•	4	•	«
(b) EPA is entitled to compensation on
nonexpendable personal property you
purchased for more than $1,000 You
may keep it, provided you compensate
EPA for its proportionate share of the
current fair market value If you do not
want to keep the property, your project
officer will give you instructions for
disposition "
« * * • *
30	On page 45070, § 30 532(c), first
line, is changed to read "If, at the end of
your project, you * * *"
§ 30 535 [Corrected]
31	On page 45070. § 30 535(b). the
reference to paragraph "(e)" in the first
sentence is changed to reference
paragraph "(f)".
32	On page 45070, § 30 535(f)(2)(i),
add a after the word "share" in the
last line
§30.540 [Corrected]
33	On page 45070, S 30.540(b). the last
sentence is changed to read. "EPA will
continue to audit subagreements under
the . . . ."
§ 30 600 [Corrected]
34	On page 45070, § 30 600(c), is
changed by deleting the words "* * '
that requires the recipients of those
subagreements	from the eleventh
and twelfth lines
35	On page 45071, § 30 600(d). the
cross reference to "Part 12" in the last
line is changed to "Part 7".
36	On page 45071, § 30 600(e), th» last
sentence is changed to read. "See 40
CFR Part 7 and 8 for specific
requirements "
37	On page 45071, § 30 600 (0, (g), and
(h), add the following sentence as the
last sentence in each paragraph "See 40
CFR Part 7 for specific requirements "
38	On page 45071, § 30 601 is revised
to read as follows
§30 601 Are there restrictions on the use
of assistance funds for advocacy
purposes?
(a)	You may not use assistance fundb
for
(1)	Lobbying or influencing legislation
before Congress.
(2)	Partisan or political advocacy
purposes, or
(3)	An activity whose objectives could
affect or influence the outcome of an
EPA regulatory or adjudicatory
proceeding
(b)	For nonprofit recipient
organizations other than educational
institutions, EPA will implement
§ 30 C01(a) (1) and (2) consistent with
the requirements of OMB Circular A-
122 as revised (see § 30 410(c))
39	On page 45072, § 30 900 the title is
changed to read "§ 30 900 What
measures may EPA take for non-
compliance7"
40	On page 45072. 8 30 900, the first
paragraph is changed by deleting the
word "sanctions" from the fourth line
41	On page 45072, § 30 900(e) is
revised to read as follows.
§ 30 900 What measures may EPA take for
non-compliance?
• * • « •
(e) Request that the Director, Crants
Administration Qivision, debar or
suspend you as an eligible recipient
« « « « *
42	On page 45073, 8 30 905 is changed
to read as follows
§ 30.905 May I request a review of a
termination or annulment?
You may request a review of EPA's
decision to terminate or annul an
assistance agreement. Within thirty
days after the notice of termination or
annulment is issued, you must file a
written request for review to the
appropriate Assistant or Regional
Administrator. Your request for review-
must follow the procedures under
Subpart L of this part.
§30 906 [Corrected]
43	On page 45073, 8 30 906. the
second line of the title is changed to
read	suspension or debarment7
§ 30 100 [Corrected]
44	On page 45073, § 30 1001. the title
is changed to read "Will EPA approve
any exceptions to these regulations?"
45	On page 45073. 8 30 1001(c). the
word "grant" in the third line is changed
to "awards".
§ 30 1005 [Corrected]
46	On page 45073. § 30 1005. the title
is changed to read. "May I request a
review of a deviation decision?"
47	On page 45073, § 30 1005, the first
line is changed to read "You may not
request a review of a deviation	
§30 1101 [Corrected]
48	On page 45073, 8 30 1101(a). the
fourth and fifth lines are changed to
read	of, and must comply with
35 U S C Chapter 18 (1982). and the
patent rights clause in OMB Circular A-
124, Attachment A (49 FR 10393)
49	On page 45074, 8 30 1101(b), the
last sentence is changed to read "See
Federal Acquisition Regulation 48 CFR
Part 27 und 48 CFR 8 52 227-13 (49 FK
12972) "
-------
38946 Federal Register / Vol 49, No. 192 / Tuesday, October 2, 1984 / Rules and Regulations
50	On page 45074, § 30 1101(c), the
last two linos dre changed to rc.id
	with 35 USC Chapter 118 (1982)
and the patent rights clause cited in
§ 30 1101(a)."
51	On page 45074, § 30 1102 is revised
to read as follows'
§ 30.1102 What are my Invention rights
and my reporting requirements if my award
Is other than an award under section 6914
of RCRA?
You must report all inventions to the
Award Official and decide whether you
w:sh to retain domestic and/or foreign
rights to your invention You must report
your invention anil notify the Award
Official of your decision within the time
periods specified in the patent rights
clause cited in § 30 1101(a) If you do not
retain the rights to your invention, EPA
may acquire the title from you If you
retain title, EPA acquires a royalty-free,
irrevocable license to use the invention
throughout the world by, and on behalf
of, the Federal Government
§30.1103 [Corrected]
52	On page 45074, § 30 1103, the cross
reference in the sixth line is changed to
read- . . (48 CFR 52 227-13) . . ."
§30.1106 [Corrected]
53	On page 45074, § 30 1106(a). the
ninth and tenth lines are changed to
read ". . . benefits and must comply
with 35 U S C. Chapter 18 (1982) and the
President's ..."
54	On page 45074, § 301106(a) is
changed by adding the words "and
§ 30 1103" after "§ 30 1101(b) "
55. On page 45074, § 30 1106(a), the
twelfth line is changed to read ". . .
Policy of February 18,1983, except that
a . ."
§30.1108 [Corrected]
56	On page 45074, § 30 1108, the
second sentence is changed to read:
"However, in awards subject to 35
USC. Chapter 18 (1982) the
Administrator
§30.1200 [Corrected]
57	On page 45074, § 30 1 200(c). the
first sentence is changed by adding "'s"
after the word "official "
§ 30.1235 (Corrected ]
58	On page 45075, § 30 1235. the first
sentence is changed to read. "You nay
not request a review of "
Appendix D—(Corrected]
59	On page 45076. Appendix D, item
17. is changed to read "(17) Follow
certain procedures to request a rev-ipw
of an Award Official's written fin.il
decision .
|l K Due A4-2ftQ51 l-ilcil 10-1-04 8 4b *m]
BILLING CODE 6S60-SO-M
40 CFR Part 61
[ AD-FRL 2676-51
National Emission Standards for
Hazardous Air Pollutants;
Amendments to Standard for Benzene
Equipment Leaks; Correction
AGENCY: Environmental Protection
Agency(EPA)
action: Tinal rule, correction
SUMMARY: This document corrects
portions of 40 CFR Part 61, Subpart V,
that were published June 6,1984 (49 FR
23498)
FOR FURTHER INFORMATION CONTACT:
Mr. Fred Dimmick or Mr Gilbert Wood,
Standards Development Branch,
Emission Standards and Engineering
Division (MD-13), U S Environmental
Protection Agency, Research Triangle
Park, North Carolina 27711, telephone
number (919) 541-5578 This action is
necessary to correct errors that
appeared in the June 6,1984. publication
of 40 CFR Part 61, Subpart V
Dated September 17, 1984
Joseph A. Cannon,
Assistant Adn,mistrator for Air and
Radiation
The following corrections are made in
FR Document 84-14479 appearing on
page 23498 in the issue of June 6, 1934-
1.	On page 23509, bottom of column
three; the estimated maximum lifetime
risk numbers "4 5X104 to about
4 2x10*' are corrected to read
"4 5X10"4 to about 4 2X10"*"
§61.241 [Corrected]
2.	On page 23514, column one, in
§ 61 241, in the definition for "In VOC
service," the CFR citation. "40 CFR
60 458(d)," is corrected to read "40 CFR
60 485(d)," and the term "in liquid
service" is corrected to read "in heavy
liquid service."
3	On page 23514, column two, in the
definition for "Semiannual," the phrase
"for existing sources" is added to the
end of the definition
§61 242-1 (Corrected]
4	On page 23514, column two.
§ 61 242-1, paragraph (c)(1), the list of
section numbers should dlso include
"§ 01 242-6 "
§ 61 242-2 [Corrected]
5 On page 23515, column one.
§ 61 242-2. paragrjph (g) is added as
follows
* • * • •
(g) Any pump that is located within
the boundary of an unmanned plant si'e
is exempt fiom the weekly visu.il
inspection requirement of paragraphs
(d)(2) and (d)(4) of this section, and the
daily requirements of paragraph (d)(5)(i)
of this section, provided that each pump
is visually inspected as often as
practicable and at least monthly
§61 242-3 [Corrected]
b On page 2J515, column one,
§ 61 242-3, paragraph (e)(1) is corrected
to read "(e)(1) Each sensor as required
in paragraph (d) of this section shall be
checked daily or shall be equipped with
an audible alarm unless the compressor
is located within the boundary of an
unmanned plant site."
§ 61 242-4 (Corrected]
7	On page 23515, column two,
§ 61 242-4. paragraph (b)(1) is corrected
by add.ng the following words to the
end of the paragraph ", except as
provided in § 61 242-10 "
§61242-8 [Corrected]
8	On page 23516, column two.
§ 61 242-8, the phrase ", except as
provided in § 61 242—1(c) " is added at
the end of paragraph (a)
§ 61.242-9 [Corrected]
9	On page 23516, column two.
§ 61 242-9, the phrase ", except as
provided in § 61 242-l(c)." is added at
the end of paragraph (a)
§61 242-11 [Corrected]
10. On page 23516, column three,
§ 61 242-11. the phrase except as
provided in § 61 242-l(c)." is added at
the end of paragraph (a)
§61.242-11 [Corrected]
11	On page 23516, column three,
§ 61 242-11, paragraph (d)(1), "1
consecutive hours" is corrected to read
"2 consecutive hours "
§ 6)245 [Corrected]
12	On page 23518, column one.
§ 61 245, paragraph (b)(4)(i), "3ppm ' is
coirected to read 10 ppm.
13	On page 23518, column one,
§ HI 245. paragraph (c)(4), "655 upm ' is
t orrected to read "500 ppm."
14	On page 23518, column two,
§ 61 245, paragraph (e)(3), "K = cons!.j
1 74X10'	is corrected to read
K -- i unstant 1 74 x 10 7 * *
15	On page 23519. column one,
$ G1 246, paragraph (e)(1) is reused as
-------
Friday
September 30, 1983
Par! Vlil
Environmental
Protection Agency
General Regulation lor Assistance
Programs
-------
45056
Federal Register / Vol. 48. No. 191 / Friday. September 30.1983 / Rulee and Regulations
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 30
[OA-fRL 2277-2]
General Regulation for Assistance
Programs
AOEMCY: Environmental Protection
Agency.
ACTION: Final rule.
summary; On June 18,1982, EPA
proposed in the Federal Register (47 FR
26584) the General Regulation for
Assistance Programs governing grants
and cooperative, agreements, with a
request for comments. Today, we are
publishing the final regulation
implementing the requirements in the
Federal Grant and Cooperative
Agreement Act and using plain English,
revised to reflect our responses to
comments received This final rule
includes only those assistance
requirements which are mandated by
statute, or Office of Management and
Budget (OMB) Circulars, or which are
necessary for effective program
management. The regulation applies to
all EPA financial assistance programs
listed in the 66 000 series in the Catalog
of Federal Qpmestic Assistance
OATK This rule is effective for
assistance agreements which EPA
awards after September 30,1983 except
for (1) { 30.303(b) which will be effective
for assistance agreements EPA awards
after September 30,1983, and (2)
Subpart L which will be effective for
assistance disputes filed after October
31,1983, regardless of when EPA
awarded the assistance agreement.
ran FURTHER INFORMATION CONTACT;
Richard A. Johnson, Grants Policy
Specialist, Grants Policy and Procedures
Branch, Grants Administration Division
(PM-218), 401M Street, S.W..
Washington. D C. 20460 (202) 382-5296.
SUPPLEMENTARY INFORMATION: On April
8,1980, EPA published an "Advance
Notice of Proposed Rulemaking" (ANPR)
in the Federal Register (45 FR 23700),
including a request for comments or
recommended changes to our general
regulation governing grants and
cooperative agreements We also
announced our intent to modify the
regulation to implement the
requirements in the Federal Crant and
Cooperative Agreement Act At the
same time, we implemented Executive
Order 12044 by using plain English and
reevaluated tne need for certain
procedural and regulatory requirements.
Subsequent to the ANPR, Resident
Reagan issued Executive Order 12291. It
requires all Federal departments and
agencies to review and reduce the
burden of (heir regulations.
Consequently, we eliminated most EPA
internal operating procedures and most
of the detailed procedures that
explained how recipients of EPA
assistance comply with specific
requirements, Tliis final rule does not
repeat or summarize requirements •
contained in other EPA regulations; it
simply references them It includes only
items'mandated by law, those required
by OMB Circulars, and certain
additional muumum requirements that
EPA considers necessary for sound and
effective financial assistance
management.
Pub. L 95-224, the Federal Grant and
Cooperative Agreement Act of 1977.41
y.S.C. 501 et seq., and OMB's study and
implementing guidance stress the need
for providing uniform and consistent
requirements for all assistance
programs. A fundamental element of
uniform and consistent requirements is
clear language and word usage.
Therefore, throughout this rule, we use
the terminology introduced in the
Federal Grant and Cooperative
Agreement Act; "assistance agreement"
is substituted for "grant." and
"recipient" is substituted Tor "grantee."
This rule incorporates provisions of
OMB Circulars A-102 and A-110, which
OMB intends to revise. OMB's review
may result in major changes to the
Circulars and require substantial
changes to this rule.
The following table shows the
relationship between the former Part 30
and this revised Part 30.
Former taction
Former title
New Hdton
30100
(HfpOM.
30 TOO.
30101
Authority -
30101
30 105
AppbcaMty and scope
30100.
30110
Putofceabon
Osleted
30115
Copra
Deleted
30120
Cdftfton __ __
Meted
30125
Pubc comment. ..
Dunn
30130
^ ¦ ¦ * ** - -
ufirfl vnormanon —
30J02.
30 135
Dtbiljons. . .. .. .
3QJOO
30 135-1
Admfciotrator . - _
Dueled
30135-2
Agency - ~
Deleted
30135-3
AMowsbto com ......
30400.
X 135-4
Apptacfcnt .. —
3QJ00,
30135-5
Budget - 	
Oetoed
Fonnv aeeflon
Former tfte
New eedon
30133-4
—La ^ ¦
DUOyft penoo .. .... M
3(1200
30135-7
Educeflonal tnettutton-	
Daisied
)0l13M
coca. . 	
Deleted
30135-0
Federal awtftance - - ~
OSMed
3D 135-10
Grant _ _
Deleted
30.135-11
Grant agreement . —
30.200
30135-12
Grant epprownq official	
Oetoted
30 135-13
Grant award official — - _
30.200.
30135-14
Grantee	_
Deleted
30 135-15
In-kind oortttJutnn_
30.200
30135-16
NorproM organaatton ....	
Ooleted
30 135-17
Protect. -
30200
30135-18
Protect costs _
30200
30 13S-19
Project officer _
30 200
30135-20
Protect period
30200
30 135-21
Regenal Adnsntstrator
Deleted
30 135-22
Sottagreement-. — -
30200
Suftpert A Basic PotMee
30.200
Grant Huipflhcation goats
Deleted

and pobcy

30.205
Role of EPA- _ -
30 100
30.210
Roto of the grantee - - —
30 309
30.215
Records of grant actions.
30 500
30.220
Coneofidated grants
30 200
30225
Foragn grants ..
30200
30.22V 1
Ctearance f«|L*ement» —
Potatod
9&22S-2
Cntera tor eward-	
Meted
30.225-1
ADowaMty of costs	
fiutotui
30.225-4
Payments -
Deleted
30-230
Grants ednwustratfcm revtmr
Deleted
30.235
OncJoe^e of hiformafton—
30304
30.245
Freud and other untowfj or
30610

cornet precdces.

Qubpert B Appfcetlen and Aererd
30300
preappftcawn procedures. _
Deleted
30305
A-65 pnxedres
Deleted
30 305-1
Speaflc areas of clearing
Delated

house evaluation.

30 305-2
Notificaton ol Intent IA-95.
Deteted

Pert ty

30305-3
Tbno inflations- ..
Ooleted
30306-4
EPA processes ..
Deleted
30.305-6
Piograma retiring stale
Deleted

plans and totnOytaded


protects (A-95. Part in).

30305-6
Coordftatton of planning h
Deleted

rnufflMisdfctona) ereas


(A-95. PvtfV)

30 305-7
Confldental ntornehm
Otfetod
30.305-6
Specific reqJrements for the
Deletad

Construction Gram Pro-

30310
gram.
Unsobcfted propose
30302.
30315
Appfcatton reqJremerrts -
Deleted
30 315-1
Siputure
30 303
30.315-2
Forms 	
Deleted
30.315-3
Time of submtaion
Deleted
30315-4
Place of aubfflbsm
Deleted
30 320
Lfee and dsctoeue of Wor-
30 304.
30325
Evaluation of appftcation_
Deleted

Sifplemental hiKimatot
Deleted
30 335
Criteria tor awerd of grant
Deleted
30 340
Reeponstte grantee
30 301
30.340-1
General poAcy - - .
Deleted
3034*4
Standards -
30 301
90J404
Petermnatton of response*
30 301

¦jr

30345
Award of grant
30 305.
30 345-1
Ann** and tame of grant
Deleted
30.345-2
Fedsrei shere
Deleted
30.345-3
Grant agreement
30 305.
30.345-4
Costs rcwred prior to ex*
30306.

ecuton.

30345-5
Effect of grant eward
30309
30350
UrmtaBoft on award -
30601 and


30 613

Continuation grants
30 306
-------
Federal Register / Vol. 48. No 191 / Friday, September 30, 1983 / Rules and Regulations 45057
I C—OMim hdwl
Fdmd MCtton
Format Ma
New UcMrt
JO 400
Ganaral partf condrtiom
Deleted.
30 404
Statutory corridor*
30000
90 405-1
National Emtrpnmantd
X 600(a)

Policy Act

30409-2
Unrform Rdocatton Aaaot
30600(1)

area and Raal Praparty


AoquoAon Potaaa Act

30405-9
CM Mfffe Act ol 19*4
X 600(a)
X405-4
Fadard Watai Poiufaon
30 000(d)

Contra Ad Arnandmano


d 1072. Sacbon 13

X406-6
TMa IX of Oia Education
X 600(H)

Amandmartti qf 1972

9040M
Hatch Ad
30000(k)
30406-7
National l ha Ui; Pi aw* a-
30600(a)

tan Act

30 405-4
P**C Law 03-201
30600(a)
30 409-9

40CFR29

MaoopdKan OMoprnant


Act

30 400-tO
Flood Dtaadar ^"oaacoon
3000004.

Ad

30406-11
Ctoan Mr Act Sacbon 300
30600(c)
X 405-12
Fadard Warm Poftution
3p 000(d)

Control Act Sector* 600

30410
Exacutfca drdara
30600
30410-1
Eaacwtfca Ordar 11240
30000(a)
304(0-2
ExecutiveOrdar HB66
35600(4)1



30410-5
Executive Ordar 11990
30 600(a)
30415
Addbond ro>»ar omenta
30603

*aOera#y taat*ad ooo


aaucaon.

30416-1
Otm Paeon Act
30 603 dapodWda~_		
9P«a
90J1S-1
WMttft**dlundb	
90-002*
90016-4
Aialpwm. _
90 400.
Former aecbon
Formar Ittla
Hem aacbon
30620
Oarrt related tftcocna
X 525
30620-1
Ehoceeda from Mia of md
30 525

d paraonal proparly

X620-2
Royafeea wwtd trom
30 525

copynghta and patanta

30620-3
Intereat earned on grant
30 526

tunda.

30626
Grantee puMcaoona and
30 516

pubhdty

30625-1
Pubfaoty
Dalotad.
30 626-9
Putieaaona
90 515
30 626-3
&0T6
30 515
30630
Sweya and queebonnairae
X 515.
30 635
Reporta ..
30 515
30 635-1
tntartm progreea raporta
90 505
30635-2
Final fiport
X 506.
30 635-3
Finanod raporta
30.505
30635-4
muanfton raporta
X 505
30 635-5
Property raporta
30 SOS
30 635-6
(Reeervatfl

30 635-7
Complanee
Oalatad.
30 640
UWzaaon d Qovammant
X 531

prooimmani aoureaa.

30 646
Forca account «orti
X 520
tubpari f PiofrrtC—m
30 700
Uaa d fundi
XX7
30 706
Aiowabta ooata
90 410
30 706-1
Paymant to oonadianta
40 CFfl 33
30 710
Fadird eod pitncplaa
X41Q
30 715
Dkwct and Mrad ooata
X412.
30 "15-1
Orad ooata
X 41?
30 715-2
tndrad ooata
X 41}
30 720
Cod abating
X 307
30 725
Cod and pnea anahra*
40 ere 33
30 725-1
Mcy -
40 CFR 33
30 725-1
Pnoa an#r«a
40 ere 33
30 725-3
Cod andyia
40 ere 31
30 725-4
RaqJramanta
40 CfR 39
lufcpprt o (kwnaa AooouHtabdfr
30 600
Fbancd naniQaiTiM
X 510
30 805
Racorda
X 500
30 610
Rcpdly
X 531
X6t0-1
OaMona
X200
30610-2
PtfoMia d proparly
X5X
90 010-9
Propafly imMQananl
X 531
30610-4
alandarda.
TWa topraparty
X6X
90 610-6
Aad propatty
X 536.
30 S10-6
Fadaraty^wnad nonapm*
X536.
30 610-7
daft parvond praparty
Nona^andaWa paraond
X632

pwjpiwty aocpiirad mm
link

30610-6
Expandd* paraond pmp
X 532.

any awo vai para
fcnda.

30610-6
Propdiy raporia
90306.
30 615
FM aaHanwa
xaot
30620
Au«
X540.
1H t.WaHMww»¦>
X BOO
Ptoed eUangaa and grart
medHcaMona.
X TOO
»000-1
Farmd dandanii
X 700
X 600-2
Adndwttfc* gm*t
Odatad.
X000-3
changaa.
Trandar d yonti; changa
X 700

d mma yaaim

X000-4
Orwaaa pro|ada diangaa
X 706.
X616
6uapanaid> d niaiti a*jp
X60f
X015-1
won 9oan.
Uwdf alop-worti ordara.
XXI
X616-A
Oonaanaa d dop-wott
XXI
X 015-9
laauarta d amp aurti ordar
XXI
X 016-4
EAad d dQpwfc OKkr _
X601
£0616-6
DtapUtaa proddon - . .
XXI
Format taction
Former DOa
New aaction
30920
Tamvnation d granta
X 903
xro-i
Twrrar«i>on agtaamatB
30903
Xt 30-2
Profacl larmnation py granl.
•a
30 903
X 020-3
Oram tarmnation by EPA
X 903
X03&4
Eflac! ot tamanatlon
X 903
X 920-6
AnmJmant d grant
X 904
impart 1 OartaOcns
X 1000
Ganval
Subpart J
X1000-1
Appfccatdty
Subpart J
X1000-2
naquaii lot dv^iabon
Subpart J
X 1000-3
Approvd d daviaiton
Subpart J
luftpfi J Odpuraa
X 1100
Final Onputaa dacwon
SubpattL
X 1105
Qiantaa appad
Subpar I
X 1115
Righta d yantaa and
Ota gowomman.
Subpart L
XM20
Daemon d Vw Admtraatra-
tot
Subpart L
X 1125
Ouaaaona d law
Odatad
X 11X
Odayatwr d authority
DalaMil
X 1150
Appad prooaduraa
Ditaiiii.
3Appandbc A
Ganard Grant ComWora
0MM
««pandtiB
Paiant* and trwatntmna
oiiiim
Appandx C
R^hca 
-------
I
4505S Federal Relator / Vol. 48. No. 191 / Friday, September 30, 1983 / Rules and Regulations
the regulation to specify which programs
award grant agreements and which
award cooperative agreements. On
October 30,1079, EPA published (44 FR
82331) EPA Order 1000.19 which
contains that information. We agree that
Part 30 should contain that Information
and we have added it to the chart of
EPA assistance programs in Appendix
A.
"Program income": The definition
which we proposed included income
received from the sale of unneeded
property and fees received on royalties.
A commenter pointed out that this
conflicted with OMB Circular A-102,
Attachment E. Therefore, we modified
the definition by eliminating the
reference to unneeded property and
made it clear that fees received on
royalties are not program income unless
the assistance agreement states that
they will be. Unneeded property is
handled under the property disposals
requirements in $ 30.532
"Unsolicitedproposal". A commenter
indicated that, as proposed, this
definition was inconsistent with
$ 30.302(c) ({ 30 302(b) in the final rule)
which requires all applicants to
complete a standard application before
receiving an award. In the final rule, we
have deleted the phrase "unsolicited
proposals need not be submitted on an
EPA standard application form" from
the definition. An unsolicited proposal is
a written request for review of a
proposed project EPA will review an
unsolicited proposal in terms of EPA's
needs and will determine whether the
award should be either a contract or an
assistance agreement. Before EPA will
award an assistance agreement under
this Part you must submit a standard
application for the proposal
Application Process
On July 14.1982. President Reagan
issued Executive Order 12372. That
order directed the Director of the Office
of Management and Budget (OMB) to
revoke the intergovernmental review
system governed by OMB Circular A-95
and to develop a new process and
regulation to allow States to establish
their own processes for State and local
elected officials to review and
coordinate proposed Federal financial
assistance Under the new system, a
State may choose whether to have a
consultation process and what Federal
programs to cover with the process
However, the Order directs Federal
agencies to operate under the existing
A-95 procedure until September 30.
1983. EPA's new regulation, 40 CFR Part
29 (48 FR 29288, June 24.1983)
implements the new process and will be
effective for assistance awards made
after September 30,1983 In this final
rule we have deleted all references to
OMB Circular A-95 However, the A-95
requirements remain in effect for
assistance agreements awarded before
October 1,1983. The A-95 requirements
are found in 40 CFR Part 30. as revised
through July 1. 1982, (5} 30 305 through
30305-8)
Section 30 305 requires recipients to
sign and return EPA assistance
agreements within three weeks of
receiving them from EPA. One
commenter thought the requirement to
return the signed agreement was
unnecessary paperwork which caused
delays and suggested that the recipient's
application should be sufficient to
demonstrate their intent to accept an
award. We believe the recipient's
signed, formal and timely acceptance of
an award is necessary to assure that
money is not tied up unduly where
recipients decide not to proceed with a
project Also, the requirement reduces
the chance for misunderstandings
because the recipient acknowledges and
accepts all special conditions
Section 30 306(d) permits EPA to
reimburse recipients for allowable costs
incurred between the end of a budget
period and date of award Tor the next
budget penod. A commenter identified
an inconsistency between this section
and $ 35140(b) of our proposed Part 35,
Subpart A, "State and Local Financial
Assistance for Continuing
Environmental Programs" regulation (47
FR 25912, June 15.1982) While proposed
Part 30 did not address submission of an
application, the final Part 35. Subpart A,
S 35.141 (47 FR 44946, October 12,1982)
requires that in order to be reimbursed
for prior incurred cost, the applicant
must Bubmit a continuation application
before the expiration of the prior budget
penod. We think this is necessary for
good program management and have
included it in this final rule
Section 30307 requires recipients to
contribute at least five percent of total
allowable project cost for each budget
period One commenter objected to the
requirement, calling it burdensome and
unnecessary We disagree. The
Department of Housing and Urban
Development Independent Agencies
Appropriation Act (Pub L 97-272),
which governs EPA, requires recipients
of research assistance for proposals not
specifically solicited by EPA to cost
share. Many EPA recipients fit this
category. The extent of cost sharing EPA
requires will be at least five percent, but
will reflect the mutuality of interest of
the recipient and EPA in the proiect. We
do not believe the cost sharing
requirement prevents institutions from
participating in our programs
Payment
Section 30400 describes three
alternative methods EPA may use to pay
recipients. One commenter was
concerned that EPA was limiting
advance payments to the initial request
with reimbursement thereafter This was
not our intent, so we have clarified that
provision When a recipient submits a
"Request for Advance or
Reimbursement" (SF-270), it indicates
the amount of its expenditures to date
and its cash needs for the coming
period EPA's advance payment will be
sufficient to meet those future needs,
provided the request is reasonable
Section 30405 prohibits assigning
payment to anyone other than the
recipient A commenter pointed out that
this conflicts with S 35 2025(b)(2) of
EPA's Grants for Construction of
Treatment Works regulation which
permits States to assign their payments
for advances of allowance to small
communities We have revised this final
rule to reflect this exception
Section 30 410 describes the cost
principles applicable to different
categories of recipients A commentFr
asked which ones apply to
"subrecipients" or "subcontractors "
Regardless of whether the organization
is the recipient of (he award or
performing services for the recipient, the
nature of the organization is the sole
criterion for determining applicable cost
principles For example. State
governments must comply with OMB
Circular A-87. educational institutions
must comply with OMB Circulars A-21
and A-88 We have clarified this point
Section 30412 defines direct and
indirect costs One commenter believed
our proposed definitions were
inadequate and inconsistent with OMB's
definitions We accepted this suggestion
to rely on the OMB's definitions
Assistance Management
Section 30501 requires recipients of
construction grants to retain records for
three years from the approval date of
EPA's final payment A commenter was
concerned about the effect of this
requirement on step 1 or step 2
wastewater treatment construction
grants since audits are generally
performed after the completion of the
step 3 grant. We developed this final
rule in conjunction with the new
construction grant regulation Under that
regulation and in accordance with Pub
L 97-117. EPA no longer awards step 1
or step 2 construction grants Step 1 or
Step 2 grants awarded before the
effective date of this regulation are
subject to the previous Part 30
-------
Federal' Register / Vol 48, No 191 / Friday, September 30, 1983 / Rules and Regulations 45059
Section 30502 establishes EPA's right
of access to the recipient's and
contractor's pro|eel records As
proposed, this provision did not include
delegated States under the wastewater
treatment construction grants program
We have revised this rule to include
delegated States
Section 30505(b) requires recipients to
submit a financial statns report (FSR)
within 90 days after the end of each
budget period Several commenters
indicated that the FSR is seldom final
because it often includes unliquidated
obligations Since a final FSR must show
that all obligations are liquidated, we
clarified the final rule to state that a FSR
is required within 80 days after the end
of each budget period and a final FSR is
required immediately after ail
obligations are liquidated We added a
provision to allow the Award Official to
disallow unliquidated obligations if they
are not expended within a reasonable
time after the 90 day period
Section 30505(d) requires recipients to
submit an annual inventory of all
FederaJly owned property used on the
protect Several commenters objected
that this requirement exceeds the
requirements for property management
io OMB Circular A-502 This section
applies only to property owned by a
Federal agency, and such reports are,
required by the Circular and the lease
agreements Title to property which
recipients purchase with assistance
funds vests in the recipient and is
governed by S 30 530
Sectkon 30518 requires that recipients
of EPA assistance comply with EPA
Order 2200 4 J December 28,1981] which
establishes a peer a ad edmmLStratrve
review process for scientific,
informational and educational
documents attributable to EPA The
Agency peer .and administrative review
gives EPA the opportunity to evaluate a
document for scientific and
informational credibility and to
determine an estimated coat for its
production and distribution
Numerous commenters expressed
concern that the Agency review
requirements violate the panopie at
academic freedom and would preclude
their universities from accepting
research awards. fiPA now reoqyuses
that the proposed regulation did not
adequately clarify the intent of the
Agency Order. Our intent ia not to
become substantially involved in the
development of a report nor is it to
mold the final conclusions to fit our
policies. Rather, the sole intent of the
Order is to insure Jhe high quality,
completeness and accuracy of
documents EPA publishes.
Several commenters requested the
option to publish research results in
their own monographs or laboratory
research series or other rtort-refereed
journals before submission of the report
to EPA Under EPA's peer and
administrative review process. EPA
must decide whether to publish a report
as an EPA document or to allow
independent publication of the report
The only exception EPA can make is
independent publication in e refereed
journal because the journal's peer
review process replaces an EPA peer
review If EPA decides not to release the
report to the public as an EPA
publication, the recipient may
independently publish the report with
the appropriate disclaimer
Other coflimenters stated that the
Agency's peer and administrative
review conflicts with the Federal Grant
and Cooperative Agreement Act of 1977,
because it represents substantial
Federal involvement in the development
and delivery of technical reports under
research grants EPA disagrees The
peer review process takes place at the
conclusion of a project, not while it is
underway EPA has the right to review
and evaluate research results and to
make suggestions which EPA feels
would enhance the credibility of the
report Recipients do not have to
incorporate these suggestions
Finally, other commenters were
concerned that their final reports would
not be accepted or assistance
agreements closed out until EPA peer
reviewers determined their reports were
acceptable Again, the purpose of the
Order is to protect the technical and
scientific quality of public materials
published by EPA. As soon as a decision
is reached as to whether ihe report will
be pubfisired as an EPA report, the
assistance agreements may be closed
out Appropriate time will be included in
schedules for future grant and
cooperative agreements to permit the
cortducl of review within the project
period.
(Recipients should be aware that EPA
considers printing by the National
Technical Jnformatioa Service to be a
cost-effective method of publishing EPA
documents.)
Section 30J30 govern* recipients'
purchase of property. Several
commenters argued that some
provisions of this section exceed the
requirements in OMB Circular A-110. In
response we revised I 30 530 to be
consistent with A-110. In accordance
with Section 7(b| «T fob. L. 95-
-------
45060 Federal Register / Vol. 48, No 191 / Friday, September 30, 1983 / Rules and Regulations
assistance agreement A-110
organizations must comply with the
provisions of OMB Circular A-88, which
requires all Federal agencies to rely on
audits performed by agencies assigned
audit cognizance fur the recipient.
Assistance Agreement Changes
Sections 30.700 and 30 705 identify the
types of changes which require prior
EPA approval by formal amendment
and (hose which recipients may make
without prior EPA approval. Former Part
30 required recipients to get prior EPA
approval on budget changes in excess of
10% or $10,000 of the project budget. The
proposed rule did not include these
dollar amount restrictions. Several
commenters questioned the wisdom of
this deletion. We believe the former Part
30 requirements were too stringent and
did not provide recipients with sufficient
flexibility to manage their projects.
Further, the small benefit to EPA
provided by this requirement does not
justify the costs of processing change
requests and related project delays.
Interest Charges
Section 30 802(a) in the proposed rule
stated that "final settlement is not
complete until all claims, audits.
appeals, and litigations are resolved." if
the recipient owes EPA funds as a result
of any of these actions, it must
reimburse the Federal government that
amount before the project is settled We
have restructured this section for clarity.
S 30.802(b) requires the recipient to pay
interest on any amount owed EPA if the
recipient fails to pay within 30 days of
the date of the award official's
determination (see Subpart L).
One commenter questioned EPA's
authority to charge interest on overdue
debts Since April 30.1979, EPA has had
the responsibility to assess interest on
all debts (Federal Claims Collection
Standards, 4 CFR 102.12). In addition,
provisions in two EPA appropriations
acts (Pub L 96-526, { 416.1980. and
Pub. L,. 96-304, section 306,1980] and
Office of Management and Budget
Circular A-50 require EPA to charge
interest on outstanding debts The
Agency implemented this requirement
administratively in October 1961. ThuB,
rather than exceeding authority, EPA
actually has been slow in carrying out
its responsibility
We have revised 5 30.802, however, to
comply with the Federal Debt Collection
Act of 1982 (October 25,1982) which
amended the Federal Claims Collection
Act of 1966. The 1982 Act directs Federal
agencies to assess interest, penalties,
and handling charges on all debts,
except for the debta of State and local
governments. We will continue to
charge State and local governments
interest on overdue debts. The General
Accounting Office (CAO) in an August
23,1983. Comptroller General Decision
(B-212222, "Debt Collection
Administrative Offset and Interest
against State and local governments"),
stated that although the Debt Collection
Act does not apply to State and local
governments, the Act does not prohibit
Federal agencies from collecting interesi
charges on the overdue debts of State
and local governments. The CAO
decision concluded that to the extent
that there is authority other than
sections 10 and 11 of the Debt Collection
Act of 1982 (whether the authority is
founded in statute or common law).
Federal agencies are authorized to use
administrative offset and to assess
interest against State and local
governments in order to collect debts
owed to the United States. The Federal
Claims Collection Standards (4 CFR
102.12) and OMB Circular A-50 allows
EPA to use administrative offset on
debts owed by State and local
governments. EPA'b authority to collect
interest on overdue debts owed by State
and local governments to the United
States is contained in the Federal
Claims Collection Standards, Treasury
Fiscal Requirements Manual 6-8000.
OMB Circular A-50. Pub. L. 98-526, and
Pub L. 96-304 Accordingly, S 30 802(c)
exempts State and local governments
from penalty and handling charges, but
makes it clear that these types of
recipients will be charged interest
charges on all overdue debts.
The same commenter also argued that
the effect of the interest rule will be "to
chill the use of the grant appeal
process" We disagree Once the award
official determines that funds are owed
to EPA, this is a legitimate debt, subject
to interest charges. The interest
requirements do not restrict the use of
the appeals process
Before the award official makeB a
proposed determination, the recipient is
given an opportunity to review the
proposed findings and present any facts
in its favor to alter the decision
Consequently, interest does not begin to
accrue until after the recipient has an
opportunity to rebut the findings
Additionally, since interest does not
accrue until 30 days after the award
official's proposed decision, the
recipient can avoid interest altogether
by immediately paying the amount owed
in the award official's decision and then
appealing
Non-Compliance Actions
Sectwn 30 900 describes the
alternative actions EPA may take when
a recipient fails to comply with the
terms and conditions of its assistance
agreement Several commenters
questioned the use of "stop work order"
and "withholding of payment" actions.
They argued that while a "stop work
order" is required by the Defense
Acquisition Regulations it is not
authorized by OMB Circulars A-102 or
A-110. We disagree. OMB Circulars A-
102, Attachment L and A-110,
Attachment L require Federal agencies
to establish procedures to follow when
recipients fail to comply with terms and
conditions of an agreement Both
Circulars permit Federal agencies, upon
reasonable notice to the recipient, to
suspend the award, withhold further
payments or prohibit the recipient from
incurring additional costs It is EPA
policy that full and prompt payment be
made to recipients for eligible project
costs However, when recipients are not
complying with their assistance
agreements, EPA has the responsibility
to take corrective actions.
Appeals
One commenter was concerned about
the lack of access of the Audit
Resolution Board decisions. These
decisions are available upon request.
You may receive copies of decisions by
contacting.
Chairman, EPA Audit Resolution Board. 401
M Street, SW , Washington. D C 20460
Section 30.1235 lists EPA decisions
that a recipient may not appeal. Several
commenters wanted to know why
"advanced wastewater treatment
decisions of the Administrator" and
"policy decisions of the EPA Audit
Resolution Board" cannot be appealed.
They are not appealable because both
decisions are made at high
administrative levels in EPA
Headquarters. In the first case, the
decision is made by the Administrator,
and mlhe second case, the Audit
Resolution Board is acting under a
delegation from the Administrator The
Audit Resolution Board consists of the
Assistant Administrator for
Administration, the Associate
Administrator for the Office of Legal
and Enforcement Counsel, the Assistant
Administrator from the affected program
office and a Regional Administrator
Financial Assistance Disputes
Procedures Subpart L sets forth new
procedures for reBolving assistance
disputes between EPA officials and
assistance recipients or applicants
Under the existing appeal process,
disputes over final decisions In EPA
assistance programs ultimately were
resolved by the EPA Board of
Assistance Appeals (the Board) at EPA
-------
Federa^^egisle^^Vo^48^^o^91^^F^day^eplember^OM98^^Rule3^an^^egdaMonfl^^45061^
headquarters. The Board whs
established by the Agency in 1979 (see
40 CFR Part 30. Subpart). and the
appeal procedures published al 44 FR
48770 August 8.1979) The existing
Board process, which operates outside
the Agency's policy and rulemdking
system administered by program
managers, has made assistance disputes
resolution extremely adversarial Based
on this experience. EPA has developed a
new administrative review process in
Subpart L which it believes is a better
system to resolve F.PA's assistance
disputes. The new process complements
other Agency efforts to improve the
management of EPA's assistance
programs and gives the Agency's
program managers full control over and
responsibility for the fair and efficient
resolution of assistance disputes
The new process will
1	Encourage cooperation between the
Agency's officials and those applying for
and receiving assistance.
2	Develop a good administrative
record to support the Agency's final
decisions:
3	Provide applicants and recipients
high-level review of Agency decisions
and a forum for resolving disputes
informally, expeditiously, and
inexpensively
4	Provide applicants and recipients a
written decision explaining the basis for
the position
Fair and consistent dispute resolution
remjins a central principle of
administering EPA's assistance
programs. The procedures in Subpart L
continue to give recipients and
applicants the right to request a high
level review of decisions concerning
issues arising under the EPA assistance
prqgrams. Under these procedures,
disputes over Regional decisions are
subject 
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45082 Federal Register / Vol. 48, No. 191 f Friday, September 30, 1983 / Rules and Regulations
Copy-right, Reporting and recordkeeping
requirements.
AMn L Aim.
Acting Administrator.
For the reasons set forth in the
preamble. EPA is revising 40 CFR Part
30 to read as follows:
PART 30—GENERAL REGULATION
FOR ASSISTANCE PROGRAMS
Subpart A—What la the purpose and scope
of tfil* regulation?
Sec. 30.100 What Is the purpose of this
regulation?
Sec. 30.101 What is the scope of this
regulation?
Sec. 30.102 What laws authorize EPA to
Issue this regulation?
Subpart B—What defbtttlona apply to tftta
regulation?
Sec. 30^00 What definitions apply to this
regulation?
Subpart C I tow do I apply tor and racalva
asalstance?
Sec 30.300 What activities does EPA fund?
Sec 30.301 To whom does EPA award
assistance?
Sec 30.302 How do I apply lor assistance?
Sac 30 303 What steps must I take when
filing a standard application?
Sec 30.304 Is the information 1 submit to
EPA confidential?
Sec 30 305 How do I find out if EPA
approved or disapproved my
application?
Sec 30.300 How long will 1 have to
complete my project?
Sec 30J07 How much must I contribute to
the funding of my pro|ect?
Sec 30.308 When may I begin incurring
costs?
Sec 30.309 What is the effect of accepting
an assistance agreement?
Subpart D—Mow does EPA pay me?
Sec 30.400 How does EPA make payments?
Sec 30.405 Can I assign my payments to
anyone else?
Sec. 30.410 How does EPA determine
allowable costs?
Sec 30.412 How are costs categorized?
Subpart E—How do I manage my award?
Sec 30 500 Whal records must 1 maintain?
Sec 30.501 How long must 1 keep these
records?
Sec 30 502 To whom must my contractors
and I show these records?
Sec 30 503 What type of quality assurance
practices am 1 required to have?
Sec 30.505 What reports must I submit?
Sec 30.510 What type of financial
management system must I maintain?
Sec 30 51S What restrictions on signs,
surveys, and questionnaires must I
observe?
Sec 30.518 What are the procedures of
publishing scientific, informational, and
educational document a?
Sec 30.520 When may I use my own
employees ("force accounl")?
Sec 30 523 How should I treat program
income?
Sec 30 528 How dot treat interest earned
on EPA funds7
Sec 30 530 May I purchase personal
property using EPA assistance funds?
30 531 What property management
standards must I follow for
nonexpendable personal property
purchased with an EPA award?
30 532 How do I dispose of personal
property?
30 535 May I purchase real property with
EPA awarded funds?
30 536 How do I manage Federally-owned
property?
30 537 Are contractors required to comply
with EPA property policies?
30 53fl May I use General Services
Administration (GSA) supplies and
services?
30 540 Who will audit my project?
Subpart F—What Other Federal
Requtrwtwnta Must I Comply With?
30 600 What Federal laws and policies
affect my award?
30.601	Are there restrictions on the use of
sssistance funds for advocacy purposes?
30 603 What additional Federal laws apply
to EPA assisted construction pro|ects?
30.610	Whal are my responsibilities for
preventing and detecting fraud and other
corrupt practices?
30.611	Can 1 hire a person or agency to
solicit EPA assistance for me?
30 612 May an EPA employee act as my
representative?
30 613 What is EPA's policy on conflict of
interest?
30 615 May 1 employ a former EPA
employee and still receive assistance?
Subpart Q—Can an Assistance Agreement
be Changed?
30 700 What changes to my assistance
agreement require a formal amendment?
30.705 What changes can I make to my
assistance agreement without a formal
amendment?
30 710 Can 1 terminate a part or all of my
assistance agreement?
Subpart H—How do I Close out my Project?
30 800 What records and reportB must I
keep after I complete my protect?
30.602	Under what conditions will i owe
money to EPA?
Subpart I—What Measures may EPA Take
for Non-comp
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Federal Register / Vol. 48, No. 191 / Friday. September 30, 19B3 / Rules and Regulations 45063
Subpart A—What Is ttw Purpose and
Scope of This Regulation?
{30.100 What Is the purpose a/this
regulation?
(a) The U.S Environmental Protection
Agency [EPA) is responsible for
protecting and enhancing the quality of
the environment. To achieve these
objectives. EPA may award.assistance
In the form of grants, cooperative
agreements, or fellowships to support:
(1) State and local pollution control
programs: (2) research, demonstration,
or training projects; and (3] other
projects that advance EPA's mission.
This regulation tells how to apply for
and manage an EPA project, describes
EPA involvement in the process, and
identifies recipients' responsibilities.
Other EPA assistance regulations
supplement these. They are found in 40
CFR Part 32 (Debarment), Pert 33
(Procurement Under Assistance
Agreements], Part 35 (State and Local
Assistance), Part 40 (Research and
Demonstration), Part 45 (Training) and
Part 46 (Fellowships)
(c)	This regulation incorporates the
requirements of Office of Management
|and Budget (OMB) Circulars and EPA
Orders.
(d)	Recipients must provide the
reporting information required in this
part to be eligible for EPA assistance
awards.
[Note.—The OMB clearances required by
the Paperwork Reduction Act are identified
in Appendix D lo Ihis part ]
5 30.101 What la the scop* ot this
regulation?
This regulation covers financial
assistance awards made as grants or
cooperative agreements under
requirements of the Federal Grant and
Cooperative Agreement Act (P L 95-
224). It does not cover direct EPA
contracts under which EPA acquires
property or services for its use.
} 30.102 What laws authorize EPA to Issue
this regulation?
Reorganization Plan Number 3 of 1970
and the following statutes authorize the
Administrator of EPA to iBsue this
regulation.
(a)	The Clean Water Act. as amended
(33 U.S.C. 1251 et seq );
(b)	The Clean Air Act, as amended (42
U.S.C. 7401 et seq.]:
(c)	The Solid Waste Disposal Act, as
amended (42 U.S.C. 6901 et seq.);
(d)	The Safe Drinking Water Act, as
amended (42 U.S.C. 300f et seq ):
(e)	Hie Federal Insecticide, Fungicide,
and Rodenticide Act, as amended (7
U.S C. 139 et seq.):
(f)	The Toxic Substances Control Act
(15 U S C 2601 et seq.); and
(g)	The.Comprehensive Environmental
Response. Compensation and Liability
Act of 1980 (42 U.S C. 9601 et seq.).
SUBPART B-WHAT DEFINITIONS
APPLY TO THIS REGULATION?
S 30.200 What definitions apply to this
regulation?
"Allowable costs "Those project
costs that are: eligible, reasonable,
necessary, and allocable to the project;
permitted by the appropriate Federal
cost principles, and approved by EPA in
the assistance agreement
"Applicant." Any entity that files an
application or unsolicited proposal for
EPA financial assistance under this
subchapter
"Assistanceagreement."The legal
instrument EPA uses to transfer money,
property, services, or anything of value
to a recipient to accomplish a public
purpose It is either a grant or a
cooperative agreement and will specify:
budget and project periods; the Federal
share of eligible project costs; a
description of the work to be
accomplished, and any special
conditions.
"A ward official." The EPA official
with the authority to execute assistance
agreements and to take other actions
authorized by this subchapter and by
EPA Orders.
"Budget period " The length of time
EPA specifies man assistance
agreement during which the recipient
may expend or obligate Federal funds.
"Consolidated assistance." An
assistance agreement awarded under
more than one EPA program authonty or
funded together with one or more other
Federal agencies. Applicants for
consolidated assistance submit only one
application
"Continuation award." An assistance
agreement after the initial award, for a
project which has more than one budget
period in its approved project period
(see S 30 306]
"Contractor." Any party to whom a
recipient awards a subagreement
"Cooperative agreement " An
assistance agreement in which
substantial EPA involvement is
anticipated during the performance of
the project (does not include
fellowships).
"Cost sharing." The portion of
allowable project costs that a recipient
contributes toward completing its
project (i e , non-Federal share, matching
share).
"Environmentally related
measurements." Any data collection
activity or investigation involving the
assessment of chemical, physical, or
biological factors in the environment
which affect human health or the quality
of life. The following are examples of
environmentally related measurements;
(a) A determination of pollutant
concentrations from sources or in the
ambient environment, including studies
of pollutant transport and fale; (b) A
determination of the effects of pollutants
on human health and on the
environment; (c) A determination of the
nsk/benefit of pollutants in the
environment; (d) A determination of the
quality of environmental data used in
economic studies; and (e) A
determination of the environmental
impact of cultural and natural processes.
"Expendable personal property." All
tangible personal property other than
nonexpendable personal property.
"Force account work." The use of the
recipient's own employees or equipment
for construction, construction-related
activities (including A & E services), or
for repair or improvement to a facility.
"Foreigngrants." An EPA award of
assistance when all or part of the
project is performed in a foreign country
by (a) a U.S recipient, (b] a foreign
recipient or (c) an international
organization.
"Forma/ amendment." A written
modification of an assistance agreement
signed by both the authonzed
representative of the recipient and the
award official.
"Grant agreement." An assistance
agreement that does not substantially
involve EPA in the project-tind wher»
the recipient has the authonty and
capability to complete all elements of
the program (does not include
fellowships).
"In-kindcontribution,"The value of a
non-cash contribution to meet a
recipient's cost sharing requireme. is
An in-kind contribution may consist cf
charges for real property and equipment
or the value of goods and services
directly benefiting the EPA funded
project.
"Nonexpendable personal property."
Personal property with a useful life of at
least two years and an acquisition cost
of $500 or more.
"Personalproperty." Property other
than real property It may be tangible
(having physical existence), such as
equipment and supplies, or intangible
(having no physical existence), such as
patents, inventions, and copyrights.
"Program income." Grass income the
recipient earns during its project period
from charges for the project This may
include Income from service fees, tale of
commodities, trade-in allowances, or
usage or rental fees. Fees from royalities
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45064 Federal Register / Vol. 48,
No. 191 I Friday, September 30. 1983 / Rules and Regulations
are program income only if the
assistance agreement so states. Revenue
generated under the governing powers
of a State or local government which
could have been generated without an
award is not considered program
Income. Such revenues include fines or
penalties levied under judicial or penal
power and used as a means to enforce
laws. (Revenue from wastewater
treatment construction grant projects
under Title II of the Clean Water Act. as
amended, is not program income. It must
be used for operation and maintenance
costs of the recipient's wastewater
facilities.)
"Project" The activities or tasks EPA
identifies in the assistance agreement.
"Project costs " All costs the recipient
incurs in carrying out the project. EPA
considers all allowable project costB to
include the Federal share.
"Project officer." The EPA official
designated in the assistance agreement
as EPA's program contact with the
recipient. Project officers are
responsible for monitoring the project.
"Project period." The length of time
EPA specifies in the assistance
agreement for completion of all project
work. It may be composed of more than
one budget period.
"Quality assurance narrative
statement." A description of how
precision, accuracy, representativeness,
completeness, and compatibility will be
assessed, end which is sufficiently
detailed to allow an unambiguous
determination of the quality assurance
practices to be followed throughout a
research project.
"Quality assurance program plan." A
formal document which describes an
orderly assembly of management
policies, objectives, principles,
organizational responsibilities, and
procedures by which an agency or
laboratory specifies how it intends to:
(a)	Produce data of documented
quality, and
(b]	Provide for the preparation of
quality assurance project plans and
standard operating procedures.
"Quality assurance project plan." An
organization's written procedures which
delineate how it produces quality data
for a specific project or measurement
method.
"Real property." Land, including land
improvements, and structures and
appurtenances, excluding movable
machinery and equipment
"Recipient." Any entity which has
bean awarded and accepted an EPA
assistance agreement
"Standard operating procedure." A
document which describes in detail an
operation, analysis, or action which Is
commonly accepted as the preferred
method for performing certain routine or
repetitive tasks.
"Subagreement" A written agreement
between an EPA recipient and another
party (othfer than another public agency)
and any lower tier agreement for
services, supplies, or construction
necessary to complete the project
Subagreements include contracts and
subcontracts for personal and
professional services, agreements with
consultants, and purchase orders
" Violating facility " Any facility that
is owned, leased, or supervised by an
applicant, recipient, contractor, or
subcontractor that EPA lists under 40
CFR Part 15 as not in compliance with
Federal, State, or local requirements
under the Clean Air Act or Clean Water
Act. A facility includes any building,
plant, installation, structure, mine,
vessel, or other floating craft.
"Unsolicitedproposal" An informal
written offer to perform EPA funded
work for which EPA did not publish a
solicitation.
Subpart C—How Do I Apply For and
Receive Assistance?
5 90.300 What »cttvme» does EPA fund?
EPA awards assistance to support
various activities that protect the
environment and reduce or control
pollution EPA groups these activities
into the following types of assistance
programs.
(a)	State and local pollution control
(b)	Construction of wastewater
treatment works;
(c)	Research;
(d)	Demonstration.
(e)	Training;
(f)	Fellowships,
(g)	Special investigations, surveys or
studies; and
(h)	Consolidated assistance
{ 30.301 To whom doe* EPA award
assistance?
(a) EPA awards assistance only to
applicants which are eligible under
applicable statutes and regulations and
which have the ability to meet the
following criteria.
(1)	Financial resources, technical
qualifications, experience, organization,
and facilities adequate to carry out the
project, or a demonstrated abilityto
obtain these;
(2)	Resources to meet the project
completion schedule contained in (he
assistance a&eement;
(3)	A satisfactory performance record
for,completion of projects and
subagreementa;
(4)	Accounting and auditing
procedures adequate to control property.
funds, and as9eta, as required in Subparf
E of this part,
(5)	Procurement standards that
comply with Part 33 of this Subchapter;
(6)	Property management systems for
acquiring, maintaining, safeguarding,
and disposing of property, as required m
Subpart E of this part; and
(7)	Demonstrated compliance or
willingness to comply with the civil
rights, equal employment opportunity,
hbor law. and other statutory
requirements under Subpart F of this
part.
(b)	EPA considers your submission of
an assistance application as your
assurance that you can and will meet
these standards. EPA may conduct a
preaward audit or other review to
determine your capabilities.
(c)	EPA must notify you in writing if it
finds you unable to meet these
standards. The written notice will state
the reasons for the finding You may
appeal EPA's findings under the
disputes procedures in Subpart L.
(¦d) Individuals, agencies, or
organizations voluntarily excluded,
suspended, or debarred under 40 CHt
Part 32 are ineligible to receive
assistance
9 30.302 How do I apply for assistance?
(a)	You must submit a standard
application to apply for EPA assistance
(b)	Before you file an application to
perform unsolicited work, you may
submit an unsolicited proposal. EPA will
appnse you of your proposal's potential
for funding.
(c)	You can get program information
and an application kit with instructions
from the EPA grants office which is
responsible for administering that
program. Regional EPA grants offices
provide and review applications and
award assistance for State and local
pollution control projects. State water
pollution control agencies provide and
review applications for grants for the
construction of wastewater treatment
facilities EPA Headquarters provides
and reviews applications for and
awards research, demonstration,
fellowships, and training assistance
(d)(1)	For assistance agreements
awarded for Fiscal Year 19B4, you must
develop and implement a quality
assurance program acceptable to the
award official if your proposal involves
any environmental relisted
measurements or data generation
Except as noted in paragraphs (dj (2)
and (3) of this section, your application
for financial assistance must include a
quality assurance plan which meets UhN
requirements in ] 30.501 If you already
have an EPA approved quality
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Federal Register / Vol. 48, No. 191 / Friday, September 30. 1983 / Rules and Regulations 45065
assurance plan, you need only reference
that plan in your application, provided
the plan covers the project in your
application.
(2]	The recipient of an assistance
award under the Comprehensive
Environmental Response,
Compensation, and Liability Act of 1980,
must submit a schedule for developing a
quality assurance project plan within 30
days of receiving an assistance award
Recipients may not begin field or
laboratory work until the award official
approves the recipient's assurance
project plan.
(3)	The recipient of a wastewater
treatment construction grant awarded
under Title II of the Clean Water Act
must comply with 9 30 503 only if a
grant condition specifically requires the
recipient to gather environmental
related data If a quality assurance
program is required, recipients must
submit a schedule for developing a
quality assurance project plan within 30
days of assistance award Recipients
must not begin Held or laboratory work
until the award official approves the
recipient's quality assurance project
plan
5 30 303 What steps must I take when
fiUng a standard application?
(a)	Before you file an application, you
must complete the forms-according to
the instructions At least one copy of the
completed application must have an
original signature of the person
authorized to obligate you or your
organization to the terms and conditions
of EPA's regulations and assistance
agreement.
(b)	You must:
(1)	Comply with your State's
intergovernmental review process, if it
established one under Executive Order
12372 See 40 CFR Part 29 (48 FR 29288,
]une 24,1983)
(2)	Comply with the areawide review
requirements of Section 204 of the
Demonstration Cities and Metropolitan
Development Act of 1966, as amended
(42 USC. 3334) if your project will be
located in a metropolitan area EPA
programs that are subject to areawide
review are listed in 48 FR 29304, June 24,
1983, and marked with an asterisk (*)
9 30.304 le the tnformation I submit to EPA
confidential?
(a) Generally, the information is not
confidential When EPA receives your
assistance application or unsolicited
proposal the information you submit
becomes part of the Agency's records.
As such, it is subject to EPA's disclosure
of information policy (40 CFR Part 2)
which is based on the provisions of the
Freedom of Information Act (5 U S C.
552) and on the provision for patents
and rights in data and copyrights under
Subpart K of this part.
(b) If you submit data, documents, or
parts of documents whir.h you consider
to be confidential, you should clc.irly
identify them with the words "trade
secret." "proprietary," or "business
confidential." For further instructions on
assertion of confidentiality claims, see
40 CFR Part 2, Subpart B.
§ 30.305 How do I find out If EPA
approved or disapproved my application?
(a)	If EPA approves your application,
the award official will prepare and sign
an assistance agreement and send it to
you for signature. Your authorized
representative must either sign and
return the agreement to EPA within
three calendar weeks after you receive
it or request EPA to extend the time for
acceptancelf you do not sign or request
an extension within the three week
period, the assistance agreement is null
and void.
(b)	If EPA disapproves your
application, it will promptly notify you
in writing You may appeal EPA's
disapproval under Subpart L
(cj Sometimes, EPA will defer your
application You will be notified in
writing of this decision.
9 30.306 How long will I have to complete
my project?
(a)	Your assistance agreement will
state the length of your approved budget
penod(s) and project period Subject to
statutory provisions, your approved
project period may include more than
one budget penod. In this case, you must
submit a continuation application to
EPA to request funding for each budget
period after the initial one. EPA make
continuation awards subject to
availability of funds and Agency
priorities (Assistance awards under 40
CFR Part 35, Subpart A, do not have
project periods, but recipients of such
award may receive continuation
awards}
(b)	The continuation application must
include
(1)	A detailed progress report for the
current budget period,
(2)	A preliminary financial statement
for the current budget period that
includes estimates of the amount you
expect to spend by the end of the
current budget penod and the amount of
any uncommitted funds which you
propose to carry over beyond the term
of the current budget period:
(3)	A buciget for the new budget
penod,
(4)	A detailed work plan revised to
account for your actual
accomplishments during the current
budget period,
(5) An ahnual invention report, and
(8) Any other reports that the
assistance agreement may require
(c)	If approved by the award official,
you may carry over unexpended prior
year funds: (1) In lieu of new funds, (2)
to complete work started in prior years;
or (3) to supplement the new award You
must meet all program and cost sharing
requirements in each budget penod to
carry over funds.
(d)	If EPA executes a continuation
agreement. EPA 
contnbution may not be paid w
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45066 Federal Register / Vol. 48, No. 191 / Friday, September 30, 1983 / Rules and Regulations
a——a——MW——w—MMl—MM——fl———J
} 3CL309 What Is ttw effect of accepting an
mlilinM iQratnwnt?
(a)	When the award official signs the
assistance agreement, EPA will obligate
lFederal funds for the amount stated in
your assistance agreement for the
purposes of the award. EPA is not
obligated to provide Federal funds for
any costs incurred by you in excess of
the Federal share of your approved
budget. (See Subpart G of this part)
(b)	The award of an assistance
agreement constitutes a public trust By
signing and accepting an assistance
agreement, you become responsible for
complying with all terms and conditions
of your assistance agreement, including
any special conditions necessary to
assure compliance with EPA policies
and objectives, this subchapter, and iny
other applicable statute or regulation
You must efficiently and effectively
manage your proiect, successfully
complete the project according to the
schedule, and meet all monitoring and
reporting requirements You may not
delegate or transfer this responsibility.
Subpart 0—How Does EPA Pay Me?
$ 30.400 How does EPA make payments?
(a)	EPA will promptly pay you For
allowable costs you incur in accordance
with EPA regulations -ind youi
assistance agreement If at any time,
EPA determines you received paympnt
for unallowable cost or received an
over-payment, you are required to
reimburse EPA (See & 30 802 )
(b)	Your assistance agreement will
specify one of the following ways for
EPA to pay you You will receive the
appropriate forms and instructions with
your assistance agreement
(1)	By letter of credit EPA will pay
you by the letter of credit method, it you
meet the Treasury Department's criteria
contained m Treasury Circular No 1075,
as revised. You must establish a
separate bank account when payments
under a letter of credit are made on a
"check-paid" basis
(2)	By advance If you do not qualify
for a letter of credit, EPA may pay you
by the advance payment method You
must negotiate the amount of your initial
advance with the award official The
negotiated amount should not exceed
the cash you will need for the first three
months of operation. You must request
the initial advance on Standard Form
270 (SF 270, "Request for Advance or
Reimbursement") which will be included
in your award package EPA will issue a
check for the first three months or one
check each month (at EPA's option) to
pay the advance After your initial
advance, you must submit an SF 270 at
least quarterly, but not more often than
monthly, indicating the amount of your
expenditures to date and your request
for funds for the coming period.
(3) By reimbursement. If you do not
meet letter of credit requirements or
receive advance payments, EPA will pay
you by reimbursement. Also, EPA
generally will pay you under the
reimbursement method if you are
receiving assistance under EPA's
wastewater treatment construction
grants program (see 40 CFR Part 35,
Subpart I) When EPA pays by this
method, you will be reimbursed for costs
which you have incurred and are
currently and legally obligated to pay.
§ 30.40$ Con I csalgn my payment to
anyone else?
Except as provided for in 40 CFR
35 2025(b)(2) of EPA's wsstewater
treatment construction grants regulation,
you cannot assign your right to receive
payments under your assistance
agreement. EPA will make payments
only to the payee identified in the
assistance agreement
$ 30 410 How does EPA determine
allowable costs?
To be allowable, costs must meet
applicable statutory provisions and
Federal rost principles EPA uses the
following cost principles in determining
allowable costs for all EPA a-ssistance
agreements and subagieements under
them, except as otherwise provided by
statute or this subchapter Regardless of
whether the organization is the recipient
of the award or is performing services
for the recipient, the nature of the
organization is the sole culerion for
determining applicable cost principles
(a)	State and local governments must
use OMB Circular A-87 to determine
allowable costs;
(b)	Educational institutions must use
(1) OMB Circular A-21 cost principles
for research and development, training,
and other educational services under
grants, cooperative agreements, and
subagreements, and (2) OMB Circular
A-8# which provides principles for
coordinating the establishment of
indirect cost rates and the auditing of
grants, cooperative agreements, and
subagreements,
(c)	Other nonprofit institutions must
use OMB Circular A-122,
(d)	Profitmakwg organizations must
use Federal procurement regulations (41
CFR Ch 1, Subpart 1-15 2 and, if
appropriate, 1-15 4), and
(e)	Hospitals must use 45 CFR Part 74,
Appendix E.
§30 412 How are costs categorized?
(a) Costs are categorized as being
either a direct cost if they support a
specific protect only or us an indirect
cost as described in the applicable cost
principles (see S 30.410). To receive
payment for indirect costs, you must
have negotiated an indirect cost rale
with your cognizant Federal Agency and
your assistance agreement must provide
for the use of that rate.
(b) You may request a special indirect
cost rate, if (1) your project is conducted
at an off-site location; or (2) your protect
is a large, one-time project and its costs
would distort the normal direct cost
bdse used in computing the indirect cost
rate
Subpart E—How Oo I Manage My
Award?
5 30.500 What records must I maintain?
[a)	You must maintain official records
for each assistance award you receive
nnd identify them with EPA assistance
identification numbers. These records
must contain the following information.
(1)	Amount received and expended for
the project, including all Federal and
cost shanng funds,
(2)	Program income;
(3)	Total cost of the proiect (both
direct and indirect costs).
(i) Propel ty purchased under (he
uward or used as part of your in-kind
contribution,
(5) Time records and other supporting
data: and
(0)	Documentation of compliance with
applicable statutes and regulations
(b)	Your contractor must maintain
books, documents, papers, and records
pertinent to the proiect.
$30 501 How loftfl must I keep these
records?
(a)	Generally you and your contractor
must keep all records for three years
from the end of the project. Except for
real property and nonexpendable
personal properly records, the beginning
date of the three year penod depends on
the type of project you are conducting,
as follows;
(1)	For research, demonstration, and
training programs, the submission date
of a final Financial Status Report (SF-
269);
(2)	For Slate and local assistance
programs, the submission date of the
final Financial Status Report (SF-269),
or
(3)	For construction awards, the
approval date of EPA's final payment
for the project.
(b)	You must keep your records on
real property and nonexpendable
personal property for three years from
the date of final disposition.
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Federal Register / Vol. 48, No. 191 / Friday, September 30, 1983 / Rules and Regulations 45067
(c) If EPA terminates your award, you
must keep all records for three years
from the termination date, except as
provided in paragraph (b) of this section.
(rl] If litigation, a claim, an appeal, or
an audit is begun before the end of the
three year period, you must keep all
records until the three years have
passed or until the litigation, appeal,
claim, or audit is completed and
resolved, whichever is longer
i 30.903 To whom must my contractor
and I show these records?
You and your contractor must allow
the project officer and any authorized
representative of EPA, including 'he
Office of Inspector General, the
Comptroller General of the Uniied
States, the Department of Labor, or a
representative of delegated States under
the wastewater treatment construction
grants program, to inspect, copy, and
audit records pertinent to the project
Access to records is no' limited to the
required retention periods You and your
contractor must allow access to records
at any reasonable time for as long as the
records are kept
i 30.503 What type of quality assurance
practice* am I required to have?
(a)	If Jfour project in\ olves
environmentally reinfect measurements
or data generation, you must develop
and implement quality assurance
practices consisting of policies,
procedures spucifir.ations, standards,
and documentation which will produce
data of quality adequate to meet project
objectives and will minimize loss of
data due to out-of-control conditions or
malfunctions.
(b)	Your quality assurance practices
must assure the reliability of monitoring
and measurement data and integrate
quality planning, quality assessment,
and quality improvement efforts.
(c)	As required fin { 30 302(d). you
must develop and implement a quality
assurance program which is acceptable
to the award official in order to receive
an EPA assistance award All
applications for financial assistance
must include a document as specified in
paragraphs (d), (e). or (0 of this section.
(d)	If your application is for research
financial assistance it must include a
quality assurance narrative statement
which either addresses the following
areas or provides justification why any
of these areas do not apply to the
proposal:
(1) The intended use of the data and
the associated acceptance criteria for
data quality (precision, accuracy,
representativeness, completeness,
comparability);
(2J Project requirements for precision,
accuracy, representativeness,
completeness, comparability, and how
these will be determined;
(3)	Procedures for selection of Bamples
or sampling sites and collection or
preparation of samples;
(4)	Procedures for sample handling,
identification, preservation,
transportation, and storage,
(5)	Description of measurement
methods or test precedures with a
statement of performance
characteristics if methods are non-
standard,
(6)	Standard quality assurance/
quality control procedures (p g ,
American Society for Testing Materials.
American Public Hea'th Association
standbrd procedures) to be followed
Non-standard proced ires must be
¦iocumentpd and
(7)	Data reduct.on ana reporting
procedures, including description of
statistical analyses to bu used
(e) if you are h State or local
goy^rninent [exrepl for recipients of
wastewater constiuct'on grants under
f-tle 11 of the Clean Water Act, as
amended, or assistance awards under
"it* Comprehensive Environmental
j,pspons«\ Compensation and Liability
/\ct of 1980), you mus! hdve 8 quality
assurance program plun acceptable to
•lie award official (For assistance in
jvepanng a program plan, Bee
' Guidelines and Specifications k
f-tparing Quality Assurance Program
Plans QAMS-004/80. Thi9 document
|EPA-600/8-83-024, NTIS PB 63-219667)
may be obtained from the National
Technical Information Service, 5885 Port
Royal Road, Springfield. Virginia 22161 )
The program plan must address the
following areas:
(1)	Name of principal inveBtigator(s)
and quality assurance officer;
(2)	Background, purpose, and scope of
the quality assurance plan,
(3)	Quality assurance policy
statement;
(4)	Quality assurance management
plan;
(5)	Personnel qualifications;
(6)	Facilities, equipment, and services;
(7)	Data generation and general
quality assurance requirements;
(8)	Data processing, e.g.. reduction,
validation, reporting;
(9)	Data quality assessment;
(10)	Corrective action for out-of-
control situations;
(11} Development of individual quality
assurance project plans and standard
operating procedures, if required in the
program plan; and
(1Z) Implementation requirements and
schedule.
(f)	All other applicants for financial
assistance must submit with their
application (see 3 30. 302(d)) a quality
assurance project plan acceptable to the
award official (For assistance in
preparing a quality assurance project
plan see "Interim Guidelines and
Specifications for Preparing Quality
Assurance Projects Plans" QAMS-005/
80 This document (EPA-600/4-83-0G4,
NTIS PB 83-170514) may be obtained
from the National Technical Information
Service, 5665 Port Royal Road,
Springfield, Virginia 22161 ) The project
plan must address the following items:
(1)	Title of project and name of
principal investigator(s),
(2)	Table of contents of project plan,
(3)	Project description;
(4)	Project organization and
responsibilities,
(5)	Quality assurance object vrs and
criteria for determining precision,
accuracy, completeness,
representativeness. and comparability of
data,
(6)	Sampling procedures.
(7)	Sample custody;
(8)	Calibration procedures and
frequency ond traccabihty of standards.
(9)	Analytical procedure"},
(10)	Data reduction, validation, and
reporting,
(11)	Internal qi'dlilj control checks,
(12)	Pei formam e and system audits,
(13)	Preventive maintenance,
(14)	Specific standard operating
procedures us-r-d to asfi'ss data
precision, accuracy, representativeness,
and comparability,
(15)	Corrective action for out-cf-
control situations, and
(10) Quality assurance reporting
procedures
(g)	Recipients of an assistance nward
under the Comprehensive
Environmental Response,
Compensation, and Liability Act ot 1980
(Superfur.d). must comply with the
quality assurance project plan
requirements in paragraph (f) in this
section.
(h)	If required (see } 30.302(d)(3)). a
recipient of a wastewater treatment
construction grant under Title II of the
Clean Water Act. as amended, must
comply with the quality assurance
project plan requirements in paragraph
(f) iii this section.
J 30.506 What report* must I submit?
(a) Interim and final progress reports.
You must submit interim and final
progress reports if the assistance
agreement or EPA regulations require
them. See 40 CFR Parts 35,40, and 45 for
specific requirements. EPA or its
authorized representatives may inspect
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45068 Federal Register / Vol. 48, No. 191 / Friday, September 30, 1983 / Rules and Regulations
your project at any reasonable time to
review its progress.
(b)	Financial reports. (1) You must
submit a Financial Status Report (SP
269) within 90 days after each budget
penod within 90 days after the end of
your project completion or termination.
If either the Financial Status Report
(FSR) you submit after the budget penod
or the FSR you submit after your project
is completed or terminated includes
unliquidated obligations, you must
submit a final FSR immediately after
those obligations are liquidated. If you
do not submit a final FSR within a
reasonable time after the 90 day period,
the award official may disallow the
unliquidated obligations.
(2)	Under the wastewater treatment
construction grants program, your final
"Outlay Report and Request for
Reimbursement for Construction
Programs" (SF 271) will serve as the
financial report.
(3)	Recipients of fellowship assistance
agreements do not have to submit FSR's.
(c)	Invention reports. You must report
all inventions (see Subpart K for
details) You must submit a final
invention statement to the award official
within 90 days after completion of a
project If you have a continuation
award, you must submit an annual
invention statement with your
continuation application. Also, if you
change your project manager on a
research pro|ect. you must submit an
invention report at that time to the
award official.
(d)	Report on Federally-Owned
Property. You must submit an annual
inventory of all Federally-owned
property used on your project. At the
end of the project penod. or when you
no longer need the property, you must
submit a final inventory which states
the present condition of each item and
requests disposition instructions.
5 30.510 What type of financial
management system must I maintain?
You must maintain a financial
management syatem that consistently
applies accepted accounting principles
and practices and at least includes:
(a)	An accurate, current, and complete
accounting of all financial transactions
for your project,
(b)	Records, together with supporting
documents showing the source end
application of all project funds,
including assistance awards and
authorizations, obligations, unobligated
'balances, assets, liabilities, outlays, and
income;
(c)	Control over, and accountability
for, all project funds, property, and other
assets, and an assurance that you used
these solely for their authorized
purpose:
(d)	A comparison of actual costs
versus budgeted object class amounts:
(e)	Procedures to ensure prompt
disbursement of Federal funds after you
receive them:
(f)	Procedures for determining
allowable, allocable, and reasonable
costs:
(g)	Audits at least every other year on
an organization-wide basis (see
{ 30 540), and
(h)	A systematic method to resolve
audit findings and recommendations.
§30.515 What restrictions on signs,
surveys, and questionnaires must I
observe?
(a)	Signs. You must plnce a vsible
project identification sign at a
construction site. The sign must give
project information and credit EPA for
funding. Your project officer will give
you specifications for sign design,
content, and placement The cost of
making and erecting thp sign is an
allowable cost.
(b)	Surveys and questionnaires If
your survey or questionncire states that
information is being collected for the
vederal Government, you must request
written approval from SPA to use
Agcicy funds to cover the costs of data
collection. To assure compliance with
the Paperwork Reduction Act of 1980.
Pub. L 96-511 (44 U S.C. 3501 et seq ).
(he project officer can grant approval
only with the agreement of the EPA
Headquarters reports management
officer You must also receive the
project officer's approval to list EPA as
a recipient of the survey information.
{30.518 What are the procedures for
publishing scientific, Informational, end
educational documents?
(a)	EPA encourages publication of the
results of its assistance agreements.
(b)	You must comply with EPA's peer
and administrative review process if
you intend to release to the public
informational materials, reports, and
other products produced under an EPA
assistance agreement
(1)	Except for articles published under
paragraph (d) of this section, you must
submit three copies of the documents to
your project officer for EPA review EPA
will evaluate the documents and will
provide you with written, suggested
changes, if any.
(2)	You should make every effort to
accommodate suggestions arising from
the EPA review process while preparing
a revised draft. You should alert EPA
reviewers to suggestions you cannot
accommodate and to changes Initiated
by you 19 the revised draft.
(3) If an agreement is reached that the
material is appropriate for release as an
EPA publication, the following
statement must be included in the
document'
The information in this document has been
funded wholly or in part by the United States
Environmental Protection Agency under
assistance agreement (number) to (recipient)
It has been subjected to the Agency's peer
and administrative review and has hern
approved for publication as an EPA
document Mention of trade names or
commei .ial products does not constitute
endorsement or recommendation for use
(c)	If agreement cannot be reached
that the material is appropriate for
release as an EPA publication, you may
independently publish and distribute the
document for your own use and at your
own expense provided you include the
following statement in the document:
Although the information in this document
haB been funded wholly or in part by ths
United States Environmental Protection
Agency under assistance agreement (number)
to (recipient), it may not necessarily reflect
the views of the Agency and no official
endorsement should he inferred
(d)	EPA also encourages independent
publication of reports in referred
journals at any time. You must submit a
copy of thtvarticle to your project officer
when you send it for publication.
Following publication, three copies of
the article should be submitted to the
project officer Thp article must include
the following statement.
Although the research described In this
article hds been funded wholly or In part by
the United Slates Environmental Protection
Agency under assistance agreement (number)
to (recipient). It has not been subjected to the
Agency's peer and administrative review and
therefore may not necessarily reflect the
views of the Agency and no official
endoresement should be Inferred.
(e)	Documents that are not to be
released to the public as EPA
publications but are part of a recipient's
regular pollution control activities are
not subject to the EPA peer and
administrative review process, e g,
State pollution control agency-published
newsletters and operation and
maintenance manuals under the'
wasterwater treatment construction
grants program. However, EPA
encourages you to establish e similar
reveiw process before publishing any
documents at your own expense. You
may publish such documents only if you
include the following statement:
This protect has been funded wholly or in
part by the United States Environmental
Protection Agency under assistance
agreement (number) to (recipient). The
contents of this document do not necessarily
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Federal Register / Vol. 48, No. 191 / Friday, September 30. 1983 / Rules and Regulations 45069
p
-reflect the views and policies of the
Environmental Protection Agency, nor does
mention ol trade names or commercial
products constitute endorsement or
recommendation for use
§ 30.520 When may I ust my own
employees ("force account")?
If coBta will exceed $25,000. you must
get pnor written authorization from your
project officer to use your own
employees or equipment for
construction, construction-related
activities, or for repairs or
improvements to a facility ("force
account") You must demonstrate that
(a) your employees car competently and
more economically complete the work
than contractors or (b) an emergency
circumstanre makes the use of "force
account" necessary
$ 30 52S How should I treat program
Income?
(a)	You may use program income to
fund additional eligible project
activities, or if approved by the award
official, to meet your non-Federal share
of project costs
(b)	If you do not use the program
income to fund additional eligible
activities or you are not permitted to use
program income to meet your non-
Federal share of pro|ect costs, EPA will
subtract the income from the total
allowable project cost to detprmine the
net cost on which the Federal shnre will
be based
(c)	Unless the assistance agreement
provides otherwise, you do not owe F.PA
any of the royalties you earn on
copyrights or patents produced under
the assistance agreement (See Subpart
K of this part for EPA's rights regarding
copyrights and patents )
(d)	You must keep complete records
showing all receipts and expenditures
related to program income
§30 526 How do I treat Interest earned on
EPA funds?
If you earn interest on an EPA
advance, you must return it to EPA
unless you are
(a)	A State, or State agency as defined
under section 203 of the
Intergovernmental Cooperation Act of
1968. (42 U S C 4213), or
(b)	A tribal organization as defined
under sections 102.103. or 104 of the
Indian Self Determination Act (25 U.S C
450f. 450g, and 450h)
§30 530 May I purchase personal property
using EPA assistance funds?
(a) Nonprofit institutions of higher
education and nonprofit organizations
whose primary purpose is the conduct of
scientific research You may purchase
personal property for the conduct of
basic or applied research if authorized
to do so in your assistance agreement
Before you purchase properly or
equipment with a unit acquisition cost of
$10,000 or more, you must receive the
award official's approval. Title will be
vested in you but may be limited as
provided in paragraph (a)(1) of this
section.
(1)	If EPA determines that it is in the
best interest of the Agency. EPA may
reserve the right to transfer the title for
personal property having a unit
acquisition cost of 31,000 or more to the
Federal Government or a third party,
within 120 days after project completion
EPA must identify such property in the
assistance agreement, or otherwise
notify you in writing that EPA reserves
the right to transfer the title
(2)	If EPA does not reserve the right to
transfer the title, you have no other
obligations or accountability to EPA
(b) Other recipients You may
purchase personal property with EPA
assistance funds if authorized to do so
in your assistance agreement Before
you purchase personal property with a
unit cost of $10,000 or more, you must
receive the award official's approval
Title will be vested in you, subject to the
following conditions
(1)	You musl use the property in the
EPA assisted project for which it was
acquired as long as needed, whether or
not the project continues to be
supported with EPA funds.
(2)	You must assure that EPA's
interest (the percentage of EPA's
participation in the total award) is
adequately reflected and protected in
compliance with all recordation or
registration requirements of the Uniform
Commercial Code or other applicable
local laws on ell nonexpendable
personal property with a unit acquisition
cost of $10,000 or more,
(3)	You must follow the property
management standards in $ 30 531.
(4)	You must follow the disposition
requirements in § 30 532, and
(5)	EPA reserves the right to transfer
the title for nonexpendable personal
property having a unit acquisition cost
of $1,000 or more to the Federal
Government or a third party within 120
days after project completion EPA must
identify such property in the assistance
agreement
5 30 531 What property management
standards must i follow for nonexpendable
personal property purchased with an EPA
award?
Nonprofit institutions of higher
education and nonprofit organizations
whose primary purpose is to conduct
scientific research are exempt from the
following standards All other recipients
must comply with the following property
management standards Recipients may
use their own property management
system if the system meets the following
minimum standards
(a)	Maintain accurate records
reflecting.
(1)	A description of the property,
(2)	Manufacturer's serial number,
model number, or other identification
number
(3)	Source of the properly, including
assistance identification number,
(4)	Whether title is vested in the
recipient orihe Federal Government,
(5)	Unit acquisition date and cost,
(0) The percentage of the Federal
share of the cost,
(7)	Location, use. and condition of
property and Ihe date the information
was recorded, and
(8)	Ultimate disposition data,
including sales price or the method used
to determine the price, or the method
used to determine current fair market
value where a recipient compensates
EPA for its share under { 30 532 of this
part.
(b)	Conduct a physical inventory of
property, and reconcile the results with
the property records, at least once every
two years Your inventory must verify
the current use and continued need for
the properly
(c)	Maintain a control system to
prevent loss, damage, or theft (You
must thoroughly investigate and
document any loss, damage, or theft of
nonexpendable personal property )
(d| Maintain adequate maintenance
procedures that ensure the property is in
good condition and that instruments
used for precision measurements are
periodically calibrated
(e)	Maintain proper sales procedures
which provide for competition resulting
in the highest possible return
(f)	Maintain identification of
Federally-owned property
{ 30.532 How do I dispose of personal
property?
When personal property is no longer
needed for the original project, you may
use it on other EPA projects If you do
not have other EPA projects, you may
use it on other Federal projects If you
wish to use the property on other than
Federally sponsored activities, you must
comply with the following requirements:
(a) Generally, if you purchased
nonexpendable personal property for
less than $1,000 per unit, you may either
keep it or sell it and keep the proceeds
However, if you are a profitmaking
organization, you may keep
nonexpendable personal property only if
you reimburse EPA for its proportionate
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45070 Federal Register / Vol. 48, No. 191 / Friday. September 30, 1983 / Rules and Regulations
share of the current fair market value of
the property.
(b)	If EPA does not reserve the right to
transfer Title under $ 30.530(a)(1), EPA is
still entitled to compensation on
nonexpendable personal property you
purchased for more than $1,000 (see
f 30 530(b)(5)). You may keep it.
provided you compensate EPA for its
proportionate share of the current fair
market value If you do nojwant to keep
the property, your project'officer will
give you instructions for disposition
(c)	If, at the end of you protect, your
have expendable personal property with
a total aggregate fair market value
exceeding $1,000, you may use the
property on other Federally sponsored
projects. If you do not use the property
on other Federally sponsored proiects
you must keep it or sell it, but in either
case you nvist compensate EPA for its
proportionate share of the current fair
market value.
9 30.535 May I purchase real property with
EPA awarded funds?
You may purchase real property
subject to the following conditions
(a)	The award official must approve
the purchase.
(b)	Except as provided in pdtvi raph
(e) of this section, you must use the real
property only for the purpose tor which
it was purchased under thp assistance
award
(c)	You complj with the requirements
in 40 CFR Part 4
(d)	You must also comply with 40 CFR
Part 35. Subpart I, if your award is a
wastewater treatment construction
grant
(e)	You must assure that EPA's
interest is adequately reflected and
protected in compliance with all
recordation or registration requirements
of applicable local laws on real
property
(f)	When it is no longer needed for the
original project
(1) You must get approval from EPA to
use the property for other Federally
supported projects or progams, or
• 2) You must contact EPA for
inductions on how to dispose of the
property. EPA may
(l) Permit you to retain title to the
property provided you compensate EPA
for its share or
(ii)	Direct you to sell the pioperty and
to compensate EPA for its share, less
your expenses, or
(iii)	Direct you to transfer the title of
the property to the Federal Government
and then compensate you based on your
percentage of participation in the
original cost of the project, which will be
applied to the current fair market value
of the property.
§ 30 536 How do I manage Federally-
owned property?
You must negotiate the use of
Federally-owned property with the
award official and comply with your
lease agreement and } 30 505(d) You
must inform the project officer of the
availability of the property when the
property is no longer needed for the
assistance project or when you have
completed the project EPA will give you
instructions on where to return the
property
§ 30 537 Are contractors required to
comply with EPA property policies?
Cenerally, contractors are not
required to comply with EPA property
policies However, if your contractors
acquired personal property with EPA
funds, and the subagreement states that
ownership vests in you or EPA, the
contractor must comply with EPA
property policies
{ 30.538 May I use General Services
Administration (GSA) supplies and
services?
You may not use GSA sources of
supplies and services, or excess
Government property Excess
Government property consists of
property under the control of any
Federal agency that is not required for
its needs
§ 30.540 Who will audit my project?
(a)	General EPA may perform pre-
award or interim audits, as well as a
final audit of your project If EPA audits
your project, EPA will rely to the extent
practicable on your audits conducted
under $ 30 510(g] [if done in accordance
with applicable audit standards) instead
of reauditing the same records.
(b)	State and local governments State
and local governments must comply
with the audit requirements in OMB
Circular A-102, Attachment P and other
appropriate documents. Under
Attachment P you must conduct an
audit at least once every two years to
evaluate the fiscal integnty of your
financial transactions and reports and to
determine compliance with the terms of
your assiatarr.e agreement You should
conduct the .. jdil on an organization-
wide basis You must submit a copy of
the audit to your cognizant Federal
agency. EPA will keep audit cognizance
over subagreempnts under the
wastewater treatment construction
grants program
(c)	Other recipients. The award
official may request a final audit after
the submission of, or the due dale of, the
final Financial Status Report (see
S 30 505(b)) Where your organization
has a cognizant Federal audit agency,
EPA will refer these audits to your
organization's cognizant Federal audit
agency Where OMB has not established
a cognizant Federal audit agency, EPA
staff may perform or arrange for the
audit to be performed
Subpart F—What Other Federal
Requirements Must I Compty With?
} 30.600 What Federal laws and policies
affect my award?
You must comply with all applicable
Federal laws
(a)	National Environmental Policy
Act You must comply with the National
Environmental Policy Act of 1969 (42
U.S C. 4321 et seq.) as amended and
other related environmental laws and
executive orders that require you to
assess the environmental impact of your
project See 40 CFR Part 8 for specific
requirements
(b)	Flood Disaster Protection Act If
your project involves construction or
property acquisition in a special flood
hazard area, you must comply with the
Flood Disaster Protection Act of 1973
(Pub L 93-234, December 13.1973) If
your project is located in a community
participating in the National Flood
Insurance Program (42 U S C 4001-4128)i
the Act requires you to purchase flood
insurance as a condition of receiving
EPA assistance If the community is nol
participating in the National Flood
Insurance Program and the special flood
hazard area has been designated by the
Federal Insurance Administration of the
Federal Emergency Management
Agency for at least one year, EPA will
not award assistance for your project
until the community enters the program
and flood insurance is purchased See 44
CFR Parts 59 through 79 for specific
requirements
(c)	Clean Air Act Section 306 of the
Clean Air Act, (42 (JSC. 7606). as
amended, and Executive Order 11738
prohibit EPA from awarding assistance
to you (with certain exceptions) if you
intend to use any facility on EPA's List
of Violating Facilities to complete work
on your agreement You must include a
clause in all subagreements that
requires the recipients of those
subagreements thpt requires the
recipients of those subagreements to
comply with the requirements of 40 CFR
Part 15 (see 40 CFR 33.1020).
(d)	Federal Water Pollution Control
Act Section 508 of the Federal Water
Pollution Control Act (33 U.S.C. 1388),
as amended, and Executive Order 11738
prohibit EPA from awarding assistance
to you (with certain exceptions) if you
intend to use any facility on EPA's List
of Violating Facilities to complete work
on your agreement. You must include a
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Federal Register / Vol. 48, No. 191 / Friday, September 30, 1983 / Rules and Regulations 45071
clause in all subagreementa to comply
with the requirements of 40 CFR Part 15
(see 40 CFR 33.1020). Section 13 of the
1972 Amendments to the Act prohibits
sex discrimination under any program or
activity receiving assistance under the
Act. See 40 CFR Part 12 for specific
requirements.
(e)	Civil Rights Act. You must comply
with Sec. 602, Title VI of the Civil Rights
Act of 1964, (42 U S.C. 2000d), and
related nondiscrimination laws and
Executive Order 11246. These
authorities prohibit you from excluding
any person from participating in,
denying them the benefits of, or
discriminating against them on the basis
of race, color, or national origin under
any program or activity involving
Federal financial assistance. See 40 CFR
Parts 7. a and 12 for specific
requirements.
(f)	Rehabilitation Act. You must
comply with Sec. 504 of the
Rehabilitation Act of 1973, (29 U.S.C.
794), as amended, which prohibits
discrimination on the basis of handicap
in Federally assisted programs.
(g)	Age Discrimination Act You must
comply with the provisions of the Age
Discrimination Act of 1975, (42 U.S C.
B101 et seq.), which prohibit
discrimination on the basis of age in
Federally assisted programs.
(h)	Title IX of the Education
Amendments of 1972 You must comply
with Title IX of the Education
Amendments of 1972, (20 U S C 1581 et
seq.) which prohibits sex discrimination
in Federally assisted education
programs.
(i)	Uniform Relocation Assistance and
Real Properly Acquisition Policies Act
You must comply with the Uniform
Relocation Assistance and Real
Property Acquisition Policies Act of
1970, (42 U S.C. 4601 et seq ), if your
project involves acquiring an interest in
real property and/or any displacement
of persons, businesses, or farm
operations. See 40 CFR Part 4 for
specific requirements.
(j) The Indian Se/f-Determmation and
Education Assistance Act You must
comply with the Indian Self-
Detennination and Education
Assistance Act of 1975 (P.L 93-638). If
your protect will benefit Indians, the Act
requires you to give Indians preference
in training and employment
opportunities and in the award of
subagreementa.
(k) The Hatch Act If you are a State
or local government recipient, you must
ensure compliance with the Hatch Act.
(5 U.S.C 1501 et seq.), as amended. The
Act requires State and local government
employees to comply with the
restrictions on political activities
imposed by the Act if their principal
employment activities are funded
wholly or in part by Federal assistance.
Sde 5 CFR Part 151 for specific
prohibitions and exemptions.
(1) Safe Drinking Water Act Section
1424(e) of the Safe Drinking Water Act
(42 U S.C 300h-3(e)), prohibits EPA from
awarding assistance to you if EPA
determines that your project may
contaminate a sole source aquifer which
will result in a significant hazard to
public health See CFR Part 149.
S 30.601 Are there restrictions on the iim
ot assistance funds tor advocacy
purpose*?
You may not use assistance funds for
(a)	Lobbying or influencing legislation
before Congress;
(b)	Partisan or political advocacy
purposes, or
(c)	An activity whose objective could
affect or influence the outcome of an
EPA regulatory or adjudicatory
proceeding.
} 30.603 What additional Federal law*
appty to EPA assisted construction
projects?
If you receive EPA assistance for a
project involving construction, you must
ensure compliance with the following
ddditional requirements'
(a)	The Davis-Bacon Act The Davis-
BaCon Act (40 U S.C 276a et seq.) as
amended, and implementing regulations
of the Department of Labor under Z9
CFR Part 5 require you to ensure that on
construction subagreements in excess of
$2,000, your contractors and
subcontractors pay wage9 to laborers
and mechanics at least equal to the
minimum wages specified by the
Secretary of Labor if required in the
program statute.
(b)	The Copeland Act The Copeland
(Anti-Kickback) Act, and the regulations
of the Department of Labor under 29
CFR Part 3 prohibit your contractors and
subcontractors from inducing any
person involved in your project to give
up any part of the compensation to
which that person is entitled under an
employment contract
(c)	The Contract Work Hours and
Safety Standards Act The Contract
Work Hours and Safety Standards Act
(40 U S C. 327 et seq ) and the
regulations of the Department of Labor
under 29 CFR Part 5 require your
contractors and subcontractors to pay
wages to laborers and mechanics on the
basis of an eight hour work day and 40
hour work week and to pay at least
time-and-a-half for work performed in
excess of these time limitations. Also,
the Act prohibits your contractors and
subcontractors from requiring laborers
and mechanics to work in hazardous,
unsanitary, or dangerous conditions (see
29 CFR Part 1926).
(d) Convict labor. You may not use
convict labor unless the convicts are on
work release, parole, or probation (see
18 U S.C. 436).
§ 30.010 What are my responsibilities (or
preventing and detecting fraud and other
corrupt practices?
(a)	You bear the primary
responaibility for preventing, detecting,
and prosecuting corrupt practices under
your assistance agreement.
(b)	If you become aware of
allegations, evidence, or the appearance
of corrupt practices, you must:
(1)	Immediately inform the EPA
project officer and the EPA Office of
Inspector General; and
(2)	Promptly pursue available State
and local legal and administrative
remedies.
930.611 Can I hire a person or agency to
solicit EPA assistance for me?
Yes, but you may not reimburse with
EPA assistance funds any person,
corporation, partnership, agency, or
other entity which solicits or secures
EPA assistance for you in exchange for
a commission, a percentage fee, a
brokerage fee, or a contingent fee.
S 30.612 May an EPA employee act a* my
representative?
(a)	An EPA employee may not
represent you as an agent or attorney in
any proceeding before EPA or any other
Federal agenGy in which the United
States is a party or has a direct or
substantial interest unless
(1)	You are a State or local
government agency;
(2)	The EPA employee is on detail to
the agency under the Intergovernmental
Personnel Act (5 U.S.C. 3371-3376); and
(3)	The representation takes place in
the context of carrying out programs for
which EPA and your agency have a joint
responsibility under the environmental
statutes
(b)	Except as provided for in
paragraph (a) of this section, an EPA
employee must not act as an agent or
attorney for a recipient or for a
contractor or subcontractor of a
recipient in any claim against the United
States.
8 30613 What Is EPA'* policy on conflict
ol Interest?
EPA's policy is to prevent personal or
organizational conflict of interest or the
appearance of such conflict of interest in
the award and adminiatration of EPA
assistance, including subagreementa.
-------
45072 Federal Register / Vol 48. No. 191 / Friday. September 30. 1983 / Rules and Regulations
(For restrictions on EPA employees, see
40 CFR Part 3 )
(a)	An official or employee of a
recipient may not participate in any
activity relating to EPA assistance if any
of the following persons or
organizations, to the official's or
employee's knowledge, has a financial
interest in the activity
(1)	The official or employee himself.
(2)	The official or employee's spouse
or minor child.
(3)	A partner of the official or
employee,
(4)	An organization (other than a
public agency) in which the official or
employee serves as an officer, director,
trustee, partner, or employee, or
(5)	Any person or organization with
whom the official or employee is
negotiating or has any arrangement
concerning prospective employment
(b)	Officials and employees of
recipients must avoid any action which
might result in. or create the appearance
of-
(1)	Using official position for private
gain,
(2)	Giving preferential treatment to
any person,
> (3) Losing independence or
impartiality.
(4)	Making an official decision outside
official channels, or
(5)	Undermining public confidence in
the integrity of F.PA programs
{30.615 May I employ a former EPA
employee and still receive assistance?
You may hire a former EPA employee
and still receiye assistance provided the
former employee complies with the
restrictions on post-employment
activities established by 18 U S C 207.
These restrictions are explained in
regulations issued by the Office of
Personnel Management under 5 CFR
Part 737 and EPA regulations under 40
CFR Part 3
Subpart G—Can An Assistance
Agreement Be Changed?
S 30.700 What changes to my assistance
agreement require a formal amendment?
You must receive from the award
official a formal amendment before
implementing-
(a) A transfer of an award to another
recipient;
(hi Changes in the objectives of the
proiectb
(c)	Changes in the assistance amount.
(d)	Substantial changes within the
scope of the project, or
(e)	A rebudgeting of the following:
(1) Amounts budgeted for either
construction or non-construction
activities if transferred from one activity
to the other,
(2)	Amounts budgeted for indirect
costs to absorb increases in direct costs,
or
(3)	Amounts budgeted for training
allowances if transferred to other cost
categories
} 30.705 What changes can ! make to my
assistance agreement without a formal
amendment?
Minor changes in the project work
that are consistent with the objective of
the project and within the scope of the
assistance agreement do not require the
execution of a formal amendment before
the recipient's implementation of the
change However, such changes do not
obligate EPA to provide Federal funds
for any costs incurred by you in excess
of the assistance amount, unless
approved in advance under { 30.700.
S 30.710 Can I terminate a part or a> of my
assistance agreement?
(aj You and EPA may terminate a part
or all of your assistance agreement,
when both parties agree that the
continuation of the project will not
produce beneficial results. You and the
award official must agree on the
conditions of the termination, the
effective date, and in the case of partial
termination, the portion to be
terminated EPA may unilaterally
terminate for cause your assistance
agreement under § 30 903 of this part
(b) EPA will pay you the Federal
share of allowable costs incurred up to
the date of termination and allowable
costs related to commitments you made
pnot to termination that you cannot
cancel
Subpart H—How Do I Close Out My
Project?
{ 30.800 What records and reports must I
keep attar I complete my protect?
You and your contractors must keep
all books, records, documents, and other
evidence (including accounting
procedures and practices and
subagreement documents) that track the
progress of your project in accordance
with the requirements under 8 30.501
130.802 Under what conditions will I ows
money to EPA?
(a) 1/ the award official determines
that you owe funds, you must reimburse
the Federal government that amount.
EPA will take appropriate legal and
administrative action to collect the
amount you owe the Agency If
reimbursement is not made In a timely
manner. EPA may offset the debt
against other funds payable to you
under an EPA or other Federal agency
assistance agreement if not explicitly
prohibited by another statute.
(b)	EPA will charge you interest and
penalty if you fail to pay within 30 day*
from the date of the Agency's final
decision (see Subpart L) The interest
rate will be the rate established by the
Secretary of Treasury in accordance
with the Treasury Fiscal Requirements
Manual 6-8020 20. The rates are
published quarterly in the Federal
Register. EPA will also charge you a
penalty charge of 8 percent of the debt
and will charge you its cost to handle
and process the debt.
(c)	The penalty and handling charges
in this section do not apply to State and
local governments, but the interest
charges do apply.
Subpart I—What Measures May EPA
Take for Non-Compliance?
! 30.900 What are the sanctions for non-
compliance?
If you do not comply with all of the
terms and conditions of your assistance
agreement, the award official may apply
any of the following sanctions:
(a)	Issue a stop-work order;
(b)	Withold payment;
(c)	Suspend or terminate your
assistance agreement for cause;
(d)	Annul your assistance agreement:
(e)	Debar or suspend you as an
eligible recipient,
(f)	Take other appropriate
administrative action, or
(g)	Institute judicial proceedings
g 30.001 What ere the consequences of s
¦top-work order?
(a)	A stop-work order requires you to
immediately stop the work or activities
described in the order and to take all
reasonable steps to minimize costs
incurred on the work The award official
will issue the order in writing. The order
will be in effect for forty-five days after
you receive it unless cancelled or
extended by mutual agreement between
you and EPA If the problem cannot be
resolved during the stop-work period
and EPA is likely to terminate or annul
the agreement the award official will so
inform you.
(b)	If the stop-work order is cancelled
and it caused any Increase in the cost of
and/or the time for completing the
project you may request an adjustment
in the project period, budget period, or
assistance amount You must submit a
request for adjustment to the project
officer within sixty days after the stop-
work order ended.
} 30.902 Whet are the oowsequencoa of
vviiftnotBHtQ piyiiMiu I
(a) The award official may withhold
payments when you fail to comply with
the tasks, reporting requirements, or
-------
Federal Register / Vol. 48, No. 191 / Friday, September 30, 1983 / Rules and Regulations 45073
|itions of your assistance agreement,
award official will provide you
reasonable notice in writing before
withholding payment.
(b)	The award official may withhold
only (he amount necessary to assure
compliance with your assistance
agreement
(c)	The award official may withhold
payment to the extent you are indebted
to the United States, unless the
collection of the indebtedness will
impair the accomplishment of the
project and the continuation of the
project is in the best interest of the
United States
} 30.903 What ere the consequences of
termination (or cause?
U) The award official may
unilaterally terminate your agreement in
whole or in part at any time before the
dale of completion, wherever he
determines that you have failed to
comply with the conditions of your
agreement The award official will
provide you an opportunity for
consultation before issuing a notice of
termination.
(b)	If EPA terminates your agreement,
the award official will notify you in
writing of his determination, the reasons
r the termination, and the effective
ite Upon receiving the termination
notice, you must stop work immediately
EPA will not reimburse you for any new
commitments you make after you
receive the termination notice
(c)	EPA will pay you the Federal share
of allowable costs incurred up to the
date of termination and allowable costs
related to commitments you made prior
to termination that you cannot cancel
§ 30 904 What ar« the consequences ot
annulment?
(a) The award official may
unilaterally annul in whole or in part
your assistance agreement in any of the
following cases
(1)	You have made no substantial
progress on the project without good
cause,
(2)	You obtained an assistance
agreement by fraud or
misrepresentation,
(3)	You are found to practice corrupt
administrative procedures,
(4)	You have inordinately delayed
project completion without good cause,
or
(5)	You have failed to meet the project
purpose to the extent that the
fundamental purpose stated in the
assistance agreement is frustrated
(bj If EPA intends to issue an
annulment, the award official will
inform you of the annulment in writing
The award official will provide you an
opportunity for consultation before
issuing a notice of annulment If your
assistance agreement is annulled, you
must return all funds received for the
project including those already
expended EPA may pursue other
available remedies under Federal, State,
and local laws
§ 30 90S May I appeal • termination, or
annulment?
You may appeal EPA's decision to
terminate or annul an assistance
agreement Within thirty days after the
notice of termination or annulment is
issued, you must file a written request
for appeal to the appropriate Assistant
or Regional Administrator. Your appeal
must follow the procedures under
Subpart L of this part
S 30 906 What are the consequences of
suspension of debarment?
EPA may suspend or debar you in
accordance with 40 CFR Part 32. You
may not receive assistance or a
subagreement if your name or
organization appears on EPA's Master
List of Debarred and Suspended Firms
and Individuals
Subpart J—Can I Get An Exception
("Deviation") From These
Regulations?
§30.1001 Will EPA grant any exceptions
to these regulations?
(a) On h case-by-casp basis, EPA will
consider requests for exceptions to these
regulations
|b) EPA may issue a "deviation" from
any of its assistance related regulations,
except for those that implement
statutory and executive order
requirements.
(c) The award official may "waive"
certain requirements of this subchapter
for foreign grants All provisions waived
will be stated in the assistance
agreement
$30.1002 Who may request • deviation?
You, your project officer, or an EPA
program office may request a deviation
from EPA regulations If you are the
initiator, you must send your written
requesl to your project officer if the
request is for a Headquarters program or
to the Regional Administrator for a
Regionally administered program, who
will then forward the request to the
Director. Grants Administration
Division, with a recommendation for
approval or disapproval
§ 30 1003 What Information must I Include
In a deviation request?
Your request must include the
following information
(a)	Your name, the assistance
identification number, date of award,
and the dollar value of the application
or award,
(b)	The section of the regulation from
which you need a deviation,
(cj A complete description of what the
deviation will do and a justification of
why the deviation is necessary, and
(d) A statement of whether the same
or a similar deviation has been
previously requested If 9uch a request
has been made previously, explain why
it was made and the outcome
S 30.1004 Who approves or disapproves a
deviation request?
(a)	The Director, Grants
Administration Division (GAD),
approves or disapproves your deviation
request Assistant Administrators in the
affected program areas must review and
concur on deviations affecting a class of
applicants or recipients.
(b)	If EPA approves the deviation
before an award, the revised
requirement will be included in your
assistance agreement. Approval of a
deviation before an award does not
guarantee an award
§ 30 1005 May I appeal a deviation
decision?
You may not appeal a deviation
decision under the procedures in
Subpart L of this part However, you
may request ihe Director of the Grants
Administr.ition Division to reconsider
his decision
Subparl K—What Policies Apply to
Patents, Data, and Copyrights?
§ 30 1100 What assistance agreements
are sub)ect to EPA patent rules?
Except for wastewater treatment
construction grants awarded under Tille
El of Ihe Clenn Water Act. as amended,
all EPA assistance agreements involving
experimentation, development, special
investigations, surveys, studies, or
research are subject to the EPA patent
rules
§ 30 1101 What Federal patent laws or
policies govern my assistance agreement?
The nature of your organization will
determine which laws and policies
govern your assistance agreement.
(a)	Small business firms and nonprofit
organizations, including educational
institutions, are entitled to the benefits
of. and must comply with, Pub L 96-517
(35 U S C Chapter 38)
(b)	A profitmaking firm that is not
defined as a small business firm, and
whose assistance agreement is funded
under section 6914 of the Resource
Conservation and Recovery Act
-------
45074 Federal Register / Vol 48, No. 191 / Friday. September 30. 1983 / Rules and Regulations
(RCRA). must comply with Section
8981(c) of RCRA Sec Federal
Procurement Regulations, 41 CFR Part 1-
9. specifically 1-9 107-5(a) for the
required patent rights clause
(c) If you are neither a small business
firm nor a profitmaking firm with an
award under section 6914 of RCRA. you
are subject to the guidelines in the
President's Memorandum on
Government Patent Policy issued on
February 18,1983 (Weekly Compilation
of Presidential Documents, vol 19.no 7.
page 252), and, therefore, must comply
with Pub L 96-517, 35 U S C Chapter
38
& 30 1102 What are my Invention rights
and my reporting requirements If my award
Is other than an award under section 6914
of RCRA?
You mu9t report all inventions to EPA
and decide whether you wish to retain
domestic and/or foreign rights to your
invention You must notify EPA of your
decision within the time period specified
in the patent rights clause included in
your assistance agreement If you do not
decide to retain rights to your invention
within the time specified, EPA may
acquire title from you If you return title,
EPA acquires a royalty-free, irrevocable
license to use the invention throughout
the world by, and on behalf of. the
Federal Government
5 30 1103 What are my Invention rights
and obligation* If I am a profttmaklng firm
with an award under section 6914 of
RCRA?
If you are not a small business and
your assistance agreement does not
indicate otherwise, you must comply
with the patent rights clause, entitled
"Patent Rights Acquisition by the
Government" (41 CFR 1-9 107-5(a)),
which implements section 6981(c) of
RCRA Under this section, EPA normally
obtains title to your invention
$ 30.1104 Can I get a waiver from section
6981(c) of RCRA?
On a case by case basis, you may ask
EPA for a deviation from section 6981(c)
of RCRA You must follow the
procedures in Subpart ]
5 30 1106 Do the patent rules apply to
subagreements?
(a) Yes. if the subagreements involve
experimentation, development, special
investigations, surveys, studies, or
research, you must include the
appropriate patent rights clause in the
subagreement All business firms and
nonprofit organizations awarded
subagreements are entitled to the
benefits and must comply with Public
Law 96-517 and the President's
Memorandum on Government Patent
Policy of February 13. 1983, except that a
party to a subagreement awarded under
section 6914 of RCRA which is a
profitmaking Tirm not defined as a sm.ill
business firm, is subject to { 30 1101(b)
(b) Subagreements must be in
compliance wilh the "Patent and data
and copyright clause" in 40 CFft Part 33,
and generally must contain the same
patent rights clause as contained in your
assistance agreement
5 30.1108 Does EPA require any type of
licensing of background patents that I
own?
Generally. EPA does not require such
licensing However, in awards subject to
Pub L 96-517 the Administrator may
approve such a requirement under
exceptional circumstances
$30.1112 Are there any other patent
ctaueea or conditions that apply to my
award?
Your award is subject to both the
Notice and Assistance Clause and the
Authorization and Consent Clause in
Appendix B to this part
$30.1130 What rights In data and
copyrights does EPA acquire?
All assistance agreements and
subagreements are subject to Appendix
C As set forth in Appendix C. the
Federal Government has an unrestricted
right to use any data or information
generated using assistance funds or
specified to be delivered to EPA in the
assistance agreement The Federal
Government has a royalty-free,
irrevocable license to use any
copyrighted data in any manner for
Federal Government purposes
Subpart L—How Are Disputes
Between EPA Officials and Me
Resolved?
} 30 1200 What happens If an EPA official
and I disagree about an assistance
agreement requirement?
(a)	Disagreements'should be resolved
at the lowest level possible
(b)	If you can not reach an agreement,
the EPA disputes decision official will
provide you with a written final
decision The EPA disputes decision
official 18 the individual designated by
the award official to resolve disputes
concerning your assistance agreement
(c)	The disputes decison official
decision will constitute final agency
action unless you file a request for
review by registered mail, return receipt
requested, within 30 calendar days of
the dale of the decision
§30.1205 If I file a request for review, with
whom must I file?
(a) For final decisions issued by an
EPA disputes decision official at
Headquarters, you must file your
request with the Assistant
Administrator responsible for the
assistance program
(b) For final decisions issued by a
Regional disputes decision official, you
must file your request for review with
the Regional Administrator If the
Regional Administrator issued the final
decision, you must request the Regional
Administrator to reconsider that
decision
$30 1210 What must I Include In my
request for review or reconsideration?
Your request must include
(a)	A copy of the EPA disputes
decision official's final decision,
(b)	A statement of the amount in
dispute,
(c)	A description of the issueB
involved, and
(d)	A concise statement of your
objections to the final decision
$30 1215 What are my rights after I file a
request lor review or reconsideration?
(a)	You may be represented by
counsel and may submit documentary
evidence and briefs for inclusion in 
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Federal Register / Vol. 48, No. 191 / Friday, September 30, 1983 / Rules and Regulations 48075
(2) A concise statement of the reasons
Vhy you believe the decision is
erroneous.
(b)	If the Assistant Administrator
decides not to review the Regional
Administrator's decision, the Assistant
Administrator will advise you in writing
that the Regional Administrator's
decision remains the final Agency
action.
(c)	If the Assistant Administrator
decides to review the Regional
Administrator's decision, the review will
generally be limited to the written
record on which the Regional
Administrator's decision was based.
The Assistant Administrator may allow
you to submit briefs in support of your
petition for review and may provide you
an opportunity for an informal
conference In order to clarify factual or
legal issues, After reviewing the
Regional Administrator's decision, the
Assistant Administrator will issue a
written decision which will then become
the fii)al Agency action.
§ 30.1230 Will I be charged interest If I
owe money to EPA?
(a)	Interest will accrue on any
amounts of money due and payable to
EPA from the date of the final Agency
action If you are not a State or local
government, you will also be charged a
penalty of 6 percent of the amount due,
and you will be charged the cost to
handle and process the debt (See
J 30 802) Only full payment of the debt
within 30 days from the date of the final
Agency action will prevent EPA from
charging the interest, penalty, and
handling charges on the amount
outstanding
(b)	State and local government
recipients are not subject to the penalty
and handling charges in this section, but
are subject to the interest charges.
5 30.1235 Are there any EPA decisions
which may not be reviewed under this
subpart?
You may not appeal
(a)	Disapprovals of deviations under
Subpart |,
(b)	Bid protest decisions under Part
33,
(c)	National Environmental Policy Act
decisions under Part 6,
(d)	Advanced wastewater treatment
decisions of the Administrator, and
(e)	Policy decisions of the EPA Audit
Resolution Board.
Appendix A—EPA Programs
The following chart identifies EPA's
assistance programs and the lypes of awards
(grants or cooperative agreements) that EPA
will award under these programs
CttAlOQ
Ol
Fodwal
be
nut-
anoe
No
Titte
Fundng
mecha
nrsm
66001
Am Pollution Control Program
CI
66 003
A* Potobon Control Manpower Trem


Ing
(M
66 006
Air PodMbon Control—Tecftncal Tram


l"9
(')

am PoOuton Control Feflovshps
n
66418
Constructor Grants fc* Wastewater


Treatment Wyki
<•)
66419
water PofluOon Control—Stale and in-


terstate Program
n
66420
Water Pollution Control—Stale and


local Manpower Pro£am Develop-
Cl

Water Pollution Control FeOowstaps .
1 I
r>
66426
Water Pollution Control—Proless»«tl


Tranng _ —
t'i
66432
•Stale Pubbc Water System &4>orva


taction Program- ... _ _
t'i
66435
Water Pollution Control -tafca Restore


ten Cooperative Agreements
0
66438
Construction Management Assistance
0
66451
Hazardous Waste Management Finan-


cial Assrstance to State*
n
06454
Water Quafty Management Pfenning
CI

Safe Drinking Water Professional


Tranng
0

Sale Drinking Water Occupational


Traxwig
c>

Sele Dnniung Water Fetiowsftps
0
66 500
Enwonmentai Protectory—Consoli-


dated Research
t'i
66 501
Am Position Control Research.
0
66 502
Pesbodes Control Research
t'i
66 504
Sobd Waste Disposal Research
c>
66 505
Water Pollution Control—Research


Development and Demonstration
0
66 506
Safe DrmVmg Water Research and


Demonstration
t'i
66 507
Tone Substances Research
Is)
66 600
Environmental Protection Consolidated


Grants—Program Support
CI
66 603
Loan Guarantees for Construction o


Treatment WorKi
C)
66 700
Pesticides Enforcement Program


Grants
C)

State inventories of Uncontrolled Ma2


artious Waste Sees
C)
66 602
Hazardous Substance Response Trust


Fund (Supertund)
C)
1 Cooperat/ve Apeement
a Grant Agreement
•	Either
•	loan of Fedowshv
Appendix B—Patents and Copyrights Clauses
Notice and Assistance Clause
(a)	The recipient must report to the project
officer, promptly and in reasonable written
detail, each known notice or claim of patent
or copyright infringement on this agreement
(b)	In the event of any claim or suit against
the Government, on account of any alleged
patent or copyright infringement arising out
of the performance of this agreement or out of
the use of any supplies furnished or work or
services performed hereunder, the recipient
must furnish to the Government, when
requested by the project officer, all evidence
and information In possession of the recipient
pertaining to such suit or claim Such
evidence and information must be furnished
at the expense of the Government except
where the recipient has agreed to indemnify
the Government
(c)	The recipient must include in each
subagreement (including any lower tier
subagreement) in excess of $10 000 a clause
substantially sin- lar to the foregoing
provisions
AuthQnzation and Consent Clause
EPA gives lis authorization and consent for
all use and manufacture of any invention
described in and covered by a patent held by
the United States in the performance of an
assistance agreement and any subagreement
Appendix C—Rights In Data and Copyrights
(a)	The term "subject data" as used in this
clause includes writing, technical reports,
sound recordings, magnetic recordings,
computer programs, computerized data bases,
data bases in hard copy, pictorial
reproductions, plans, drawings, including
engineering or manufacturing drawings,
specifications, or other graphical
representations, and works of any similar
nature (whether or not copyrighted) which an
applicant submits or which EPA specifies to
be delivered under this assistance agreement
or which a recipient develops or produces
and EPA pays for under this assistance
agreement The term does not include
financial reports, cost analyses, and other
information incidental to assistance
agreement administration.
(b)	Except as may otherwise be provided in
this assistance agreement, when publications,
films, or similar materials are developed
directly or indirectly from a project supported
by EPA, the author is free to arrange for
cop> right without approval However such
materials shall be subject to the provisions of
40 CFR 30 518 The recipient agrees to and
does hereby grant to the Government, and to
its officers, agents, and employees acting
within the scope of their official duties, a
royally-free, nonexclusive, and irrevocable
license throughout the world for Government
purposes to publish, translate, reproduce,
deliver, perform, dispose of and to authorize
others so to do, all subject data, or
copyrightable matenal based on such data,
covered by copyright now or in the future
(c)	The recipient shall not include in the
subject data any copyrighted matter without
the written approval of the project officer,
unless he provides the Government with the
written permission of the copyright owner for
the Government to use the copyrighted
matter in the manner provided in paragraph
(b)above
(d)	Nothing contained in this Appendix
shall imply a license to the Government
under any patent or be construed as affecting
the scope of any license or other nghts
otherwise granted to the Government under
any patent
(e)	Unless otherwise limited below, the
Government may. without additional
compensation to the recipient, duplicate, use.
and disclose in any manner and for any
purpose whatsoever, and have others so do,
all subject data
(f)	Notwithstanding any provisions of this
assistance agreement concerning inspection
and acceptance, the Covemment shall have
the nght at any time to modify, remove,
obliterate, or ignore any marking restricting
disclosure of subject data if the marking is
not authorized by the terms of this assistance
agreement
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45076
^^^^Regi8teMM/ol^8^Na^91^^riday^Septembei^0^983^MRule^n^^egulatlona^
(g)	Data need ndt be furnished for stundard
commercial items or services which are
inormally sold, or have been sold, or offered
to the public commercially by any supplier
and which are incorporated as component
parts in or to be used with the product or
process being developed or investigated
under this assistance agreement, if in lieu
thereof identification of source and
characteristics (including performance
specifications, when necessary] sufficient to
enable the Government to procure the part or
practice the process, or acquire an adequate
substitute, are famished
(h)	In addition to any data specified
elsewhere in this assistance agreement to be
furnished to EPA. the recipient shall retain
and, upon written request of the project
officer at any time during project
performance or within two years after project
performance is .completed, deliver any
subject data not previously delivered
Appendix D.—Part 80 Reporting
Requirements
^pfactton In EPA luuanc* and afphcatm
(1} EPA Form 9700-12 "Apptcafaon tor Feder-
al Asastance (Raaaqreh. Tranng A Oemon-
strsfcon)' (See 190 902)
(2) EPA Form 5700-20A "EPA Asaatance
Atwnont/Apendmanr (See §30 30?)
CD EPA Farm 5700-200 Aualtnce Amend
merri (Option^." (See 130 302)
(4) CPA Form 5700-30 "Prevpfacttnft lev
Fedsrtf Mstetariri (Opfaonel)- (See
(30J02) - _ .
OM8
dear wee
NO
Appfccation for EPA assistance and appfccation
related forms
1 2010-0004
>2010-0004
1 2010-0004
SOiO-0004
(5)	EPA Form 5700-31 Apphcaton for Feder
ai Assistance (Short Form) (See 9 30 302)
(6)	EPA Form 5700-32 Application for FeOer
el A.isatance (Constructor) ' (See
f 30 302)
(7)	EPA Form 5700-33 ' Apphcabon tor Feder
ai Assistance (Nonconstrucbon Programs)
(See 930 302)
(8)	EPA FeOowsft? Forms.
(a)	EPA Form 5770-2 "Fefiowth? Appfc-
cebon (See 9 30 302)
(b)	EPA Form 5770-3 "Feflowah^ Fac*-
bea and Commoner* Statement" (See
9 30302)
(C) EPA Form 5770-4 Teflonh* Appfc-
cant Quakficattona lnqi*y' (See
{ 30302)
(d)	EPA Form 5770-5 "Agency Feflowshp
CertScabon' (See 930.302)
(e)	EPA Form 5770-6 FeBowsh*
Amendment' (See 930 302)
(f)	EPA Form 5770-7 "FsAowshe Acbve-
bon Notice* (See 930 302)
(q) EPA Form 5770-6 TeOowsMp Agree-
menT (See |» 302)
Oi) EPA Form 5770-9 "EPA Fettowshp
Ternw-tabon Nobce" (See 9 30 302)
(9)	SF-266 ftnencieJ Status Report" (See
9 30 505)	~ -
(10)	SF-270 Tie que ft tor Advance or Reon-
tanement (Soq 9 30 400) -
(11)	SF-271 *OuSay Report and Request tor
RavTtMffsemenl lor Construction Programs
(See |30 505)
(12)	SF-272 'Federal Cash Transactions
Report (See 9 30 400)
B Other Reporting Requirements and
Processes
(1)	Establish a eeperat^ bant account W the
laopwm usee me letter of creat method of
payment
(2)	EstaUsft oftaaf records for each asscsi-
ance award and keep them for apeoftad
periods of tvne
OUfi			
Appt2010-0004
'2010-0004
•2010-0004
•2010-0004
•	2010-0004
1 2010-0004
<2010-0004
>2010-0004
•	2010-0004
1 2010-0004
>2010-0004
1 2010-0004
2010-0004
(3)	Develop and mptomeni quality assuance
pracbces to meet protect obfectives and
mtnrmaa loss of data due to oui-of-control
conations or man unctions
(4)	Submit mtenm and final progress reports
(5)	Raport el inventions dovalopod with EPA
aseatsnce fundi
(6)	Report on eu Federally-owned property
used on e protect
(7)	Marten a hnancial management system
that consistency apphee accepted eccount
ng pmoples and practices
(9)	Comply with EPA peer and efrnmtrabvo
review requrements
(10)	Obtam EPA s wntten authorization to use
the rec^ent t own employees or equpment
tor construction, construcborweiated ectt*.
ties or tor repeat or wnprovements to a
fadilty ("force account")
(11)	Obtam EPA's approval betore puxhasng
property or equpment with a urst ecquston
cost of HO 000 or more
(12)	Comply wrth certain property manage-
ment standards
(13)	Comply with EPA reqmments Mien dm-
posing of property wth a pveftase pnee of
II 000 or more
(14)	Obtam EPA approval tor the purchase of
(15)	Compfy wth EPA requrements tor man-
agement of FedereDy-owned property
(16)	Request EPA approve* to dewate Irom
EPA regulators
(17)	FoUow curiam procedures to appeal an
award oftoai's written mat denwon on e
dispute over the requrements « an amt-
ance agreement
OM8
No
'OM6 Clearance Number 2010-0004 was cubmtted to
OM8 tor a tome exteneon on September 19 19B3 We *4
puttsh 0M9 a extenaxm « the Feosul Rcoaster
1 MAS be a^vnttad to OMB
' No clearance requsad
(FR Doc 63-20450 Filod 9-30-83 6.45 am)
SUXMQ COM 6560-M-ll
* U4. oevernmtiit pnntlft« OHIok 1SSS—411-444/JOeS
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&EPA TRANSMITTAL
ADDRESSEE
cuusipication no.-57 00 CHG 1
APPROVAL OATC. 7/12/85
ASSISTANCE ADMINISTRATION MANUAL
1.	PURPOSE. This Transmittal provides additional and revised
material for the Assistance Administration Manual.
2.	EXPLANATION. New material provided consists of a glossary
of financial assistance terms, provided as Chapter 2, GLOSSARY,
and a GENERAL INDEX. A Checklist of EPA Transmittals, EPA Form
1315-4 is also included.
3.	FILING INSTRUCTIONS. Post receipt of this EPA Transmittal
on the Checklist in front of the Manual. Place the attached
Chapter 2, GLOSSARY in its proper sequence. Insert the GENERAL
INDEX at the end of the Manual.
Remove Pages	Insert Pages
Page ii	Page ii
Chapter 2
Index pages 1 thru 3
Gar	ctor
Man__	^anization Division
ORIGINATOR
Grants Administration Division/Office of Administration
EPA Form 1116-12 (flaw. 7-M) REPLACES EPA FORMS 131 £.1A AMO THE PREVIOUS EDITION OF 131S 12.
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CHECKLIST OF EPA TRANSMITTALS
TITUE
Assistance Administration Manual
When kept current, this checklist permits the user to see at a glance whic
:h transmittals have been filed.
SERIES
SCRIES
SERIES
NUMBSA
OATS
INI*
tial
NUMBS*
DATE
INI*
TIAL
NUMBER
OATE
INI-
TIAL



































































































































































































1 1



















EPA Form 1315-4 (R»» 7-73>	previous editions are obsolete
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5700
ASSISTANCE AIKEN IS TRATION	7/12/85
CHAPTER	CHAPTER
TITLES	NUMBERS
PROJECT ADMINISTRATION
PAYMENT PROCEDURES				33
fKOJECT CHANGES		34
DISPUTES RESOLUTION		35
DEVIATIONS		36
RECIPIENT REPORTING		37
AUDIT		38
DEALING WITH NONCOMPLIANCE AND HIGH RISK PARTICIPANTS		39
CLOSEOUT OF ASSISTANCE AGREEMENTS		40
RECORDS RETENTION		41
(RESERVED)		42
(RESERVED)		43
PERFORMANCE MJNITORING
PROJECT OFFICER RESPONSIBILITIES				44
(RESERVED)		45
OTHER
FREEDOM OF INFORMATION			 *	*		46
(RESERVED)		47
(RESERVED)		46
(RESERVED)	;		49
(RESERVED)	'		50
INTERAGENCY (LAG) AGREEMENTS
MANAGING INTERAGENCY AGREEMENTS		51
LOANS AND LOAN GUARANTEES
LOANS		61 (Reserved
LOAN GUARANTEES.					71 (Reserved)
GENERAL INDEX
ii
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ASSISTANCE ADMINISTRATION
CHAPTER 2 - GLOSSARY
1. FINANCIAL ASSISTANCE TERMS AND DEFINITIONS.
Acquisition Post. The net invoice unit prioe of the property including
the cost of any modifications, attachments, accessories, or auxiliary apparatus
necessary to make the property usable for the purpose for which it was acquired.
Other charges such as for taxes, duty, protective in-transit insurance, freight,
or installation shall be included in or excluded fran acquisition cost in
accordance with the recipient's regular accounting practices.
tetive Project. A project for which assistance funds have been awarded,
and whose project and budget periods have not expired.
Affiliate. Any person (individual, organization, or unit of government)
whose governing instruments require it to be bound by the decision of another
person or whose governing board includes enough voting representatives of the
other person to cause or prevent action, whether or not the pcwer is exercised.
It may also include persons doing business under a variety of names, or where
there is a parent/subsidiary relationship between persons.
Allocable Posts. Costs that are assignable or chargeable under an
assistance agreement, to one or more cost objectives in accordance with the
relative benefits received or other equitable relationship. A oost is alloc-
able to a project if it is incurred specifically for the project; benefits
both that project and other work and can be distributed to them in reasonable
proportion to the benefits received; or, is necessary to the overall operation
of the recipient although a direct relationship to any particular cost
objective cannot be shown.
Allowable Costs. Those project costs that are: eligible, reasonable,
necessary, and allocable to the project; permitted by the appropriate Federal
cost principles; and approved by EPA in the assistance agreement.
AmenAnent. (See Formal anerxinent.)
Annulment. The nullification of a Federal assistance agreanent requiring
the return to EPA of any funds received under the agreement.
Applicant. Any entity that files an application or unsolicited proposal
for EPA financial assistance.
Application. A formal written request for EPA financial assistance that
is submitted on a prescribed form and is sufficiently complete to permit evalu-
ation.
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ASSISTANCE AEMINISTRATION
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Approval Official. An EPA official delegated the authority to approve or
reject applications for assistance and the technical/progranraatic terns and
conditions of proposed assistance projects. (Also see "Award Official.")
Architectural or Engineering (A/E) Services. Consultation, investigations,
reports, or services for design-type projects within the scope of the practice of
architecture or professional engineering as defined by the laws of the State or
territory in which the recipient is located.
Assistance .Agreement. The legal instrument EPA uses to transfer money,
property, services, or anything of value to a recipient to aecanplish a public
purpose. It is either a grant, a loan, a grant/loan combination, or a coop-
erative agreement and will specify: budget and project periods; the Federal
share of eligible project costs; a description of the work to be accanplished;
and any special conditions.
Assistance Amount. The amount of EPA funds obligated by the teems of an
assistance agreement (Also see "Obligation.")
Augmentation. An increase (or decrease) in the Federal funding of an
assistance agreement through a formal amendment where the nature of the project
and the scope of work remain unchanged. (Also see "Revision.")
Award. The act of executing an assistance agreement.
Award Official. The EPA official delegated the authority to execute
assistance agreements. (Also see "Approval Official.")
Budget. The financial plan for expenditure of all Federal and non-Federal
funds for a project as proposed by the applicant, negotiated and approved by
the Award Official.
Budget Period. The length of time EPA specifies in an assistance agreement
during which the recipient may expend or obligate Federal funds.
Building. The erection, acquisition, alteration, remodeling, improvement
or extension of wastewater treatment works.
Cash Contribution. Actual non-Federal dollars that a recipient expended
for goods and services and real or personal property used to satisfy cost
sharing requirements. ("See In-kind contribution.")
Closeout. The final EPA actions to assure satisfactory completion of
project work and administrative requirements; the sutmission of acceptable
required final reports; financial settlement; the resolution of any outstanding
issues under an assistance agreement; and the notification of th§ recipient.
(For project and administrative completion of WWT Construction grants, see
description of data elements N5, N8, N9 and PO in the GICS User's Manual.)
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ASSISTANCE ADMINISTRATION
570fl
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Caranitment of Funds. The official reservation of funds and authorization
to incur obligations.
Completed Agreement. An assistance agreenent for which the project period
and final budget period have expired. A completed agreement remains open until
final reports sure received and approved and any other closeout actions are
coupleted. (For VWT Construction grants also see GICS data elements N5, Project
Ocnpletion and N8, Administrative Canpletion.)
Oanpleted Project. (See "Completed Agreement.")
Consolidated Assistance. An assistance agreement awarded under more than
one EPA program authority. Applicants for consolidated assistance submit only
cne application.
Construction. Erection, building, alteration, remodeling, improvement, or
extension of buildings, structures or other property. Construction also includes
remedial actions in response to a release, or a threat of a release, of a
hazardous substance into the environment as determined by the Comprehensive
Environmental Response, Compensation, and Liability Act of 1980.
Continuation. An extension of an assistance agreement for an additional
funding/budget"period for1 a project the Agency initially 'agreed to fund for a
definite-rrunber of years. (See "Continuation Award.")
Continuation Award. An assistance agreenent after the initial award, for
a project which has more than cne budget period in its approved project period.
For continuing envirormental program support to a State, interstate, or local
agency, any assistance award after the first.
Continuing Environmental Program. EPA pollution control programs which
will not be canpieted within a definable time period.
Contractor. Any party to whan a recipient awards a subagreement.
Cooperative Agreement. An assistance agreement in which substantial EPA
involvement is anticipated during the performance of the project (does not
include fellowships). (Also see Grant agreement.)
Cost Analysis. The review and evaluation of each element of subagreement
cost to determine reasonableness, allocability and allowability.
Cost Share (recipient's).' The portion of allowable project costs that a
recipient contributes toward canpleting its project using non-Federal funds.
The cost share may include in-kind as well as cash contributions. (Sanetimes
referred to as "non-Federal share", or "matching share".)
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ASSISTANCE ADMINISTRATION
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Debarment. An action taken by the Director, Grants Adninistration
Division under 40 CFR §32.206 to deny an individual, organization or unit of
government the opportunity to participate in EPA assistance or to receive
subagreenents.
Deviation. Authorization in writing frcm the Director, Grants Administration
Division granting a recipient an exception fran the requirements of a regulatory
provision which is not based on a requirement of a statute or Executive Order.
Direct Costs. Those costs that can be identified specifically with a
particular cost objective and are so charged. (Also see "Indirect costs.")
Disputes Decision Official. The individual designated by the Award Official
to resolve disputes concerning assistance agreements under 40 CFR 30.1200.
Eligible Costs. Those costs in which Federal participation is authorized
by applicable statutes. (See "Allowable costs.")
Environmentally Related Measurements. Any data collection activity or
investigation involving the assessment of chemical, physical, or biological
factors in the environment which affect hunan health or the quality of life.
The following are exanples of environmentally related measurements: (a) A
determination of pollutant concentrations fran sources or in the ambient
envirorment, including studies of pollutant transport and fate; (b) A deter-
mination of the effects of pollutants on human health and on the environment;
(c)	A determination of the risk/benefit of pollutants in the envirorment;
(d)	A determination of the quality of environnental data used in econanic
studies; and (e) A determination of the environnental impact of cultural and
natural processes. (See "Quality assurance program plan.")
Excess Property. Any property under the control of EPA which is no longer
required to meet EPA's needs but which may be required by another Federal
agency. (See "Surplus property.")
Expendable Personal Property. Tangible personal property with a useful
life of less than two years and/or an acquisition cost of less than $500.
(Also see "Nonexpendable Personal Property".)
Expenditures. (See "Outlays.") (Also see "Unliquidated Obligations.")
Extension. The addition of time to an approved budget/project period,
granted in response to a written and justified request, and documented by a
formal amerxfaent of the agreement. Extensions &re most often "no-cost", i.e.,
with no additional funding by EPA.
Force Account Vibrk. The use of the recipient's own employees or equipment
for construction, construction-related activities (including Architectural and
Engineering (A&E) services), or for repair or improvement to a facility.
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ASSISTANCE ADMINISTRATION
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Foreign Grant (project activities outside the U.S.). An EPA award of
assistance when all or part of the project is performed in a foreign country
by (1) a U.S. recipient, (2) a foreign recipient, or (3) an international
organization.
Formal Amendnent. A written modification of an assistance agreement signed
by both the Award Official and the authorized representative of the recipient.
Grant Agreement. An assistance agreement that does not substantially involve
EPA in the project and where the recipient has the authority and capability to
ccmplete all elements of the program (does not include fellowships). (Also
see "Cooperative agreement.")
Grantee. (See Recipient.)
Indirect Post. Any costs that are incurred for cannon objectives and which
cannot be directly charged to any single cost objective. These costs are
allocated to the cost objectives benefited based on a fair method of approxima-
tion. Indirect costs are also referred to as overhead or burden costs.
Indirect Cost Rate. A calculated ratio of indirect cost to direct cost
established for ease in establishing the indirect costs to be allocated to
assisted activities based upon the known direct costs of those activities.
In-kind Contribution. The value of a non-cash contribution to meet a recip-
ient's cost sharing requirements. An in-kind contribution may consist of charges
for real property and equipment or the value of goods and services directly bene-
fiting the EPA funded project. Note that the Assistance Amount may also include
an EPA in-kind contribution. (See "Cost Sharing" and "Cash Contributions.")
Intergovernmental Agreement (IAG). Any written agreement between units of
government under which one public agency performs duties for or in concert
with another public agency using EPA assistance. This includes substate and
interagency agreements.
Liquidation. The process through which a recipient pays off an obligation
in full. (See "Obligation.")
Maintenance of Effort. A requirement contained in certain legislation or
regulations that a recipient must maintain/contribute a specified level of
financial effort in a specified area in order co receive Federal assistance
funds, which ensures that those Federal funds are used to supplement, but not
supplant, expenditures of the recipient's funds.
Master List. EPA's central list containing the names of individuals and
other entities ineligible to participate in EPA assisted programs because they
are suspended, debarred or under a voluntary exclusion.
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ASSISTANCE ADMINISTRATION
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Matching Share. (See "Cost Share.")
Minority Business Enterprise. A minority business enterprise is a business
which is: (a) certified as socially and economically disadvantaged by the Snail
Business Adninistration, (b) certified as a minority business enterprise by a
State or Federal agency, or (c) an independent business concern which is at least
51 percent owned and controlled by minority group member(s).
Minority Group Member. An individual who is a citizen of the United States
and one of the following: (a) Black American; (b) Hispanic American (with
origins from Puerto Rico, Mexico, Cuba, South or Central America); (c) Native
Anerican (American Indian, Eskimo, Aleut, native Hawaiian), or (d) Asian-Pacific
American (with origins frcra Japan, China, the Philippines, Vietnam, Korea,
Samoa, Guam, the U.S. Trust Territories of the Pacific, Northern Marianas, Laos,
Cambodia, Taiwan or the Indian subcontinent).
New Project. A project that EPA is funding for the first time.
Nonexpendable Personal Property. Personal property with a useful life of
at least two years and an acquisition cost of $500 or more (40 CFR 530.200).
Nonrecurrent Expenditures. (Reserved.)
Obligation. The act of obligating funds for expenditure. Also, the amount
obligated.
Obligation (by EPA). The amount of Federal funds which EPA, by the excjtion
of an assistance agreement or amendment, legally makes available for obligation
and expenditure by a recipient
Obligation (oy a recipient). The anounc of runas wnicn a recipient legally
earmarks for expenditure through orders placed, payrolls, subagreenents awarded,
travel authorizations, and other transactions.
Official File. The administrative file for each assistance agreement (or
each application or unsolicited proposal) that is established and maintaired
by the appropriate EPA Assistance Administration Unit and/or State office
when provided for under a Delegation Agrearent. (The official technical file
ana the official financial management file both complement the official admini-
strative file.)
Outlays. The liquidation (payment) of obligations when checks are issued
or cash is disbursed. The terms expenditures and net disbursements are fre-
quently used interchangeably with tne term outlays.
Qjtlays, EPA's. The sum of actual net disbursements of EPA flinds.
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ASSISTANCE ADMINISTRATION
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Outlays, Recipient's.
(cash basis). The sum of a recipient's actual cash disbursements
for goods and services, the amount of indirect expense charged, the value of
in-kind contributions applied, and the amount of cash advances and payments to
contractors.
(accrued basis). The sum of a recipient's actual cash disbursements
for goods and services, the amount of indirect expense incurred, the value of
in-kind contributions applied, and the net increase (or decrease) in the amounts
cwed by the recipient for goods and other property received and for services
performed by employees, contractors, subgrantees, and other payees.
Output. An activity or product which the applicant agrees to canplete
during the budget period.
Person. Any individual, organization or unit of government that is or may
become eligible to receive EPA assistance, or an employee of such organization
or unit of government. It also means any individual or organization that is
or may became eligible to receive a subagreement or intergovernmental agreement.
Personal Property. Property other than real property. It may be tangible
(having physical existence), such as equipment and supplies, or intangible (having
no physical existence), such as patents, inventions, and oopyrights.
Planning Target. The amount of financial assistance which the Regional
Adninistrator suggests that an applicant for continuing environmental program
support (State, interstate or local agency) consider in developing its
application and vrork program.
Price Analysis. The process oc evaluat-trig a prospective pr-.ce without
regard to the contractor's separate cost elements and proposed profit. Price
analysis determines the reasonableness of the proposed subagreement price based •
on adequate price ocmpetition, previous experience with similar work, established
catalog or market price, law, or regulation.
Principal Investigator. (See "Project Manager.")
Profit. The net proceeds ootained by deducting all allowable costs idirect
and indirect) fran the price. (Because this definition of profit is based on
applicable Federal cost principles, it may vary from many firms' definition of
profit, and may correspond to those firms' definition of "fee.")
Program Element. One of the major growings of outputs of a continuing
environmental program (e.g., administration, enforcement, monitoring).
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ASSISTANCE ADMINISTRATION
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Program Incane. Gross income the recipient earns during its project period
fran charges for the project. This may include incane £raa service fees, sale
of commodities, trade-in allowances, or usage or rental fees. Fees Iran
royalties are program income only if the assistance agreonent 'to'states. Revenue
generated under the governing powers of a State or local government which could
have been generated without an award is not considered program income. Such
revenues include fines or penalties levied under judicial or penal power and
used as a means to enforce laws. (Revenue fran wastewater treatment construction
grant projects under Title II of the Clean Water Act, as amended, is not program
income. It must be used for operation and maintenance costs of the recipient's
wastewater facilities.)
Project. The activities or tasks EPA identifies in the assistance agreement.
Project Costs. All costs the recipient incurs in carrying out the project.
EPA considers all allowable project costs to include the Federal share.
Project Manager. The researcher, business officer, or other person
authorized and designated by the recipient to serve as its principal contact
with EPA.
Project Officer. The EPA official designated in the assistance agreement
as EPA's program contact with the recipient.
Project Period. The length of time EPA specifies in the assistance agreement
for oanpletion of all project work. It may be canposed of more than one budget
period.
Quality Assurance Narrative Statement. A description included in an
application which explains h.cv precision, accuracy, representativeness,
completeness, and canpatability will be assessed, and which is sufficiently
detailed co allow an unambiguous determination of the quality assurance practices
to be followed throughout a research project.
Quality Assurance Program Plan. A formal document which describes an
orderly assanoiy of management policies, co^ectives, principles, organisational
responsibilities, and procedures by which an agency or laboratory specifies how
it intends to: (a)' produce data of documented quality, and (b) provide for
the preparation of quality assurance project plans and standard operating
procedures. (See "Envirormentally related measurements.")
Quality Assurance Project Plan. An organization's written procedures which
delineate how it produces quality data for a specific project or measurement
method.
Real Property. Land, including land improvements, and structures and
appurtenances, excluding movable machinery and equipment.
2-8
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ASSISTANCE AEMNISTRATION
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Recipient. Any entity vhich has been awarded and has accepted an EPA assis-
tance agreement.
Recurrent Expenditures. Those expenses associated with the activities of
a continuing enviromental progran. All expenditures, except those with a unit
acquisition cost of $5000 or more are considered recurrent inless justified by
the applicant as unique and approved as such by the Regional ¦ftftirfnistrator in
the assistance agresnent.
Renewal. An ectenaion for an additional funding/budget period for a project
having no projected completion date, but for tiiich Federal support must be re-
newed each Tear. (See also "Continuation Award.")
Reserve. A portion of the State's construction grant allotment viiich the
State proposes to set aside to use for construction managanent or water quality
managanent planning activities.
Revision. A change CD the project nature or scope of work vhich results in
a finding change (increase or decrease) by formal amendment of the assistance
agreement. (Also see "Augmentation.")
Services. A contractor's labor, time, or efforts viiich do not involve the
delivery ofa specific end itan, other than docunents, (e.g., reports, design
drawings, specifications). This tenn does not include saployment agreenents or
collective bargaining agreements.
Small Business. A business as defined in Section 3 of the Stnall Business
Act, as amended (T5 CSC 632).
Stop Work Order. Written EPA notification advising a recipient to immediately
stop work on activities described in the order and Co tale all reasonable steps
to minimize costs incurred until the problem that caused the order is resolved.
Subagreement. A written agreement between an EPA recipient and another
party (other than another public agency) and any lower tier agreement for services,
supplies, or construction necessary to complete the project. Sdbagreements
include contracts and subcontracts for personal and professional services,
agreements with consultants, and purchase orders.
Substantial Evidence. Such relevant evidence as a reaaonaole person
might accept as sufficient to support a particular conclusion.
Supplies. All property, including equipment, materials, printing, insurances,
and leases of real property, but excluding land or a permanent incerest in land.
Surplus Property. Btcess property *Mch the Administrator of the General
Services Administration determines not to be required for the needs and the dis-
charge of the responsibilities of any Federal agency. (See "Excess property.")
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ASSISTANCE AIKEN ISTRATION
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Suspension. An action taken by the Director, Grants Administration
Division vxider 40 CFR §32.300 to disqualify an individual, organization or unit
of government tsnporarily fran receiving any EPA assistance or subagreement.
Termination. The cancellation of an assistance agreeaent^ in whole^or in
part, before the scheduled project completion date, *2he recipient -Is-en titled
to be paid the EPA share of allowable costs incurred up to the date of termination
and of allowable costs related to non-cancelable camnitments made prior Go
termination.
Unexpended Federal Funds. Federal fuids obligated but not yet disbursed.
Represents the difference between the anoint of EPA finds awarded to the
recipient of an assistance agreement and the anoint EPA has paid that recipient.
Unliquidated Obligation. An obligation for vhich payment has not been made;
contingent liabilities forcontracts and orders outstanding.
Unobligated Federal Finds. Federal finds that the recipient has not spent;
the difference between the anoint of EPA finds awarded to the recipient of an
assistance agreement and the EPA share of the project obligations that the
recipient has incurred under that agreement.
Unsolicited Proposal. An informal written offer to perfonn EPA finded work
for which EPA did not publish a solicitation.
Violating Facility. Any facility that is ovned, leased, or supervised by
an applicant, recipient, contractor, or siicontractor that EPA lists inder 40
CFR Part 15 as not in canpliance with Federal, State, or local requirauents
inder the Clean Air Act or Clean Water Act- A facility includes any building,
plant, installation, structure, mine, vessel, or other floating craft.
Voluntary Exclusion. A term of settlement in lieu of a finding for
deoanaent inaer mien a person or entity agrees go voluntarily abstain from
participation in ETA assisted projects.
Women's Business Enterprise. A women's business enterprise (WBE) is a bus-
iness which is certified as such by a State or Federal agency, or vhich meets
the following definition: A -.^aaer.'s business antarprise is an independent
business concern duch is at least 51 percent owed by a woman or women who
also control and operate it. Determination cf whether a business is at least
51 percent ovned by a woman or women shall be made without regard to canminity
property laws. For example, an otherwise qualified WBE which is 51 percent
ovned by a married woman in a ccmminity property state will not be disqualified
because her husband has a 50 percent interest in her share. Similarly, a
business which is 51 percent ovned by a married man and 49 percent ovned by an
unmarried woman will not became a qualified WBE by virtue of his wife's 50
percent interest in his share of the business (40 CFR §33.005(b))-
Work Prograr. The document which identifies how and when the applicant
will use program funds to produce specific outputs (40 CFR §35.105).
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ASSISTANCE AIKENISTRATION
GENERAL INDEX
5700
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T1tie/Chapter/Paragraph
Accountability (Recipient's) (Reserved)
Accounting, Recipient, 20
Administrative Review, #17
Advance Payments (see Payments)
Agreement (also see Anendment), 15
Acceptance, 1514
Auount (see Assistance Amouit)
Changes, 15134
Formal (by amendment) , 3412
Informal, 3413
Conditions, 1515
Cooperative, 1515
Fellowship, Fig. 15-7
Gtant, 15
Preparation, 1513; Fig. 15-6
Terms, 1515
Amendment, 15; 34
Preparation, 1513
Animals, Care of, 316
Annulment, 39111
Appeals (see Disputes)
Applicant, Responsible, 3917
Application
Adninistrative Checklist, Fig. 15-9
Fbnns, 315
Initial e/aiuacion, 317
Processing, 317;12
Requiranents, 3
Technical ?.evi?v, 12
Time/Place of Suhnission, App. 3-A
Types, 315
Approval Official (project), 12
Assistance Administration Uhit, Fig. 3-1
Assistance /mount, Changes to, 1517
Assistance Progran Ascription, App, 3-A
Assurances, (Reserved.)
Audit, 38
Award
Amount (see Assistance Amount)
Effective E&te of, 1516
Notification of, 16
Official, 2
Bonding, (Reserved)
Title/Chapter/Paragraph
Budget
Revision, 34
Period, 2
Cash Depositories (see Depositories)
Catalog of Fed. Domestic Assistance, App. 3-/
Change of Recipient* 8 Nane, 34
Civil Rights, 23
Civil Rights Act of 1964, 316; 23
Clean Air Act, Section 306, 316
GLoeeout, 40
Compliance (see Noncanpliance)
Confidential Information (see Proprietary)
Conflict of Interest (Reserved)
Consolidated Assistance, 8
Consultant Services, (Reserved)
Continuation, 315
Contract Work Hours and Safety Standards
Act, 3110
Convict Labor, 3110
Copeland Act, 3110
Copyrights, 29
Cooperative Agreanent (see specific siiject)
Cost
Allocable, 1314
Allowable, 1314
Analysis, 2212
Canposition, App. 13-B-2
Determination, 13
Direct, <216
Eligible (see Allowable)
Indirect, 1317
Preaward, 1516
Principles, 1313
Sharing, 14
Crosscucring Requirsnencs, App. i-A
Data, Rights in, 29
Deoarmer.t, 29112
Depositories, Cash, (Reserved)
Davis-Bacon Act, 23
Davis-Bacon Related Acts, 23
Definitions, (Reserved)
Demonstration Cities and Metropolitan
Development Act, 3^6
Index - 1
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ASSISTANCE AMN1STRATI0N
Title/Chapter/Paragraph
Deviations, 36
Direct Costs (see Cost)
Discrimination, 23
Disputes, 35
Appeal (see Review, Request for)
Decision Official, 3514
Final Decision, 3818
Request for Review, 3516
Resolution, 35
Education Andts. of 1972, Title K, 316
Bnployment Practices, Recipients', 23
EPA Grant Amount (see Assistance Amount)
Executive Orders, App. 1—A;316
Federal Water Pollution Control Act,
Section 13, 316
Files, Official, 5
Final Determination, 3818
Final Disputes Decision, 35;3818
Financial Managment Standards
Recipient Accounting System, 2011
Reporting Requirements, 37
Flood Disaster Protection Act, 316
Force Aicouit Work (Reserved)
Foreign Assistance Agreements, 7
Fonus (see specific subject)
Freed an of Information, 46
Finds, Witbolding of, 3919
Grant Agreenent,
Grant Aroomt (see Assistance Anoint)
Grant Conditions, 1515
Grant Related Income (see Program Incane)
virant arc Cooperative .-.greanerc Act
Grantee (see Recipient)
Grants Info, and Control Systea
Hatch Act, 316
High Risk Participants, 39
Historic Preservation Act, 316
Hunan Suojects, 317
Identification Ntmbera r"project IDC), 4
lucerne, Progran. Reiacaa, 25
Indirect Costs (see Cost)
Insurance, (Reserved)
Interagency Agreanent, 51
Interest
Charged, 3818
Earned on Assistance Funds, 25;3314
Intergovernmental Review, 6
5700
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Title/Chapter/Paragraph
Inventions, 29
In-kind Contribution, 1413
Labor Standards, 23
Loans, (Reserved)
Hatching Ttequirenengs ^see Cost Sharing)
Matching Share, 14 ~ " ""*
Minority Business Utilization, 24
Narrative Statement, 1215
National Ehvironnental Fblicy Act, 316
Noncompliance, 39
Jto neon plying Facilities (see Violating
FaciUties), 316
Nondiscrimination, 23
Non-federal Matching Share, 14
Nonresponsibility, 3917
Novation, 34
Nusbering of Assistance Proposals, 4
Obligation Date, 1515
Officials Not to Benefit
(MB Circulars, Appendix 1-A
Patents, 29
Payment
Advance, 3314
Letter of Credit, 3314
Limitations, 3316
Method of, 3313
Procedures, 33
Reimbursement, 3315
Withholding, 3919
Peer Review,
Preapplication, 311
Pries	s 221°
Printing, 30
Procurement, 21
Profit, 2214
Program Income, 25
Prcgramatic Review (see Technical R&zieu-)
Project
Changes (see also Agreanent), 34
Cost3 ^see Ccst)
Director (see Project Manager)
hfanager, 2
Monitorirg, 4415
Officer, 44
Period, 2
Records (see Records)
Transfer, 3414
Index - 2
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ASSISTANCE AEMNISTRAIION
Title/Chapter/Paragraph
Property
Accquisition, 27
Disposition, 2613
Bccess, 2
dependable, 2
Federally-owned, 2617
Intangible, 2615
Managaaent, 26
Nonexpendable, 2
Personal, 2
Proceeds frca sale of, 25
Real (see Real Property)
Recipients's, 2616
Records, 2618
Reports, 3716
Surplus, 2
Proposals (see Preapplication,
Application, Uisolicited), 3
Proprietary Information, 516
Publications, Recipient, 30
Purchasing (see Procurement)
Quality Assurance, 1216
(^estionaires, 3013
Real Property
Management, 26
Acquisition, 27
Secipient
Reporting (see Reports)
Responsible, 39
Standards, 20
Records
General Scneau-ea, figure 51',
SPA's, 5
Recipient's, 19
Retention, 41
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Title/Chapter/Paragraph
Regional AAU, Fig. 3-1
Relevance Review, 12
Relocation, 28
Reports, Recipient's, 37
Administrative, 3716
Financial, 3716
Invention Disclosure, 29
Property, 3716.b.
Progranmatic/Technical, 37
Interim Progress Reports, 3715
Publication, 30
Review, Request for, 3516
Rights in EBta and Copyrights, 29
Royalties (Copyrights and Patents), 29
Safe Drinking Water Act, 316
Scientific Activities (Verseas Program, 711
Signs, Project Identification, 30
Snail Business Utilization, 24
Statutory Conditions (see Crosscutting
Requirsnent and specific Act), App. 1-A
Stop-vork Order, 3918
Surveys and Questionnaires, 30
Suspension-, 39
of Person, 39112
of Work (see Stop-vork Order)
Technical Review of Proposals, 12
Termination, 29110
Transfer of Agr ascent. 34
Lhifbnn Relocation Assistance and Real
Property Acquisition R>licies Act, 28
Uhsolicited Proposals, 314
V-jj-aCi^g	J*C
Volmcaerac Service, '-13
Women's Business Utilization, 24
Index - 3
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&EPA TRANSMITTAL
AODR- . "
CLASSIFICATION NO.: 5 700 CHG 2

APPROVAL DATE. 2/10/86

ASSISTANCE ADMINISTRATION MANUAL
1.	PURPOSE. This Transnital provides new and revised material for the Assistance
Administration Manual.
2.	EXPLANATION. The material provides guidance on procurenent systems and
new financial assistance programs.
3.	FILING INSTRUCTIONS. Post the date you receive this Transmittal on the
Checklist of EPA Transmittals in the Assistance Administration Manual.
Remove Pages
Contents of Chapters, Pages i and
ii
Chapter 1, Chapter Title Page and
Table of Contents, Page i
Appendix 1-A-l thru l-A-7
Chapter 3, Figure 3-1 and 3-2
Chapter 4, Pages 4-1 thru 4-4
cigare 4-1
Figure 4-2 and 4-2A
Figure 4-3 and 4-3A and 4-3B
Chapter 6, Pages 6-3 and 6-4
Appendix 6-E and 6-B-l thru 6-B-3
Appendix 6-D and 6-D-l thru 6-D-8
Chapter 14, Page i
Appendix 14-A and 14-A-l thru 14-A-3
Insert Pages
Contents of Chapters, Pages i and ii
Chapter 1, Chapter Title Page and
Table of Table of Contents, Page i
Pages 1-1 and 1-2
Appendix 1-A-l thru l-A-7
Appendix 1-B-l thru l-B-4
Appendix 1-C-l thru l-C-2
Appendix 1-D-l thru l-D-6
Appendix 1-E-l thru l-E-2
Figure 1-1
Chapter 3, Figure 3-1 and 3-2
Chapter 4, Pages 4-1 thru 4-4
Figure 4-1
Figure 4-2-1 thru 4-2-5
Figure 4-3-1 thru 4-3-3
Chapter 6, Pages 6-3 and 6-4
Appendix 6-B-l thru 6-B-3
Appendix 6-D-l thru 6-D-5
Chapter 14, Page i
Appendix 14-A-l thru 14-A-4
ORIGINATOR
Grants Adninistraticn Division/Office of Administration
EPA Form Ult-13 (R«v. 7-«> REPLACES CPA FORMS 1318-1A AND THE PRE VIOUS COITION OF 1319-12.
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. 2
^/10/£6
ASSISTANCE ADMINISTRATION MANUAL (Cont'd)
r"* • . ?1, Page i
.j -- 21-1
4 0, Figure 40-8
U-. sr.-. Index, Index Pages 1
and 2
Chapter 21, Page i
Page 21-5
Figure 21-1-1 and 21-1-2
Figure 21-2
Appendix 21-D-l thru 21—D—9
Chapter 40, Figure 40-8
General Index, Index Pages 1
and 2
F>
ement and Organization Division
- 2 -
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5700 CHG 2
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C"i .VZ\7C Of CKAPTE;"^
CHArTEI	CHAPTER
TITLES	NUMBERS
5/£lC INFORMATION
BASIC INTOF. ..M'JO . « . . 				1
GLOSSARY 						2
p~:op:'r- £Oi:cita:iq!w submission and receipt
PREAPPLICATIO;APPLICATION AND INITIAL EVALUATION	.,...	3
NUMBERING 07 AFSIi'TA'.Tf PROPOSALS		A
OFFICIAL EPA ASSIFTVLr			5
INTERGOVERalLNI k ,i 		C
assistance t;- p, : /:	o'j:cidc Tir united spates			7
OONSOLICATiil» ASSIC"-"?". 	-		8
(RESERVED)						9
(RESERVED1	= . 					10
(RESER/ED)			, 		11
>: c. R~vic " a;cj a^jo
TECHNICAT Ri^ 7 r " r - r • - .c . , , 				12
DETER! INATIC. 0. 0 :	 13
OOST SMART K;						14
assistance ag^zo.i- .	X<:> CONDITIONS OF ACCEPTANCE		15
NOTIFICATION CT	ACTTONS		16
(RESERVED)			 17
(RESER\T^	 		18
RECIPIENT REQUIREMENTS
RECIPIE'T	Pr				 				19
ACCDUNTIV A", i - ; ; "-C-.vL,r 		20
PROCUREMENT U. D.	S.			21
OOST AND PKiCt A	- 				22
CIVIL RIGH1S AM;	f.A 3.-^ COKPLIANCL		23
SMALL, WOMLr'S, P: . J... J-.L. - CJflLir; ~i0"		24
PROGRAM INCG.L	<						25
PROPERTY MANAGl^IL 		20
REAL PROPERTY AC? 1. ~	. . . 			2"
RELOCATION ASSIPri,v\ 				28
PATENTS, INVEKTTO';.- iY7.D COPYRIGHTS		2s'
PRINTING AI-T) PUL^IL- 				32
(RESER/uu)						21
(RESERVED;	 							32
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ASSISTANCE ADMINISTRATION
"70
2/1*
CHAPTER	CHAP7 RR
TITLES	NUMLLRS
PROJECT ADMINISTRATION
PAYMENT PROCEDURES		33
PROJECT CHANGES		34
DISPUTES RESOLUTION		35
DEVIATIONS		36
RECIPIENT REPORTING								37
AUDIT		38
DEALING WITH NONCOMPLIANCE AND HIGH RISK PARTICIPANTS		39
CLOSEOUT OF ASSISTANCE AGREEMENTS		40
REOORDS RETENTION		41
(RESERVED)		42
(RESERVED)	.		43
PERFORMANCE MONITORING
PROJECT OFFICER RESPONSIBILITIES		44
(RESERVED)				45
OTHER
FREEDOM OF INFORMATION				46
(RESERVED)		47
(RESERVED)				43
(RESERVED)		49
(RESERVED)		50
INTERAGENCY (lf€) AGREEMENTS
MANAGING INTERAGENCY AGREEMENTS		51
LOANS AND LOAN GUARANTEES
LCftNS		61 (Reserve
LOAN GUARANTEES				71 (Reserve
GENERAL INDEX
ii
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ASSISTANCE ADMINISTRATION
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BASIC INFORMATION
CHAPTER	CHPPTER
TITLES	NUMBERS
BASIC INFORMATION 	 1
GLOSSARY 	 2
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ASiiST/'NIfE ADMINISTRATION
5700 c:'C 2
2,'1Q/?.(¦¦
CHAPTER 1 - nAStC INFORMATION
Table of Contents
PARAGRAPH	PARAGRAPH
TITLES	NUMBERS
Purpose	«		1
Establishing a New Program		2
Administrative Responsibilities		3
Program Registration		4
APPENDIX
TITLES	APDENDIX
NUMBERS
Generally Applicable Policy Requirements and
Adm ni strative Managp^ont Standards	 1-A
Statutory Authorities for EPA Financial Assistance Programs		1-3
EPA Assistance Administration Forms		1-C
E°A Assistance Prc^^s - Cumulative Historical Listing		l-i)
EPA Financial Assistance Pro-am Registration Request Worksheet		1-L
FIGliPE	FIGURE
TITLES	NUMBERS
EPA Regulatory Policies ana Procedures
1-1
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ASSISTANCE ADMINISTRATION
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CHAPTER 1 - BASIC INFORMATION
1.	PURPOSE. This Chapter provides basic information concerning the requirements
for establishing an EPA financial assists,ce progran once the Congress has
provided the necessary statutory authorization and appropriation, and for admini-
stering that program throughout its life cycle. Appendices 1A, IB, and 1C list
basic statutory and regulatory documents and assistance administration forms.
2.	ESTABLISHING A NEW PROGRAM. The EPA iranager responsible for implementing
a new financial assistance progran must complete certain administrative
actions to formally establish the program within EPA and to announce its
establishment throughout the Federal systan. Appendix 1-B outlines the prin-
cipal information required and the first key stepr to follow in establishing a
progran within the Agency and for listing the program in both the Catalog of
Federal Domestic Assistance (CFEft) (see Appendix >-A of this Manual) and in
the House of Representatives' Information System. By following the steps
in Appendix 1-B, the Program Manager will inform those EPA organizations most
affected by the new program and will obtain their timely advice and support in
implementation.
3.	ADMINISTRATIVE .'-ESPONSIBILITIES.
a. Program Manager. Tn^ Procran Manager must assure that:
(1)	Funds are/will »= authorized and appropriated for the prcgram;
(2)	EPA possesst- c'j9 statutory authority to award assistance to the
eligible recipients for the .'.tended purpose(s);
(3)	EPA announces the -aviiianility of the financial assistance through
program announcements, the Federal Register, and/or other appropriate media
(e.g. the Commerce Business Daily or association newsletters).
(4)	EPA registers the program in the Catalog of Federal Dcnestic
Assistance (Federal Progran Information Act, 31 U.S.C. §6101 et seq.), the
House of Representatives' Information System, EPA's Grants Information and
Control System (GICS), etc.;
(5)	Application solicitation, receipt, review, and approval processes
are established;
(6)	Necessary administrative codes are assigned to identify the program
and thereby to assure the proper recording of the receipt of applications for
assistance and theiir disposition, and related financial transactions; and that
(7)	Continuing ar^i^irtrative processes are planned.
1-1
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ASSIST-.N:t irv,!NISTRATION
5700 CHG 2
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]>; Prcrram should advise the Office of the Comptroller and the Grants
Admim i n Division of any special statutory or other program requirements
that ri . re special financial or other administrative management guidance.
mcp of the Comptroller. Upon request of the Program Manager, the
Offu he -unptroller wi11 confirm the planned funding, establish the program
Kitf- l --incy's Financial Management System, assign the necessary coding
to e - •¦¦¦ record financial transactions, and develop any special guidance
that . :>e '^cessary. The Financial Management Division will assist the
Procr-T, Ma'.joer in developing and implementing appropriate funding, payment
afiu 'Cw^raation processes.
c.	Grants Administration Division. Upon request, the Grants Administration
Dh. • i ~ill arrange for registering the new program in the Catalog of Federal
Domfc . Assistance (CFDA) and the House of Representatives' InformatTon System;
arc"wiTT assign appropriate Grants Information and Control System (GICS)
program and legislative authority codes. GAD will assist the Program Manager
in developing and implementing application solicitation, receipt, review, and
award processes, and develop any special guidance that may be necessary.
d.	Office of General Counsel (Grants, Contracts and General Law Division),
The Office of General Counsel will confirm the availability of statutory
authority to award financial assistance as proposed and make such legal
determinations as are necessary.
e.	Management and Organization Division (M&0). M&0 will obtain the necessary-
del egationTi)^Thi~SdmurrTtrator1T^uUiorTtyto-authorize the designated
Approval Official to approve applications for financial assistance for award
and the designated Award Official(s) to award financial assistance agreements.
4. PROGRAM REGISTRATION. The Program Manager shall follow the general format
and process set forth in Appendix 1-E as an early step in establishing a financial
assistance program. The Program Manager's memorandum shall be addressed to
the Director, Grants Administration Division and coordinated through the
Comptroller, the General Counsel, and the Director, Management and Organization
Division.
1-2
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570G CHG 2
ASSISTANCE ADf JINISTRATIC")	2/lQ/BG
APPE^^ 1~.\ - CROSSCLTTI'Oo PCQPiRE'tEKTS STATUTES,
executed orders a;;d guidance directives authorizing
GENERALLY APPLICABLE NATIONAL POLICY REQUIREMENTS
AND ADHINISTRATTVE MANAGEMENT SYSTEM STANDARDS
Appendix 1-A lists those generally applicable national policy requirements and
administrative management standards that apply to Federal financial assistance
programs. As used herein, generally applicable retirements are national pol-
icies prescribed by statute, Executive Order, or other authoritative source,
and which apply to the assistance programs of at least two Federal agencies.
Administrative managart*: n_ standards are those "good management" policies and
procedures prescribed for ir^lemenLing assistance programs throughout the
Executive Branch. Both these requirements and standards are often referred to
as being crosscuttmg. The policies and standards in the inventory are listed
specifically because e/:_ ~y-rx.	CPA or assistance recipients to their
provisions. Sore of the p:-! icier and standards apply to virtually every
Federal assistance program; some apply to only a few selected programs.
Individual policies and the.-.- . r-.pl en\enting guidance are revised or rescinded
as circumstances warrant.
Chaster 3 of this Ma-.u;1 inrlud:-" synopsized statements of the principal policies
with citation to the U.a. Cod.-. Those relating to civil rights and labor stan-
dards are discussed in Cnapte: 23. Tne Office of Management and Budget's
publication, "Directory of Policy Requirements and Administrative Standards fcr
Federal Aid Program (e j' fro* OMF's ^ublicgclO', Distribution Office)
provides a more complete description of each policy' and standard.
APP_I'01\ X-^-l
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ASSISTANCE ADMINISTRATION
5700 CF
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CROSSCUTTING REQUIREMENTS
STATUTES
Age Discrimination Act of 1975, as amended
Animal Welfare Act of 1966, as amended
Archeological and Historic Preservation Act of 1974
Architectural Barriers Act of 1968, as amended
Budget and Accounting Act of 1921, as amended
Budget and Accounting Procedures Act of 1950
Cargo Preference Act of 1954
Civil Rights Act of 1964, Title VI
Civil Rights Act of 1968, Title VIII as amended
Clean Air Act, of 1955, as amended
Coastal Zone Management Act of 1^72, as amended
Comprehensive Alcohol Abuse and Alcoholism Prevention, Treatment
and Rehabilitation Act of 1970, as amended
Consolidated Federal Funds Reporc? Act of 1982
>ntract Work Hours and Safety Standards Act of 1962, as amended
An.i-:. :^L\ack (Copeland) Act of 1934
Davis-Sacon Act of 1931, as amended
Debt Collection Act of 1932, as amended
Deficit Reduction Act of 1984
Demonstration Cities and Metropolitan Development Act of 1966
Drug Abuse Office and Treatment Act of 1972, as amended
Education Act Amendments of 1972, Title IX, as amended
Endangered Species Act of 1973, as amended
APPENDIX l-A-2
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5~00
ASSISTANCE ADMINISTRATION	; "_0
CROSSCUTTING REQUIREMENTS - STATUTES (cont inued)
Farmland Protection FOlicy Act of 1981
Federal Claims Collection Act of 1966
Federal District Court Organization Act of 1C34
Federal Grant and Cooperative Agreement Act of 19 77
Federal Program Information Act of 1977
Federal Property and Administration Services Act of 1949, as anerried
Federal W&ter Pollution Control Act of 1952, as anended
Flosd Disaster Protection Act of 1973, as anended
Freedom of Information Act of 1966, as amended
Hatch Act of 1939, as anenaed
Historic and Archeological nr ; Preservation Act of 1974
Indian Self-Determination .-creation Assistance Act of 1975
International Air Transportation "air Competitive Practices
Act of 1974, as amendea
Intergoverrcrental Cooperatic ¦ of 1968
Intergovernmental Personnel Act of 1970, as amended
icd Paint Poisoning Prevention Act of 1971, as anended
	an.. Mc.n ,c! Act of 1936, as amended
National Environmental PDlicv Act of 1969/ as amended
National Flood Insurance Act of 1968, as anended
National Historic Preservation Act of 1966, as amended
National Research Act of 1974
Office of Federal Procurement Fblicy Act of 1974, as amended
Paperwo-,. deduction Act of ."V0
APPENDIX l-A-3
-------
ASSISTANCE ADKINISTRATIO"
5700 c:;g 2
2/10/86
CROSS CUTTING RE QUI REf'UNT^ - STATUTES (continued)
Patent arrf Traders rk A-rendrrents of 1930
Perishable Agricultural Commodities Act of 1930, as anended
Power Plant and Industrial Fuel Use Act of 1978
Privacy Act of 1974, as amended
Public Health Service Act of 1912, as anended
Rehabilitation Act cf 1973, as amended
Safe Drinking feter Act of 1974
Single Audit Act o£ 2984
Snail Business Act of 1953, as amended
Snail Business Inna*~tion Development Act of 1982
Uniform Relocation Assistar-c- and Real Property
Acquisition Policies Act cf 1970
Vietnam Era Veterans Readii.stmsnt Assistance Act of 1972
Wild and Scenic Rivers Act of 196^, as amended
Executive Orders
statistical Information to Intergoverrmental Organizations;
Executive Order 10003 of February 8, 1949
Improved Statistical Information;
Executive Order 10253 cf June 11, 1951
Bgual Employment Opportunity;
Executive Order 11246 of SepteiJ^er 25, 1965, as amended by
Executive Order 11375 of Octoner 13, 1967
Protection and Enhancement; of the Cultural Environment;
Executive Order 11595 of Viz. 13, 1971
National Minority Business Enterprise Program;
Executive Order 11625 of firi-ohsr 13, 1971
-------

J>ir. ISTP.-TjO
5700 CHG
2/10/96
OOSSCITTING Rr:	-XRS (continued)
Clec .s-Vhtev Violators - Prohibits utilization in Federal
- - tract s, grams, and loans;
rive Oroer 11738 of September i:, j:73
. -¦ _ '..c.i Manarenent;
-\ecut. c Order t 19SS of May 24, 1977
-•jr. ion of 'Wetlands;
."xec.^i.c Order 11990 of May 24, LSI'7
liberal Procurf-m:? it in Labor Surplus Areas;
'-vec.tive Greer 12073 of August 16, 1973
5-picyne-it 7'rox'tur:ty (Contract Conpliance;
.tio^s); F	Order 12086 of October 5, 1978
Valic^al '.'onen's business Enterprise Policy;
cxec_- /fc Cr-er 12138 of May 18, 1979
iSCr - ticr" zz Petrcleur1 a'i< Natural Gas;
-.xer-i: C^Lir 12135 cf "^cerrer 17, 1978
-v: Cocr;:	.£ Nondiscrimination Laws;
¦ -c Order 1^2.SO of Nove;.\ber 2, 1980
'-2"'3oerien: and Coordinatio- „-;f Feaeral Regulations;
\e: " . Order 2 "291 cf ijary 17, 1981
w^.:st.ceu Policy Functions;
.vjci tivc Order 12316 of August 21, 1981
.. .ically Black Colleges and Universities;
..- 'Yder j 2_>20 of September 15, 1981
• ^r^overar.entrl Review of Federal Programs;
I.-.-c.tive Order 12372 of July 14, 1Q82, as amended on April 8, 1383
egulatorv Plan;,iro Process;
EV.ecutwe Order 12498 of J-nuary 4, IQ85
^ Circ. jars
- ,:cst Principles for 1ulc.= --c ^ J. Institutions	(See Appendix 13-A)
-7j> - Ajcit of reae>-al -	ion 
-------
ASSISTANCE ADM1K1STRATI0\
5700 CHG 2
2/10/86
CR0SSCUTT1NG REQUIREMENTS - OMb CIRCULARS (continued)
A-87 - Cost Principles for State and Local Governments	(See Appendix 13-B)
A-88 - Coordinating Indirect Cost Rates and Audit at Educational
Institutions
A-93 - Cooperating with State and Local Governments to Coordinate
and Improve Information Systems
A-102 - Uniform Adtrini strative Requirements for Grants-'n-Aid to
State and Local Governments
(See Appendix 13-C)
A.	Cash Depositenes
B.	Bonding cn.d Insurance
C.	Retention and Custodial
3ecuirements for Records
M.
N
Waiver o:
'Single" State
Agency Reoiirem^nts
Program Income
Matching Shcre
Standards for Gro-f
"anaqemerit Systems
r 1 n 5 10 1 a I
W. Financial Pp oorting r>eaui r ements
M-;r-T.or""ig Reporting Pr^oraTi
?er fo rmarce
J. Grant Payment ^equi rernpit 5
K. Budget Revision Procedures
L, Grant Closeout Procedures
Standard Forms for Applying for
Assistance
Property Management Standards
0. Procurement 3,
P. Audit Requirements
Attachment	A
-tt = chr.cnt	B
Attachment	C
Attachment	D
Attachment	E
^tacnment	F
-It aC 'Vlr; nt	G
Attachment	H
-t + ac.ment	I
-ttachnent	J
Attachment	K
Attachment	L
Attachment	M
Attachment	N
Attachment	0
Attachment	P
APPENDIX l-A-6
-------
ASSISTANCE ADMi'.'ISTR/.TrOV
5700 CHG
2/10/86
ZEOSSCUITING REOvlkii'iN
'yi- CIkCuTAES (conLinjed)
A-110 - Grants and Agree rent ^ v-iL>~ Institutions of Higher Education,
Hospitals arc Other Nonprofit 0rgani2ations - Uniform
Administrative Rfeguire;n?nts
A.	Cash Depositories
B.	Bonding ana lR=ui"anrc
C.	Retention arj Custodial
Requirements for Records
D.	Prograii Incon.-.
E.	Case Sharirr, and Matching
F.	Standir?i. r_. Financ.:' Kanagefrtr
System
¦1. Fma^ciiJ R?p-rtirg Reguirensnts
H.	MonitOLirp arc Rx-^ortirc Prcgra*,
Fertcm.2'-, .
I.	Payrr'8T: TV^r.. ~itc
J. Revisic.t o,	Pia>v
K. Closeo;t Pro-5^rr^
I,. Susp::ii:c,i 5, '• Ye mi \r.i.icn
M. Standard Forr.i for Applying for
Federal Assistance
Attachment A
Attachment B
Attachment C
Attachment D
Attachment E
Attachment F
Attachment G
Attachment H
Attachment I
Attachrrent J
Attachment K
Attachment L
Attachment M
Attachment N
Attachment 0
N. Property- rianaqerisn _ Standard?
0. Piocui'eni. nt Sta-o.-: d"
A-122 - Cost Principles tor Monprofit Organizations
A-124 - Patents-Siuuii bjsi.isst; firms ana nonprofit organizations
A-128 - Audits cf Sta'v. a-.7 lo'al Go"ernneit£
A-129 - Managing Koirat Cic\.-r R-ogra?r>s
(See Appendix 13-D
-------
5700
ASSiSiAK>.c APfJK iS I RAT I OK	2/10/86
S'A'.UTOKV AUTHORITIES 'OR EPA FINANCIAL ASSISTANCE PROGRAMS
CFDA*	Authority/Program*	Section
ASBESTOS SCHOOL HAZARD ABATEMENT ACT of 1984
66.701 Asbestos Hazard Abatement (Schools) Assistance	§505
CLEAN' AIR ACT, 42 U.S.C.A. §7401 et seq.
66.001	A-, r Pollution Control Program Support	6105
66.002	Air Pollution Control Fellowships	§103(b)(5)
bf.GC'l At: Pol hit "on Control Manpower Training	§103(b)
66.EC1 j Air Pollution Control Research	§103(a)(2);
§103(b)(3);
§104(2) (a)
6 c-. 5C, En.": ronmentcl Protection - Consolidated Research various
COMPREHENSIVE ENVIRONMENTAL RESPONSE, COMPENSATION,

AND LIABILITY ACT, 42 U.S.C.A. §5601 et seq.

66 . 802
Superfund Remedial Planning and Implementation
(Hazardous Substances Response Trust Fund)
ENVIRONMENTAL PROGRAMS ASSISTANCE ACT of 1984
§104
Go.508
Senior Environmental Employment (SEE) Program
§2(a)

FEDERAL INSECTICIDE, FUNGICIDE, AND RODENT ICIDE Act,

7 U.S.C.A. §136 et seq.

5 6.50 2
Pesticides Control Research
§20(a)
66.500
Environmental Protection - Consolidated Research
vari ous
66.700
Pesticides Enforcement Program Support
§23(a)(l)
(none)
Pesticide Applicator Certification and Training
§23(a)(2)
* Note tiic.; son - authorized programs may not be funded.
Appendix 1-B-l
-------
ASSISTANCE ADMINISTRATION
5700 chg 2
2/10/86
CFDAjS1
Authority/Program
Secti on
FEDERAL WATER POLLUTION CONTROL ACT (CLEAN WATER ACT),
33 U.S.C.A. §1251 et seq.
66.418
66.418
66.419
66.438
66.4M
66.455
66.45C
(none)
66.426
(none)
(none)
66.50 5
66.500
66.428
66.429
Construction Grants for Wastewater Treatment Works
Advances for Allowances for Facilities Planning
and Project Design
Water Pollution Control State and Interstate
Program Support
Construction Management Assistance
Water Quality Management Planning
Construction Grants for WWT Works for Combined
Sewer Overflows to Marine Bays and Estuaries
Comprehensive Estuarine Management Pollution
Control and Abatement
Comprehensive River Basin Planning
Water Pollution Control State and Areawide Water
Quality Management Planning
Great Lakes Water Quality Research
Great Lakes Water Quality Demonstration
Water Pollution Control Research, Development,
and Demonstration
Environmental Protection - Consolidated Research
Water Pollution Control Professional Training
Water Pollution Control Technical Training
§201(g)(1)
§20 3(a)
§10 6
^20 5(g)(2)
§20 5 (j )
§201 (n) (2)
§104(b)(3)
§102(c)
§20 8( f) (1)
§104(f)
§108
§104(b)(3);104(i);
§104(r);104(s);
§105(a) (1); 105( b);
§ 10 5 (c);
§105(e)(1) and (2);
§105(1) ;§105(j);
§107; and §113
various
§104(g)(3)
§§104(g)(3); 105(j)
§§109 and 111
Appendix l-B-2
-------
ASSISTANCE ADN.'JlSTPi.i J0!
5700 CHG 2
2/10/86
Federal k'eie L "li't :	* ccr.:iruc^
CFD¦¦ r , jc. - r -	Sect •; or.
(none) Clear, Lakes	§§104(h);314(b)
66.420 Water Pclluti:., Control S'cic e r.c. Local Manpower
Progran. De^el cpn.ei.i	§104(g)(l)
66.430 Watei Pollution Control Fello^'Shipf	§104(b)(C);
§ 10 4(g)(3)(B)
(none) Water Qua lit Msrremcfit Participation Train nc	§10^(b)
mme co; fRi'L act. *1 U.S.CJ.. §^:: e. se:
(none) Research, Devel opni-.nt 2r,d Demonstration	§I-/
kLSOUKCL COf.'SfPVAT10K AMD RECOVEK . rZT.
42 U.S.C.A. §6(-0i et sec.
66.801	I', .'.a f'.cncger.-ent State Projrc-. Sj:.;.-.
(none) Hazardous Wcste S^:e Inventor)" Program Support	§30i2(c)
66.80^ Unde^C'^Oi1 •>- S:c~=ce "an1 < - S-„ate Proqra' S'-'rp'' rt	7 ("T) (' >
66.027	Solid Waste Demonstration and Planning	Subtitle D
66.028	Solid I1; s 11 bisi'Obci uor,iOri;trc.iiO1*	§§800 l \
an': &\'C
66.504 So^d Waste Disposd Resfsrcl	§8001
66. SOO Env i i onn.i. i'i Piu^t « ¦ c> i - Co> so i iuc (.e^ Research	vdriO'ji-
(none) Solid Waste !i:r.o(, ^ 'a jJir, n,;	§§7ULi7;and 8001
(none) Solid nai cce.^r.i i ^ i 1 :;v;! ^§90C i
-------
ASSISTANCE ADMINISTRATION
5 700 og i
2/10/96
CFDA/t
Authority/Program
Section
66.432
66.433
(none)
(none)
(none)
(none)
,'n„ne)
66.506
66.500
(none)
(none)
5^701
(none)
66 . 50 7
66.500
SAFE DRINKING WATER ACT, 42 U.S.C.A. §300f et seq.
State Public Water Systerr> Supervision	61443(a)(1)
State Underground Water Source Protection	§1443(b)(l)
Safe Drinking Water Stated Local Prog. Development §1442(b)(3)(C)
Safe Drinking Water State Surface Impoundment
Assessment (Pits, Ponds, and Lagoons)
Safe Dr:nk:ng Water	Inspectors & Supervisory Trng.
Safe Drinking Water	Professional Training
Safe Drinking Water	Emergency Response
Safe Drinking Water	Research and Demonstration
§1442(b)(3)(C)
§1442(b)(3)(B)
§1442(d)
§1442(a)(2)(B)
§§1442(a) and (e);
§1444
§1442(b)(3)(A)
§1442(d)(1) and (2)
Environmental Protection - Consolidated Research
Safe Drinking Water Occupational Training
Safe Drinking Water Fellowships
TOXIC SUBSTANCES CONTROL ACT, 15 U.S.C.A §2601 et seq.
State Chemical Sustances Prevention Program Support §28
Asbestos Hazard Abatement State Pilot Projects	§10(a)
Toxic Substances Research	§10(a) and (b)
Environmental Protection Consolidated Research	various
Appendix l-B-4
-------

API i
• , rv; of epa assistai* ministration forms


EPA #
Date

Unit
Use
5700-7'
11-77
>pl i ion Kit for Grant (Construction
Folder
2,3


. o for W&stewater Treatment fcbrks)


5700-
11-77
Appli< at ion Kit tor Assistance t^lannn^
Folder
•> >
f -


or Program Grant)


5700-7C
2-83
Application Kit for Assistance (Fellowship)
Foltkj'"
2,3
^700-7D
5-80
/fjplication Kit for Assistance (Training
Folde*'
2,3


Assistance)


5700-7E
8-80
Application Kit for Assistance (R^seardi
poln-i-
:


or Demonstration)


5700- \
7-74
Grant Application/Proposal p phi71 •
l
5700- .2A
6-7P
Instructions for Form 5"-'H-', ';
V?e |V11or> J )
<•1 11
. •
1
5700-28
5-8(1
State Priorjly C-> tificat Jon
c !k;..

5700-29
7-82
Grant Audi r Ro._j jost
'r ftrp! ' ,?!

5700-30
11-77
Preapnlj cation for Federal Assiatanrc
Pa

5700-31
10-79
Application Cor rederaJ As&j ^i-oivje (Slrori. rw:>
Phi - I

5700-33
10-79
Application Hot Fndera] A.s?i sta'ir o
I '



(Moficons(ruction Programs)


5700-33A
5-74
Application foi Federal ^\ssisMilOi, Not < i '»¦




Si-ntcnient (Air Pollution Control Program G


5700-33B
5-74
Application for Floral "v-^istanco, I >•
i



StaU-*n>ent (Water Pollution ControJ <r F'iderol A^si'-tanc, N «¦ tot . v
-M.- •



Statement (Consol idatfl rro^r.-m Si.oport '^'n1 -1




Supfiort Grants)


57C0-33G
11-75
Appl f at 'on f'jr* Federal A^° ) ¦>!" anc>, Ndi i.jti»s
r i.. 'k



Statement (St.ite Public Water Sysl«m




Supervision Proqr-m Grant*?)


-------
%
1
3.
i
n
i
EPA #
Date
Title
Unit
Use
5700-33H
11-83
Application for Federal Assistance, Narrative
Sheet
2,3


Statenent-Part IV (Pesticide Enforcement




and Applicator Certification and Training




Grants


5700-331
12-79
Application for Federal Assistance, Narrative
Sheet
2,3


Statement (Part IV)- Underground Water Source




Protection Program Grants


5700-38

Grant Closeout Checklist
Sheet
2
5700-41
4-84
Cost or Price Sunmary Format for Subag reorients
Pamphlet
2,1
5700-42
2-85
Grant Record Adjustment Notice
Sheet
2
5700-47
6-79
Grants Mailing List Verification
Card
2
5700 43
5-84
Procurement Systan r„'erti f"ication
Sheet
J
57 20-CONSTRUCTION



5720-12
9-85
Application for Federal Assistance
Pamphlet
2,3


(Construct ion)


5720-4
5-73
Lpbor Standard Provisions for Federally
Sheet
3


Assisted Construction Contracts


5760-RF.SEARCH
& DEMONSTRATION


5760-3
10-82
Reco.xl of Grant Application (ORGC)
Card
2
5770-TRAINING
& FELLOWSHIPS


5770-2
4-78
Fellowship Application
Pamphlet
2
5770-3
2-77
Fellowship Facilities & Commitment Statement
Shew):
2
5"770-4
2-77
Fellowship Application QjalLfications Inquiry
Sheet
2
5770-5
5-78
Agency Fellowship Certification
Sheet
2
5770-6
6-73
Fellowship Amendment
Sheet
2
5770-7
6-73
EPA Fellowship Activation Notice
Sheet
2
5770-8
7-73
Fellowship Agreement
Sheet
2
5770-9
7-73
EPA Fellowship Termination Notice
Sheet
2
57 - ASBESTOS HAZARD
ABATEMENT (SCHOOLS)


7730-5
11-85
Application for Federal Assistance (Asbestos
Pamptilet
2
Hazard Abatement (Schools)) Program
Use Cbdes
1	Agencywide
2	Headquarters
3	Regional Offices
4	Laboratories/or their fieJd facilities
fc
tn
t-H
cn
H
n
z
n
r.O
o
ro , „
i-j -^J
o S
\0
00
-n
o
NJ
-------
AT 10 ,
57Uo CHC 2
" 10/86
2-D — Cv"-JLATIVr HISTORICAL LISTING OF tPA ASSISTANCE, PRC IRAMS
T.ic fcllo^ nc lists ev°ry EPA assistance program that, has ever brr'" printed
;V C:cr- ¦> cr Federal Dcmestic Assistance (CFDA). The first line shows the
- -.v: e.-\ __cle of the program vrfien it was aided to the Catalog. The second and
c~ 1 nes show the year the program was a^ded and any additional trans-
<• iz r title changes, transfers, deletions, ccasoI rations, agency re-
r Lzs x . , number changes, etc. that have followed. Tne letter B or U that
: vi ^ given year, indicates the tranaction was made either in the basic (B)
l 1? update (V) publication of the Catalog.
O. VIR NOISr. AND RADIATION
ti	Puiuin-n Covroi Progr»m Gra.i:s
• n- ,
Transferred from 1 > '< I
]07IB
w'Cl Air Pii 'j'i.'T Fc.! -if. >
r-'L
Trar.su 'J Irc^ I ' iX.;
19~i.
4 • r u. C. . ~ r F^i -
1QT.F
D?l-~c
,c- -
6c Ai Ho'lut t Mar^J • Tr < j <¦
Transferred frorr I 1 0 j
1971b
4i- ~c .ir~ C.~ni'^l V'-pom" o'iip 1 Gran's
jo-r-p
t? v'^ A"	t1-
IS" 'B
TrarsierreJ from 13 004
'<>¦' !B
Air Pollution Control Research Grants
Vc'rr^r cF.j crd tc 6* ' II
19*313
66 005 At pollution Sjr\ey and Demonstration Grant;
1971b
Trar^'err-d from J 3 00*
1S7IB
An Po'.'Jtion Comro! Survey and Demonstration Grarts
De'r'cd
IS79B
Vir I . utior. Cc ilroi 1 e:hn .i! TraTung
^11
Air Pollution Cone 5l—Technical Tram'py
I y ' 1 L
X" A ir Poll Mion Control Nutionil Acromttnc Oata Information
19" II'
Air Pol In; r"" Cor, .-"I— Nation1 A *¦ ,i Ai- and Source
E-nissior Dj'a
• -:r
66 00? Air Pollution Control Technical Assistance
)<".•_
Air Pollution Control—Technical Assistance
1973B
Deleted
198<9
66 009 Air Pr>lktion Control Technical Information
|9nlL'
An Pollution Control—Technical Information Service;
1073B
66 010 Air Pollution Control—Interstate Cooperation and I'nif. •
La j.<
1972B
Deleted
197JU
66 011 Solid W aste Technical Assistance Training and Informant"
Services
1974E
Nutihrr clianctd from 66 304
10741,
Solid Waste Technical Assistance, and Information Semcc
I97JB
Solid ^ A5tc Disposal Technical Assistance, and Informatior
Services
,97oB
Solid Waste Management Technical Assistance and lnfcrr
(ion Services
l"7t-l'
Numhe' changed to 66 450
l°"L'
66012 Water Pollution Control Data Publications Serwcfs
197 IB
Number changed from 66 402
'97;B
S'un^f th3B
Number changed from 66 403
19"*B
Number cfur^ed lo 66 417
1974B
Appendiv 1-D-l
-------
ASSISTANCE ADMINISTRATION
5700 CHG 2
2/11/96
66 014 Water Pollution Control—Interstate Cooperation and Uni-
form Laws
I973B
Number changed from 66 404
1<"3B
Inusrporaied into 6c 650
1973U
66 015 Construction Grants for Wastewater Treatment Works
I973B
Number changed from 66 400
1973B
Number changed lo 66 418
1974B
66 017 Water Pollution Control—State and Interstate Program
Grants
1973B
Number changed from 66 40"
1973B
Number changed to 66 419
1974B
66 018 Water Pollution Control—State and Local Manpower Devel-
opment
3B
N'jmber chang.d from 66 408
1973B
Number changed to t>6 420
19-MB
6o019 a'er Pollution Control—Technical Assistance j-.d Criteria
Development
197;b
Number changed from 6o 405
19^3 U
Deleted
66 020 ^a- r""1 iuik n Corirol—Training Gran's
I'^L,
Number changea from 66 410
197 "> B
Numbf changed to 66 421
l«74fi
66 021 Water Quality Control—Monitoring Assistance
1973B
Number changed from 66 411
1973B
Number charged to 66 422
1974B
*	V»aicr Quality Control Information System—Orientation and
Training Seminars
1973B
Number changed from 66412
1973B
Number changed to 66 423
I974B
66 023 Water Quality Management Technical Planning Assistance
I973B
Number changed from 66 413
1973B
Deleted
19'4B
66 025 Drinking Water Supply—Technical Assistance
I973B
Number cnangrd from 66 415
1973B
Numbtr changed to 66 425
1974B
66 026 Solid Waste Training Grants
1975B
Soiid Wast? Disposal Training Grants
1976B
Number changed to 66 453
1977U
66 027 Solid Waste Demonstration and Planning Grants
1975B
Solid V>a*te Planning Grants
I975U
Split into 66 027 and 66 02S
1975U
Solid W aste Disposal Planning Grants
197nB
Number changed to 66 451
1977U
66 028 Solid Waste Demonstration Grants
19->5U
Split from 66 027
197B
Deleted
198 It
66 031 Quiet Communities—State and Local Capacity Building As
sistance
1979B
Deleted
I9S1U
OFFICE OF PESTICIDES PROGRAMS
66 100 Pesticides Research Grants
i°~; B
Transferred from 13 102
1971B
Number changed to 66 502
197JB
66 101 Pesticides Science and Technologv—Technical Informano-
1971b
Number changed to 66 427
1974B
OFFICE OF .RADIATION PROGRAMS
66 200 Radiation Research Grants
197IB
Splu^Transferred from 13 012
I971B
Number changed to 66 503
19733
Appendix l-D-2
-------
5700 CHG
ASSISTANCE ADMINISTRATION	2/10/86
60 201 Radiation Training Grants
)=7IB
Spin/Transferred from 13 013
197 IB
Deified
1973b
OFFICE OF SOLID WASTE MANAGEMENT PROGRAMS
66 300 Solid Waste Demonstration »nd Resource Recovery Syilem
Grants
197IB
Transferred from 13 014
19"IB
Deleted
I973B
66 301 Solid U aste Planning Grants
1971B
Transferred from 13 015
19? 1B
Deleted
19"."B
06 302 Solid W aste Research Grants
1°7IB
Trans'Vted from 13 016
1971B
Numrer chanced tc Of-
197 JB
6t 3umber changed to 66 015
197.b
66 101 Water Pollution Control Comprehensive Basin Planning
Grams
197 IB
Transferred from 15 701
I971B
Water Pollution Control—Comprehensive Basin Planning
Grants
1972B
Deleted
1973B
66 402 Water Pollution Control Data PutliT""ns Services
1971B
Transfrrred from 15 702
J07IB
Number changed to 66 012
1973R
66 403
66 404
66 405
66 406
66 407
66 408
66 409
66 410
66 411
Appendix l-D-3
Water Pollution Centre'—Direct Trairing
1171 B
Transferred frcm 15 70'
I«7,b
Number charged 'o 66 013
I973B
Water Pollution Control—Interstate Cooperanor and Lm
form Laws
1971 d
Transferred from 15 7CW
1971B
Number changed to 66 014
1973B
Waier Pollution Conirol—Research, Development and Der
onstration Grants
1971B
Transferred from '5 70$
1971B
Water Pollution Cor'rol—Research Developrrent, and De-
onstraticn
1972B
Number changed to 66 505
1973B
Water Pollution Control Research Fellowships
197 IB
Transferred from 15 706
197 IB
Deleted
1973 B
Water Pollution Control—State and Interstate Prograrr.
Grants
1971B
Transferred from 15 707
197 IB
Number chaneec to 6o017
1973B
Water Pollution Control—State and Local Manpowe* Dc^e
opment
197 IB
Transferred from 15 "08
1971B
Number changed to 66 018
IS75B
Water Pollution Control—Technical Assistance and Pcilu'r
Surveitlancc
197 IB
Transferred from 15 709
1971B
Number changed to 66 019
1973B
Water Pollution Control Training Grants
197 IB
Transferred from 15 710
1971B
Number changed io 66 020
I973B
Water Quality Control Information 5>sic.t,
1971B
Transferred from 15 711
197 IB
Number changrd to 66 021
I973B
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ASSISTANCE ADMINISTRATION'
5 'CO o c -1
2/10/86
66 412 Wit n.21 i> jnd Pollution Control—Orientation and Train-
ing Seminar*
1971B
Transferred frt 15 712
1971B
N -iber k crd to 66022
(x • • V\aier'>u . Management Technical Planning Assistance
IJ7IB
Transf rret) from 15 713
' 971B
\umber changed lo 66 023
1973B
6' ' W aier Hygiene Research Grants
197 iB
Transferred from 13 018
197' B
Incorporated into 66 405
1S72E
66 415 Dnnking Wafer Supply—Technical Assistance
I972B
Ni'-nber changed to 66 025
iy73B
&6 4I6 Wjit' Pollution Control—Data Publications Services
\i'4B
Number changed from 66 012
19~4B
Incorporated into 66 4 23
1977B
66 417 Water Pollution Control—Direct Training
I974B
Number changed from 66 013
1974B
Deleted
19S:B
66 418 Construction Grants for Wastewater Treatment Works
1974B
Number changed from 66 015
1974B
06 419 Aj,u folution Control—State and Interstate Program
GliMS
I974B
Number changed from 66 017
1974B
oo 420 Water Pollution Control—State and Local Manpower Devel-
opment
I974B
Number changed from 66 01?
1974B
Water Pollution Control—State and Local Manpower Pro-
gram Development
I976B
Deleted
I981U
66 421 Water Pollution Control—Training Grants
1974B
Number changed from 66 020
1974B
Spin into 66 428 and 66 429
J974U
Appeniix 1
66 422 Water Quality Control—Monitoring Assistance
I974B
Number changed from 66 021
I974B
Incorporates into t»423
1977B
66 423 Water QuaJity Control Information System—Onentanan an.
Training Seminar*
1974B
Number changed from 66 022
1974B
Water Quality Control Information System—Oriemarnv
Training Seminars, Data and Monitoring Publications
1977B
66 425 Dnnking Water Suppl)—Technical Assistance
1974B
Number changed from 66 025
1974B
Deleted
1983U
66 426 Water Pollution Control—Area Waste Treatment Manaf
mem Planning Grants
I974B
Water Pollution Control—Slate and Areauidt Waste Tres'
men! Management Planning Grants
1976U
Water Pollution Control—State and Areawide Waier r
Management Planning Agency
I977B
Deleted
I983B
66 427 Pesticides Science and Technology—Technical Informant"
1974B
Number changed from 66 '01
1974B
Deleted
1979B
66428 Water Pollution Control—Professional Training Gran'i
1974U
Spin from 66 421
1974U
Deleted
I9S2B
66 429 Water Pollution Control—Technical Training GraV'
I974U
Split from 66 421
I974U
Deleted
1981B
66 430 Watei Pollution Control Fellowships
1974U
Deleted
I9S1U
66 431 Water Pollution Control Loans
1974U
Transferred/Incorporated into 59 024
1979B
-D-4
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ASSISTANCE ADMNISTRATI OK
5700 CHG 2
2/10/86
66 432 Grants for Suit Public Water System Supervision T-ograTiL
1975b
Public V »:tr System Supe-wsion—State Program Granti
1<516B
State Public Water System Supervision Program Grants
1976U
66 433 Grants for Underground Injection Control Programs
I^Sb
Underground Water Source Protection—Slate Program
Grams
1976B
State Underground Water Source Protection Program Grants
1976U
State bnderground Water Source Protection—Program
Grants
1961B
66 434 Safe Dnnkirg Water—State and Loca1 Program Develop
men t Gran is
19761'
Deleted
1979b
66 435 Wate; Pollutior Control—Laie Restoration Demonstratior
Grants
19 J(>L
Water Po!'_ ion Cc: ->i— Lal>c Restoration Cooperative
Agrce.nen.s
!
Deleted
19f! b
66 43S Construction Minscemen. Asvis'ance Grams
197SU
66 450 Solid Waste Management Techmca1 Assistance and lnforma-
lion Services
1C77L
Number chanted from 66 0! 1
1977b
Deleted
198)1
66 451 Solid and Hazardous Waste Management Program Support
Grants
l°77U
Number changed frorr t.f-027
1977b
Hazardous Waste Management Program Support Grants
1981L
Hazardous U'aste Management Financial Assistance to States
19S2B
Number changed to 66 801
19S3B
66 452 Solid Waste Management Demonstration Grams
1977L
Number changed from 66 02c
1977U
Deleted
198IB
66 453 Solid Was'e Management Training Grant!
I«~7l'
NjTber changed from 66 026
197TU
Deleted
I981U
66 454 Water Quality Management Planning
19?3B
66 455 Marine Combined Sewer Overflow Special Fund
198-JB
66 70! Toxic Substances Compliance Monitoring Cooperate <
Agreements
1984b
66 702 Asbestos Hazard Abatement School Assistance Program
1984b'
66 803 Hazardous Waste Management Financial Assistance
1984U
OFFICE OF RESEARCH AND DEVELOPMENT
66 500 Environmental Protection— Comprehenwe Research Grt-
I972U
Environmental Protection—Consolidated Research Grants
1974 b'
66 501 Air Pollution Control Research Grants
1973B
Number changed from 66 004
1973E
66 502 Pesticides Research Grants
1973B
Nutiber changed from 66 100
1973B
Pesticides Control Research Grant*.
!97oB
66 503 Radiation Research Grants
I973B
Number changed from 66 200
1973B
Deleted
1977B
66 504 Solid Waste Research Granis
I973B
Number changed from 66 *02
1973 R
Solid Waste Disposal Research Grant*
I976B
66 505 Water Pollution Control—Research, Development, and Dc*
onstration
Numher changed from 66 405
1°71R
Water Pollution Control—Research Development, and Der,
onstraiion Grants
1975FJ
App?iJ-v. i-D— 5
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ASSIST\NCE ADMINISTRATION'
66 506 V. «ter Suppl) Research Gran's
1ST3B
Water Research and Demonstration Grants
19751
66 507 Toxic Suostances Research Grants
I978B
OFRCE OF ADMINISTRATION
66 600 EnvironmentaJ Protection—Consolidated Program Grants
1973B
Environmental Protection—Consolidated Program Support
Grants
1975U
Environmental Protection Consolidated Grants—Program
Support
1976B
66 601 Environmental Financing Authority
I974U
Deleted
19750
66 602 EnvironmentaJ Protection—Consolidated Special Purpose
Grants
1975U
Environmental Protection Consolidated Grants—Special Pur-
pose
1976B
Incorporated into 66 600
1982B
66 603 Loan Guarantees for Construction of Treatment Works
I978U
OFFICE OF REGIONAL AND INTERGOVERNMEN-
TAL OPERATIONS
66 650 Environmental Protection—Interstate Cooperation and Uni-
form Laws
I973U
Number changed from 66 014
I973U
Deleted
1978U
orrirt of pesticides a\u toxic slbsi»m i.s
66 700 Pesticides Enforcement Program Grants
1977U
66 701 Toxic Substances Compliance Monitoring Cooperative
Agreements
I984U
66 702 Asbestos Hazird Abatement School Assistance Program
.984U
OFFICE OF SOLID WASTE AND EMERGENCY RESPONSE
66 800 State Toxic Substances Control Projects
I979B
Deleted
1981B
66 801 Hazardous Waste Management Financial Assistance to States
I983B
Number changed from 66 451
1983B
66 802 Hazardous Substance Response Trust Fund
1983B
66 803 Hazardous Waste Management Financial Assistance
1984U
Deleted
1985B
Appendix l-D-6
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ASSISTANCE ADMINISTRATION1
5700 c«r
2/ln/S6
EPA FINANCIAL ASSISTANCE PROGRAM REGISTRATION" REQUESTWRKSHFET
The requesting Program Official shou.1 d	*"o tbe Director, Grants Administration
Division to request the registration of j n-?'v 'manciaJ assistance program. Folio.
the suggested ouiliii'i and routing set for-.'1 z1-.'.
SECTION I. REXESTOR
Originating Prooram/Cffice. Who is request::-r; ^scaoiishment of'the program?
Program Cert act for s rer_e:-t. Whj sv/j':\g 'y~ rontacted for further
information cor?err .re THIS ^EC'-'EST? Provide	location, ?nd phone rumber.
Suggested Progr.~~	Tr,e cificial t.tle ..:v inclusion in the Catalog cf
Federal Dcmest:." Nasistance. Be concise and descriptive.
Is this a new program0 YE - '	I IK) j	j Z* no, explain.
What c^n the -_=ustsnce be ms-;q for? Vhar. =re the restrictions, if any?
Authcnzirc itszcte. i'V f	legal troritry (statute/ sect ion) for
awarcing furidE unrtr l->p . :
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ASSISTANCE ivJf,;N!STR-Vr:'».
5700 CHC- 2
2/10/86
Information Contacts. Nar.c* Frcgr3.n	or mLact oerson closest to
the prca-2m era ao"? t"< answer qjenes fb.'-i'i t ¦? prrqrcr. This should be the
individual -to is Tvc'ved m oay to nay prog-e'i onerafons who you will
identify as "Inform:tion Contact" n the	Federal Domestic Assistance
and as "Progra^ Officer1 to the House of -iecre;t tatives" Ir,rom=;ion Systems
staff. Identify the alternate to this person listing in the House system.
SECTION II - OFFICE OP THE COMPTROLLER
Funds are/will ce a/ailabie for obligation (now or date) .
Source of Funding - Short Title.
Amount Authorized. S	 Amount App-ppriated. 5	
Program/Budget Lone Till'-.
Apprjpriatim Cotfe/Ti*-' :.
Accr""r IdennfiCiiio ,. List the 11-riigit budoet account identification
coae(s~) that *'jnas the program (see Qr.B Circular A-ll).
Prec.-^/Budcet Shct Ti\le.
Proqr -in El_enita. |	: 	|	i	|	|
AI1ow3nce h„ ser
Object r'ass. GRz-v.vT AGREEMENT 41.	 COOPERATIVE AGREEMENT 41 .	 LOAN
SECTION III - OFF ICE OF GENERAL COUNSEL
| j Concur. |~| Concur with comment. |~j Do not concur.
SECTION IV~ WTTCifScNT A NO ORGAjT! JATI ON' DIVISION
Proposal I'izvirec1 to rce! egate ess i stance approval authority to	.
Proposal irii.cftt to reaeiegete assistance av^rd authority to	.
SECTiT'TTT"-" grants XLTTiNTTf^TTTT:!"D~:\7T!"y-N
Catalog of Federal Demesne Ass1 stance N'urbe1- Assigned. tS.	
6ICS Prooram Code. 	, Legislative Ai.tronty Cc"C	.
Executive Order 1237? Process fv i-^cpnt. No i I Yes | ! If yes, explain the
" "	time rr-quirements.
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ASSISTANCE ADMINISTRATION
5700 CKG ?
2/10/86
EPA Assistance Administration Regulatory Policies ana Procedures
Subject
Impl mentation of the Uniform Relocation Assistance &
Real Property Acquisition Ralicies Act of 1970
Procedures for Implementing the Requirements of the Council
on Environmental Quality on the National Environmental
Policy Act [NEPA Government-wide regulation]
CFR Reference
40 CFR 4
40 CFR 6
Nondiscrimination in Programs Receiving Federal Assistance
frcrn the Environmental Protection Agency
[Title VT of the Civil Rights Act of 1964]	40 CFR 7
Equal Employment Opportunity under H»A Contracts 6 EPA
Assisted Construction Contracts [SubagreementsJ	40 CFR 8
A&ninistration of the Clean Air Act and the Federal Vtater
Rjllution Control Act with Respect to Federal Contracts,
Grants, or Loans	40 CFR 15
Intergovernmental Review cf Environmental Protection Agency
Programs and Activities	40 CFR 29
General Regulation for Assistance Programs	40 CFR 30
Debarment & Suspension under EPA Assistance Programs	40 CFR 32
Procurement under Assistance Agreements	40 CFR 33
State and Local Assistance
Continuing Environmental Programs
Grants for Construction of Treatment Works
Cooperative Agreements for Clean Lakes
Construction Grant Program Delegation to States
40 CFR 35
[Subpart A]
[Subparts C,D,E,and I]
[Subpart H]
[Subpart J]
Research & Demonstration Assistance
40
CFR
40
Training Assistance
40
CFR
45
Fellowships
40
CFR
46
Figure 1-1
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ASSISTANCE ADMINISTRATION
,:'r or .ASSISTANCE AI>" ¦
hEADQUARTEFT A'./ 'INI': i£RED RAD,
SPECIAL STL DIES, SURVEYS,
AND INVESTIGATIONS
- c:
l PRJGR/.1
:\r.-u.-££m.-":nts
Grants Adn-^istration Division
Grants Operation Branch
Washington, DC 2046C
Ccmmercial (OIL): 202 332-5252)
Grants ACTir.istration Division
Grants 'v~ nation & Analysis Bra^c:
Washington, K! 20460
Ccnmercial (CML): 202 475-8270
REGIONALLY ADMINISTERED CONSTRUCTION GRANTS, CONTINUING EfJVIRONMENTAL PROGRAM,
SPECIAL STUDIES, SURVEYS, INVESTIGATIONS, AND INTERAGENCY AGREEMENTS
Grants Administration, Finance
and Procurement Branch
EPA - Regie I
JFK Federal Bide. - Rn. 2300
Boston, MA 02203
(CML: 617 223-5741)
Grants Administration Branch
EPA - Region II U-.JD
26 Federal Plazs - Rn. 937A
New York, NY 10278
(CML: 212 264-9860)
Grants Management Section
EPA - Region III
Office of the Ccmptroller
841 Chestnut Street
Philadelphia PA 19107
(CML: 215 597-S229)
Financial Management Section
EPA - Region IV
345 Courtland St., NE
Atlanta, GA 30365
(CML: 404 8S1-3402)
Financial Management Branch
EPA - Region V
230 S. Dearborn Street
Chicago, IL 60604
(CML: 312 353-2040)
Grants Adniinistrat ion Branch (6M-G)
ErA - Region VI
First International Building
1201 Elm Street
Dallas, V. 75270
(CML: 214 767-2650)
Grants Administration Section
Progran Integration Brancn
EPA - Region '711
726 Minnesota Avenue
Kansas City, KS 64101
(CML: 913 236-2921)
Grants and Financial
Management Branch (8PM-GFM)
EPA - Region VIII
1860 Lincoln Street
Denver, 00 8C295
(CML: 303 293-1710)
Grants and Permits
Administration Branch
FPA - Region IX
215 Frsnont Street
San Francisco, CA 94105
(CML: 415 974-8173)
Grants Administration Office
EPA - Region X
1200 Sixth Avenue
Seattle, m 98101
(CML: 206 442-8579)
Figure 3-1
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ASSISTANCE ADMINISTRATION
UNSOLICITED PROPOSAL ACKNOWLEDGEMENT LETTER
5700 CHG 2
2/10/86
Re: Proposal No.
Title:
Receipt Date:
Dear
Your unsolicited proposal, as referenced by the title above, has been
received on the date indicated. The proposal, which now bears the U.S.
EnviFormental Protection Agency Assistance Identification Number shown above,
is being forwarded to the appropriate office for evaluation as a preapplication
for a grant or cooperative agreement or a procursnent contract and will be
considered for technical merit and relevance to the program mission.
Please be aware that this is neither a commitment of finds nor a notice to
initiate the work. Should the review be favorable, you will be contacted with
advice as to how to proceed further; if unfavorable, you will be notified to
that effect.
Federal Acquisition Regulations require that canpetition be utilized to the
maximum extent possible. Wiile an unsolicited proposal may receive a favorable
technical evaluation, prior to its funding, it must be determined that the sub-
stance of the proposal is sufficiently unique to justify acceptance as an
original proposal, is not available frcm another source, or does not closely
resemble that of a pending competitive solicitation.
We appreciate your interest in our program. If we can be of further
assistance, please do not hesitate to contact us.
Sincerely yours,
Assistance Specialist
Grants Administration Division
Figure 3-2
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ASSISTANCE ADMINISTRATION'
5700 c
2/10/86
CHAPTER 4 - NiJMBEPJNG OF ASSISTANCE PROPOSAL?
1. STRUCTURE OF ASSISTANCE IDENTIFICATION NUMBER. A unique Assistance
Identification Number (IDfc) is assigned to eacn application for a grant, loan,
cooperative agreement, or unsolicited proposal. An EPA Assistance Identification
Number consists of ten characters and uses both letters of the alphabet and
numbers (See figure 4-1, "Structure of Financial .Assistance Identification
Nunbers"). Sequential identification of these characters is as follows:
a.	Program Code. A single alpha code identifies the assistance progran.
(See figure 4-2, "Financial Assistance Program Catalog Numbers, Titles,
Authorities, and Codes").
b.	Serial Number. A six-digit number identifies either a specific grant
in the Construction Grants for wastewater Treatment Wbrks (WV,T) program or a
specific project in all other assistance programs.
c.	Sequence Number. A tvo-digit number identifies either the specific
project of a WWT Construction Grant or a specific budget period or fiscal year
in all other assistance programs.
d.	Preapplication/AmenAnent Designator.
(1)	Preapplication Designator. An asterisk (*) identifies a preappli-
cation. The WWT Construction program and most other assistance programs do
not use preapplications.
(2)	Amendment Designator. A single character identifies a specific
formal amendment to an Assistance Agreement/Airendirent. Numerals "0 - 9" are
used for no amendments through the ninth amendment arri the alpha codes "A - 2"
are used for the tenth through thirty-fifth amendment.
e.	Example of Assistance Identification Number. (See Figure 4-3)
	Progran Code
	Serial Number
	Sequence Number
	Amendment Designator
A 000000 00 0
2. RESPONSIBILITY FOR NUMBERING.
a.	Headquarters. The Grants Administration Division will assign an
Assistance Iden .ification Number to all unsolicited proposals, and to eacn
application, (or preapplication) for EPA assistance programs administered by
Headquarters.
b.	Region. The Assi-.o j ^.-ustration Unit "-AO in each Region will
assign an Assistance Identifier en Number to each application (or preapplication)
received for State anj Local .Assistance programs, other than WWT Construction,
and for any other assistance pro-gram for which award authority has been delegated
to the Regional Administrate:..
4-1
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ASSISTANCE ADMINISTRATION
5700 CHG
2/10/86
c. State. The appropriate State office, ps part cf its annual State Water
Pollution Control Plan, will assign an A.-:si?ta'v.e Tdentifvcation Number to each
WYT Construction project included ip. Uv; State Pr.-jer.c Priority List. The
assigned ID# contains a Serial Number anc S._ ..jg"'-:- N'^ber. ,','cte that any
Anendment Designator within the Assistance ZTiitiiication Number //ill be assigned
by the appropriate EPA Regional office (cr delegated State) for wwr Construction
projects.
3. ASSIGNING IDENTIFICATION NUMBERS - l^.OQUAPT^ ATHIN'ISTERED PROGRAMS.
a.	Program Oode. Using figure 4-2, ident'.^v tne assistance program for
which the application has been submitted a-v: ass:-n appropriate program
code.
b.	Serial Number. Assign a serial ni'TJbe ¦ ir-m the appropriate block of
numbers. Hie following predetermined blocKs or six-dicit serial numbers have
been assigned to the assistance programs admin- >t?red by Headquarters. Serial
numbers are to be assigned in sequential order withir each series.
Program Code	Assistance Program	Serial Number
0	Senior Zrvironmentax UToioyvent)
R	Research	)
S	Demons trat ion		)
Spec i -J. Ir^estigations,
X	Surv-._ • or Studies	)	800000 - 849999
Y	Consolidated - En r:\-nental...)
Special Purpose	)
Z	Unsolicited Proposa]s..........)
J	Asbe^.-t Hazard Abate:-vnt (Schools) 850070 - 89S999
T	Traini	90JG„0 - 909999
U	Fellowsnirs	910000 - 919999
c.	Sequence Number. Assign a two-die: if number to identify the budget
period governing the application or agrae-vr.t. T!-e Uroet period (sequence
number) for a new project will be "01." The	per.od for tne first
continuation (and second budget period) will have a sequence number of "02,"
etc.
d.	Preapplication/Amendment Designator.
(1)	Preapplicatiori. Assign an asterisk (*) as the tenth character of
the Assistance Identification Number for all preapplications.
(2)	Amendment. Each augmentation or revision, whether an increase or
decrease, or other proposed change to a funded project requiring a formal
amendment is assigned a single character designator when the amendment is
prepared for approval ot Die	Official. Assign the amendment designator
as follows:
4-2
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ASSISTANCE AD'UKISTPATIO :
S700 CHG 2
2/10/86
(3) Ne» agreement - no arpendme a-=biqr s numeric "C";
(L: Fir<„L t-firoij^ii ninth a-nend.- ^i<; a one-dig:.t character
"1-9," in sequential order;
(c) Tenth through thirty-fiith <¦.,	.t. assign an alpha character
"A-Z," in sequential order.
4 . ASSIGNING IDENTIFICATION NffJMBLRS - 1	.&¦*,:ZZEBFD PROGRAMS,
a. Programs Ponded with V.astewctf Tic ..trr	t'.'uction Grant Rinds.
(1)	Program Code. Assign the •.	' to ill projects for WWT
Construction; for ki vance of Allowances for '-"v. ~	'".cs Plar.niro and Project
Design; arc all assista-ice zr State? for Ccn?tr< Manag^nent Assistance (§205(g))
and for Water Quality Mana^ermnt Flanmnq '<>2"-"
(2)	Ssrial N'jirjjer.
(a) wi.T Construct'cn Project,	~ serial nujiiber rrcn\ the
appropriate block of nurJDers -~f fj/jre ~-4. Tfy- * .~t tvo digits identify the
State and the last four identify specific	reed (grant objective)
including the Step 1 facilities :V=rvI:i: pv: d"!.i the Step 2 design project(s),
if any; the Step 3 cons true L10"	1" o%~ the Step 2t3 design and
construct" ">n projects. All p. -tL crigin.it i-.u izrcjm a facility plan will be
assigned the same serial number aod be funce-d w a single grant unless two
or more municipalities are aizrHca- t3- In tr.v	case, a separate serial
number is assigned the projects) cf each municipal lty regardless of the fiscal
year in which the project will r ^.nr\od. ' . ia1 -"jmbers are to be assigned
in sequential order. Once a seii-l rn'"u->-r ' s	to a prospective grant
(facility need) it MAj. NOT do useC	A?	numbers assigned to
P.L. 84-660 projects KAY NCfT be reassigned to	32-500 projects.
(o) Construction Management AsEio'-aiXe .^agreements (§205(g)). The
first two digits of the serial nunhcr identif.- ->j recipient State. Use the
first tivo digits fron the "Serial Numoer" on fi^ire --4 to identify the appro-
priate State. The next four digits will ALWAYS be "0000."
(c)	Advances for Allowances for facilities Planning and Project
Design (§201(!)(!)). The first two digits of the serial number identify the
recipient State. Use the first two digits from the "Serial Number" on figure
4-4 to identify the apDropriate State. The next four digits will ALV^YS be
"0000."
(d)	Water Quality Management Planning Grants (§205(j)).
The first two digits of the serial number identify the recipient State. Use
the first two digits fr^ f-.-u :. :a. Number" on figure 4-4 to identify the
appropriate State. The next todigits will ALWAYS BE "0000."
4-3
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PSZlSTMiZZ ADWlsISTRATIG-
5700 C.--
2/10/8C
(3) Sequence ^jnbc:.
(a) WWT Construction Piojec:?, ;-.s£':_r> a tw:^-dkjit number to
identify the first and each succeeding	sequential) project (if any)
toward satisfying the identified facility r;_?. Efforts w^icn are segmented
into two or more projects will n o rrr.il 2 y be scc^-ti^ly nur^erei. (Note: The
Sequence Number doss not always correlate to the Project; Step.) Variations of
this system are available for a municipilitv that had a Step i project whicn
was expected to generate more tnan one ,cte,.i 2 project (eacn of which might have
resulted in a number of Step 3 or Step 2+3 projects) or Step 2+3 projects. A
suggested methodology was to;
_1 Assign the Step ] oroject sequence 01.
2	Assign the Stc , 2 projv.c_ segue,ice numbers aivisa^ic q,
10 (10, 20, .. .905 .
3	Assign Step 3 or Step 2+3 projects seauence numbers
(11-19, 21-29, ...91-99) sequentially following tne sequence number of the
respective Step 2 project, if any. Tms assumes a maxi_Tium of nine Step 3
projects resulting fran any S;ep 2 project.
(b)	Construction Kanere^F^t Assistance Agreements (g205(o)).
Assign a two-digit number, n~0-L^," to :asr,tify the latest fiscal year appropri-
ation fran whicn monies are ^.v, ded. Subsequently, if additional funds are
awarded frcm trie sa^e fiscal year monies, the sequence number (latest fiscal
year) will remain the same ard the appropriate aierdment designator (see paragraph
4d(l)(d) below) will be assigned. V-hen additional funds are added frcm later
fiscal year monies, assign the fi&.^l year fraii whicn tnes3 monies will be
awarded. (These may not always oe consecutive.)
(c)	Advances for Allowances for Facilities Planning ana Project
Design (§201 (1) (1)). Assign the two-digit number "'01" to identify the first
grant agreement. Subsequently, if additional funds are awarded frcm the same
fiscal year nonies, and the appropriate anenoirrin desigsator (see paracrapn
4a(4) below) will be assigned to that ogreaiisr.t. When additional funds are
awarded fran a later fiscal year's rronies, assign that agreement the next two-
digit number in the sequence "01-19," to identify the continuation agreement
prepared to award that fiscal year's monies.
(d)	Vfeter Quality Managers nc PLrtring Ac reefer,ts (S205(j)).
Assign the two-digit number "2l" to id^-tify the first rrrart agreement. Subse-
quently, if additional funds are awarded frcm the same- fiscal year monies, the
appropriate amendment designator (see paragraph 4a(4) below) will be assigned
to that agreement. When addition;! furd^ awsrd; 1 fro1. 1 Liter fiscal
year's monies, assicrn that agreen="t the re-l	numS?- in the sequence
"21-49," to identify the	agreement prepared to award that fiscal
year's monies.
-------
ASSISTANCE AE^JKISTRh: 10\"
>700 C-:_- 1
2/10/S6
STRUCTURL 0" HNANOIAl. ASSISTANCE IDENTIFICATION NUMBER
ASS'STANCE
PROGRAMS
Pc0GfiAA'
CCOE
SERIAL NUMBEFi
SEOUENCE NUMBER
PREmPPI,CATI0\
AMENDMENT
OESl GNATOR


POSITION
1
^S'TION
2
POSITS
3
POSITION
4
POSITION
S
POSITION
6
POSITION
7
POSITION
8
POSITION
9
REGfONAL PROGRAMS


CONSTRUCTION
GRANTS FOR
WASTEWATER
7 c £ A T V EN'T
V.ORN&

1
01 - 11
STATt COCi
"0C?V - *999?"
FACILITY NEED/GRANT OBJECTIVE
(TREATMENT WORKS!
'01 ' - 9?"
PROJECT SEQUENCE
NUMBER
0-9
A - 7
PROJECT
AMENDMENT j
DESIGNATOR
i
CON'STh jCTiO'i
management
assistance
r
'0030
70" -"99
FISCAL YEAR OF
STATE OBLIGATION
A JV A.NiES ?Of-
ALLOWANCES FCK
FAC»l T.es
0 js" t'-G Af'O
j -RC-EC1
1
'01 "19
SEQUENTIAL NUMBER
I WATEr* OUAL IT>
j MANAJzWEN'T
plann n:
&GREEUE* TS
21-49
sequential NUMBER
1
1
1
1
!
'f STATE AND
lNTE°S'-i£
PROGRA.V

1
|
01 - 79
ST>-TE CCDC
0
21*0 cHl
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OF ppOjECT
1
j!
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ASE^'-'.Ct
1nl , " 1 " *
1 _ a
^Lo.OS
NJMsE:*
990 - 999
INTERSTATE COMMISSION
IDENTIFIER
OTHER STATE
AND INTERSTATE
PROG*-^ SUP°0mT
-SSiSTANCE
{ANNUAL Sl'P°C^T
0
: f
C v
CD1 - 985
SEQUENTIAL NUMBER
'NOT OTHERWISE RESERVED
FOP. ST A1 E AND INT t RiT A TE)
1
0-9
A - Z
AMENDMENT j
ALL Ol^Er,
STATE I LCC-l
ASSISTANCE
B H K
L 0
R ' S
i * j
39
? _ DC z 7 Pt R CD
w .BER
1
DESlCS-iTO0 1
!
PP£ ^00- . | 2'4 \
DE S'G*. - T . = 1
i
1
HEADClUAFTFRS PROGRAMS
TPAIM .G
T
c-
TRAINING lOf MTif £ =
og::> - 9&3S
SEOjEMiAc V'J' ber
FELLOWSHIPS
U
91 |
jGGO - 9^9';

ALL CTHER
HE AC 2L A - TE RS
PPCG-^-MS
J
R S
A I
3
RESEARCH
b ..isc
t fan
DCvO - 999??
i.CJc .T 1 -L cl-
-------
5700 CK
ASSISTANCE A^'IKISTk'-Ti:;';	2/10/86
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-------
T1
M
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I
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I
to
CFrv\ No.*	ri^jr-n Tit.le
66.432	State Public Water System Supervision
66.433	State llncloi ground Water Source Protection
(none)	Safe Drinking water State & Local Program !>'".*
(none) Safe Drinking WSter State Surfice TjnjyxmrJjtvnt
Assessment (Pits, tonrls, ar»l I/V] runs)*
66.419 water Pollution Control State and Interstate
Program Support
66-027 Solid Miste Demonstration and PLarnitaj*
66.600 Consolidated Continuing Env. Prorji'an Support
66.426 water Pollution Control-State and Areawlde Water
Quality Mariacjaiwnt Planning*
66.802 Super fund Ramdial Planning and Implementation
(llaranjous Substances Response Tnisl Fund)
66. 7fll State Cncmc-al Substances Prevention Program Support
ntiject	Statutory
C1 a-,'-. (	Authority
Safe I* inking Witer Act
§144 3(J)(1>
Sate t>-inking Water Act
51443(b)(I)
Safe DrinHrrj Witer Act
S1442(b)(3l(C)
'vito llrinkinQ Water Act
S14 4 2(b)( 3) (C)
Clean water Act 5106(a)	I
Solid Wtiste Oisposal Act
Subtitle D	I
Various app) liable statutes (1
Clean Water Act S2l)8( E)(l) P
Conpretietnive rnvi rortrrntal
Ros] onso , Condensation and
Liability Act S104	V
Tnxic	nefs Cor it rnl
Act	K
r.TCS Codes
Pr<«j ram | Au thor i ty
F 8P
8U
8A
8L
CO
l-t
ro
H
%
nj
n
C/3
H
O
66.GOP	Fn\'i mnrvnta] Protection Consolidated - Special Purple
(otli»jr than rnv i r< it mental Prot ort 1011 Consolidated -
pr<»jr.m Sup^ir* --	Pro*]! «fii Cride ''M"
Various srinj icable statutes
la arch Grants and
ret inents:
6'..501 Air dilution Control Rer-earcii
6f..500 Environmental Protection GonsoL1'litiyl Research
(r* -no 1	Great I nV " . Water Quality Research*
Clean Air Act SS 101(a)(2)
and (l )(3); anJ <,l04(a>(2) R
VariQJs appl ic.iMe stat'.tc"-
Cl^an Wjter Act
SH)4(D	R
to
v —l
^ S
3 O
x n
cr< ;,i
o
IO
-------
C n v\	. * rrc*ir/gn Ti t\e
. r>0?	I*1"*^** 11 it i • r; Coi 11 r*'j | Rl 1 c'l
^f>. >lir.	Pr nkl'*"* W»' -** Rr> ,c 3^ ¦ -l*
'ft "(M	'ol !•' U" ' IH'' Rjj • t 'i
i. .'H	P") ' i.- <.
T> ' 1.
in i
«V'r»fuv*M
r» rrO *v ~ » » s . :>
*T* '^n1
f*r >?V r; rr^' r vm ~»t «'
)<»n C'"'"1' »• Is i' • j
fJhj'^ct	Statutory
C	f	\uHtori ty
GICS ('ruins
fV<"»nr«Tm J"7^'> h"»»-1
I ral ! n*>ect" \ c l/h*
Piujici'l'1 & Pty^;nticulM
!<*- S^Ofa)
rrinknvj Vi«»_c t- /\j t
' M.^a) o>i I 1-3 M (ii)
• !fl ' i.tf 111', v .t,i1 A '
M
f ' \ »" °	rin0' ' 'J f ' «t I *
> ' 0 ^ fb)
1 »n v' *<>r Ac1 *>*
l" ' M ; UM(: ) ; '' i rW
¦ " ,v>n>	p
v>
f
n
- <
j -

¦ i
*»,
•n mm.-t Ar1"
'¦6	Sj'j^ 11 'rMrr' '»'i [Pr" r-1 "rM -tyI l~> >iv,'r ji-• r.r
rr.l2£'
• I1 . W>,tI liiUon Control I,Mr> P^V'i l<->ii I '«v • -tjon
(n^.in f'lk' s)
11 ,iimif| (.rarit.s and K'?] lowships :
«.nm Air rv.l'ntvui Oml. )I	Tim m.i ¦¦•;*
(nn;e) rv>«;ticicios "Warning*
''-if-- :>uii-ir»i W-' or r>~~ui>v i.->n .1 Tt.ii'.irtQ*
^ r° rfnktng Uliter Ar '
C 1 M?(r>) arrl $14 44
v>] i/i T-'iot c TJl* fvrvil Ac!"
riwn (wtei- Act; SSUM(h);
10-1 ( i ) : U)r.(aj :10S(t.) ;10b
-------
CFtW No.*
(none)
(none)
(none)
66.428
66.429
TJ
c
't
ra
.c*
to
i
66.430
{none)
66.508
(none)
66.456
66.420
(none)
66.002
(rone)
Program Title
Safe Drinking Wbter Inspectors & Supervi^ry Training
Safe Drinking water Professional Training*
Solid Waste Management Training*
Vbter dilution Control Professional Training*
water Pollution Control Technical Traininq
Water dilution Control State and I/>ral Minpow.'r
Program Development*
feter Quality Kinagement Public Participation Tri>j.*
Air Pollution Control Fellowships*
Safe Drinking Water Fellowships*
Vfeter Pollution Control Fellou^h lpr,*
Asbestos Abatenvnt State Pilot Pro yets
Senior rnvirornrental Employment (SEE) Proyran
Investigations, Surveys or Studies considered
neither research, demonstration, nor training
Comprehons ive Estuorine Management dilution
Control and Abatnnent
66.702
Asbestos Haz.ird«; Atviterent (Schools) Assistance
Object	Statutory
Cla^s	Authority
Safe Drinking Water Act
SJ44 2(b)(31(U)
Safe Drinkinq Water Act
§144 2(d)
Solid Wiste Disposal Act
SV7O07 and 8001
Clean Witer Act S104(g)
T
T
81
BN
fc
c n
HH
cn
H
tn
n
W
H
Clean Water Act
SS109; and 111
Clean Water Act
5104(g) (1)
Clean Water Act
S 104(h)
Clean Air Act
5103(b)(5)
Safo Drinking Vifciter Act
51442(d) (1) anl (2)
8F
Clean Water Act
55114(b)(5) and 104(g)(3)(B) U
3F
T">xic SuhRtances Control
Act SJO(a)
Environmental Prograns
Assistance Act of 1984
various applicable statutes X
Cl^an Water Act Sl04|o)(3)
Asl---sto<; St-tool Hazard
Alotomont Act 5505
io ui
\ -o
t; o
J5 o
JO
LJ>
-------
ASSISTANCE ADMINISTRATION
5700 CHG 2
2/10/86
STATUTORY AUTHORITIES FOR FINANCIAL ASSISTANCE PROGRAMS
(Grants Information and Control System (GICS)
GICS
Code	Authority
1* - Clean Air Act, 42 U.S.C.A. $7401 et seq.
2* - Comprehensive Environmental Response, Compensation, and
Liability Act, 42 U.S.C.A. §9601 et seq.
3* - Federal Water FOllution Control Act (Clean Water Act),
33 U.S.C.A. §1251 et seq.
4* - Resource Conservation and Recovery Act/ 42 U.S.C.A. §6901 et seq.
5* - Federal Insecticide, Fungicide, and Rodenticide Act,
7 U.S.C.A. §136 et seq.
6*	-	Moise Control Act, 42 U.S.C.A. $4901 et seq.
7*	-	Toxic Substances Control Act, 15 U.S.C«A. $2601 et seq.
8*	-	Sate crinking Water Act, 42 U.S.C.A. $300f et seq.
9*	-	Asbestos School Hazard Abatsnent Act of 1984
0*	-	Environmental Programs Assistance Act of 1984
The GICS AUTHORITY code (transaction code 06) is a two character
alphanumeric cooe. The first character is numeric and represents
the statute. The second character is alpha (or may remain blank)
and represents the specific section of the statute.
Figure 4-2-5
-------
5700 CHr
ASSISTANCE ADMINISTRATION	2/10/86
EXAMPLES OF ASSISTANCE IDENTIFICATION NUMBERS
1. HEADQUARTERS ADMINISTERED PROGRAMS.
a. Preapplication - Research.
Program Code
.Serial Number (1,105th application)
.Sequence Number (1st budget period)
..Amendment Designator (preapplication)
R 801105 01 *
b. Application - Research.
Prcgran Code
.Serial Number (1,050th application)
..Sequence Number (1st budget period)
..Amendment Designator (new application/no anendment)
R 801050 01 0
c. Derronstration.
Program Code
.Serial Number 1,100th application)
..Sequence Number (2nd budget period)
..Amendment Designator (10th anendment]
S 801100 02 A
d. Special Study.
	Program Code
.. Serial Number (4,360th Application)
..Sequence Number (1st budget period)
..Amendment Designator (new application/no amendment)
• • « •
• • • •
X 804360 0T 0
Fioure 4-3-1
-------
ASSISTANCE ADMINISTRATION
5700 CHG 2
2/10/86
e. Unsolicited Proposal.
	Program Code
..Serial Number (5,050th application (proposal))
..Sequence Number (always "01" for unsolicited proposals)
..Amendment Designator (always "0" for unsolicited proposals)
Z 805050 01 0
f. Training.
	Program Code
..Serial Number (1,062nd application)
..Sequence Number (3rd budget period)
..Amendment Designator (1st amendment)
T 901062 03 1
g. Fellowship.
.... Program Code
..Serial Number 1150th application)
..Sequence Number (2nd budget period)
..Amendment Designator (2nd emendirent)
U 910150 02 2
2. REGIONALLY ADMINISTERED FROCRAMS OTHER THAN THOSE FUNDED WITH WASTEWATER
TREATMENT VJORK5 CONSTRUCTION FUNDS.
a. Water Pollution Control State - Program Support.
......... Program Code
	Type of Proyram (State or local Assistance)
	Regional Location (Region IV)
	State Code (Alabama)
	Zero Fill
	FY of Recipient's Rroject/Budget Feriod
	 . ..Amendment Designator (New Application/no amendment)
• • • • • • •
I 00 4 0T~0 84 0
tigure 4-3-2
-------
ASSISTANCE ADnitaSTrvATJO
5700 CHG 2
2/10/86
b. WateL foil j tic- Co''.-ic.i-ir.t
-------
ASSISTANCE ADKINIFTRAT^
5700 n;
2/1C/86
EPA prcgra~ cr	- i - o 1	cgeiicy unaer a State
delegation ccree-r _ cr c._-. Y_ 1 ra. . . :¦? <¦><. t to r.-c- review process only if
EPA retains the aut1: j i t_ en sw i. j. r, jurt.-ts. See paragraph 7 for
specific detail.) "-'-c.va	to fr.Lic" 204 are ioer.tified with an
asterisk;*); propra^s hawiv Si_3te ,;iai\=	foe modification are identified
with a plus sign (+).
CFDn N,;jrv	I rv.X'j -<¦' > ± . r .1 c
1. State and Local Fir.a -.ai,	r-vor .ranis
*66.001	-r- • r Pollution Cortrcl Prcgrar.. Support
*66.415	Construction Grants for Wastewater Treabrent Works
*66.419	i-'.vater Pollution Cortrol State and Interstate Program Support
*66.432	+Stftte Purlie Wuter System Supervision
*66.432	+State Underground Water Source Protection
*66.435	roll jtior, Conorol Lake Restoration Demonstration
*66.4nr	ic , M= iage."'>er.L Assistance
*66.454	^i.zer 0'--"Ii flanagentrt Plaming
*66.4^5	K'?rme Cabined Sewer (Verflcw Special Fund
*66.456	Cor.prehex.ive Estuarme Management - FOllution Control
an>-j AvsEenc-nt
*(N'/A)	sta-v-c. Inventories of Uncontrolled Hazardous Waste Sites
*66.CC	1. " Lc'_ Toni iruir.g Envirorvrental Program Support
*65.6:13	. G. - :c.'~zrz= for Construction of Treatment Works
*66."Cj	-Ptzcic :os Enforce^t Prograri Support
"66.702	Asr^cUs 4c;.=r::c Abi^etient (Schools) Assistance Program
*66-?r,l	if la^e-r^it State Program Support
*66.802	Si.~>. r. -r Re^i^al Planning and Implementation (Hazardous
Suhstv . V5STrust Fund)
2. Research, Devbloor-ii'. . a^j_ Pa- . mrol:ici Financial Assistance Programs 1/
66.500
66.501
66.502
66.504
*66.505
*66.506
66.507
E'V i ronrreptc.-i Ti oto ction Consolidated Research
Aj.' P 11.• tio>, Conuro] Fsse^r^'-
P-";£1.1 ¦" i d~c C• trol Rproarch
S— 2 0 V'-L''--;.ov-I R?~earch
'w'-i-C- >-11 jO". Control Pesesich, Development, ft Demonstrati
p- i^'i u Wct^r Research f, Demonstration
Lv*. S'Ji-S t.ci1CtrS
search
Other Financial Assistant ?<
2 '
66.508
c.
Prcrc.:1
1/ Selection is limits; t>_ p> -_yo<5
-------
ASSISTANCE ADMINISTRATION
5700 CHC- 2
2/10/86
4. Direct Develcxrrient Activities
CFDA. Number	Prog rant Title
*(N/A)	Real property acquisition or disposition, including obtaining
major leases or easements
*(N/A)	Construction of new EPA facilities
*(N./A)	EPA issued plans and permits which do not impact interstate areas
5. RESPONSIBILITIES. On December 7, 1983, tne Administrator officially delegated
his authority to execute 40 CFR Part 29 responsibilities to Regional Administrators
and Assistant Administrators previously delegated the authority to approve grants,
cooperative agreements, direct development activities, and State plans. With
the exception of wastewater treatment construction grants, the authority for
40 CFR Part 29 may be reoelegated within EPA to Regional Division Directors
and to Headquarters Office Directors. Each Regional and Assistant Administrator
affected by this delegation must document officially any redelegation(s) they
make. (Management ara Organization Division staff is available to assist with
this requirement.)
a. Management and Oversight. The Chief, Grants Policy and Procedures Branch
(GPPBj, Grants Administration Division (PM-216), nanages EPA's basic procedures
and oversees the implementation by Regional and Headquarters assistance
administration and program stafr to ensure that EPA applies the provisions of
40 CFR Part 29 consistently. T. e GPPB is responsible for:
(1)	.Approving aoencyvide, Regional, and supplemental program-specific
guidance before they are implemented;
(2)	Receiving, coord injure and distributing materials relating to
all State processes to appropriate EPA Regional and Headquarters offices;
(3)	Publishing for canment in the Federal Register any changes EPA
proposes to make in its procedures or in its list of programs and activities
eligible for States to review under an official E.O. 12372 process before
implementing any changes; distributing sane to appropriate EPA Regional ana
Headquarter offices for their distribution to SPOCS arid or designated areawiae
entities in their jurisdictions; and
(4) Maintaining central recordkeeping of all nonacconmodations and
emergency waivers that Regional and Headquarters offices issue, and of any
complaints they receive about EPA's procedures, decisions or actions.
b. Regional operations. Regional Assistance Administration Units responsible
for the administrative processing of financial assistance applications will
serve as focal points for all of their Region's intergovernmental review activi-
ties. As such, they will:
(1)	Be a contact for additional information about projects subject to thc-
new review process;
(2)	Maintain a central file of information received fran the GPPB ana
distribjle copies to appropriate Regional progra-n staff;
6-4
-------
ASSISTANCE ADMINISTRATION
5700 CHC 2
:/in/86
Federal Register / V£>1. 48 Ho. 190 / Thursday, Septerier 29, 1963 / Notices
ENVIRONMENTAL prKJTECTION AGENCY
OFFICE OF A[yINTSTRAT IOt'
[OA-FRL-244 3-4]
AGENCY: U.S. ENVIRONMENTAL PROTECTION1 AGENCY
ACTION: NOTICE CF PROCEDURES TO ESTABLISH OOM.MENT PERIOD START CATES FDR
PROGRAMS AND ACTIVITIES SUBJECT TO EXECtniVE ORDER 12372
SUMMARY: On October 1, 1983, the Environmental Protection Agency (EPA) will
implement a new intergovernmental review process for programs and activities
subject to Executive Order 12372 and 40 CFR Part 29. EPA published its reg-
ulation and separate lists of financial assistance programs, direct develop-
ment activities, and st^te plans subject to the new rarocess in the FEDERAL
REGISTER on June 24, 1983 (43 FF> 29288? 29304 and 29096).
This FEDERAL REGISTER Notice is EPA's official notification of the start
date for canKtnt periv-Js on pr^g; .-are and activities covered by the new process
and of the EPA contacts for furt'vr information about the proposals under cor>-
sideration. If any chances tr	rrooeciires are necessary, EPA will publish
them in a FEDERAL REEISTvT: rice -= y?iore implementing them.
OR F'JRTHER INFORMATION CONlVd:
John A. Gwynn, Chief
Grants Policy and Procedures Brand", (P'^-216)
Environmental Protection Agency
Washington, DC 20460
(202) 382-5268
SUPPLEMENTARY INFORMATION: The Order and regulation require EPA to notify a
state process or directly affected state, areawide, reaional, and local entities
of activities proposed for Federal funding in their jurisdictions. The notice
must estaDlish the start date for a 30/60 day official connsnt period and
identify an EPA contact for additional information. Because EPA does not have
formal program announcements or deadlines, we developed the following procedures
to:
1.	Establish the start date for camirent periods on activitie
under EPA financial assistance programs and direct development activities, and
2.	Identify EPA offices to contact regarding additional information
about the proposals under consideration.
Appendix 6-B-l
-------
ASSISTANCE ADMI \ ISTRATIO'.
5700 CHC 2
2/l'"V3G
PROCEDURES
J_. TRANSITION FROM A-95 REVIEW SYSTEM TO E.O. 12372 SYSTEM
Any applications still undergoing A-95 review as of October 1, 1983, will
continue under that process. Also stec 2-3 and step 3 construction grant
applications that had completed an A-95 review on either the step 1 or step 2
application do not have to undergo review under the new process.
II. WHERE A STATE PROCESS EXISTS AND INCLUDES THE EPA PROGRAM OR ACTIVITY
UNDER CONSIDERATION
A.	CONSTRUCTION AND CONTINUING ENVIRONMENTAL PROGRAMS
The 30/60 day comment period on these applications wil' begin on the date that
the EPA Regional office receives written notice from the appropriate state
pollution control acency, or delegated entity, that it forwarded the application
to its state process for review. EPA will presume an additional 5 days from
the date of application transmittal for receipt and entry into the state process.
The written notice and any request for additional information about the application
should be oirected to the appropriate EPA Regional Office listed in the Appenaix
to these procedures. Th? 30 day comrent period is limited to applications for
noncompeting continuation awards, i.e., Continuing Environmental Programs.
B.	RESEARCH, DEVELOPMENT AND DEMONSTRATION PROJECTS (R&D)
The 30/60 day comment period for R8D applications subject to the Order (see
48 FR 29304) will begin on the date that EPA receives written notice from the
applicant that it submitted required material to its state process. EPA will
presume an additional 5 days fror. the date of application transmittal for
receipt and entry into the state process. The written notice and any request
for additional information about the application should be directed to the
Grants Administration Division (see Appendix). The 30 day comment period is
limiteJ to applications for noncompeting continuation awards, i.e., R&D,
incluaing "Special Studies, Surveys, and Investigations."
• C. DIRECT DEVELOPMENT ACTIVITIES
The 60 day comment period for proposed direct development activities will
begin on the date that the state process (or delegated entity receives oral
or written notice from the EPA office proposing the direct development activity .
III. MERE A STATE PROCESS DOES NUT EXIST OS INCLUDE THE EPA PROGRAM OR ACTIVITY
UNDER CONSIDERATION "
A. CONSTRUCTION AND CONTINUING ENVIRONMENTAL PROGRAMS
The 30/60 day comment perioo . "hes* a:,i1 ic?tions bill hecir, c1 the dcte thft
EPA receives written notice frc.r, me -jporopnate state pollution control
Acpendix 6-B-2
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ASSISTANCE ADMiN ISTRA110
5700 CHG ?
2/10/^6
agency that it	e-.	aff-cc.'-J	areav.ide, regional, and
"•ocal entity cf t'"1. ~.r1 - V drj coi'tit peri do ic 1 urate- to
^plications fci	a-'ar^s, i.e., Continuing Environmental
Programs.
B.	RESEARCH, DEVtLOPH..\. AND Ecf'ONSTZAT 1C. PRuJECIS (R&D)
The 30/60 day carre nt period for applicar ions subject to the Order (see 48 FR
29304) will becir on the date that state, areawide, regional , and local entities
that would be directiv, atfeciei by the proposal receive written notice frcm EPA
that an application was received. The 3C day ccmnent period is limited to
applications for nonccnpeting continuation awards, i.e., R&D including "Special
Studies, Surveys, and Investigations."
C.	DIRECT DEVELOPMENT ACTIVTTIlS
The 60 day ccmmsnt period for piopoiea direct development , activities will
begin on the date th?t stste. area-.-id--, re;:o nl and local entities that wojIg
be directly affecto; ' th- p1*closer' activity receive ore.1 or written notice
from EPA.
iv. contend cr notice
a. applica;\t/?t;j: aglkc. :ii to l.-
Tjic ~ntten notice F~- ~ir-¦	t: - 'C^aic cf Federal Dcmestic Assistance"
number ano title fcr th? aopiK.'-.tioii, the .^n.: of the applicant, and the date
'iat the application r trans itt-.10 the su-te process.
B. EPA NOTICE TC STATl Piw^Z'.i'	Af i iJCi ED STAI-, AFZ^.TDl, REGIONAL At®
LOCAL ENTITIES
1.	EPA's cral or wiitte.;, roL^oe coiKe: i u the actio,, tne nature or the
activity, who the EPA contact wl. b~ for additional information, and the
start date for the 60 day connent period.
2.	EPA's v,r:tte'" iv.'.e r:	ii-^cipt oi an application for revie*
must provide the "Cat=].>_¦ o/ 'ei; c1 L->--;l1C Assistance1' number and titlt tor
the application, the na-.e of U.- a; pi :cc.nt, ti-p start date for the 30/60 C3y
ccmment period, aru ider.^ii^ v.- 21 tne application is fdl* a nouccmpeting
continuation avarc.
Dated: September 2.', Jc-"	-	C" /: " fev	
harxe.' G. Pippen, Jr., Director
C	ACi. inibi.1 ation Division
********************>>* ¦; 7-1 ,+ >, ,	> +
S: Figure 3-1 lists LP.-.	. ,;i-ULi.'cii;r, Oifices and their addresses
Av',-"1 rr-L'- 3
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A.SS] 5: AD''IK 1STRATION
5700 CHG 2
2/10/86
i i 'TEivjJv'ERN. iE^TAL REVIEW PROCEDURES - INSTRUCTIONS TO APPLICANTS
z.-.Z, C-: J J: .•
Or, June 24, 1983, the Environmental Protection Agency (EPA) published a
final regulation (40 CFR Part 29) to implement Executive Order 12372, "Inter-
governmental Review of Federal Programs." That Order revoked and replaced the
intergovernmental consultation system required by OMB Circular A-95.
The objective of the new system is to foster an intergovernmental partnership
and strengthened federalism by relying on State and local processes Jfor coordi-
nation and review of proposed Federal financial assistance. EPA's regulation
took effect October 1, 1983.
APPLICABILITY
Tiie EPA progiar. for which you are applying may be subject to your State's
intergovernmental review process and or the consultation requirements of Section
204, Demonstration Cities and Metropolitan Development Act. Programs eligible
for State review and subject to Section 204 are identified on page 29304 of the
Federal Register Notice following the enclosed regulation (40 CFR Part 29). If
your application is under a program listed, you must contact your State's single
point of contact to find out if the program was selected for coverage by the
State process a">d, if the program was selected, to receive information about
your State's review process rc-juirements and procedures. The present roster
of State contacts is attached to these instructions. If the program in which
you are applying is subject to Section 204, you must notify areawide metropolitan
or regional planning agencies and or general government units authorized to
govern planning for the locale of your project of your intended application.
EPA TOLL NOT PROCESS YOUR APPLICATION WITHOUT EVIDENCE OF YOUR COMPLIANCE WITH
THESE REO'JIREMS!JTS.
COMPLETE THIS FORM AND MAIL TO APPROPRIATE EPA OFFICE LISTED ON REVERSE OF THIS SHEEf
A.	APr LlCA'T NW'l :	
B.	CATALOG OF FEDERAL DOMESTIC ASSISTANCE NUMBER AND TITLE:
(NO.)	(TITLE)
1.	Program Subject to State Process: 	 	
YES	NO
2.	Application/Preapplicatior./Notice of Intent Sent To
State Process On:
(DATE)
3.	Program Subject To Section 204: 	 	
YES	NO
Appendix 6-D-l
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5700 CHC- 2
ASSISTANCE AD^PJISTRATIO*;	2/10/86
Location of EPA Assistance Administration Otrice? ar.j St5te Single Points of Contact
Fiaure 3-1 lists EFA Assistance Administration Offices and their addresses.

State Single Poi^t of Contact Listma
ALABAMA
Mrs Donna J Snowden, 3pOC
Alabama State Clearinghouse
Alabama department of Economic jnd Community Aflars
3465 M-.rman Dr.doe Road
Pes'. Office Box 2°r9
Montgomery Alabama 36iu5-0S3£
Tel (205) 284-9905
ARIZOM
Department of Commerce
State cl Arizi-n
Note CorresrOT'i"r,Ci " 3 r je^'ions conceding this 3tatp 5
£ O 123?^ p'ccess snouic be dnecieC la
A'TN Janice Dunn
.* -uo^a S'ate Clearmghouce
1~00 We";! Was^'naton. Fourth Floe-
DELAWARE
Executive Department
Thomas Collins Building
Dover. Delaware 19903
Attn Francine Boot1".
Te: (302) 736
DISTRICT OF COLUMBIA
Lovetta Davis
2 C State Single Point ol Contact fo' E O 1237.-
Executive Office of the Mayor
Office of Intergovernmental Relations
Room 416. District Buildng
1350 Pennsylvania Avenue NW
Washington, D C 20004
Tel (202) 727-6265
Phoe".	_ Z.~-Qt
Tel (602) 255-5004
ARKANSAS
State Clearinghouse
Office ci Intergovci^ri.en'E' sti
Der^^n-eni o' rir.jr.f ai . f- d"nnist'd..c"
P O Bex 3278
Little Rock Arkansas 72^'03
Tel (501)371-1074
CALIFORNIA
O'fice oi Planning 'nd Research
1-iOC Tentn Street
Saciamento California 95314
Tel (916) 445-0282
COLORADO
Sta'p Clearinghouse
Division of Local Government
1313 Sherman Street Rm 520
Dcn.e. Colorado £0202
Tel (303)866-2156
CONNECTICUT
Gary E King
Under Secretary
Comprehensive Planning Divs'On
Office of Policy and Management
Hartford, Connecticut U610S-4459
Note Corresponoence and Questions concerning tnis stale S
E O 12372 process snouid oe OirccleJ 10
Intergovernmental Review Coord.naior
Comprehensive Planning Division
Office of Policy ano ... -
80 Washington Street
Hartford, Connecticut 06106-441°
Tel (203)566-3410
FLORIT'/
Ron Fahs
Execjtive Otfice 0' the Cove-no-
Office of Planning and Budgeting
The Capitol
Tailahasse", Florida 32301
Tei (934', 4S6-S'.1<
GEORGim
Charles H Badger
Administrator
Georgia State Clearinghouse
i70 Washington Street S \V
Ailanu Georgia 30334
Tel (404)656-3855
HAWAII
Kent M Keith
Director
Depa-tmer.- of Planning and Economic Developme
F O Box 2359
Honolulu Hawaii 96804
For Information Contact
Hawan State Clearinghouse
Tel (80S) 548-3016 or 546-3065
ILLINOIS
Tom Berkshire
Office Of the Governor
State of Illinois
bpring'ield Illinois 6270C
Tel (217)782-8629
INDIANA
Mr Alexanae' J Inoram, Deputy Directo:
State Budget Agency
212 S'a'e Hous:
ind'anapolis Indiana 46204
Tei (317) 232-5610
Appendix 6-1-2
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5700 Cl'G
ASSISTANCE A^INlSTRAIi:)'	2/10/86
tow/
Cff'Ce lc- p r-" rC = . ''0(J 3TT.. ,
Cept'3' ~ I'-
52j Ee: '? ¦ F
DSS Mt' r,"t lo*. t,C".,c
Tei (515 2c -3c--
KANSA&
Ms JuCy Kf.co?'
lmergovprnnent£' bait "
122 A Soutt
Svate Office B'jilcJ.r ;
Topeka Kan^s 66' r
Tel (9:3) 296-35 it
KENTUCKY
Kcrrucny Slaw Clermohouse
2no Fioor Can.'a' piiTr= ov.c
FrankfoT Kentucky
Te' (50: 5 -
LOUISIANA
Mr Ferouson B",' • Assistant Se:rela-7 and SFO?
Department c' U1 ij." c-j Ccnmunu•/ Attars
Of'icc o. Sia.e
P O Box 94^51 Cs'.-' ">! Si ' f
EjIoh houqc, Lcuis ana 706"'i-5jc-
Te f50- • s.-o :~2-
MAIKL
S'?tf P < T-. t r'
A in Tleroo.&'nrn: r'.ci -a - ¦. s. - - Jo'tiCt; hir^
S s'e Hcjj:
Angus o We re 0'" 1
Tel f:0"i 2f-O -
MARYLANO
Gu ¦ -fr-se' C"%::o-
Ma-y a". J i O'ea irgir.1. f- i ' '' 1 ,o«ci-.rit. l<
Ass.stpnct
Sr .	.
30i Wes -rev.r'. Ot'?•-
Batt.r1 3'e	c 2 2>"i-23Ci
Te1 (3D), 225---A'
MAssACHusr"nf
Ea&C^I /- C C C ,r - -- -	'-f>' ,c
At'r &; .-''y E«
100 Ca".: iOq- S F\"' =1
Bcstcr VarSJCi^r v 0.
TBI if r 7 I ~l * -020.*
MICHiC."
MiChf-lvn £>sSi6. '
Di.-ec' r L'"1:. 0i' e	z-' c
Uecar.r.^T: oi Co.nme Cr
p n c ,v 3r>i" ¦
Lans'no Michiq?,,  *,
Cap "> SC"="e 6j c ">
r Fa / " n"	¦
T(. . y "3 - •-
~ ' Si ' .. r'OQfd r .
1 ,l - ; = -- y ans r C
-nv l s - •
j-i.. ,;i	J9^
fct l"lofrr,etloh Conlscl
Mr Mar'so Ba.icuiTi
r^c-'r T7fn; o' " a.'.'n-'g anc Pcnc*.
- '•'! 2-9 21
MIS >0 L'f.!
Coo-Jira'c
M"-cou" Ft'.'e'al Assisianct ClearinoSoust
Ofnt ~ o' Aomnstration .
Civis'cn o' ?pncml Se^viceb
r O °ZK 50?
Koom 7o0 Trjman Building
Jencrion o.l/. M'ssoun b5l0^
Te1 (3U) 7c1-4a*/
MOI "i
? L't ",C^ ,
lr tc ^-jve'Tncua1 Review Ciea-irj-o 'b
c/o O'lice ol tar.a 59CO
Tel (406) 4^J.-b522
NEBtASIV
"d1 r, nt«- a'.' Office
P O r>-.; Jif/M
hoi-m 1321 Slate Capilo1
i. ico" i>^ askc 6fcS.'.
(402; <-1 241-1
NCVi r,;
Ms Lin^a A Ryan
fir?r:o- O'1 ~'i o' Commjnn, Ser\ice
Crli la' Conplt. -
i.i,sort Ci'y Nevada 8j7"G
" el '*32; 6: 1-442:
Not*, Correspnnoer.ee anO quesiions cotcprntng inis stale .
t 0 i^37? process »noui^ 6e oirecte- lo
Jchn W?IK?f
Clearinghouse Cooromator
"f .702. iKi—1 :Z~
V
LO.'iG G Seel!
a run*1 Pir< r..
r--.' >-idn>ptn,'c ".'H'ce o! Sic\e PiaTi^c
2 Beacon Si •?_ i
Ccr.ccic' ria-psfMre Cl330.
1 el i&Oj. 27 2". cLi
KIEW.fRS:,
. G< '!/ O'	. M
Di'l'cio D >• sif.n of i. oca. Gcvemnerl Se'^icc-
D-r>f ""mern ol ConTiiuniiy Altair®, CN 603
r:"1 V't ;:• St?;^ StrtC
Trenion Ness Jersev 0b62:'.-0803
2 (¦
No'- Cotrespc-riopnce ano Questions concerning tr is stg.L ••
L C	srojr he airecle: \r
f .or '0 Si
S'a'3 Pp.iew proce3G
i cl 1 Dra Government Se^'ices - CS' 80".
Tr. " ' ' J-" , 0:zjl-Cr'^
Tel (pnr.( -o?.9.30=
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ASSISTANCE ADMINISTRATION
57G0 c
2/ '-•*' 35
NEW MEXICO
Peter C Pence. Director
Department of Finance and Administration
Management and Contracts Review Division
Clearinghouse Bureau
Room 424, State Capitol
Santa Fe New Mexico 87503
Tel (505)827-3885
NEW VORK
Director ot me Budge:
New York Slate
Noie Correspondence ana questions concerning tms stale 3
EO 12372 process should be directed to
New vork State Clearinghouse
Division ol me Budget
State Capitol
Albany New York 12224
Tel (516) 474-1605
NORTH CAROLINA
Mrs Chrys Baggett
Director State C'eannghousi
Department ol Administration
116 West Jones Street
Raiei;i North Carolina 275' i
Tei i91S) 733-4131
NORTH DAKOTA
Othce ol In'ergovernme-.ia' ^svslonce
Office of Management and Be; j*'
14th Floor - State Capitol
Sismarcfc North Oa> ota 5&V J
^el (70i) 224-2QW
OHIO
State Clearinghouse
Oftice ol Budget and Managem^'
30 East Broad Street
Columbus. Ohio 43? >5
For Information Contact
Mr Leonard E Roberts
Depu'y Director
Tel (61-) 466-0699
OKLAHOMA
Oon Sfbin
Office oi Federal Assistance Management
J'45 North Lmcoii Bivd
Oklahoma City Oklahoma 73105
Tel (405) 528-8200
OREGON
intergovernmental Relations Division
State Clearinghouse
Attn Delores Streeter
Executive Building
155 Cottage Street N E
Salem, Oregon 97310
Tel (5031 373-1998
PENNSYLVANIA
Barbara J Gontz Project vy s. idinator
Pennsylvania Intergoverrme'i1:"'1 Council
PC Bex })630
Hamsburg Pennsylvania 17108
Tel (717)783-3700
Appendix
RHOUi ISLAf.u
Vv' Vann Cn.el
Rnoce Is'ano State-vice Planning P-o^ra .
265 Mo:rose Street
Pr-.,.idence. Flhod" is'aiS 02907
Tel (401, 27~ 265ii
Note Ccrrojooncf-nct an J a^eslions cowt,r"'" 'rn ; j
EG	p'DLtSj snoulo be a recie-' ^
Michael P	fiev p* Coord" a:c
Rhode Wana Slatewiae Planning Pr^gra^
265 Melrose Street
Providence Rhode Island 02907
Tel (4011 277-2655
SOUTrt CAROLINA
Danny l Cromer
Grant Services
OHice of the Governor
1205 Pendleton 3'rpet Poor; J?7
Columbia Souin Carolina 29301
Tel (QOoj 756-34",7
SOUTH DAKOTA
Corr't T jSi0|
Sta'e C'eannghouse Coordinate:
Stale Government Opera'ions
Second Floor Capitol Builcme
Pierre Soulh Dakota 57501
Tel (605) 773 366'.
TENNESSEE
Tennessee State Planning O'hre
1800 James K Polk Bunding
505 Deaderick Street
Nasrivfie Tennessee 372 19
Tel (615) 74; ''676
TEXAS
Boo UcPnerson
S'ate Planning Director
Office ot tr.e Governor
P O So* 13551
Capitol Station
Austin Texas 78711
Note Questions concerning tms stale s rev.e* promts'
should be directed to
Intergovernmental Relations Div SiO'-
Tel <5121-4.63-1~78
UTAH
Dale Hatch
~ irec'or OH'ce of Planning and 6 ,
State ol Ulan
116 State Capitol Building
Salt Lake City. Utah 841K
Tel (B01) 533-5245
VERMONT
State Planning Othce
Attn Berme Johnson
Pavilion Oflice Building
109 Stale Street
Montpelter, Vermont 05602
Tel (802) 828-3326
i-D-4
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ASSISTANCE ADMINISTRATION
5700 ChG 2
2/10/86
VIRGINIA
Shawn McNamara
Department ol Housing and Community Development
205 North 4th Street
Richmond, Virginia 23219
Tel (804)786-4474
WASHINGTON
Ken Back
Washington Department ol Community Development
Ninth and Columbia Building
Olympia. Washington 98504
Tel (206)753-2200
WEST VIRGINIA
Mr Fred Cutlip Director
Community Development Division
Governor s Ollice ol Economic and Community
Development
Building »6 Room 553
Charleston, West Virginia 25305
Tel (304) 348-4010
WISCONSIN
Secretary Doris J Hanson
Wisconsin Department of Administration
101 South Webster Street - GEF 2
Madison Wisconsin 53702
Tel (608)266-1212
Note Correspondence and quetlioni concerning ttiit state s
E 0 12372 process should be directed to
Thomas Krauskopf (3/85)
Federal-State Relations Coordinator
Wisconsin Department of Administration
P O Box 7864
Madison, Wl 53707
Tel (608)266-8349
WYOMino
Wyoming State Clearinghouse
State Planning Coordinator's, Office
Capitol Building
Cheyenne. Wyoming 82002
Tel (307) 777-7574
G'JAM
Guam State Clearinghouse
Office of the Lieutenant Governor
PO Box 2950
Agana, Guam 96910
PUERTO RICO
Ms Patria G Custodio. P E
Chairman
Puerto Rico Planning Boerd
Mlnillas Government Center
PO Box 41119
San Juan, Puerto Rico 00940-9985
Tel (809)727-4444
NORTHERN MARIANA ISLANDS
Planning and Budget Office
Office of the Governor
Saipan, CM 96950
VIRGIN ISLANDS
Toya Andrew
Federal Programs Coordinator
Office of the Governor
The Virgin Islands of the United Stales
Charlotte Amalie St Thomas 00831
Tel (809) 774-6517
Appendix 6-f>5
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5700 CHG 2
ASSISTANCE ADMINISTRATION	2/10/86
CHAPTER 14 - COST SHARING
Table of Contents
PARAGRAPH	PARAGRAPH
TITLES	NUMBERS
General			 1
Cost Sharing Requi rerrerr s					 2
Sources of Cost Sharing Funds....			3
APPENDIX	APPENDIX
TITLES	NUMBERS
EPA Program Cost Slunnc Requirements	 14-A
A1 lowabil ity of	i=: Cc;.",¦: ibui.ions	 14-B (Reserved)
i
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ASSISTANCE ADMINISTRATION	2/10/86
EPA PROGRAM COST SHARING REQUIREMENTS
Statutory/regulatory cost sharing requirements of current, funded EPA
programs are listed below.
1.	CLEAN AIP ACT, AS AMENDED.
a.	Air Pollution Control Program Support (Section 105).
(1)	EPA may award State, local, interstate, and intemunicipal air
pollution control agencies up to 66 2/3% of the allowable cost of planning,
developing, establishing, or Improving an air pollution program and up to 50%
of the allowable cost of maintaining that program.
(2)	EPA may award State, Interstate, or lnteimmiclpal air pollution
control agencies with substantial responsibility for carrying out an approved
State implementation plan under section 110 of the Clean Air Act up*to 75% of
the allowable cost of planning, developing, establishing, or improving an air
pollution control program and up to 60% of the allowable cost of maintaining
that program.
(3)	In addition, each air pollution control agency must expend annually
for recurrent section 105 program expenditures an amount of non-Federal funcs
at least equal to such expenditures during the previous fiscal year. The
Award Official may allow a recipient to reduce Its annual expenditures if the
award Official determines, after notice and opportunity for public hearing, that
a reduction In the required expenditure level is due to a nonselective reduction
in the programs of all executive branch agencies.
b.	Air Pollution Control Manpower Training Assistance (Clean Air Act,
Section 103). A recipient's cost share must be a minimum of five percent.
c.	Air Pollution Control Research (Clean Air Act, Sections 103 and 10-').
A recipient's cost share must be a minimum of five percent.
d.	Air Pollution Control Fellowships (Clean Air Act, Section 10*0. f.o
cost sharing is required.
2.	CLEAN WATER ACT, AS AMENDED.
i. Construction Grants for Wastewater Treatment Works (Clean Water Act, Title
(1) For grants awarded before October 1, 198*), EPA will pay 75% of
.-ulowasle project costs, unless:
(a) The project Involves Innovative or alternative technologies
in which case EPA will pay 85% of allowable project costs, or
Appendix 14-A-l
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ASSISTANCE ADMINISTRATION
5700 CriG 2
2/10/86
(b) The Governor of the State has approved a reduced EPA share
under 40 CFR 35.2152(c). In this case, EPA will pay up to 20% more than the
State's lower Federal share of the innovative and alternative portions, not to
exceed 85%.
(2) For grants awarded after September 30, 1984, (except as provided
in 40 CFR 35.2152(a)(3)):
(a)	EPA will pay 55% of allowable project costs, unless the Qovernor
of the State has approved a lower EPA share under 40 CFR 35.2152(c); and
(b)	EPA will pay 20% more than the EPA share rnder subparagraph
2a(2) of this Appendix for portions of proj^ts which involve innovative or
alternative technologies.
b.	State Advance of Allowance Grants (40 CFR 35.2025(b)). No recipient
cost sharing is required.
c.	Water Pollutio- Control-State and Interstate Program Support (Clean
Water Act, Section 106).
(1)	States and interstate water pollution control agencies must expend
annually for recurrent section 106 activities an anoint of non-Federal funds
at least eaual to their expenditures during the Fiscal Year ending June 30,
197:.
(2)	States that receive construction management assistance aider
section 205(g) of the Clear. W&ter Act must expend annually for recurrent section
106 activities an anount of nor^Fededral funds at least equal to their expendi-
tures during Fiscal Year 1977.
d.	Water Pollution Cortrol-State and Local Manpower Development (Section
104). A recipient's cost share must be a minim im of five percent.
e.	State Management Assistarce (Clean Water Act, Section 205(a)). No re-
cipient cost sharing is required; however see subparagraph 2c(2) of this Appendix.
f.	Water Quality Managemert Planning (Clean Water Act, Section 205(j)).
ito iccipier.t cost sharing is required.
g.	Water Pollution Control Research, Development, and Demonstration
(Clear, Water Act).
(1)	Sections 104, 105(b) and (e) and 107. A recipient's cost share
must be a minimum of five percent.
(2)	Sections 105(a), (c) and (d) and 108. A recipient's cost share
must be a minimuri of 25%.
Appendix 14-A-2
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5700 chg :
ASSISTANCE ADMINISTRATION	2/10/86
3.	SOLID WASTE DISPOSAL ACT, AS AMENDED.
a.	Hazardous Waste Management Assistance Program (Section 3011). EPA will
pay up to 75% of allowable project costs.
b.	Investigations, Research, Demonstration and Training (Section 8001).
A recipient's cost share must be a minimum of five percent of the allowable
project costs.
c.	Hazardous Waste Training (Section 7007). A recipient's cost share must
be a minimum of five percent of the allowable project costs.
4.	SAFE DRINKING WATER ACT, AS AMENDED.
a.	State Public Water System Supervision, (Section 1443(a)(1)). EPA will
pay up to 75% of allowable project costs.
b.	State Underground Water Source Protection (Section 1443(b)(1)). EPA
wi 11 pay up to 75% of allowable project costs.
c.	Research, Training, and Demonstration (Section 1442). A recipient's
cost share m.jst be a minimum of five percent of allowable project costs.
d.	Special Studies and Demonstration (Section 1444). EPA will pay ud to
66 2/3% of construction costs of any facility and 75% of all other costs.
5.	FEDERAL INSECTICIDE, FUNGICIDE AND RODENTICIDE ACT, AS AMENDED.
a.	Pesticides Applicator Certification and Training (Section 23 (a)(2U.
EPA will pay up to 50% of the allowable project cost.
b.	Pesticides Enforcement Program (Section 23(a)(1)). EPA will pay up
to 100% of the allowable project cost.
c.	Pesticides Research (Section 20). The recipient's cost share must be
a minimum of five percent of the allowable project cost.
5. TOXIC SUBSTANCES CONTROL ACT, AS AMENDED.
a. Research and Development Assistance (Section 10). The recipient's
cost share must be a minimum of five percent of the allowable project cost.
7. COMPREHENSIVE ENVIRONMENTAL RESPONSE AND COMPENSATION LIABILITY ACT.
a. Removal Assistance (Section 104(d)(1)). If the site is privately owned,
no recipient cost sharing is required. If the site is owned by a State or
local government, the recipient must provide a minimum of 50% of the allowable
project costs when a remedial action is implemented at the site.
Appendix 14-A-3
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ASSISTANCE ADMINISTRATION
5700 CKC- 2
2/10/86
b. Remedial Action Assistance (Section 104(d)(1)).
(1)	No cost sharing is required for remedial investigation, feasibility
studies, or design of renedial actions at privately-owned sites. If a site were
owned or operated by a State or local government at the time of disposal, the
cost-share for remedial investigations, feasibility studies or design must be
at least 50%. EPA has deferred the State cost-share for these activities until
the remedial action phase.
(2)	If the site is privately owned, EPA will pay 90% of the cost of
the approved remedial action. If the site were owned or operated by a State or
local govemnent at the time of the disposal, EPA will pay up to 50% of the cost
of the approved remedial action.
(3)	If a State pays more than the required cost share for a rsnedial
project, it may use the excess for cost sharing for a subsequent project at the
same site. Such "advanced match" must be included in the project budget-and
meet the requirements in EPA's "State Participation in the Superfund Program"
manual.
8. ASBESTOS SCHOOL HAZARD ABATEMENT ACT OF 1984.
a. Asbestos Hazard Abatement (Schools) Program (Section 505(e)). EPA may
award a loan of up to 100% of allowable project costs or, if the Administrator
determines that the applicant is unable to undertake and ccmplete its asbestos
abatsnent progran with a loan, may award a grant not to exceed 50% of allowable
costs.
Appendix 14-A-4
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ASS IS fAU;t AU:'.jM5T^T10!
5700 ck; 2
2/10/86
C ' "i. -¦ rc. - PROCUREMENT UNDER ASSISTANCE AGREEMENTS
TaMe of Contents
PARAtrPARAGRAPH
TITLES	NUMBERS
General	 			 1
Procurement Syster Evcli'ct lor			 2
Competition		 3
Requirements for Recipients of Construction
Grants for Wastewater Treatment Works	 4
Requirements for Institutions, of Higher Education
and Other N:.;i,'.rc; i1. Urcc'iizctions	 5
Requirements for Recipients of Cooperative Agreements
Under the Cor p-eli„--1,c. En1 i rorr'er.tc: Response,
Cofiipensat lc, ar.J Liatnl it.< Act of 1980				6
Preaward ftej"ie of Si.'a^ree^ents		7
ChecUibis for Re.nr . _ r au> em=r i i.					8
Skills of ko-ic :rs. 				9
Availability of T r s "i r-1 n r fo" Recipient Procurement
Personnel r.r.'! Rr/ir> ~ :			 10
FI GUP 1	FIGURE
TITLES	NUMBERS
Procurei.ic.il SvVlE, C> , ., 'icsti&n	 21-1
Selection <\ Pi-.c.'it '.t I'a'Jv:' for Sjr,agreements	 21-2
APPEN"' A	APPENDIX
TITLES	NUMBERS
Che--< i jst for r.e,-~< n- For^ 1iy Aavertised Subcareements		21-A
Checklist	Co-.,-.-.!iti>'cly Negotiated Subagreements		21-B
Chec-Uis" fr" Rf-iei'r; r-rcoTpetitively Negotiated Subagreements,....	21-C
basic l'"i 1C- .<•- 1 v. :	iiirouyii Subcgre6~cnts			<¦	2i-D
l
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ASSISTANT ADMINISTRATION'
5700 CHG 2
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9.	SKILLS Or REVIEWERS.
a.	The nature of the service, supplies, or construction to be procured,
the typs oi competition, and the type of subagreenent anticipated determine
the skills necessary to review procurements. Procurements of commercially
used products, for example, presuppose a relatively uncomplicated, formally
advertised, fixed price subagreonent, necessitating only minimal review.
b.	Procurements of A/E services and construction of canplex facilities
may entail such activities as review by technical or engineering staffs, con-
struction techniques, labor hour proposals, engineering drawings, specifications,
and bills of materials. In addition, the EPA reviewer should review the adequacy
of the recipient's competition, the types of subagreorients anticipated, pricing
or costing methods, contractual terms, and other management-related activities.
c.	The review of recipient procurements necessitates a variety of knowledge
and skills, including an understanding of EPA's progran regulations as well as
40 CFR Part 33. Experience as a contracting officer, assistance specialist,
purchasing agent, cost or price analyst, or auditor is beneficial for reviewers
of the business aspects of procurement.
10.	AVAILABILITY OF TRAINING FOR RECIPIENT PROCUREMENT PERSONNEL AND REVIEWERS.
a.	There are many formal training courses available nationwide on various
aspects of procuranent including cost and price analysis, advertised procurements,
negotiated procurements, contracting for construction, subagreement administration,
automatic data processing procurement, and small purchases. Because of the
^T-.plexity of the procurement process, it is important that persons involved in
reviewm; procurement actions receive specialized procurement training.
b.	Courses are offered by a variety of colleges and universities, profes-
rional associations, Government agencies, and canmercial organizations. In
the Washington, D. C. area, for example, courses are offered by American University
the University of Virginia School of Continuing Education, the Department of
Agriculture Graduate School, National Graduate University, various components
of the Department of Defense, the General Services Administration, the Office
of Personnel Management, and several canmercial organizations.
c.	A ]3st. of colleges and universities nationwide offerirrj specialized
training in procurement is available free frcm the Federal Acquisition Institute,
726 Jackson Place, N. W., Washington, D. C. 20503.
21-5
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5700 CHG 2
ASSISTANCE ADMINISTRATION'	2/10/86
UNITED STATES ENVIRONMENTAL PROTECTION AGENO
WASHINGTON DC 30460
6° ERA PROCUREMENT SYSTEM CERTIFICATION
Fo*ni Ajprowfi
0M6N0 2000-0*53
ApypviJ mhm 10 11-47
ApPL1CANT S NAME
ASSISTANCE APPLICATION NUMBER
APPUCAKT S ADDRESS
SECTION I - IMSTttUCnONS
The applicant must complete and submit e copy of this form with eech application for EPA Assistance 11
applicant has certified its procurement system to EPA within the past 2 years end the aystem has no
substantially revised, complete Pan A in Section II. then sign and date the form If tha ay*t#rn has no.
certified within the past 2 years, complete Part B. then sign and date the form
SECTION II - CERTIFICATION
A I affirm that the applicant has within the past 2 years certified to EPA that its procurement
system complies with 40 CFR Part 33 and that the system meets the requirements in 40
CFR Pen 33 The date of the applicant's letesl certification is	
MONTH 'YEAR
B Based upon my evaluation of the applicant's procurement system, I. as authorised representative of the
applicant (Check one of the following)
CD 1 CERTIFY that the applicant's procurement system will meet all of the requirements of 40 CFR Part 33
before undertaking any procurement action with EPA assistance
Pieaio lurmfth erution* to ippiicaOlt pracurBmem ordinances and r#gul#t«0Aj
^ t
L) 2 do b/OT CERTIFY THE APPLICANTS PROCUREMENT SYSTEM The applicant agrees to
follow the requirements of 40 CFR Pert 33, including the procedures in Appendix A. end
allow EPA preewerd revi*w of proposed procurement actions that wilt use EPA assistance
TYPED HAME AND TTTU
SIGNATURE
DATE
CPA 6700-46 (Rov &44) Previous atfrtfon tt ateol»t«
Figure 21-1-1
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ASSISTANCE ADMINISTRATION
CETTUICATICT* OF RECIPIENTS' PKXUREMENT SySTErtS (EPA FOR", 5700-48)
STATE AND LOCAL GCVERNMESTS
5700 CHG 2
2/10/86
Appl leant
evaluates own
procuranent
systen
toes the systai
ireet the intent of '
the requirements
of 40 CFR Part 33?/
no
.yes-
' Will the system
neet the standards
of 40 CFR Part 33
before you caiunence/
procurement with
lEPA assistance?
.yesj
Co you choose
to certify
the system?
no
Ccnplete Certificate.
/CJiecK Block B.2. affirming
that system does not meet
^EPA requirements. Kail with;
application.
/Receive \
\
V
l«s
Canplete Certificate,
tneck Block B.i. affirmi
that systan will meet EPA
requirements. Mail with
application.
Recelve
Procure usiru
own systan
'Follow requirements
Of 40 CFR Part 33.
Allow EPA preaward
review of proposed
procurements. See
Part 33. Aocenrfix A.
NONPROFIT ORGANIZATIONS
Applicant
evaluates own
procurement
systerr.
Does the syster.
meet the intent of
the requirements
.of 40 CFR Part 33
V
/
yes
no
/
i
A
/Do you choose
/ to certify
the system?
Will the systan
ireet the standards\
of 40 CFR Part 33
before yoj c arms nee/
.yes_l
\ procurement «nth
\ F?A assistan
/Canplete Certificate.
. /Check Block B.I. affinning
'I that system will neet EPA
V requirements. Mail with
application.
Receive
an EPA
Procure using own syste-
Allow EPA review of 9olu
source and sirtjle c.c
proposal procurergnt^ ,
Canplete Certificate.
'Check Block B.2. affirming
that systan does not meet
EPA requirements. Mail
with application.
J Receive\
( EP- )	vve
\ award? /
no]
/ Follow requirenents\
/ of 40 CFR Fart 33* \
I Allow EPA preaward I
V review of proposed /
procurements. y
See 40 CFR §33.815 for procurarie.-.t, previsions that do not apply to norpr-fit organizations.
Figure 21-1 - 2
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ASSISTANCE ADMINISTRATIOi;
5700 CHG 2
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SELECT IOt> OF PRXi 1R£XCICT METHOD FOR SUBAGREEMEXTS - STATE AND LOCAL GCWEFNMENIS
A
IDtAi
' transact io-'i
V<$10,001? j
no
yef-
'Adequate
f description':
available? /
f Non-can jatitive
negotiation we:
authorised by
^wani Oft icu.- /
yes
Expeci.
tvo or mor.
responsible
bidders
\
Fixed price
subagreerent
feasible?
jL
source
f'
\
Solicitation
resulted in
inaj equate
competition?/
yes
x
[ Proceed with snail purchase'
'( procedures as authorized tr
State and local regulations.
Vs
Selection
principally
on price?
-jes-
no
Public exigency or
n emergency exists &
delay for can petition/
is in acceptable?
yes
1r
Proceed with
A
fOtlTol	j
.advertising -y
'Proceed witi
canpetitive
negotiable'
~\
/
Proceed witi,
I nor»-car.pr l i <• i v c
negotiatio .

* See 49 CFR 33.61S ar.i 3:-.110iti,
Finure 21-2
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ASSISTANCE ADMINISTRATION
b?uU CWC- 2
2/10/86
APPENDIX 23-D - BASIC INFORMATICS FOR PROCURING THROUGH SUBAGREEMENTS
(with references to EPA's Regulation for Procurement
Under Assistance Agreenents (40 CFR Part 33))
1. PROCUREMENT METHOD SELECTION CRITERIA (State and Local Governments).*#
a.	Small Purchase Method (§33.305 through §33.315).#
(Method of procurement that may be used only when total cost of the
procurement is less than (<) $10,001)
° Select sufficient number of qualified sources, usually } 2;
° Obtain price/rate quotations; record then; then
0 Avard the procurement.
b.	Forms] Advertising Method (Preferred Method)(§33.405 through 33.430)g
(Requires publicly solicited sealed bids; award to lowest, responsive,
responsible bidder; and aqreetnent based on a fixed price; preferred
method when total cost of the procurement is greater than (>) $10,000)
0 The procursnent must lend itself to award of a fixed-price
subagreenent to lowest responsive and responsible bidder;
0 Bidding documents must be canplete, adequate and contain a
realistic specification or purchase description (§33.420}
that includes;
-	complete statement of uork
-	terms arxJ conditions
-	method or evaluating bids and selecting successful offeror
-	evaluation criteria - discounts, transportation cost, life
cycle costs, etc.
-	prevailing wage determinations, if applicable;
0 Price is the principal selection criterion - a fixed price can be
established for the project, either lump sum, unit price, or a
combination of the two; and
*	See 40 CFR §33.110(e) and §33.815 for special procurement provisions that
relate to institutions of higher education and other nonprofit organizations.
#	Recipients of Superfund cooperative agreements for remedial action may not
use a method other than formal advertising to procure construction services
(other than architectural and engineering (A&.E) services) unless they have
first obtained concurrence of the Award Official.
0 Non-certified recipients must allow EPA preaward review of proposed
procurement using EPA fundc (see 40 CFR 33.110(b)(2) anJ 33.250).
Appendix 21-D-l
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ASSISTANCE ADfGNISTRATION
5700 CHG 2
2/10/86
0 You expect two or more responsible bidders to compete.
0 You must publicly solicit sealed bids (§33.410 and
Appercix A(b)(3) arvf (4)).
0 Mien procuring by the formal advertising method, you must:
-	provide adequate public notice
-	advise where and when bid documents will be available
-	advise vdiere and vJien to submit bids
-	advise where and when bids will be opened
-	provide the bid evaluation and selection criteria, and
-	provide at least 30 days to prepare arid sufcmit bids
(Appendix A(b)(3)).
0 You must hold a public bid opening (§33.425); and then
0 Av^rd to the lowest responsive and responsible bidder (§33.430).
c. Competitive Negotiation Method (§33.505).#@
(Use IF anc WHit is determined that formal advertising is not
appropriate'
(1) General Requirements for all ccnpetitive negotiations.
0 Detent that formal advertising method is not appropriate
(§33.505);
0 Preoare written reauest for proposals frcm qualified sources
(§33.510)
-	provide source of documents relevant to preparing proposal
-	provide enough information to enable prospective offerors to
prepare a proposal
-	state all evaluation criteria and relative importance of each
-	if award will be based on initial offers only, so state;
0 Provide adequate public notice (see 40 CFR Part 33, Appendix A(b)(3)
& (4) and state the place to submit proposals and the deadline for
their receipt;
0 Receive and review proposals
-	uniformly and objectively evaluate the proposals; and
-	base determination of qualified offerors and acceptable
proposals solely on stated evaluation criteria;
0 Allow EPA preaward review of the proposed procurement if you did
not certify your procurement system.
(2) Negotiation and Award of Subaqreements (Standard Negotiation
Method (§33.520)).
0 Determine best qualified offerors with acceptable proposals within
the ccnpetitive range;
° Conduct meaningful negotiations with them unless the RFP stated
that award would be bisec on initial offers only (§33.520);
Appendix 21-D-2
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ASSISTANCE ADMINISTRATION
5700 CHG 2
2/10/86
° Do not disclo-r- the identity of i ^T1.pet inn offerors; and
0 CO not prov ice offerors inf.ji-iPotio"! wibout competing proposals.
° Petuiit the best qualificvj offerors erjual opportunity to negotiate
anc/'cr revi<^ their proposal:" to best and final offers;
° Analyze costs if suoagreenent is estimated >$10,000 (§33.290);
° Assure only fair and reason a;-.; e cf 11 by negotiating profit as a
separate element of price (§33.235);
0 Av«rd the subagreerent to responsible offeror whose proposal is
determined in writing to be most- ajvantageous, considering price
and other stated evaluation criteria;
° Notify unsuccessful offerers; ar»j
0 Be certain to document the above actions.
(3) Optional Procedures for Selecting Architects and Engineers (A&Es) by
Competitive Negotiation40 CPR §33.525),#
The recipient may evaluate, rank, and select architects and engineers using
these procedures in place of those in §33.520. You may evaluate, rank, and
select the most technically qualified architect or engineer using either a
prequalified list of persons or firms (§33.230{c) or by requesting prospective
(individuals or firms) to subnit a statanent of qualifications.
1	n equal if led List.
0 You must ci'^e adequate public notice of your pre-
Quo I. f. procedures;
0 V' ... - ~.te your list at least every six months; and
" Rt- ¦ difi act upon requests for prequalification received
i.ore . Y. 'ays before your closing date for receipt
of piopj^z-.i or bid opening.
2	Stataner.t of >^1]fications (see §33.525(b)).
0 Invite A<\Es to submit statements of their qualifications
for providing the required services;
3	evaluation a^d Selection. Using either a prequalified list
or a statement of qualifications, you must:
°	the meet qual}fiv=d to submit technical proposals;
mfoim them of the criteria that you will use to evaluate
and rank proposals - note that price is not a criterion;
0 Select the best technical prcoosal;
0 Negotiate fair and reasonable compensation with the offeror
thai submtted the best c-romieal proposal
-	offer fair and ressonacla compensation
-	evaluate profit separately (§33.235}
0 If you and i.hat offeror agree on compensation, make the award;
ADpenr,v<
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ASSISTANCE ADMINISTRATION:
5700 CY.G 2
2/10/86
0 If you artj that offeror can not agree on compensation, formal3v
terminate negotiations and then negotiate with the offeror with
the next best technical proposal;
0 Continue the process with successive offerors until a satisfactory
agreement is reached with a goalified offeror.
0 Note that - once you terminate negotiations with an offeror you
cannot go back and renegotiate with that offeror.
d. Noncompetitive Negotiation (§33.605).#8
The noncanpetitive negotiation method of procuranent is authorized ONLY IF:
0 You can not use either the small purchase, formal advertising, or
competitive negotiation method; and
° You determine there is only one source of the required item/service;
or
0 You face a public exigency or anergency that is of such urgency
that vol- cannot accept the delay that would result from competing
tne procursnent(s) necessary to remedy the problem; or
0 After soliciting a number of sources, competition proves inadequate;
or the
0 -w " Official authorizes noncanpetitive negotiation (§33.715(a)(2)).
SELECTED RECIPIENT RESPON: -.IL1TIES AND STEPS FOR PROCURING GOODS AND
SERVICES THROUGH EPA AS?/ : C-jBA.GREEME.KTS **
(refer to 40 CFR Pjrt 3j lor the complete statement of requirements)
a. General Recipient ^r.-ynpibilities (§33.210). As a recipient of an
assistance agreement, ¦" .. are responsible for:
0 Canpleting and setrJirr, contractual and administrative issues
arising frcm subagreenents; you must
-	use sound business judgement
-	use good administrative practices
-	resolve all protests;
0 Obtaining approval prior to using innovative procurement methoas;
0 Having a written standard of conduct (§33.270);
° Awarding a fair share of subagreanents to snail, minority, and
women's businesses (§33.240); and
0 Maintaining an administrative systen to assure contractor
performance in accordance with their subagreements.
** If needed, a recipient may request EPA technical or lea.-il assistance with
the administration ano e-' r.^mfnt of any subagreement.
Appendix 21-D-4
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ASSISTANCE AEf'J NI STRATI ON
5700 CrlG 2
2/10/35
b.	Limitations on Subagreament Awards (33.220).
c You must award subagreements only to responsible contractors that
have the potenticJ ability to perform successfully under the terms
and conditions of the proposed sul agreement.
0 Responsible contractors must ha^e or demonstrate the ability to
obtain adequate:
-	financial resources
-	technical qualifications
-	experience
-	organization and facilities
-	resources to rreet the planned completion schedule
-	a record for canpleting projects is satisfactory
-	accounting and auditing procedures;
° Responsible contractors are known to be law-abiding (§33.220(a)(5)
and (b)); and
0 Are net on EPA's Master List of Debarred or Suspended Bidders.
c.	ProhipiteJ Types of Subaqreements (§33.285).
l^e vxentage-of-ccns truet ion-cost; arid
]us-percentage-of-cost.
Carpet it.'cs 33. 23D .
3	^usi: : . mum open arci free competition; and avoid
innecessi., ir . rr^sonably restrictive requirements
-	experie;, • tJ bonding requiranents
-	terriers i	c :=/cr in-State or local of ferors/bidders.
"r.-ci -ilification of Pei. , "inns, or Products (33.230(c)).
°	You must update the list at least every slx TOnths;
0	Do not close the list more than 30 days before bid opening;
0	Provide public notice of the prequalification procedures; and
0	Avoid using the list in a way that unduly restricts competition.
f• -Jrc£it (§33.235).
0 Profit must be fair and reasonable;
0 You must negotiate profit as a separate eleiitnt of price if there
is no price ccmpetition or price is based on cost analysis; and
0 You may consider profit included in competitive bids received in
response to a formally advertised, fixed price subagreement as
reasonable, if two or nore bids have been received.
Appendix 21—0—5
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ASSISTANCE ADMINISTRATION
5700 c-ir. 2
2/10/36
($263.36 par die-i on 12/1/8b). This loLi is in addition to any
entitlene^t to reimburseriept for subsistence and transportation
costs. Recipients may, at their o.r> expense, pay consultants at
a greater rate.
0 These limits do not apply to firrr.s that are awarded subagreements
using EPA's regulation for Procurerrent Under .Assistance Agree.tents
1. Documentation (Subagreanents >$10,000) (§33.250)@
(1) All recipients must document their:
0	Basis for selecting the contractor;
c	Justification of the procurement method selected;
0	Justiflcatio.-i for the use of any restrictive specifications;
0	Justification for the type of subagreement;
0	Basis for award with a CQp\ of the cost or price analysis;
0	Justification for rejecting bids;
0	Justification for using noncompetitive negotiation basis.
(2< In addition to (1), recipients not having a certified procurerrent
system. (Appendix A(b)) must also:
£ Provide a reccr'j of :
-	Public r,oi\ct and bid solicitation (Appendix A(b)(4));
-	Allowire ^--fioenl tirre for preparing bids (Appendix A(b) (3)).
-	Cost os .e data on EPA Form 5700-41 or equivalent format; and
b Allov, EPr". i'seav--ar^ revie* of proposed procure^-ents (§33.110(b) (2)).
m. Reporting (§33.211).
0 You mui-c rotiry the A^ard Official witmn 10 days of the aware:
of each subagr=errent with an estimated annual value > $10,u00
-	identify the project and the selected contractor (name,
address, telephone number, etc.)
-	state the av.ard amount
-	state the estimated starting aro coripletion dates
-	provide a copy of the tabulation of: bids or offer
-	identity ti.e bidders/ofterors; and
0 Report on the- use of sieil, minority and wren's businesses
(§33.240) if reguirad by your assistance agreement.
3. SELECTED SUBAGREEMENT CLAl'SCS A.'D PROVISIONS (40 CFR PART 33, SUBPART F) .
0 Each subagieenent must define (§33.1015) the:
-	nature, scope, ar.j extent of work to be perfomr^d
-	when that work must be performed (start by - canpJete by)
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ASSISTANCE ADMINISTRATION
5700 CilG 2
2/10/86
-	the total cost (fixed cost or not-to-exceed)
-	payment provisions.
0 Recipients must include appropriate clauses in their subagreements
(see model clauses on the following subjects in §33.1030):
]_ All subagreements.
-	supersession (§33.1030-1)
-	privity of subagreement (§33.1030-2)
-	termination (§33.1030-6)
-	remedies (resolution of claims, disputes, etc.)(§33.1030-7).
-	price reduction in response to defective cost/pricing
data (§33.1030-8)
-	access to contractors' records (§33.1030-9)
-	covenant against contingent fees (§33.1030-10)
-	contractor gratuities (§33.1030-11)
-	final payment (§33.1030-14)
-	conflict of interest (proposed)
? Subagreements for construction.
changes to subagreement (§33.1030-3(a))
-	discovery of differing site conditions (§33.1030-4)
-	suspend™ of work (§33.1030-5)
-	res.j" Mties of contractor (§33.1030-13(5)).
3_ Subagrfi.i for services.
-	changes 1^33.1030-3(b))
-	response ,ities of contractor (§33.1030-1 3 (a)).
4 Subagreements for supplies.
-	changes (§33.l0 30 - 3(c)).
4. PROTESTS OF RECIPIENT'S SOLICITATION OR CONTRACT AWARD (40 CFR PART 33, SUBPART 6).
0 Recipients must establish their own procedures for prompt review
and decision on protests (§33.1110);
0 Protestor must have financial interest which is adversely affected
by the recipient's procurement action;
0 Protests should be in writing and addressed to t^e recipient;
0 Recipient may proceed with a procurement action while a protest is
pending only at its own risk of disallowance of costs of the contested
contract if the protest appeal is upheld; and
0 An affected party way "appeal" a recipient's protest decision to
the Award Official (633.1115 through 33.1130).
Appendix 21-0-8
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5700 CHG 2
ASSISTANCE ADMINISTRATION	2/1C/36
5. SURAGREErZ.'.TS (SUBCONTRACTS) AWARDHD BY A RECIPIENT'S CONTRACTOR (§33.295).
Assure that your contractor has knowledge of and ccmplxes with the:
0 Responsibility requirements (§33.220(a)(1) through (a)(5));
° Profit requirements in (§33.235);
° Specification requirments (§33.255);
° Cost principles (§33.275);
° Avoidance of prohibited types of subdgreements (§33.285);
0 Cost and price considerations (§33.293);
c Required subaareanent previsions -
-	nature, scope, and extent of work to be performed
-	timeframe for performance
-	total ccst of the subagreenent
-	payment provisions
-	applicable labor standards
-	appropriate model clauses ((§33.1030);
0 Deosrrent and Suspension Under EPA .Assistance Prograrns 40 CFR Part 32;
0 arc! MBE/WBE considerations (§33.240).
Apoendix 21-D-9
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ASS ISTANCT A3'" iJ:
5700 CHG 2
2/10/36
0.:~ licence:
Dear
Ws have reCc.^-e , £_ J o. Ln i:n-.I reports required on this assistance agreement
and we are tne.ro lore- clc.'v o>, thir project, subject to final audit.
The Envirorcrenta" Pro:ic /-o-'ncy Project Officer on this project has reviewed
the listing of p.cn„i"'\	vith assistance funds. He has recommended
that you retain the equir/n--.t listed on the enclosure to this letter, for use on
EPA funded project NWxW'rv-t'".''.
(Note: Sec? prof.-"iy n^n"?:-' -t stands ro'. in 40 CfR 30.531 and 30.532 for guidance
in spelling out p^or-rt oJr v-; t_io~ instructions. Nonprofit institutions, of
higher ejjCc*_io,. arj i,;._-o. j orya.-.Lzations vdiose primary purpose is to conduct
scientific rtj.=ea^Ui a.^ £>==-,_. fra., those standards.)
Your recoi..s sh-'_]c b. p	fcr three years frar, the date of the submission
of the fi.icl f ¦ ->=mr 3-1 sum.: reroute or until any litigation, claim or audit
settee oefore tna cpratk. cf tl>f. ? year period is canpieted and all issues
,-es^lvec. 1(, r f.	vith yoj in this project.
C:incerei/ :
C." <"t
" c
G'" t s Ope 2 a ' j s- .. >
Cijics Acm:'listrct j.c : D
cc: EPA Pro-ien C f > ~
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ASSISTANCE ADMINISTRATION
5700 CHG 2
2/10/86
GENERAL INDEX
Title/Chapter/Paragraph
Accountability (Recipient's) (Reserved)
Accounting, Recipient, 20
Administrative Review, #17
Advance Payments {see Payments)
Agreement (also see Amendment), 15
Acceptance, 15114
Amount (see Assistance Amount)
Changes, 151134
Formal (by amendment), 34112
Informal, 341,'3
Conditions, 15115
Cooperative, 151[5
Fellowship, Fig. 15-7
Grant, 15	J
Preparation, 15'., 3-Fig. 15-6
Terms, 15V 5
&jiiienc, 15; 34
?reparc..ion, 15113
Pr.: iais. Care of, l*,c<
...2merit, 391.11
.-4 t. .als (see Disputes)
rv.— 'Cant, Responsible, 391,7
Appllcac »on
Acininistrative Checklist, Fig. 15-9
Forms, 3",i 5
Initial evaluation, 3117
Process ing, 3111; 12
Requirements, 3
Technical Review, 12
Time/Place of Submission, App. 3-A
l\?es, 31! 5
A(jpri>/al Official (project), 12
Arc<-3ricr 'iministration Unit, Fig. 3-1
-ance Anount, Changes to, 151(7
Progran Description, App. 3-A
xances, (Reserved)
Audit, 38
Award
Amount (see Assistance Amount)
Effective Date of, 15116
Notification of, 16
Official, 2
Bonding, (Reserved)
Ti 11e/Chapter/Paragraph
Budget
Revision, 34
Period, 2
Cash Depositories (see Depositories)
Catalog of Fed. Domestic Assistance, App. 3-A
Change of Recipient's Name, 34
Civil Rights, 23
Civil Rights Act of 1964, 3116; 23
Clean Air Act, Section 306, 3116
Closeout, 40
Compliance (see Noncompliance)
Confidential Information (see Proprietary)
Conflict of Interest (Reserved)
Consolidated Assistance, 8
Consultant Services, (Reserved)
Continuation, 31!5
Contract Work Hours and Safety Standards
Act, 31i10
Oonvict labor, 31110
Copeland Act, 31i1Q
Copyrights, 29
Cooperative Agreanent (see specific subject)
Cost
Allocable, 13114
Allowable, 131! 4
Analysis, 22112
Composition, App. 13-B-2
Determination, 13
Direct, 131! 6
Eligible (see Allowable)
Indirect, 13li7
Preaward, 15116
Principles, 131)3
Sharing, 14
Crosscutting Requirements, App. 1-A
Data, Rights in, 29
Debarment, 391112
Depositories, Cash, (Reserved)
Davis-Bacon Act, 23
Davis-Bacon Related Acts, 23
Definitions, (see Glossary)
Demonstration Cities and Metropolitan
Development Act, 3116
Index - 1
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ASSISTANCE ADMINISTRATION
Title/Chapter/Paragraph
Deviations, 36
Direct Costs (see Cost)
Discrimination, 23
Disputes, 35
Appeal (see Review, Request for)
Decision Official, 35114
Final Decision, 38118
Request for Review, 35116
.-solution, 35
EjjCczion Amdts. of 1972, Title IX, 3U6
Bnployment Practices, Recipients', 23
EPA Grant Arount (see Assistance Amount)
Executive Orders, App. 1-A;31I6
Federal Water Pollution Control Act,
Section 13, 3116
Files, Official, 5
Final Determination, 38118
Final Disputes Decision, 35;38K8
Financial Management Standards
Recipient Accounting Systsn, 20K1
Reporting Requirements, 37
Flood Disaster Protection Act, 3116
Force Account Work (Reserved)
Foreign Assistance Agreanents, 7
Forms (see specific subject)
Freed an of Information, 46
Funds, Witholding of, 39119
Glossary, 2
Grant Agreanent,
Grant Amount (see Assistance Anount)
Grant Conditions, 15115
Grant Related Incane (see Program Incatie)
Grant and Cooperative Agreement Act
Grantee (see Recipient)
Grants Info, and Control System
Hatch Act, 3116
High Risk Participants, 39
Historic Preservation Act, 3116
Human Subjects, 3117
Identification Numbers (project ID#), 4
Incme, Progran Related, 25
Indirect Costs (see Cost)
Insurance, (Reserved)
Interagency Agreement, 51
Interest
Charged, 381(8
Earned on Assistance Pundc, 25; 331 4
Intergovernmental Review, 6
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Titl-V Chap ter/Parao raph
Inventions, 29
Unkind Contribution, 14113
Labor Standards, 23
Loans, (Reserved)
Matching Requirements (see Cost Sharing)
Matching Share, 14
Minority Business Utilization, 24
Narrative Statement, 12115
National Environmental Policy Act, 311
Noncompliance, 39
Nonccmplying Facilities (see violating
Facilities), 3116
Nondiscrimination, 23
Non-federal Matching Share, 14
Nonresponsibility, 39117
Novation, 34
Numbering of Assistance Proposals, 4
Obligation Dato, 15115
Officials Not to Benefit
CMB Circulars, Appencix 1-A
Patents, 29
Payment
Advance, 33114
Letter of Credit, 3314
Limitations, 331:6
Method of, 33113
procedures, 33
Reimbursement, 331i5
Withholding, 39119
Peer Review,
Preapplication, 3*;1
Price Analysis, 22V3
Printing, 30
Procurement, 21
profit, 221i4
Program Inccms, 25
Programatic Review (see Technical Revie. '
Project
Changes (see also Agreenent), 34
Costs (see Cost)
Director (see Project Manager)
Manager, 2
Monitoring, 44115
Officer, 44
period, 2
Records (see Record?)
Transfer, 341,4
Index - 2
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&EPA TRANSMITTAL
ADDRESSEE
CLASSIFICATION NO.: 57qq lgg4 Edition

APPBOVAL DATE: 12/3/84

ASSISTANCE ADMINISTRATION MANUAL
1.	PURPOSE. This Transmittal issues the new Assistance
Administration Manual.
2.	EXPLANATION. The new Assistance Administration Manual
supersedes the Grants Administration Manual. This new Manual
not only reflects several major changes in Federal grant law,
it also incorporates changes required by several revised
environmental statutes.
3.	FILING INSTRUCTIONS. Discard all the material from the
Grants Administration Manual binders and use the binders for
the new Assistance Administration Manual. Change the names
on the front and side of the binders by using the enclosed
self-adhesive pressure sensitized material.
Gary M. Katz, Dirs
Management and Ore
:or
lization Division
originator	Grants Administration Division/Office of Administration
EPA Form 1315-12 (R«v 7-82) REPLACES EPA FORMS 1315-1A AND THE PREVIOUS EDITION OF 1315 12
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ASSISTANCE ADMINISTRATION
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PREFACE
This Assistance Administration Manual is the successor to the EPA Grants
Administration Manual that was first published by the Grants Administration
Division (GAD) in 1976. This new Manual not only reflects several major changes
in Federal grant law that resulted frcm enactment of the Federal Grant and
Cooperative Agreement Act of 1977, but also incorporates changes required by
several revised environmental statutes adopted since that date. Those statutes
include: the Federal Water Pollution Control Act, as amended] the Clean Water
Act of 1977; the Resource Conservation and Recovery Act of 1976; the Toxic
Substances Control Act; the Safe Drinking Water Act, as amended; the
Comprehensive Environmental Response, Compensation and Liability Act of 1980;
and the Asbestos School Hazard Abatement Act of 1984.
An additional change made to the current Manual is the inclusion of Interagency
Agreement Procedures as Chapter 51 of the publication. In 1983, the GAD was
assigned responsibility to develop EPA's Agencywide policies and procedures
for Interagency Agreements (IAG's). The basic policy document was adopted in
1984 and is included in the Assistance Administration Manual because responsi-
bility for managing IAG's is in GAD for centrally administered agreements and
in Regional Assistance Administration Units (AAU) for Regional agreements.
The Assistance Administration Manual provides policies and procedures for
managing administrative aspects of all EPA financial assistance programs except
the Scientific Activities Overseas Program (funded by U.S. owned excess foreign
currency). Questions on that program should be directed to EPA's Office of
International Activities.
The Manual is organized to track the application, award, and post-award
phases of the assistance process. It consists of over 30 chapters that are
grouped into nine subject-oriented sections. Supplementary tables and charts,
not included in the text of a chapter are included as figures. Extensive
supplementary material such as copies of assistance related 0MB Circulars, are
provided as appendices.
Users of the Manual who perceive a need to change portions of the publication
should contact the following EPA official whose responsibility it is to act on
the suggestion:
Chief, Grants Policies and Procedures Branch (PM-216)
Grants Administration Division
U. S. Environmental Protection Agency
401 M Street, SW
Washirjgton, DC 20460
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CONTENTS OF CHAPTERS
CHAPTER	CHAPTER
TITLES	NUMBERS
BASIC INFORMATION
(RESERVED)					 1
GLOSSARY (RESERVED)		2
PROPOSAL SOLICITATION/ SUBMISSION AND RECEIPT
FREAPPLICATION, APPLICATION AND INITIAL EVALUATION		3
NUMBERING OF ASSISTANCE PROPOSALS		4
OFFICIAL EPA ASSISTANCE FILES		5
INTERGOVERNMENTAL REVIEW				6
ASSISTANCE TO PROJECT ACTIVITIES OUTSIDE THE UNITED STATES		7
CONSOLIDATED ASSISTANCE		8
(RESERVED)		9
(RESERVED)		10
(RESERVED)		11
PROPOSAL REVIEW AND AWARD
TECHNICAL REVIEW OF PROPOSALS		12
DETERMINATION OF COSTS		13
OOST SHARING		14
ASSISTANCE AGREEMENTS, AMENDMENTS AND CONDITIONS OF ACCEPTANCE		15
NOTIFICATION OF ASSISTANCE AWARD ACTIONS		16
(RESERVED)		17
(RESERVED)		18
RECIPIENT REQUIREMENTS
RECIPIENT RECORD REQUIREMENTS		19
ACCOUNTING AND INTERNAL MANAGEMENT		20
PROCUREMENT UNDER ASSISTANCE AGREEMENTS				21
OOST AND PRICE ANALYSIS		22
CIVIL RIGHTS AND LABOR STANDARDS COMPLIANCE		23
SMALL, WOMEN'S, AND MINORITY BUSINESS UTILIZATION		24
PROGRAM INCOME		25
PROPERTY MANAGEMENT		26
REAL PROFERTY ACQUISITION		27
RELOCATION ASSISTANCE		28
PATENTS, INVENTIONS, EATA AND COPYRIGHTS		29
PRINTING AND PUBLICATIONS 		30
(RESERVED)		31
(RESERVED)		32
i
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CHAPTER	CHAPTER
TITLES	NUMBERS
PROJECT ADMINISTRATION
PAYMENT PROCEDURES		33
PROJECT CHANGES		34
DISPUTES RESOLUTION		35
DEVIATIONS		36
RECIPIENT REPORTING		37
AUDIT		38
DEALING WITH NONCOMPLIANCE AND HIGH RISK PARTICIPANTS		39
CLOSEOUT OF ASSISTANCE AGREEMENTS		40
RECORDS RETENTION		41
(RESERVED)		42
(RESERVED)		43
PERFORMANCE MONITORING
PROJECT OFFICER RESPONSIBILITIES		44
(RESERVED)		45
OTHER
FREEDOM OF INFORMATION		46
(RESERVED)		47
(RESERVED)		48
(RESERVED)		49
(RESERVED)		50
INTERAGENCY (IAG) AGREEMENTS
MANAGING INTERAGENCY AGREEMENTS		51
LOANS AND LOAN GUARANTEES
LOANS		61 (Reserved)
LOAN GUARANTEES		71 (Reserved)
ii
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Basic Information
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ASSISTANCE ADMINISTRATION
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CHAPTER 1 - BASIC INFORMATION
Table of Contents
PARAGRAPH	PARAGRAPH
TITLES	NUMBERS
Purpose		1
Establishing a New Program		2
Administrative Resnnsibil itles		3
Program Registration		4
APPENDIX
TITLES	APPENDIX
NUMBERS
Generally Applicable Policy Requirements and
Administrative Management Standards	 1-A
Statutory Authorities for FPA Financial Assistance Programs		1-3
EPA Assistance Administration Fonns	 1-C
E?A Assistance Programs - Cumulative Historical Listing		1-D
EPA Financial Assistance Pros ram Registration Request Worksheet		1-E
FIGURE	FIGURE
TITLES	NUMBERS
EPA Regulatory "olicies and Procedures	 1-1
i
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CHAPTER 1 - BASIC INFORMATION
1.	PURPOSE. Hi is Chapter provides basic information concerning the requirements
for establishing an EPA financial assistance progran once the Congress has
provided the necessary statutory authorization and appropriation, and for admini-
stering that program throughout its life cycle. Appendices 1A, IB, and 1C list
basic statutory and regulatory documents and assistance administration forms.
2.	ESTABLISHING A NEW PROGRAM. The EPA nanager responsible for implementing
a new financial assistance parogran must complete certain administrative
actions to formally establish the prog rem within EPA and to announce its
establishment throughout the Federal system. Appendix 1-B outlines the prin-
cipal information required and the first key steps to follow in establishing a
program within the Agency and for listing the program in both the Catalog of
Federal Dcmestic Assistance (CEDA) (see Appendix 3-A of this Manual) and in
the House of Representatives' Information System. By following the steps
in Appendix 1-B, the Program Manager will inform those EPA organizations most
affected by the new program and will obtain their timely advice and support in
implementation.
3.	ADMINISTRATIVE rESPONSIBILITIES.
a. Program Manager. The Program Manager must assure that:
(1)	Funds are/will oe authorized and appropriated for the program;
(2)	EPA possesses cha statutory authority to award assistance to the
eligible recipients for the intended purpose(s);
(3)	EPA announces the availability of the financial assistance through
program announcements, the Federal Register, and/or other appropriate media
(e.g. the Commerce Business Daily or association newsletters).
(4)	EPA registers the program in the Catalog of Federal Dcmestic
Assistance (Federal Program Information Act, 31 U.S.C. §6101 et seq.), the
House of Representatives' Information Systan, EPA's Grants Information and
Control System (GICS), etc.;
(5)	Application solicitation, receipt, review, and appra/al processes
are established;
(6)	Necessary administrative codes are assigned to identify the program
and thereby to assure the proper recording of the receipt of applications for
assistance and their disposition, and related financial transactions; and that
(7)	Continuing ad^i^iptrative processes are planned.
1-1
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The Program should advise the Office of the Comptroller and the Grants
Adm1nicrnf . .i Division of any special statutory or other program requirements
that n . .t. 're special financial or other administrative management guidance*
'¦tiro of the Comptroller. Upon request of the Program Manager, the
Offk	Comptroller will confirm the planned funding, establish the program
with - joey's Financial Management System, assign the necessary coding
to e.	-ecord financial transactions, and develop any special guidance
that oe cessary. The Financial Management Division will assist the
Progr«-n n \ner in developing and Implementing appropriate funding, payment
aru. • c.j.arition processes.
Grants Administration Division. Upon request, the Grants Administration
Di. m"1! arrange for registering the new program in the Catalog of Federal
Home ; A,si stance (CFDA) and the House of Representatives' InformatTon System;
anc wiTT assign appropriate Grants Information and Control System (GICS)
program *nd legislative authority codes. GAD will assist the Program Manager
in developing and implementing application solicitation, receipt, review, and
award processes, and develop any special guidance that may be necessary.
d.	Office of General Counsel (Grants, Contracts and General Law Division).
The Office of General Counsel will confirm the availability of statutory
authority to award financial assistance as proposed and make such legal
determinations as are necessary.
e.	Management and Organization Division (M&0). M&0 will obtain the necessary
delegation(s) of the Administrator's authority to authorize the designated
Approval Official to approve applications for financial assistance for award
and the designated Award 0ff1c1al(s) to award financial assistance agreements.
4. PROGRAM REGISTRATION. The Program Manager shall follow the general format
and process set forth In Appendix 1-E as an early step in establishing a financial
assistance program. The Program Manager's memorandum shall be addressed to
the Director, Grants Administration Division and coordinated through the
Comptroller, the General Counsel, and the Director, Management and Organization
Division.
1-2
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APPENDIX 1-A - CROSSCUTTING REQUIREMENTS STATUTES,
EXECUTIVE ORDERS AND GUIDANCE DIRECTIVES AUTHORIZING
GENERALLY APPLICABLE NATIONAL POLICY REQUIREMENTS
AND ADMINISTRATIVE MANAGEMENT SYSTEM STANDARDS
Appendix 1-A lists those generally applicable national policy requirements and
administrative management standards that apply to Federal financial assistance
programs. As used herein, generally applicable requirements are national pol-
icies prescribed by statute, Executive Order, or other authoritative source,
and which apply to the assistance programs of at least two Federal agencies.
Administrative management standards are those "good management" policies and
procedures prescribed for implementing assistance programs throughout the
Executive Branch. Both these requirements and standards are often referred to
as being crosscutting. The policies and standards in the inventory are listed
specifically because chey subject either EPA or assistance recipients to their
provisions. Bene of the policies and standards apply to virtually every
Federal assistance program; seme apply to oily a tew selected programs.
Individual policies and the.r j.^plementing guidance are revised or rescinded
as circumstances warrant.
Chapter 3 of this Manual includes synopsized statements of the principal policies
with citation to the U.S. Code. Those relating to civil rights and labor stan-
dards are discussed in Chapter 23. The Office of Management and Budget's
publication, "Directory of Policy Requirements and Administrative Standards for
Federal Aid Programs," (available frcm OMB's Publication Distribution Office)
provides a more complete description of each policy and standard.
^P?">JDIX l-A-1
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CROSSCUTTING REQUIREMENTS
STATUTES
Age Discrimination Act of 1975, as amended
Animal Welfare Act of 1966, as amended
Archeological and Historic Preservation Act of 1974
Architectural Barriers Act of 1968, as amended
Budget and Accounting Act of 1921, as amended
Budget and Accounting Procedures Act of 1950
Cargo Preference Act of 1954
Civil Rights Act of 1964, Title VI
Civil Rights Act of 1968, Title vill as amended
Clean Air Act, of 1955, as amended
Coastal Zone Management Act of ~.°72, as amended
Comprehensive Alcohol Abuse and Alcoholism Prevention, Treatment
and Rehabilitation Act of 1970, as amended
Consolidated Federal Funds Repoi.cs Act of 1982
. ^ntract Wbrk Hours and Safety Standards Act of 1962, as amended
Atai^<\L>ack (Copeland) Act of 1934
Davis-Bacon Act of 1931, as amended
Debt Collection Act of 1982, as amended
Deficit Reduction Act of 1984
Demonstration Cities and Metropolitan Development Act of 1966
Drug Abuse Office and Treatment Act of 1972, as amended
Education Act Amendments of 1972, Title IX, as amended
Endangered Species Act of 1973, as amended
APPENDIX l-A-2
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ASSISTANCE ADMINISTRATION
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CROSSCUTTING REQUIREMENTS - STATLTTES (continued)
Farmland Protection Policy Act of 1981
Federal Claims Collection Act of 1966
Federal District Court Organization Act of 1934
Federal Grant and Cooperative Agreement Act of 1977
Federal Program Information Act of 1977
Federal Property and Administration Services Act of 1949, as amended
Federal water ^Dilution Control Act of 1952, as amended
Flood Disaster Protection Act of 1973, as anended
Freedom of Info mat ion Act of 1966, as amended
Hatch Act of 1939, as amended
Historic and Archeological Preservation Act of 1974
Indian Self-Determination *-l Education Assistance Act of 1975
International Air Transportation Jair Competitive Practices
Act of 1974, as amended
Intergovernmental Cooperation ' : of 1968
Intergovernmental Personnel Act of 1970, as amended
l.<_-paint Poisoning Prevention Act of 1971, as amended
Mori .e Act of 1936, as amended
National Environmental Ralicy Act of 1969, as amended
National Flood Insurance Act of 1968, as anended
National Historic Preservation Act of 1966, as amended
National Research Act of 1974
Office of Federal Procurement Rslicy Act of 1974, as anended
Paperwork Reduction Act of ;980
APPENDIX l-A-3
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ASSISTANCE ADMINISTRATION
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CROSSCUTTING REQUIREMENTS - STATUTES (continued)
Patent and Trademark Amendments of 1980
Perishable Agricultural Commodities Act of 1930, as amended
Power Plant and Industrial Fuel Use Act of 1978
Privacy Act of 1974, as amended
Public Health Service Act of 1912, as amended
Rehabilitation Act of 1973, as amended
Safe Drinking W&ter Act of 1974
Single Audit Act of 1984
Small Business Act of 1953, as amended
Stoall Business Inna.vtion Development Act of 1982
uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970 a. »y\ £ v\<&:cl
Vietnam Era Veterans Readjustment Assistance Act of 1972
Wild and Scenic Rivers Act of 1968, as amended
Executive Orders
Statistical Information to Intergovernmental Organizations;
Executive Order 10003 of February 8, 1949
Imprcwed Statistical Information;
Executive Order 10253 cf June 11, 1951
Equal Employment Opportunity;
Executive Order 11246 of September 25, 1965, as amended by
Executive Order 11375 of Octooer 13, 1967
Protection and Enhancement; of the Cultural Environment;
Executive Order 11593 of May 13, 1971
National Minority Business Enterprise Program;
Executive Order 11625 of OcJ-nher 13, 1971
APPENDIX l-A-4
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CROSSCIHTING REQUIREMENTS - EXECUTIVE ORDERS (continued)
Clean Air/W&ter Violators - Prohibits utilization in Federal
contracts, grants, and loans;
Executive Order 11738 of September 10, 1973
Flood Plain Management;
Executive Order 11988 of May 24, 1977
Protection of Wetlands;
Executive Order 11990 of May 24, 1977
Federal Procurement in Labor Surplus Areas;
Executive Order 12073 of August 16, 1978
c->al Employment Opportunity (Contract Compliance;
. ^cions); E>dr*utive Order 12086 of October 5, 1978
National Wcmen's Business Enterprise Policy;
Execucive Order 12138 of May 18, 1979
.^nsen-aticn of Petroleum and Natural Gas;
executive Order 12185 of December 17, 1978
,lc 3rd Coordinate.. jf Nondiscrimination Laws;
jr ~.ve Order 12250 of November 2, 1980
'•'.snagement arri Coordination of Federal Regulations;
.'xecutive Order 12291 of L>ruary 17, 1981
SLd.:stical Policy Functions;
"xicutive Order 12318 of August 21, 1981
.ically Black Colleges and Universities;
. .? 'Tder 12320 of September 15, 1981
:* '.eiiioverririental Review of Federal Programs;
"^ocutive Order 12372 of July 14, 1982, as amended on April 8, 1983
regulatory Planning Process;
Executive Order 12498 of January 4, 1985
~*1B Circulars
,\~?1 - Cost Principles for Educational Institutions	(See Appendix 13-A)
.i-73 - Audit of Federal ,rc.cion and Programs
APPENDIX l-A-5
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CROSSCUTTING REQUIREMENTS - OMB CIRCULARS (continued)
A-87 - Cost Principles for State and Local Governments	(See Appendix 13-B)
A-88 - Coordinating Indirect Cost Rates and Audit at Educational
Institutions
A-90 - Cooperating with State and Local Governments to Coordinate
and Improve Information Systems
A-102 - Uniform Administrative Requirements for Grants-in-Aid to
State and Local Governments
(See Appendix 13-C)
A.	Cash Depositories
B.	Bonding and Insurance
C.	Retention and Custodial
Requirements for Records
D.	Waiver of "Single" State
Agency Requirements
E.	Program Income
F.	Matching Share
G.	Standards for Grantee Financial
Management Systems
H.	Financial Reporting Requirements
J. Monitoring and Reporting Program
Performance
J. Grant Payment Requirements
K. Budget Revision Procedures
L. Grant Closeout Procedures
M. Standard Forms for Applying for
Assistance
N. Property Management Standards
0. Procurement 3Landers
P. Audit Requirements
Attachment A
Attachment B
Attachment C
Attachment D
Attachment E
Attachment F
Attachment G
Attachment H
Attachment I
Attachment J
Attachment K
Attachment L
Attachment M
Attachment N
Attachment 0
Attachment P
appendix l-A-6
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CROSSCTJITING REQUIREMENTS - OMB CIRCULARS (continued)
A-110 - Grants and Agreements with Institutions of Higher Education,
Hospitals and Other Nonprofit Organizations - Uniform
Administrative Requirements
A.	Cash Depositories
B.	Bonding and Insurance
C.	Retention and Custodial
Requirements for Records
D.	Program Income
E.	Cost Sharing and Matching
F.	Standards for Financial Management
Systems
1. Financial Reporting Requirements
H.	Monitoring and Reporting Program
Performance
I.	Payment Requ^r .-its
J. Revision of F iiancial Plans
K. Closeout Procedures
L. Suspension and Termination
M. Standard Form for Applying for
Federal Assistance
N. Property Management Standards
0.
Attachment A
Attachment B
Attachment C
Attachment D
Attachment E
Attachment F
Attachment G
Attachment H
Attachment I
Attachment J
Attachment K
Attachment L
Attachment M
Attachment N
Attachment O
Procurement Standards
A-122 - Cost Principles for Nonprofit Organizations
A-124 - Patents-anal1 Business firms and nonprofit organizations
A-128 - Audits o£ State and Local Governments
A-129 - Managing Federal Credit Programs
(See Appendix 13-D)
£P«ENDIX l-A-7
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STATUTORY AUTHORITIES "OR EPA FINANCIAL ASSISTANCE PROGRAMS
CFDA#	Authority/Program*	Section
ASBESTOS SCHOOL HAZARD ABATEMENT ACT of 1984
66.702 Asbestos Hazard Abatement (Schools) Assistance	§505
CLEAN AIR ACT, 42 U.S.C.A. 57401 et seq.
66.001	Air Pollution Control Program Support	§105
66.002	Air Pollution Control Fellowships	§103(b)(5)
66.003	Air Pollution Control Manpower Training	§103(b)
66.501 Air Pollution Control Research	§103(a)(2);
§103(b)(3);
§104(2)(a)
66.500 Environmental Protection - Consolidated Research various
COMPREHENSIVE ENVIRONMENTAL RESPONSE, COMPENSATION,
AND LIABILI fl ACT, 42 U.S.C.A. §9601 et seqT
66.802 Superfund Remedial Planning and Implementation
(Hazardous Substances Response Trust Fund)	§104
ENVIRONMENTAL PROGRAMS ASSISTANCE ACT of 1984
66.50 8
Senior Environmental Employment (SEE) Program
FEDERAL INSECTICIDE, FUNGICIDE, AND RODENTICIDE
§2(a)
Act,

7 U.S.C.A. §136 et seq.

66 . 50 2
Pesticides Control Research
§20(a)
66.500
Environmental Protection - Consolidated Research
various
66.700
Pesticides Enforcement Program Support
§23(a)(l)
(none)
Pesticide Applicator Certification and Training
§23(a)(2)
* Note that some authorized programs may not be funded.
Appendix 1-B-l
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ASSISTANCE ADMINISTRATION
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CFDA#
Authority/Program
Section
66.418
66.418
66.419
66.438
66.1171
66.455
66.4'Tr
(none)
66.426
(none)
(none)
66 . 50 5
hEDERAL WATER POLLUTION CONTROL ACT (CLEAN WATER ACT),
33 U.S.C.A. §1251 et seq.
Construction Grants for Wastewater Treatment Works
Advances for Allowances for Facilities Planning
and Project Design
Water Pollution Control State and Interstate
Program Support
Construction Management Assistance
Water Quality Management Planning
Construction Grants for WWT Works for Combined
Sewer Overflows to Marine Bays and Estuaries
Comprehensive Estuarine Management Pollution
Control and Abatement
Comprehensive River Basin Planning
Water Pollution Control State and Areawide Water
Quality Management Planning
Great Lakes Water Quality Research
Great Lakes Water Quality Demonstration
Water Pollution Control Research, Development,
and Demonstration
66.500
66.428
66.429
Environmental Protection - Consolidated Research
Water Pollution Control Professional Training
Water Pollution Control Technical Training
§201(g)(1)
§20 3(a)
§106
^20 5(g)(2)
§20 5(j)
§201 (n) (2)
§104(b)(3)
§102(c)
§20 8( f) (1)
§104 (f)
§108
§104(b)(3);104{i);
§104(r); 104(s);
§105(a) (1) ;105(b);
§ 10 5 (c);
§105(e)(1) and (2);
§105(i);§105(j);
§107; and §113
various
§104(g)(3)
§§104(g)(3);10 5(j)
§§109 and 111
Appendix 1-8-2
-------
ASSISTANCE ADMINISTRATION
5 700 CHG 2
2/10/86
Federal Water Pollution Control Act - continued
CFDA#
(none)
66.420
66.430
(none)
(none)
66.801
(none)
66.804
66.027
66.028
66.504
66.500
(none)
(none)
Authority/Program
Clean Lakes
Water Pollution Control State and Local Manpower
Program Development
Water Pollution Control Fellowships
RESOURCE CONSERVATION AND RECOVERY ACT,
42 U.S.C.A. §6901 et seq7
Hazardous Waste Management State Program Support
Hazardous Waste Site Inventory Program Support
Underground Storage Tanks - State Program Support
Solid Waste Demonstration and Planning
Solid Waste Disposal Demonstration
So 1 id Waste Disposal Research
Environmental Protection - Consolidated Research
Solid Waste Management Training
Solid Waste Management Fellowships
Section
§§10 4(h);314(b)
§104(g)(1)
§104(b)(5);
§10 4(g)(3)(B)
Water Quality Man?gement Participation Training §104(b)
NOISE CONTROL ACT, 42 U.S.C.A. §4901 et seq.
Research, Development and Demonstration
§14
§3011(a)
§3012(c)
§2007(f)(2)
Subtitle D
§§8001;8004;
and 800 6
§8001
various
§§700 7;and 8001
§8001
Appendix I-B-3
-------
ASSISTANCE ADMINISTRATION
5 700 cut.
2/10/86
CFDA#
Authority/Program
Section
66.432
66.433
(none)
(none)
(none)
(none)
|n„ne)
66.506
66.500
(none)
(none)
5 ^701
(none)
66 . 50 7
66.500
SAFE DRINKING MATER ACT, 42 U.S.C.A. §300f et seq.
State Public Water System Supervision	61443(a)(1)
State Underground Water Source Protection	§1443(b)(l)
Safe Drinking Water State & Local Prog. Development §1442(b)(3)(C)
Safe Drinking Water State Surface Impoundment
Assessment (Pits, Ponds, and Lagoons)
Safe Drinking Water	Inspectors & Supervisory Trng.
Safe Drinking Water	Professional Training
Safe Drinking Water	Emergency Response
Safe Drinking Water	Research and Demonstration
§1442(b)(3)(C)
§1442(b)(3)(B)
§1442(d)
§1442(a)(2)(B)
§51442(a) and (e);
§1444
§1442(b)(3)(A)
§1442(d)(1) and (2)
Environmental Protection - Consolidated Research
Safe Drinking Water Occupational Training
Safe Drinking Water Fellowships
TOXIC SUBSTANCES CONTROL ACT, 15 U.S.C.A §2601 et seq.
State Chemical Sustances Prevention Program Support §28
Asbestos Hazard Abatement State Pilot Projects	§10(a)
Toxic Substances Research	§10(a) and (b)
Environmental Protection Consolidated Research	various
Appendix l-B-4
-------
APIPEKI1X l-c IJSTIN' ; OF EPA ASSISTANT /-iQMINISTRATION FORMS
EPA #
Date
Title
Unit
5700-7&
11-77
Ajip) station Kit for Grant (Construction
Folder


(_. u'.t for W&stewater Treatment Wbrks)

5700-18
11-77
Application Kit for Assistance (Planning
Folder


or Program Grant)

5700-7C
2-83
Application Kit for Assistance (Fellowship)
Folder
5700-7D
5-80
Application Kit for Assistance (Training
Folder


Assistance)

5700-7E
8-80
Application Kit for Assistance (Research
Folder


or Demonstration)

5700-9
7-74
Grant Application/Proposal Receipt (Headquarters)
Tard
570O-8A
3-78
Grant Application/Proposal Receipt (Field)
Catd
5700-12
4-78
Application for Federal Assistance
Pamphlet
5700- l2A
6-78
Instructions for Form 5700-u2
Pai iphlet
57C 3 14
4-84
Grant Funding Order
She- '
5700-19
10-72
Unsolicited Proposals Acknowledge.it

5700- !0A
5-82
EPA Assistant Agreauent/Airvnariient ti Instruct
'It! "
5700-20B
11-79
Assistance Adinend-nenr (Optional)
s: • ?i
5700-28
5-80
State PriorjLy Ccrtification
She»pVil et


Statement (W&ter Pollution Control SU*te &



Interstate Program Grants)

5700-33E
5-74
Application for Federal Assi^ta.icc? , Macra-ci-c



Statanent (Air and Water Pollution Control



Demonstration Grants)

5700-33F
7-76
Application for Federal Assistance, Mutative
"!i l-V


Statement (Consolidated Program Support Grants)



Support Grants)

5700-33G
11-75
Application for Federal Assistance, Naj idtivt-
Toilill el


Stateirent (State Public W&ter System



Supervision Program Grants)

-------
EPA #	Date	Title
5700-33H	11-83	Application for Federal Assistance, Narrative
Statanent-Part IV (Pesticide Enforcement
and Applicator Certification and Training
Grants
5700-331	12-79	Application for Federal Assistance, Narrative
Statement (Part IV}- Underground Water Source
Protection Program Grants
5700-38	Grant Closeout Checklist
5700-41	4-84	Cost or Price Surmary Format for Subagreements
5700-42	2-85	Grant Record Adjustment Notice
5700-47	6-79	Grants Mailing List \ferification
5700 48	5-84	Procurement System Certification
Unit
Sheet
Sheet
Sheet
Pamphlet
Sheet
Card
Sheet
Use
2,3
2,3
2
2,3
2
2
1
"8
Q.
I
O
N>
57 20-CONSTRUCTION
5720-12
5720-4
9-85
5-73
Application for Federal Assistance
(Construction)
Labor Standard Provisions for Federally
Assisted Construction Contracts
5760-RESEARCH & DEMONSTRATION
5760-3
10-82
Recoi."d of Grant Application (ORGC)
Pamphlet
Sheet
Card
2,3
3
5770-TRAINING & FELLOWSHIPS
5770-2
5770-3
5770-5
5770-6
5770-7
5770-8
5770-9
4-78	Fellowship Application
2-77	Fellowship Facilities & Caranitment Statement
2-77	Fellowship Application Qualifications Inquiry
5-78	Agency Fellowship Certification
6-73	Fellowship Amendment
6-73	EPA Fellowship Activation Notice
7-73	Fellowship Agreement
7-73	EPA Fellowship Termination Notice
Pamphlet
Sheet
Sheet
Sheet
Sheet
Sheet
Sheet
Sheet
2
2
2
2
2
2
2
2
57 - ASBESTOS HAZARD ABATEMENT (SCHOOLS)
7730-5
11-85
Use Oodes
Application for Federal Assistance (Asbestos
Hazard Abatement (Schools)) Program
Pamphlet
1	Agencywide
2	Headquarters
3	Regional Offices
4	Laboratories/or their field facilities
N)
o o
CO
<*Q
o
FO
-------
ASSISTANCE ADMINISTRATION
570U CKG 2
" 10/86
AFPEMDIX 1-D — CUMULATIVE HISTORICAL LISTING OF EPA ASSISTANCE PROGRAMS
The following lists every EPA assistance program that has ever been printed
m .he 09 of Federal Dcmestic Assistance (CFDA). The first line shows the
odrtlhc: tide of the program when it was added to the Catalog. Ttie second and
toer<- 1 ines show the year the program was added and any additional trans-
act 1' r title changes, transfers, deletions, consolidations, agency re-
otaan'.zs i , number changes, etc. that have followed. The letter B or 0 that
:j0\ 10.3 a given year, indicates the tranaction was made either in the basic (B)
or tne update (U) publication of the Catalog.
OF \IR NOISE, AND RADIATION
bed"1! Air Pollution Control Prognm Grants
•Q7IB
transferred from 13 001
197 IB
oo 002 Air Pollution Fellowsr.jp:>
l«7IB
Transferred fror-, 13 002
1971.
Air Pollution Contr ' Fellowships
I976B
Del-ted
197CB
66(03 Air Pollut.on Manpow-r Trs.nin1" f^rants
197 IB
Transferred from IJ 003
197 IB
Air Pollution Control Manpower a'mug Grants
|97bB
66 004 Air Pollution Research Grants
1971B
Transferred from 13 004
197IB
Air Pollution Control Research Grants
972B
Number ch_ iged to 66 .0)
1973B
66 00$ Air Pollution Survey and Demonstration Grants
1971B
Transferred from 13 005
I97IB
Air Pol'ution Control Survey and Demonstration Grants
I976B
Deleted
1S79B
\ >6 \ir Pui'ution Control Techn'cal Training
97| U
Air Pollution Contr il—Technical Training
I973B
X)7 4ir Pollution Control National Aerometnc Data Information
1971U
Air Pollut on Cont*"!—National A i.1- nt Air and Source
Emission Data
' ''2U
66 008 Air Pollution Control Technical Assistance
I97IU
Air Pollution Control—Technical Assistance
1973B
Deleted
1985B
66 009 Air Pollution Control Technical Information
19'1U
Air Pollution Control—Technical Information Services
1973B
66010 Air Pollution Control—Interstate Cooperation and Uniform
Laws
1972B
Deleted
I973U
66 011 Solid Waste Technical Assistance. Training, and Information
Services
1974B
Number changed from 66 304
I974B
Solid Waste Technical Assistance, and Information Services
1975B
Solid Waste Disposal Technical Assistance, and Information
Services
i976B
Solid Waste Management Technical Assistance, and Informa-
tion Services
197ftU
Number changed to 66 450
I977U
66 012 Water Pollution Control Data Publications Services
1971B
Number changed from 66 402
* 97 3 B
Number changed to 66 416
l°74B
66 013 Waier Pollution Control—Direct Training
I973B
Number changed from 66 403
I9"3B
Number changed to 66 417
1974B
Appendix 1-D-l
-------
ASSISTANCE ADMINISTRATION
66014 Water Pollution Control—Interstate Cooperation and Uni-
form Laws
1973B
Number changed from 66 404
19"*3B
Incorporated into 66 650
1973U
66 015 Construction Grants for Wastewater Treatment Works
1973B
Number changed from 66 400
I973B
Number changed to 66 418
1974B
66 017 Water Pollution Control—State and Interstate Program
Grants
1973B
Number changed from 66 407
I973B
Number changed to 66 419
I974B
66 018 Water Pollution Control—State and Local Manpower Devel-
opment
"3B
Number changed from 66 408
1973B
Number changed to 66 420
1974B
6oOI9 Water Pollution Control—Technical Assistance jid Criteria
Development
1973B
Number changed from 66 409
1973B
Deleted
IQ *43
66 020 v>aio Pollution Control—Training Grants
1 °73B
Number changed from 66 410
¦97?B
Number changed to 66 421
l«74B
66 021 Water Quality Control—Monitoring Assistance
1973B
Number changed from 66 411
1973B
Number changed to 66 422
I974B
o J22 Water QuaJit> Conlrol Information System—Orientation and
Training Seminars
I973B
Number changed from 66412
I973B
Number changed to 66 423
1974B
66 023 Water Quality Management Technical Planning Assistance
I973B
Number changed from 66 413
I973B
Deleted
1974B
5700 CHG 2
2/10/86
66025	Drinking Water Supply—Technical Assistance
I973B
Number changed from 66 415
1973B
Number changed to 66 425
1974B
66026	Solid Waste Training Grants
1975B
Solid Wasii Disposal Training Grants
I976B
Number changed to 66 453
1977U
66 027 Solid Waste Demonstration and Planning Grants
1975B
Solid WiMe Planning Grants
I975U
Split into 66 027 and 66 028
1975U
Solid Waste Disposal Planning Grants
1976B
Number changed to 66 451
I977U
66 028 Solid Waste Demonstration Grants
!9">5U
Split from 66 027
I975U
Solid Waste Disposal Demonstration Grants
I976B
Number changed to 66 452
1977U
66 030 Nose Pollution Cnnrrol—Technirjil Assistance
1Q76B
Deleted
198IU
66 031 Quiet Conmunities—State and Local Capacity Building As-
sistance
I979B
Deleted
¦981U
OFFICE OF PESTICIDES PROGRAMS
66 100 Pesticides Research Grants
1®71B
Transferred from 13 102
197l B
Number changed to 66 502
I973B
66 101 Pesticides Science and Technology—Technical Information
1971 Ij
Number changed to 66 427
1974B
OFFICE OF .RADIATION PROGRAMS
66 200 Radiation Research Grants
197 IB
Split/Transferred from 13 012
197 IB
Number changed to 66 503
I97'B
Appendix l-D-2
-------
ASSISTANCE ADMINISTRATION
5700 CHG 2
2/10/86
66 201 Radiation Training Grants
1971B
Split/Transferred from 13 013
197 IB
Deleted
1973U
OFFICE OF SOLID WASTE MANAGEMENT PROGRAMS
66 300 Solid Waste Demonstration and Resource Recovery System
Grants
I971B
Transferred from 13 01*
197 IB
Deleted
1973B
66 301 Solid Waste Planning Grants
1971B
Transferred from 13 015
197 IB
Deleted
1973B
66 302 Solid Waste Research Grants
197 IB
Transferred from 13 016
1971B
Numper changed to 66 504
1973B
66 303 Solid. Waste Training Grants
1971B
Trarsfeirsd from 13 017
197! B
Deleted
I973B
66 304 Solid Waste Technical Assistance, Training, and Information
Services
1971U
Number changed to 66 011
1974B
OFFICE OF WATER
66 400 Construction Grants for Wastewater Treatment Worlu
1 t7 13
Transferred from 15 700
I971B
Number changed to 66 015
197jB
66 401 Water Pollution Control Comprehensive Basin Planning
Grants
I97IB
Transferred from 15 701
1971B
Water Pollution Control—Comprehensive Basin Planning
Grants
1972B
Deleted
1973B
66 402 Water Pollution Control Data Publicvors Services
1971B
Transferred from 15 702
1971B
Number changed to 66012
1973B
66 403
66 40*
66 405
66 406
66407
66 408
66 409
66 410
66 411
Appendix l-D-3
Water Pollution Control—Direct Training
197 IB
Transferred from 15 703
197 IB
Number changed to 66 013
1973B
Water Pollution Control—Interstate Cooperation and Uni-
form Laws
197 IS
Transferred from 15 704
197 IB
Number changed to 66 014
I973B
Water Pollution Control—Research, Development, and Dem-
onstration Grants
1971B
Transferred from 15 705
197 IB
Water Pollution Control—Research, Development, and Dem-
onstration
1972B
Number changed to 66 505
1973B
Water Pollution Control Research Fellowship*
1971B
Transferred from 15 706
197 IB
Deleted
1973B
Water Pollution Control—State and Interstate Program
Grants
197 IB
Transferred from 15 707
197 IB
Number changed to 66 017
1973B
Water Pollution Control—State and Local Manpower Devel-
opment
197 IB
Transferred from 15 708
1971B
Number changed to 66 018
I973B
Water Pollution Control—Technical Assistance and Pollution
Surveillance
197 IB
Transferred from 15 709
197 IB
Number changed to 66 019
1973B
Water Pollution Control Training Grants
197IB
Transferred from 15 710
1971B
Number changed to 66 020
1973B
Water Quality Control Information System
197 IB
Transferred from 15 711
197 IB
Numbrr changed to 66 021
1973B
-------
ASSISTANCE ADMINISTRATION
5 ;00 CKG ?
2/10/86
66 412 Water Qualit) and Pollution Control—Orientation and Train-
ing Seminars
197 IB
Transferred 15 712
197 IB
N-Tiber i „ .ti.d to 66 022
I "V 7 j B
6<- '
Water Qui > Management Technical Planning Assistance
197 IB
Transferred from 15 713
1971B
Number changed lo 66 023
I973B
6' J Water Hygiene Research Grants
1971B
Transferred from 13 018
1971B
Incorporated into 66 403
I972B
66 413 Drinking Water Supply—Technical Assistance
1972B
Number changed to 66 025
I973B
66 416 Water Pollution Control—Data Publications Services
'.9-4B
Number changed from 66 012
19T4B
Incorporated into 66 423
1977B
66 417 Water Pollution Control—Direct Training
1974B
Number changed from 66 013
1974B
Deleted
I982B
66 418 Construction Grants for Wastewater Treatment Works
I974B
Number changed from 66 013
I974B
00 419 Adier Pollution Control—State and Interstate Program
Gr^nis
I974B
Number changed from 66 017
1974B
no -120 Water Pollution Control—State and Local Manpower Devel-
opment
I974B
Number changed from 66 018
I974B
Water Pollution Control—State and Local Manpower Pro-
gram Development
I976B
Deleted
1981U
66 421 Water Pollution Control—Training Grants
I974B
Number changed from 66 020
I974B
Spin into 66 428 and 66 429
1974U
Apper.iix l-D-4
66 422 Water Quality Control—Monitoring Assistance
1974B
Number changed from 66 021
1974B
Incorporated into Oo 423
1977B
66423 Water Quality Control Information System—Orientation and
Training Seminars
1974B
Number changed from 66 022
1974B
Water Quality Control Information System—Orientation/
Training Seminars. Data and Monitoring Publications
1977B
66 425 Drinking Water Supply—Technical Assistance
1974B
Number changed from 66 025
I974B
Deleted
1983U
66 426 Water Pollution Control—Area Waste Treatment Manage
ment Planning Grants
1974B
Water Pollution Control—State and Areawide Waste Treat
ment Management Planning Grants
I976U
Water Pollution Control—State and Areawide Water t
Management Planning Agency
I977B
Deleted
I983B
66 427 Pesticides Science and Technology—Technical Information
I974B
Number changed from 66 101
1974B
Deleted
1979B
66 428 Water Pollution Control—Professional Training Grants
1974U
Split from 66 421
1974U
Deleted
I982B
66 429 Water Pollution Control—Technical Training Grants
I974U
Split from 66 421
1974U
Deleted
198 IB
66 430 Water Pollution Control Fellowships
I974U
Deleted
1981U
66 431 Water Pollution Control Loans
1974U
Transferred/Incorporated into 59 024
1979B
-------
ASSISTANCE ADMINISTRATION
5700 CHG 2
2/10/86
66 432 Grants for State Public Water System Supervision Programs
1975U
Public Water System Supervision—State Program Grants
1976B
State Public Water System Supervision Program Grants
I976U
66433 Grants for Underground Injection Control Program]
1975U
Underground Water Source Protection—State Program
Grants
1976B
State Underground Water Source Protection Program Grants
I976U
State Underground Water Source Protection—Program
Grants
198 IB
66 434 Safe Drinking Water—State and Local Program Develop-
ment Grants
1976U
Deleted
1979B
66 433 Water Pollution Control—Lake Restoration Demonstration
Grants
I976U
Water Pollution Control—Lake Restoration Cooperative
Agreements
1980U1
Deleted
1981U
66 438 Construction Management Assistance Grants
1978U
66 430 Solid Waste Management Technical Assistance and Informa-
tion Services
I977U
Number changed from 66011
1977U
Deleted
1981U
66 451 Solid and Hazardous Waste Management Program Support
Grants
1977U
Number changed from 66 027
I977U
Hazardous Waste Management Program Support Grants
1981 Li
Hazardous Waste Management Financial Assistance to Slates
I982B
Number changed to 66 801
I983B
66 452 Solid Waste Management Demonstration Grants
I977U
Number changed from 66 028
1977U
Deleted
1981B
66 453 Solid Waste Management Training Grants
1977U
Number changed from 66026
1977U
Deleted
198IU
66 454 Water Quality Management Planning
1983B
66 455 Marine Combined Sewer Overflow Special Fund
1984B
66 701 Toxic Substances Compliance Monitoring Cooperative
Agreements
1984U
66 702 Asbestos Hazard Abatement School Assistance Program
1984U
66 803 Hazardous Waste Management Financial Assistance
I984U
OFFICE OF RESEARCH AND DEVELOPMENT
66 500 Environmental Protection—Comprehensive Research Grants
1972U
Environmental Protection—Consolidated Research Grants
1974U
66 501 Air Pollution Control Research Grants
1973B
Number changed from 66 004
1973B
66 502 Pesticides Research Grants
1973B
Number changed from 66 100
I973B
Pesticides Control Research Grants
I976B
66 503 Radiation Research Grants
1973B
Number changed from 66 200
1973B
Deleted
1977B
66 504 Solid Waste Research Grants
I973B
Number changed from 66 302
1973B
Solid Waste Disposal Research Grants
I976B
66 505 Water Pollution Control—Research, Development, and Dem-
onstration
1973B
Number changed from 66 405
l°73B
Water Pollution Control—Research. Development, and Dem-
onstration Grants
1975B
Appendix l-D-5
-------
ASSISTANCE ADMINISTRATION
66 506 Wacer Supply Research Grants
I973B
Water Research and Demonstration Grants
1975U
66 307 Toxk. SuDstances Research Grants
1978B
OFFICE OF ADMINISTRATION
66 600 Environmental Protection—Consolidated Program Grants
1973B
Environmental Protection—Consolidated Program Support
Grants
1975U
Environmental Protection Consolidated Grants—Program
Support
1976B
66 601 Environmental Financing Authority
1974U
Deleted
19750
66 602 Environmental Protection—Consolidated Special Purpose
Grants
197SU
Environmental Protection Consolidated Grants—Special Pur-
pose
1976B
Incorporated into 66 600
I982B
66 603 Loan Guarantees Tor Construction of Treatment Works
I978U
OFFICE OF REGIONAL AND INTERGOVERNMEN-
TAL OPERATIONS
66 650 Environmental Protection—Interstate Cooperation and Uni-
form Laws
I973U
Number changed from 66 014
I973U
Deleted
1978U
OFFICE OF PESTICIDES AND TOXIC SUBST VNCES
66 700 Pesticides Enforcement Program Grants
1977U
66 701 Tome Substances Compliance Monitoring Cooperative
Agreements
1984U
66 702 Asbestos Hazird Abatement School Assistance Program
I984U
OFFICE OF SOLID WASTE AND EMERGENCY RESPONSE
66 800 State Toaic Substances Control Projects
1979B
Deleted
1981B
66 801 Hazardous Waste Management Financial Assistance to States
1983B
Number changed from 66 451
I983B
66 802 Hazardous Substance Response Trust Fund
I983B
66 803 Hazardous Waste Management Financial Assistance
1984U
Deleted
1983B
Appendix l-D-6
-------
ASSISTANCE ADMINISTRATION
5700 CHG 2
2/10/36
EPA FINANCIAL ASSISTANCE PROGRAM REGISTRATION REQUEST WORKSHEET
The requesting Program Official shou'd *rite "o the Director, Grants Administration
Division to request the registration of a new -rmancial assistance program. Follow
the suggested outline and routing set for-.1-1 -x^cw.
SECTION I. REQUESTOR
Originating Prograny/Cff ice. Who is request it: -scablishment of the program?
Program Contact for this request. Who shcild be contacted for further
information cor.cerr.ing rais REQUEST? Provide	location, and phone number.
Suggested Program Title. The official title :or inclusion in the Catalog of
Federal Dcmestic Assistance. Be concise arii descriptive.
Is this a new program? YES l~| *-JO |~j no, explain.
What can the .'distance be used for? 'what ere the restrictions, if any?
Authorizing Statute. What .3 ^PA's legal authority (statute/section) for
awarding funds under the - _,cos*id program?
Provide the name of t-.s , c. e title, section, and public law nun±>er.
Type(s) of Assistance. 7V-KT ,*J\--"."VENTS J~i 0OOPERATIVE AGREEMENTS |~| LOANS |~
Eligiole Recipients. Who - •- -;ceive this r.o;,istance trcm EPA?
Source(s) of Funding. Are i'j Is a^culaole? -ccrce? Autnorization?
'~"sir. A^.-nip LStration. Do /:-i recanrcnd that the program be administered
car.tjjlly by tne Headquarters' prngrdm and assistance administration staffs
or be decentralized to the Regional offices ( Delegation 1-14)?
Proposed Approval Official(s). Identify the )fficial(s) (Headquarters or
Region(s)) */ho should approve proqramatic content of applications for submission
to the Award Official. Request the Management & Organization Division to
redelegate approval authority from the Administrator to that official (with or
without authority to redelegate).
Proposed Award Official(s). Recommend the Award Official(s) (either Regions
or Headquarters) who should execute assistance agreements for this Progran. .
See Delegation 1-14.
Ajvendix 1-F-l
-------
ASSISTANCE ADMINISTRATION
5700 CHG 2
2/10/36
Information Contacts. Name the Program Manager or contact person closest to
the program and able to answer queries ^bout the program. This should be the
individual wno is involved in day to day program ooerations who you will
identify as "Information Contact" in the Catalog of Federal Domestic Assistance
and as "Program Officer" to the House of •teprese'itatives' Intonation Systems
staff. Identify the alternate to this person *o* listing in the House system.
SECTION II - OFFICE OF THE COMPTROLLER
Funds are/will be available for obligation (now or date) .
Source of Funding - Short Title.
Amount Authorized. $	 Amount Appropriated. $	
Program/Budget Long Title.
Apprjprlation Code/Tit"?.
Acc1"^ Identification. List the 11-digit budget account identification
coae(s] that f'jnds program (see 0MB Circular A-ll).
Program/Budget Short Tit Ie.
Program El eme^t. |		|	j	|	j
A11 owance he ,-ler's)_.
Object Class. GRA.NT AGREEMENT 41 .	 COOPERATIVE AGREEMENT 41 .	 LOAN
SECTION III - OFFICE'OF GENERAL COUNSEL
| I Concur. |~| Concur with comment. Qj Oo not concur.
SECTION IV - MANCQlKENT AND O^ANlZAflW"DIVISION ~
Proposal initiated to rcne!°gate assistance acproval authority to 	.
Proposal inu.cced to redeiegate assistance aw^rd authority to	.
SEaif'T~- WnTs AC7TlTNllT^TTn"N'"D'rv!s7o^
Catalog of Federal Domestic Assistance N'u.ipe^ As si nned . o6_.	
GICS Program Code. 	; Legislative Authority Code 	.
Executive Order 12372 Process fiecui-pment. No j~| Yes |~l yes. explain the
time requirements.
¦ifV-' '¦*
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ASSISTANCE ADMINISTRATION	2/10/86
EPA Assistance Administration Regulatory Policies £nd Procedures
Subject.	CFR Reference
Itnplattentat ion of the Uniform Relocation Assistance &
Real Property Acquisition Policies Act of 1970	40 CFR 4
Procedures for Implementing the Requiranents of the Council
on Environmental Quality on the National Environmental
policy Act [NEPA Government-wide regulation]	40 CPR 6
Nondiscrimination in Programs Receiving Federal Assistance
from the Envirormental Protection Agency
[Title VI of the Civil Rights Act of 1964]	40 CFR 7
Equal Employment Opportunity under EPA Contracts & EPA
Assisted Construction Contracts [Subagreeraents]	40 CFR 8
Adninistration of the Clean Air Act and the Federal Vtater
PDllution Control Act with Respect to Federal Contracts,
Grants, or Loans	40 CFR 15
Intergovernmental Review of Envirormental Protection Agancy
Programs and Activities	40 CFR 29
General Regulation for Assistance Brograns	40 CFR 30
Debarment & Suspension under EPA Assistance Programs	40 CFR 32
Procurement under Assistance Agreements	40 CFR 33
State and local Assistance
Continuing Environmental Programs
Grants for Construction of Treatment Works
Cooperative Agreements for Clean Lakes
Construction Grant Program Delegation to States
Research & Demonstration Assistance
Training Assistance
Fellowships
40 CFR 35
[Subpart A]
[Subparts C,D,E,and I]
[Subpart H]
[Subpart J]
40
CFR
40
40
CFR
45
40
CFR
46
Figure 1-1
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ASSISTANCE ADMINISTRATION
CHAPTER 2 - GLOSSARY
1. FINANCIAL ASSISTANCE TERMS AND DEFINITIONS.
Acquisition Post. The net invoice unit price of the property including
the exist of any modifications, attachments, accessories, or auxiliary apparatus
necessary to make the property usable for the purpose for which it was aoguired.
Other charges such as for taxes, duty, protective in-transit insurance, freight,
or installation shall be included in or excluded from acquisition oost in
accordance with the recipient's regular accounting practices.
Active Project. A project for which assistance funds have been awarded,
and whose project and budget periods have not expired.
Affiliate. Any person (individual, organization, or unit of government)
whose governing instruments require it to be bound by the decision of another
person or whose governing board includes enough voting representatives of the
other person to cause or prevent action, whether or not the power is exercised.
It may also include persons doing business under a variety of names, or where
there is a parent/subsidiary relationship between persons.
Allocable Posts. Costs that are assignable or chargeable under an
assistance agreement to one or more cost objectives in accordance with the
relative benefits received or other equitable relationship. A oost is alloc-
able to a project if it is incurred specifically for the project; benefits
both that project and other work and can be distributed to then in reasonable
proportion to the benefits received; or, is necessary to the overall operation
of the recipient although a direct relationship to any particular cost
objective cannot be shown.
Allowable Costs. Those project costs that are: eligible, reasonable,
necessary, and allocable to the project; permitted by the appropriate Federal
cost principles; and approved by EPA in the assistance agresnent.
Amendment. (See Formal amendment.)
Annulment. The nullification of a Federal assistance agreement requiring
the return to EPA of any funds received under the agreement.
Applicant. Any entity that files an application or unsolicited proposal
for EPA financial assistance.
Application. A formal written request for EPA financial assistance that
is sutruttec on a prescribed form and is sufficiently complete to perrr.it evalu-
ation.
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Approval official. An EPA official delegated the authority to approve or
reject applications for assistance and the technical/progrennatic trans and
conditions of proposed assistance projects. (Also see Vmrd Official.")
Architectural or Engineering (A/E) Services. Consultation, investigations,
reports, or services for design-type projects within the scope of the practice of
architecture or professional engineering as defined by the laws of the State or
territory in which the recipient is located.
Assistance Agreenent. Hie legal instrument EPA uses to transfer money,
property, services, or anything of value to a recipient to accomplish a public
purpose. It is either a grant, a loan, a grant/loan combination, or a coop-
erative agreement and will specify: budget and project periods; the Federal
share of eligible project costs; a description of the work to be accomplished;
and any special conditions.
Assistance ftnount. The amount of EPA funds obligated by the terms of an
assistance agreement (Also see "Obligation.")
Augmentation. An increase (or decrease) in the Federal funding of an
assistance agreement through a formal aroendnent where the nature of the project
and the scope of work remain unchanged. (Also see "Revision.")
Award. The act of executing an assistance agreement.
Award Official. The EPA official delegated the authority to execute
assistance agreements. (Also see "Approval Official.")
Budget. The financial plan for expenditure of all Federal and non-Federal
funds for a project as proposed by the applicant, negotiated and approved by
the Award Official.
Budget Period. The length of time EPA specifies in an assistance agreement
during which the recipient may expend or obligate Federal funds.
Building. The erection, acquisition, alteration, remodeling, improvement
or extension of wastewater treatment works.
Cash Contribution. Actual non-Federal dollars that a recipient expended
for goods and services and real or personal property used to satisfy cost
sharing requirements. ("See In-kind contribution.")
Closeout. The final EPA actions to assure satisfactory completion of
proiect work and administrative requirements; the submission of acceptable
required final reports; financial settlement; the resolution of any outstanding
issues under an assistance agreement; and the notification of thf recipient..
(For project and administrative completion of VWT Construction grants, see
description of data elements N5, N8, N9 and PO in the GICS User's Manual.)
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Ocranitraent of Funds. The official reservation of funds and authorization
to incur obligations.
Completed Agreement. An assistance agreement for which the project period
and final budget period have expired. A oanpleted agreement remains open until
final reports are received and approved and any other closeout actions are
completed. (For WWT Construction grants also see GICS data elements N5, Project
Oanpletion and N8, Adninistrative Ocrapletion.)
Oanpleted Project. (See "Completed Agreement.")
Consolidated Assistance. An assistance agreement awarded under more than
one EPA program authority. Applicants for consolidated assistance submit only
one application.
Construction. Erection, building, alteration, remodeling, inprovement, or
extension of buildings, structures or other property. Construction also includes
remedial actions in response to a release, or a threat of a release, of a
hazardous substance into the environment as determined by the Ocnprehensive
Environmental Response, Compensation, and Liability Act of 1980.
Continuation. An extension of an assistance agreement for an additional
funding/budget period for a project the Agency initially agreed to fund for a
definite nunber of years. (See "Continuation Award.")
Continuation Award. An assistance agreement after the initial award, for
a project which has more than one budget period in its approved project period.
For continuing environmental program support to a State, interstate, or local
agency, any assistance award after the first.
Continuing Environmental Program. EPA pollution control programs which
will not be completed within a definable time period.
Contractor. Any party to when a recipient awards a subagreement.
Cooperative Agreement. An assistance agreement in which substantial EPA
involvement is anticipated during the performance of the project (does not
include fellowships). (Also see Grant agreement.)
Cost Analysis. The review and evaluation of each element of subagreement
cost to determine reasonableness, allocability and allowability.
Cost Share (recipient's). The portion of allowable project costs that a
recipient contributes toward completing its project using non-Federal funds. •
The cost share may include in-kind as well as cash contributions. (Sometimes
referred to as "nor-Federal share", or "matching share".)
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Debarment. An action taken by the Director, Grants Adninistration
Division under 40 CFR §32.206 to deny an individual, organization or unit of
government the opportunity to participate in EPA assistance or to receive
subagreements.
Deviation. Authorization in writing fran the Director, Grants Administration
Division granting a recipient an exception frcm the requirements of a regulatory
provision which is not based on a requirement of a statute or Executive Order.
Direct Posts. Those costs that can be identified specifically with a
particular cost objective and are so charged. (Also see "Indirect costs.")
Disputes Decision Official. The individual designated by the Award Official
to resolve disputes concerning assistance agreements under 40 CFR 30.1200.
Eligible Costs. Those costs in which Federal participation is authorized
by applicable statutes. (See "Allowable costs.")
Diyirorrnentally Related Measurements. Any data collection activity or
investigation involving the assessment of chemical, physical, or biological
factors in the environment which affect hunan health or the quality of life.
The following are examples of environmentally related measurements: (a) A
determination of pollutant concentrations fran sources or in the ambient
enviroranent, including studies of pollutant transport and fate; (b) A deter-
mination of the effects of pollutants on human health and on the environment;
(c)	A determination of the risk/benefit of pollutants in the environment;
(d)	A determination of the quality of environmental data used in econanic
studies; and (e) A determination of the envirorroental ijnpact of cultural and
natural processes. (See "Quality assurance program plan.")
Excess Property. Any property under the control of EPA which is no longer
required to meet EPA's needs but which may be required by another Federal
agency. (See "Surplus property.")
Expendable Personal Property. Tangible personal property with a useful
life of less than two years and/or an acquisition cost of less than $500.
(Also see "Nonexpendable Personal Property".)
Expenditures. (See "Outlays.") (Also see "Unliquidated Obligations.")
Extension. Hie addition of time to an approved budget/project period,
grantee in response to a written and justified request, and documented by a
formal amendment of the agreement. Extensions are most often "no-cost", i.e.,
with no additional funding by EPA.
Force Account Work. The use of the recipient's own employees or equipment
foj construction, construction-related activities (including Architectural and
Engineering (A&E) services), or for repair or improvement tc a facility.
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Fbreign Grant (project activities outside the U.S.). An EPA award of
assistance when all or part of the project is performed in a foreign country
by (1) a U.S. recipient, (2) a foreign recipient, or (3) an international
organization.
Formal ftnendnent. A written modification of an assistance agreement signed
by both the Award Official and the authorized representative of the recipient.
Grant Agreement. An assistance agreement that does not substantially involve
ETA in the project and where the recipient has the authority and capability to
ocmplete all elements of the program {does not include fellowships). (Also
see "Cooperative agreement.")
Grantee. (See Recipient.)
Irvdirect Post. Any costs that are incurred for ocmimi objectives and which
cannot be directly charged to amy single cost objective. These oosts are
allocated to the cost objectives benefited based on a fair method of approxima-
tion. Indirect costs are also referred to as overhead or burden costs.
Indirect Post Rate. A calculated ratio of indirect C06t to direct cost
established for ease an establishing the indirect costs to be allocated to
assisted activities based upon the known direct oo6ts of those activities.
In-kind Contribution. The value of a non-cash contribution to meet a recip-
ient's cost sharing requirements. An in-kind contribution may consist of charges
for real property and equipment or the value of goods and services directly bene-
fiting the EPA funded project. Note that the Assistance Amount may also include
an EPA in-kind contribution. (See "Cost Sharing" and "Cash Contributions.")
Intergovernmental Agreement (IAG). Any written agreement between units of
government under which one public agency performs duties for or in concert
with another public agency using EPA assistance. This includes substate and
interagency agreements.
Liquidation. The process through which a recipient pays off an obligation
in full. (See "Obligation.")
Maintenance of Effort. A requirement contained in certain legislation or
regulations that a recipient must maintain/contribute a specified level of
financial effort in a specified area in order to receive Federal assistance
funds, which ensures that those Federal funds are used to supplement/ but not
supplant, expenditures of the recipient's funds.
Master List. EPA's central list containing the names of individuals a->i
other entities ineligible to participate in EPA assisted programs because they
are suspended, de^arrec c: under a voluntary exclasio".
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Matching Share. (See "Co6t Share.")
Minority Business Enterprise. A minority business enterprise is a business
which is: (a) certified as socially and economically disadvantaged by the Stoall
Business Adninistration, (b) oertified as a ainority business enterprise by a
State or Federal agency, or (c) an independent business concern which is at least
51 percent owned and controlled by minority group oenber(s).
Minority Group Member. An individual who is a citizen of the united States
and one of the following: (a) Black American; (b) Hispanic American (with
origins from Puerto Rico, Mexico, Cuba, South or Central America); (c) Native
/toerican (American Indian, Eskimo, Aleut, native Hawaiian), or (d) Asian-Pacific
American (with origins frcm Japan, China, the Philippines, Vietnan, Korea,
Samoa, Guam, the U.S. Trust Territories of the Pacific, Northern Marianas, Laos,
Cambodia, Taiwan or the Indian subcontinent).
New Project. A project that EPA is funding for the first time.
Nonexpendable Personal Property. Personal property with a useful life of
at least two years and an acquisition cost of $500 or more (40 CFR §30.200).
Nonrecurrent Expenditures. (Reserved.)
Obligation. The act of obligating funds for expenditure. Also, the amount
obligated.
Obligation (by EPA). The amount of Federal funds which EPA, by the excutior,
of an assistance agreement or amendment, legally makes available for obligation
and expenditure by a recipient
Obligation (by a recipient). The anount of funds which a recipient legally
earmarks for expenditure through orders placed, payrolls, subagreeroents awarded,
travel authorizations, and other transactions.
Official File. The administrative file for each assistance agreement (or
each application or unsolicited proposal) that is established and maintained
by the appropriate EPA Assistance Administration Unit and/or State office
when provided for under a Delegation Agreanent. (The official technical file
and the official financial management file both complement the official admini-
strative file.)
Outlays. The liquidation (payment) of obligations when checks are issued
or cash is disbursed. The tens expenditures and net disbursements are fre-
quently used interchangeably with the term outlays.
Outlays, EPA's. The sum of actual net disbursements of EPA ftjnds.
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Outlays, Recipient's.
(cash basis). Itte sin of a recipient's actual cash diaburseaants
for goods and services, the amount of indirect expense charged, the value of
in-kind contributions applied, and the amount of cash advances and payments to
contractors.
(accrued basis). The sura of a recipient's actual cash disbursements
for goods and services, the amount of indirect expense incurred, the value of
in-kind contributions applied, and the net increase (or decrease) in the amounts
owed by the recipient for goods and other property received and for services
performed by employees, contractors, subgrantees, and other payees.
Output. An activity or product which the applicant agrees to complete
during the budget period.
Person. Any individual, organization or unit of government that is or may
beccvoe eligible to receive EPA assistance, or an employee of such organization
or unit of government. It also means any individual or organization that is
or may beocne eligible to receive a subagreeroent or intergovernmental agreement.
Personal Property. Property other than real property. It «ay be tangible
(having physical existence), such as equipment and supplies, or intangible (havinr
no physical existence), such as patents, inventions, and copyrights.
Planning Target. The amount of financial assistance which the Regional
Aininistrator suggests that an applicant for continuing environnental program
support (State, interstate or local agency) consider in developing its
application and work program.
Price Analysis. The process of evaluating a prospective price without
regard to the contractor's separate cost elements and proposed profit. Price
analysis determines the reasonableness of the proposed subagreement price base.;
on adequate price competition, previous experience with similar vork, establish:
catalog or market price, law, or regulation.
Principal Investigator. (See "Project Manager.")
Profit. The net proceeds obtained by deducting all allowable costs (d:re:t
and indirect) frcci the price. (Becajse this definition of profit is base:! or,
applicable Federal cost principles, it may vary frcm many firms' definition of
profit, and may correspond to those firms' definition of "fee.")
Progra- Element. 0->r of the major ^rz^inps of outputs of a continui'v
environmental program (e.g., administration, enforcement, monitoring).
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Program Incoite. Gross income the recipient earns daring its project period
from charges for the project. This may include inocne fran service fees, sale
of ocnmodities, trade-in allowances, or usage or rental fees.	Yearn
royalties are program income only if the assistance agreement tfcates. Revenue
generated under the governing powers of a State or local government which could
have been generated without an award is not considered prograo inane. Such
revenues include fines or penalties levied under judicial or penal power and
used as a means to enforce laws. (Revenue from wastewater treatment construction
grant projects under Title II of the Clean Water Act, as oended, is not program
income. It must be used for operation and maintenance co6ts of the recipient's
wastewater facilities.)
Project. The activities or tasks EPA identifies in the assistance agreement.
Project Costs. All costs the recipient incurs in carrying out the project.
EPA considers all allowable project costs to include the Pederal share.
Project Manager. The researcher, business officer, or other person
authorized and designated by the recipient to serve as its principal contact
with EPA.
Project Officer. Tfte EPA official designated in the assistance agreement
as EPA's program contact with the recipient.
Project Period. The length of time EPA specifies in the assistance agreement
for ampletion of all project work. It may be composed of more than one budget
period.
Quality Assurance Narrative Statement. A description included in an
application which explains how precision, accuracy, representativeness,
completeness, 2nd canpatability will be assessed, and which is sufficiently
detailed to allow an unambiguous determination of the quality assurance practices
to be followed throughout a research project.
Quality Assurance Program Plan. A formal document which describes an
orderly assembly of management policies, objectives, principles, organizational
responsibilities, and procedures by which an agency or laboratory specifies how
it intends to: (a) produce data of documented quality, and (b) provide for
the preparation of quality assurance project plans and standard operating
procedures. (See "Environmentally related measurements.")
Quality Assurance Project Plan. An organization's written procedures which
delineate how it produces quality data for a specific project or measurement
method.
Real Property. Land, including land improvements, and structures and
appurtenances, excluding movable machinery and equipment.
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Recipient. Any entity vhich has bee) awarded and has accepted an EPA assis-
tance agreement.
Recurrent Expenditures. Hose expenses associated with the activities of
a continuing environmental program. All ecpenditires, accept those with a wit
acquisition cost of $5000 or more are considered recurrent tnless justified by
the applicant as inlque and approved as audi bf the ajgkwisl 4dkiniatratz>r in
the assistance agreenent.
Renewal. An ectension fibr an additional funding/budget period for a project
having no projected completion date, but for Wiich Federal support must be re-
newed each year. (See also "Continuation A#ard,M)
Reserve. A portion of the State's construction grant allotment tfiich the
State proposes to set aside to use for construction management or water quality
management planning activities.
Revision. A change to the project nature or scope of work vhich results in
a finding change (increase or decrease) by formal amending)t of the assistance
agreement. (Also see "Augmentation.")
Services. A contractor's labor, time, or efforts tiiich do not involve the
delivery ofa specific end itau, other than docuoents, (e.g., reports, design
drawings, specifications). This tens does not include mployment agreements or
collective bargaining agreements.
Small Business. A business as defined in Section 3 of the Snail Business
Act, as mended (15 UBC 632).
Stop Work Order. Written ETA notification advising a recipient to immediately
stop work on activities described in the order and to take all reasonable steps
to minimize costs incurred until the problem that caused the order is resolved.
Sifoagreement. A written agreement between an EPA recipient and another
party (other than another public agency) and any lower tier agreement for services,
supplies, or construction necessary to complete the project. Stfcagreements
include contracts and subcontracts for personal and professional services,
agresoents with consultants, and purchase orders.
Substantial Evidence. Such relevant evidence as a reasonable person
might accept as sufficient to support a particular conclusion.
Supplies. All property, including equipment, materials, printing, insurances,
and leases of real property, but secluding land or a permanent interest in land.
Surplus Property. Excess property vhlch the Administrator of the General
Services Administration determines not to be required for the needs and the dis-
charge of the responsibilities of any Federal agency. (See "Excess property
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Suspension. An action taken by the Director, Grants Administration
Division inder 40 CFR 532.300 to disqualify an individual, organization or uiit
of gcnrernnent tenporarily frcm receiving any EPA assistance or stbflgreement.
Termlnation. The cancellation of an assistance jgreeeent, In vh6le
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Proposal Solicitation,
Submission and Receipt
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PROPOSAL SOLICITATION, SUBMISSION AND RECEIPT
CHAPTER	CHAPTER
TITLES	NUMBERS
FREAPPLICATION, APPLICATION AND INITIAL EVALUATION		3
NUMBERING OF ASSISTANCE H*OFOSALS		4
OFFICIAL Elft ASSISTANCE FILES		5
INTERGOVERNMENTAL REVIEW		6
ASSISTANCE TO fROJECT ACTIVITIES OUTSIDE THE UNITED STATES		7
CONSOLIDATED ASSISTANCE		8
(RESERVED)		9
(RESERVED)		10
(RESERVED)		11
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ASSISTANCE AEMINISTRATION	12/3/84
CHAPTER 3 - PREAPPLICATION, APPLICATION AND INITIAL EVALUATION
Table of Contents
PARAGRAPH	PARAGRAPH
TITLES	NUMBERS
Preapplication for Federal Assistance		1
Preapplication Content		2
Processing		3
Unsolicited Proposals		4
Types of Applications		5
Application Content and Agency Requirements		6
Initial Processing of Applications		7
FIGURE	FIGURE
TITLES	NUMBERS
List of Assistance Administration Units	 3-1
Unsolicited Proposal Acknowledgement Letter	 3-2
Grant Application/Proposal Receipt	 3-3
APPENDIX	APPENDIX
TITLES	NUMBERS
Environmental Protection Agency Authorized
Assistance Programs	 3-A
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ASSISTANCE ADMINISTRATION	12/3/84
CHAPTER 3 - PREAPPLICATION, APPLICATION AND INITIAL EVALUATION
1.	PREAPPLICATION FOR FEDERAL ASSISTANCE.
a.	Applicants are encouraged to seek preapplication information from EPA
personnel in Headquarters, regions, field installations, and/or State program
personnel. Such assistance should be designed to expedite preparation and
evaluation of application documents, and to disseminate information concerning
Agency needs and priorities regarding assistance programs. Preapplications
are to be processed and the applicant notified within 45 days from receipt.
If the 45 day deadline cannot be met, the applicant should be notified. (This
is not considered part of the 90 day review period for formal assistance
applications.)
b.	EPA encourages informal inquiries by potential applicants to program
and assistance administration offices prior to submitting an application for
Federal assistance. The applicant may wish to arrange a site visit or an
informal conference with EPA and/or State personnel. (See figure 3-1, "List
of Assistance Administration Units" and Appendix 3-A, EPA's section of the
Catalog of Federal Domestic Assistance for general progran descriptions and
information contacts.)
c.	Preapplication assistance may be obtained by submitting a formal
inquiry on the appropriate form cited in paragraph 5 of this Chapter. A
letter containing the information listed in paragraph 2 of this Chapter, may
be submitted in lieu of the specified form.
d.	In the case of Construction Grants for Wastewater Treatment Works (WWT)
the applicant/potential applicant should request a preplanning, predesign or
preapplication conference, as appropriate, with the State agency or the appro-
priate EPA Regional Office for each facility for which State priority has been
determined. A representative from the appropriate Assistance Administration
Unit (AAU) should participate in the preapplication conference. Personnel from
the EPA Office of Enforcement and/or the National Pollution Discharge Elimination
System (NPDES) permitting authority should also be involved. These conferences
should be used to provide the applicant with basic information on assistance
processing, administrative and technical requirements, and other pertinent
matters such as facility plan preparation, construction drawings and specifica-
tions, audit, NPDES, etc. NPDES compliance schedules will be established in
part or in total at the preapplication phase or as early as possible thereafter.
e.	EPA program personnel are also encouraged to provide assistance to
recipients prior to the submission of a continuation application. Such assis-
tance should relate project accomplishments, future accomplishments, and
budget negotiations for the continuation budget period.
2.	PREAPPLICATION CONTENT. All itams on the preapplication form must be com-
pleted. Ihe following items are ccmmon for all preapplications whether submitted
as an informal proposal or on an "Application for Federal Assistance", EPA
Forms 5700-12 or a "Preapplication for Federal Assistance", EPA Form 5700-30:
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a.	Date notification/inquiry v/as sent to the State Executive Order 12372
process, or an indication of whether the program has been selected by State for
Executive Order 12372 review. (See Chapter 6 of this Manual.)
b.	Address of the appropriate EPA (Headquarters or Region) or State office,
nane of primary organizational unit to which the application is addressed, the
office responsible for administering the award;
c.	Name and complete address of the applicant;
d.	Etescriptive title of project;
e.	Approximate amount of Federal funds needed;
f.	Applicant type and type of assistance requested;
g.	length of project and proposed beginning date; and
h.	Program narrative statement describing the need, objectives, method of
acccmplishment, the geographical location of the project, and the benefits expected
to be obtained from the assistance.
3. PROCESSING. Formal preapplications or informal written proposals, except
unsolicited proposals, must be submitted to the Grants Operations Branch (PM-216)
for all Headquarters administered programs and to the appropriate regional
Assistance Administration Unit for all regionally administered programs. A
list of headquarters and regionally administered prograns is in figure 4-2.
(See paragraph 4, below for information concerning unsolicited proposals.)
Preapplications or informal proposals should be processed as follows:
a. Date stanp the face page of preapplication form or front page of informal
proposal and assign an EPA Assistance Identification Number in accordance with
the instructions for numbering preapplications in Chapter 4 of this Manual.
c.	Acknowledge receipt of the formal preapplication or informal proposal
by letter to applicant;
d.	Enter information into EPA Grants Information and Control Systan (GICS)
for tracking throughout the review process in accordance with the GICS Manual;
e.	Forward preapplication forms or informal proposals to the appropriate
program staff for technical evaluation;
f.	Notify the applicant and the appropriate Assistance Administration
Unit of the Agency's interest (positive or negative) in the proposal. Notifi-
cation shall be by the appropriate program staff within 45 days fran receipt
(if this deadline cannot be met, the applicant should be so notified); and
g.	Provide notification to GICS regarding decision of program staff in
order that GICS's record may be updated. Notification should be by the appropri-
ate Assistance Administration Unit.
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4.	UNSOLICITED PROPOSALS
a.	Content. An unsolicited proposal is usually the product of original
thinking by the organization or individual submitting it. Although it is not
submitted on a preapplication or application form, it is intended to result in
the award of an EPA assistance agreement or procurement contract. The unsolic-
ited proposal should contain sufficient information to allow evaluation. The
Procurement and Contracts Management Division, EPA has published a guide for
prospective contractors which outlines the information needed to evaluate an
unsolicited proposal. Copies of the guide may be obtained fran the Procurement
and Contracts Managanent Division, EPA Headquarters.
b.	Processing. All unsolicited proposals received by EPA organizations
are to be forwarded immediately to the Qrants Administration Division, Grants
Operations Branch (PM-216).
(1)	The Grants Operations Branch will acknowledge receipt to the
person or organization submitting the unsolicited proposal and transmit the
proposal to the appropriate technical program for evaluation (see figure 3-2,
"Unsolicited Proposal Acknowledgement Letter").
(2)	If the program office decides to consider the unsolicited proposal
for award of assistance, the Grants Operations Branch shall be promptly
notified and requested to forward the appropriate assistance application forms
to the applicant.
(3)	If the proposal will be considered for an award of a procurement
contract rather than an assistance award, the progran official forwards the
proposal to the Procurement and Contracts Managment Division as a part of a
procurement request package prepared under Chapter 2 of the Contracts Manage-
ment Manual.
(4)	If the progran office decides not to support a proposal, the pro-
gram official so notifies the proposer and advises the Grants Operations Branch.
c.	Disclosure of Information. Data submitted as part of an unsolicited
proposal shall be treated in accordance with 40 CFR 30.304, regarding Confiden-
tiality of Information.
5.	TYPES OF APPLICATIONS.
a. New. These are applications for EPA assistance support of a new project
proposal or program which sets forth both the total estimated project costs and
the proposed starting and completion dates. Such applications should be submitted
to the appropriate Assistance Administration Unit no less than 90 days prior to
the requested beginning date of the project period. (This 90 day period does
not apply to construction grant applications.)
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b.	Continuation. These are application for EPA assistance support for each
budget period within the approved project period. Such applications should be
submitted to the appropriate Assistance Administration Unit not later than 60
days prior to the end of the current budget period.
c.	Informal Written Proposals. Potential assistance applicants may submit
an informal written preapplicatiori proposal instead of a formal proposal on EPA
For™ 5700-12 or 5700-30. (See paragraph 4, above.)
d. Application Forms. The following Application for Federal Assistance
forms shall be used in applying for EPA assistance.
NATURE OF
EPA APPLICATION/PREAPPLICATION FORM
TYPE OF APPLICANT
ASSISTANCE REQUEST
STATE & LOCAL
GOVERNMENT AGENCIES
OTHER THAN STATE & LOCAL
GOVERNMENT AGENCIES
Preapplicat ion *
(optional)
EPA Form 5700-30
EPA Form 5700-12
(optional)
Research, demon-
stration and
training
EPA Form 5700-12
(or EPA Form 5700-33)
EPA Form 5700-12
Fellowships
Not Applicable
EPA Form 5770-2-3-4-5
Program and plan-
ning
EPA Form 5700-33
Not Applicable
Consolidated
grants
EPA Form 5700-33
EPA Form 5700-12
Construction Grants
for Wastewater
Treatment Works
EPA Form 5700-32
Not Applicable
Construction
Management
Assistance
EPA Form 5700-31
Not Applicable
6. APPLICATION CONTENT AND AGENCY REQUIRFMENTS.
a.	General. In addition to the information in this Manual, it is important
for the reader to beco-ne familiar with the following materials since each
provides procedural details not included in this Manual : 40 CFR Parts 6, 7,
15, 29, 30, 33, 35, 40, 45, and 46, 0MB Circulars A-tf7, A-102, A-110 A-121;
and EPA's section of the Catalog of Federal Domestic Assistance (see figure 3-1).
b.	Application. Applicable items on the application form must be completed.
The following items are common for all assistance applications:
(1) Applicant's name and address;
* Mot applicable to Construction Grants for Wastewater Treatment Works (WWT)
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(2)	Date of application?
(3)	Type of applicant or recipient (individual, profit, nonprofit,
educational, or political organization: State, county, city, other);
(4)	Type of project for which assistance is sought (construction,
research, demonstration, training, planning, etc.);
(5)	The nane, address, and telephone number of person to be contacted by
EPA for further information regarding the application to aid in the evaluation
of the proposal, or for negotiation of an assistance award;
(6)	Proposed starting and completion dates;
(7)	The type of application (new or continuation) and dollar amount of
the assistance requested;
(8)	Proposed budget, including detailed cost estimates (the Project
Officer may also require program element estimates);
(9)	Proposed subagreorients (except for an application for a Construction
Grant for W&stevater Treatment Wbrks (WWT);
(10)	Names of any other Federal agencies to which an application has been
submitted for Federal assistance for all or a part of the same project, or an
integrally related project; or which is currently funding the proposed project,
any portion thereof, or an integrally related project;
(11)	The period (not less than ninety days) for which the application
proposal is valid, or the date (if any) by which the assistance award must be made
for the project;
(12)	Applications for continuation of assistance support must include
an estimate of the amount of unexpended prior-budget-period-funds which may,
at the discretion of the Award Official, be carried over beyond the term of
the prior agreement, and must be accompanied by a statement comparing esti-
mated expenditures by object class with the previously approved project budget
period;
(13)	A project proposal including objectives, strategies and expected
results; required financial, facility, equipment and manpower resources; and
such technical and other information as required in 40 CFR 30.306(b). The
applicant should review the instructions for the required narrative statement
outlined in the instructions that accompany the appropriate Application for
Federal Assistance form; and
(14)	The original signature of a person authorized to obligate the applicant
to the terms and conditions of the agreement, if approved.
c. Statutory and Regulatory Requirements. (Many of these requirenents are
covered by the "Assurances" section of the appropriate application form.)
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(1)	The Assistance Administration libit must review all applications
to assure that requirements of applicable Federal statutes, Executive Orders,
and regulations have been complied with by the applicant prior to submission
and that the appropriate information is included in the application. Wiile
there are a great many applicable requirements, the following are among the
most important:
(2)	Statutory Requirements.
(a)	Freedom of Information Act (5 U.S.C. 552). All information
contained in an application, preapplication, or unsolicited proposal is available
for release to the public under the Freedom of Information Act and must be
disclosed to the requestor unless exempt fron disclosure under 5 U.S.C. 552(b).
(See 40 CFR 30.304.)
(b)	National Environmental Policy Act (42 U.S.C. 4321 et seq.).
The National Environmental Itolicy Act of 1969, as amended, (NEPA) requires
that all agencies of the Federal Goverrment prepare detailed environmental
impact statements on proposals for legislation and other major Federal actions
significantly affecting the quality of the human environment. For assistance
programs subject to EPA regulations implementing NEPA at 40 CFR Part 6, applicants
are required to submit a written summary (environmental assessment) describing
their analyses of environmental effects of the proposed actions to be undertaken
with the financial support of EPA. For WWT Construction grants, the written
analysis must be an integral, though identifiable part of the facility plan
submitted to EPA for review. EPA technical personnel are urged to assist the
applicant in the preparation of the written environmental analysis. For a
discussion of related envirormental laws, see 40 CFR Part 6, Subpart C.
(c)	Uniform Relocation Assistance and Real Property Acquisition
Policies Act (42 U.S.C. 4601 et seq.). If the project requires the acquisition
of real property or displacement ofpersons, businesses, or farms, the acquisition
and displacement must be conducted in accordance with the requiranents of the
Act, and Agency regulations issued in 40 CFR Part 4. The Assistance Administra-
tion Unit must receive and have on file an assurance with respect to compliance
with land acquisition and relocation requirements. (See Chapter 28 of this
Manual and 40 CFR Part 4.)
(d)	Civil Rights Laws. (40 CFR Parts 7, and 8). (See Chapter 23
of this Manual).
1^ Title VI of the Civil Rights Act of 1964, as amended,
(42 U.S.C. 2000d) prohibits discrimination on the grounds of race, color, or
national origin. No person may be excluded fron participation in, be denied
the benefits of, or be subjected to discrimination under any progran or activity
receiving Federal financial assistance. It should be noted that when the
authorized official signs the application, he or she is assuring compliance
with all the provisions of the Act and regulations.
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2	Section 13 of the Federal Water Pollution Control Act
Amendments of 1972 (33 U.S.C. 1368) prohibits discrimination on the grounds
of sex. No person may be excluded frcm participation in, be denied the benefits
of, or be subjected to discrimination under any progran or activity receiving
assistance under the Clean Water Act, as amended. The applicant must assure
compliance with the provisions of Section 13 and the regulations issued there-
under. (See 40 CFR Part 7.)
3	Title IX of the Education Amendments of 1972 (20 U.S.C.
1681 et seq.) provides that no person in the United States shall, on the
basis of sex, be excluded frcm participation in, be denied the benefits of,
or be subjected to discrimination under any educational progran or activity
receiving Federal financial assistance.
4^ The Rehabilitation Act of 1973 (29 U.S.C. 794, See 40 CFR
Part 7) prohibits discrimination in Federally assisted programs on the basis
of handicaps.
5 The Age Discrimination Act of 1975 (42 U.S.C. 6101 et seq.)
prohibits discrimination in Federally assisted programs on the basis of age.
(e)	Historical and Archaeological Sites.
_1 The National Historic Preservation Act of 1966, as amended,
(16 U.S.C. 470 et seq.) relates to the preservation of historic landmarks.
Applicants must determine whether the project may affect properties listed or
eligible for inclusion on the National Register of Historic Places (published
in the FEDERAL REGISTER) and observe consultation procedures established by the
Advisory Council on Historic Preservation.
2 The Archaeological and Historic Preservation Act of 1974
(16 U.S.C. 469 et seq.) relates to potential loss or destruction of significant
scientific, historical or archaeological data in connection with Federally
assisted activities. The applicant must review the requirements under the Act
arri, if there are any questions concerning the required procedures, should
contact the appropriate Assistance Administration Unit.
(f)	Executive Order 12372, the Demonstration Cities and Metropolitan
Development Act 42 U.S.C. 3334) and Intergovernmental Cooperation Act (42 U.S.C.
4213). Applications for Federal assistance must comply with the requirements
of Section 401 of the Intergovernmental Cooperation Act and, where applicable,
to those of Section 204 of the Demonstration Cities and Metropolitan Development
Act (see Chapter 6, "Intergovernmental Review"). The Assistance Administration
Unit should advise the applicant of these requirements. The Assistance
Administration Unit should also follow-up on the requirements and be advised
by the applicant as to whether or not the appropriate canments have or have
not been received.
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(g)	Human Subjects.
,1 Recipients are responsible for safeguarding the rights and
welfare of human subjects at risk in activities supported under assistance
fran EPA. In order to provide for adequate discharge of the recipient's responsi-
bility, it is the policy of EPA that no activity involving human subjects be
supported by grant or cooperative agreements unless a canmittee of the recipient
institution has reviewed and approves such activity, and the recipient has
submitted a certification of such review and approval, in accordance with the
requirements set forth in 45 CFR Part 46. (See also EPA Order 1000.17, "Rjlicy
and Procedures on the Protection of Human Subjects.")
2 A quarterly publication by the Department of Health and
Human Services lists recipient institutions vhich have submitted the proper
assurances and certifications in accordance with the regulatory requirements.
(h)	Animal Subjects. Applicants requesting Federal assistance
under a grant or cooperative agreement involving animal subjects shall provide
a written assurance that they will continually evaluate animal facilities
regarding the care, use and treatment of such animals. The recipients must
assure that such care, use and treatment are consistent with the standards
established by the Animal Welfare Act of 1970 (P.L. 89-554, as amended).
( i) Violating Facilities.
1 Pursuant to Section 306 of the Clean Air Act, as amended,
Section 508 of the Clean Water Act, as amended, and Executive Order 11738, the
EPA Assistant Administrator for Air and Radiation maintains a List of Violating
Facilities which are ineligible for use in Federal contracts, grants, cooperative
agreanents or loans vhose award amounts exceed $100,000 {see 40 CFR Part 15).
This does not apply to:
a Assistance to abate, control or prevent environmental
pollution;
b Grant or cooperative agreements, procurement contracts, or
subcontracts for construction; or
c Facilities located outside the United States.
d The foregoing exemptions shall not apply to the use of a
facility that has been convicted of a violation under Section 113(c)(1) of the
Clean Air Act, as amended, or under Section 309(c) of the Clean Water Act, as
amended" The List of violating Facilities will specify >Mch facilities have
been convicted.
2^ The Assistance Administration Unit should review the
List of Violating Facilities published in the FEDERAL REGISTER, to assure that
any applicant, contractor, or subcontractor on projects vhose costs exceed
5100,000 are in compliance with the Clean Air Act and the Clean Water Act.
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If the applicant, contractor, or subcontractor appears on the listing, then
the following actions should be taken by the Assistance Administration Unit:
a Advise the applicant that EPA cannot provide financial
assistance until the requirements of the statutes and Executive Order have been
met; and
b Advise the program, by memorandum attached to the front
of the publication, that the applicant is not in compliance with the statutes and
Executive Order and that funding the application is prohibited until the applicant
is in compliance.
(j) Flood Disaster Protection Act (P.L. 93-234) (see 44 CFR 59-79).
1	Hie Flood Disaster Protection Act of 1973 greatly expanded
the available limits of flood insurance coverage and imposed additional require-
ments on property owners and canmunities.
2	Effective July 1, 1975, (or one year after a community's
notification of identification as a special flood hazard area, whichever is
later), EPA is prohibited by law from making any grant for acquisition or
construction purposes in a special flood hazard area unless the community in
which the project is located is participating in the flood insurance program
and flood insurance is purchased by the applicant or the applicant agrees to
purchase such insurance when construction of an insurable improvement is
initiated.
3	A list of ccmminities to which this prohibition applies
is published quarterly by the Federal Elnergency Management Agency.
4	Each Assistance Administration Unit receives copies of the
Department of HousTng and Urban Development's periodic listing of areas eligible
for the purchase of flood insurance and areas viiich have had special flood
hazard areas identified but which are not participating in the program. Regional
assistance administration units have also been receiving copies of the map
issued by HUD delineating the flood hazard areas.
5	The Assistance Administration Unit should review the listing
when initially evaluating the application. If the community appears on the
listing artd the applicant's proposed budget includes costs for construction
and acquisition for real or nonexpendable personal property the following
actions should be taken :
a Advise applicant of the flood insurance purchase require-
ments for the assistance program and EPA's inability to provide financial
assistance unless the community has entered the program and flood insurance is
purchased? and
b Advise applicants for WWT construction projects that
unless the community has entered the program and flood insurance has been
purchased, the Agency cannot award a WWT construction grant.
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(k) The Indian Self-Determination and Education Assistance Act
(P.L. 93-638) provides that, if the assistance will be of benefit to Indians,
they be given preference in both the award of subagreements and in training
and employment opportunities.
(1) The Hatch Act (5 U.S.C. 1501 et seq.) requires State and
local government employees to comply with the Act's restrictions on political
activities if their principal employment is funded wholly or in part by Federal
assistance (see 5 CFR Part 151).
(m) The Safe Drinking Water Act (42 U.S.C. 300h-3(e))
stipulates that EPA may not award assistance if it is determined that a project
may contaminate a 9ole source aquifer and thereby result in a significant
hazard to public health.
(n) The Davis-Bacon Act (40 U.S.C. 276a et seq.) requires
that laborers and mechanics (on construction subagreements of more than $2,000)
be paid at least the minimum wage as specified by the Secretary of Labor (see
Chapter 23 of this Manual).
(o) Davis-Bacon Related Acts. The Davis-Bacon Related Acts, 40
U.S.C. 6979 and 33 U.S.C. and applicable regulations 20 CFR 5.1 et seq., cover
Federally assisted construction projects. Only those provisions of the Davis-
Bacon Act which relate to the determination of prevailing wages apply to
Federally assisted construction projects (see Chapter 23 of this Manual).
(p) The Copeland Act prohibits salary "kickbacks" to enployers
(see Chapter 23 of this Manual).
(q) The Contract Work Hours and Safety Standards Act (40 U.S.C.
327 et seq.) requires payment of at least tuna and one-half for all hours
vorked over eight per day and 40 per week. The Act also requires a safe and
sanitary work place (see Chapter 23 of this Manual).
(r) Convict labor may not be used on any Federally funded project
unless the convicts are on wrk release, parole or probation (see 18 U.S.C. 436).
(3) Presidential Executive Orders (EO).
(a)	Equal Employment Opportunity, EO 11246 - recipients must assure
that contractors do not discriminate on the basis of race, color, religion, sex,
or national origin (see 40 CFR Part 8 and 41 CFR Part 60-1).
(b)	Cultural Environment Protection and Enhancement, EO 11593 -
Federal agencies must take measures to protect historic sites affected by Federally
assisted projects.
(c)	National Minority Business Enterprise (MBE) Progran, EO 11625
and Minority Business Enterprise, EO 12432 - Federal programs should assist in
the establishment of new MBE's and help assure the success of existing MBE's
(see Chapter 24 of this Manual).
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(d)	Clean Air/Vfeter Act Violators, EO 11738 - prohibits, with
certain exceptions, the utilization of violators in Federal contracts, grants,
cooperative agreements, subcontracts and loans (see subparagraph 6c(2)(i) above).
(e)	Floodplain Management, EO 11988 - in projects involving con-
struction and/or improvements, floodplain sites must be avoided where possible
or steps taken to minimize flood damage (see 40 CFR Part 6, Appendix A).
(f)	Protection of Wetlands, EO 11990 - in projects involving con-
struction and/or improvements, wetland sites must be avoided vrtiere possible
or steps taken to minimize damage (see 40 CFR Part 6, Appendix A).
(g)	National Wcmens Business Enterprise (WBE) Et>licy, EO 12138 -
Federal prograns should assist in the establishment of WBE's (see Chapter 24
of this Manual).
(h)	Conservation of Ffetroleum and Natural Gas, EO 12185 - Federally
assisted projects are required to incorporate energy conservation measures.
(i)	Intergcverrmental Review of Federal Prograns, EO 12372 - provides
for intergovernmental review of Federally assisted projects (see Chapter 6 of
this Manual).
(j) Minority Enterprise Business Development, EO 12432 - encourages
recipients of Federal assistance to award subcontracts to minority owned firms
(see Chapter 24 of this Manual).
d. Specific Program Requirements. The Assistance Administration Unit
must review all applications to assure that specific program requirements
delineated below (in addition to those noted abo/e) have been met by the applicant.
(1) Construction Grants for Wastewater Treatment Wbrks (Clean V&ter
Act, as amended and 40 CFR Part 35, Subpart I).
(a) Applicants for step 2+3 (design and construction) and step 3
(construction) assistance shall provide the following information in addition
to complying with the basic requirements of 40 CFR Part 30:
_1 Step 2 + 3 projects:
a Facility plan developed in accordance with 40 CFR 35.2030;
b Evidence that the application was made available to
the State Executive Order 12372 process (if required);
c State certification that there has been adequate
public participation;
d Amount of advance of allowance received, if any;
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e Evidence of compliance with all applicable limitations
on award; and
_f Completed "Minority and Women's Business Enterprise
Participation Report", EPA Fbrm 6005-1;
2 Step 3 projects (the following are required in addition
to ^ a through _£ above)
a Final plans and specifications;
b Project schedule; and
c If the application involves solely the acquisition of
real property, a layout of the distribution and drainage system and an explanation
of how the property will be acquired.
(b) Training Facility Project. An application for Federal assist-
ance for the construction of a training facility project under Section 109(b)
of the Clean Water Act shall include:
_1 A written commitment from the State agency or agencies to
carry out at such facility a program of training approved by the Regional
Administrator; and
2 An engineering report, including facility design data,
and cost estimates for design and construction of the facility.
(2) Continuing Environmental Program Support (40 CFR Part 35, Subpart A).
Subpart A establishes uniform administrative requirements for State and local
continuing environmental programs and also provides for consolidating these
programs. Associated programmatic requirements are detailed in the appropriate
program regulations. The programs covered are authorized under: Section 105
of the Clean Air Act, Section 106 of the Clean Water Act, Sections 205(g) and
(j) of the Clean Water Act, Sections 1443(a) and (b) of the Safe Drinking
W&ter Act, Section 3011 of the Solid Waste Disposal Act, and Sections 23(a)(1)
and (a)(2) of the Federal Insecticide, Ringicide, and Rxlenticide Act.
(a) Application and kbrk Program Development.
1_ An applicant may use its own work program format so long as
it meets EPA's informational needs.
2 The work program is part of the application for consolidated
assistance and must include:
a Work years and amount of funding needed for each program
element;
b Outputs conmitted to under each progran element and a
schedule for accomplishing them;
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c Identification of the agency responsible for each element
and output; and
d A budget covering all programs included in the application
and an identification of each program's funds.
_3 Applicants may choose their own budget period, subject bo
approval of the Regional Administrator.
4	Applications should be sitatitted at least 60 days before
the beginning of the proposed budget period and must contain the information
specified in 40 CFR 35.140.
5	Maintenance of effort requiranents are based on the appli-
cant's expenditures for the approved program(s), rather than the overall program
under which the assisted activities are conducted.
(b)	State Management Assistance Grants, Section 205(g). (See 40
CFR Part 35, Subpart F.) Applications shall be made on EPA form 5700-31,
"Application for Federal Assistance (Short Form)." Part III of that form, Program
Narrative Statement, must reference the delegation agreement.
(c)	Water Quality Planning and Management, 40 CFR Part 130.
Part 130 provides details of the Water Quality Management program under Sections
106, 205(g), 205(j), 208, 303, and 305 of the Clean Water Act. Activities
addressed are:
1	Adoption of water quality standards defining water quality
goals of water bodies, designation of uses to be made of the waters, and the
setting of criteria necessary to protect those uses;
2	Establishment of water quality monitoring criteria including
abatement and control requiranents, measuring water quality trends, and program
performance assessments;
3	The continuing planning process as required by Section 303(e)
of the Clean Vfater Act;
4	Preparation of water quality management plans which provide
a framework for managing water quality on an ongoing basis;
5	Development of total maximuri daily loads for bodies of water
which cannot meet water quality standards after point sources are controlled
to prescribed technology-based levels;
6	Preparation of the Section 305(b) report on the status of
the quality of State's waters;
1_ Water quality management funding which is available to support
these activities is available under Sections 106, 205(g), and 205(j) of the
Act; and
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8 Preparation of the annual work program describing a State's
geographic parioritTes and activities for the ccrning year.
Reviewers should also refer to the requirements in 40 CFR Parts 30, 33, and 35.
(d)	Hazardous Waste Management State Program Support. Section 3011
applications for Federal assistance under Section 3011(a) of the Solid Waste
Disposal Act, as amended, shall include the following information:
1_ Evidence that the applicant is authorized to act as the
lead agency designated in the authorization agreement for developing and imple-
menting the State's hazardous vaste management program.
2 A detailed work plan which contains the information as out-
lined in 40 CFR 35.130.
(e)	Water Pollution Control Research, Development and Demonstration,
Sections 105 and 107 of the Clean W&ter Act, as amended (40 CFR Part 40).
1	All applications for assistance under Section 105(a) of the
Clean Vfeter Act must be approved by the appropriate State water pollution
control agency or agencies.
2	All applications for assistance under Section 107 of the
Clean water Act, where the proposed project will be located in the Appalachian
region, must have been coordinated with the Appalachian Regional Canmission
for determination that the proposed demonstration project is consistent with
the objectives of the Appalachian Regional Development Act of 1965, as amended.
2 Each applicant for research assistance must include a summary
of the project objectives, approach, current plans, and progress.
(f)	Water Pollution Control State and Interstate Program Support,
Section 106 of the Clean Water Act, as amended (40 CFR 35.250).
1_ No assistance shall be awarded under Section 106 to any State
or interstate agency for any fiscal year when the expenditure of non-Federal
funds by such State or interstate agency during such fiscal year for the recurrent
Section 106 prcgran expenses of carrying out its pollution control progran are
less than such expenditures during the fiscal ^ear ending June 30, 1971, or
fiscal year 1977, if a Section 205(g) award has been made.
2 The Administrator of EPA shall not award any assistance under
Section 106 to any State which has not provided for:
a The establishment and operation of a system to monitor, to
ccmpile, analyze and report data on water quality as described in Section 106
(e)(1) of the Clean Wkter Act; and
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b Authority comparable to that in Section 504 of the Clean
W&ter Act, as amended, and adequate contingency plan to implement such authority.
3 Section 106 funds may not be awarded if:
a Federally assumed enforcement is in effect with respect to
the applicant agency (see Section 309(a)(2) of the Clean water Act); and
b The work progran does not evidence appropriate coordina-
tion with activities proposed for funding under Sections 205(g) and 205(j) of
the Clean Wkter Act, as amended.
(g)	Air Pollution Control Program Support, Section 105 of the Clean
Air Act, as amended (40 CFR 35.200).
1	To receive Section 105 fmds, an agency must expend annually
for recurrent Section 105 expenditures, an amount of non-Federal funds at least
equal to such expenditures during the preceding fiscal year.
2	No agency shall receive an award under Section 105 unless
the Regional Administrator receives assurance that EPA funds will not supplant
non-Federal funds that would otherwise be available for maintaining the Section
105 program.
3	The Regional Aiministrator must consult with the appropriate
official as designated by the Governor or Governors of the State or States
affected before making an award. In addition, if the applicant is an interstate
or internum icipal agency, it must provide assurance that it can develop a plan
which includes representation by State, interstate, local, and international
interests.
(h)	EPA Training and Fellowship Programs (40 CFR Parts 45 and 46).
All applications for EPA fellowships must include copies of transcripts of
undergraduate and/or graduate courses. Applicants must arrange for the submission
of supporting documents which substantiate their eligibility in accordance with
40 CFR 46.115. For applications for training, see 40 CFR Part 45.
(i)	Great Lakes Pollution Control-Demonstration Programs. Federal
grants and cooperative agreonents awarded under Section 108 of the Clean Water
Act, as amended, are subject to the condition that the State, political subdi-
vision, interstate agency or other public agency or combination thereof, shall
pay at least 25 per centum of the actual project costs. Payment may be in any
form including, but not limited to, land or interests therein that is needed
for the project, personal property or services the value of which shall be
determined by EPA. Such agreonents are to be implenented in accordance with
40 CFR Part 40, "Research and Demonstration Grants."
(j) State Public Water System Supervision Program, Section 1443(A)
of the Safe Drinking Water Act (40 CFR 35.400). States wishing to apply for
assistance under this program shall:
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_1 Develop an annual program in accordance with 40 CFR 35.130;
2	Sutmit an application which includes the annual State program
plan no later than 60 days before the start of the proposed budget period; and
3	For initial awards include, in addition to the other sub-
missions required, evidence that the State has established a public water system
supervision program, or will do so within one ^ear. The applicant should identify
the State agency to receive the award and to be responsible for conducting the
public water system supervision program.
No subsequent awards may be made unless the applicant has primary enforcenent
responsibility for the State's public vrater system.
(k) Safe Drinking Water Research and Demonstration, Section 1444
of the Safe Drinking Vfeter Act (40 CFR Parts 30 and 40).
1^ Applications submitted under Section 1444 of the Safe
Drinking W&ter Act-will be reviewed by the National Drinking water Advisory
Council. All applications will be subjected to administrative, technical, and
extramural review before award.
2	The budget period may not exceed two years. The total
approved project period may not exceed five ysars.
3	Priority shall be given for assistance under Section 1444
where there are known or potential public health hazards which require advance
technology for the r en oval of particles vhich are too small to be renewed by
ordinary treatment technology.
7. INITIAL PROCESSING OF APPLICATIONS.
a. Receipt and Log. All applications for Federal assistance must be re-
ceived in the appropriate Assistance Administration Unit. The Assistance
Administration Unit will review each application for statutory eligibility of
the applicant and inclusion of all necessary documents. Ineligible applications
will be returned to the applicant. The following actions will be performed
for all eligible applications:
(1)	Date stamp the face page of application;
(2)	Assign an EPA Assistance Identification Number and progran code
to the application in accordance with the instructions for numbering assistance
applications (see Chapter 4 of this Manual); and
(3)	Acknowledge receipt of the application by using the "Assistance
Application/Proposal Receipt," EPA Form 5700-8 (figure 3-3). The assistance
administration staff may use the bottom portion of EPA Form 5700-8 for reference,
to be filed alphabetically by name of applicant, progran director or fellow,
as appropriate.
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ASSISTANCE ADMINISTRATION
5700
12/3/84
b. Actions Before Program Evaluation. The Assistance Administration
Unit will take the following actions before forwarding the application to the
appropriate program office for technical evaluation:
(1)	Review application for completeness;
(2)	Perform an arithmetic review of the budget, \ferify current indirect
cost rate and check computation. If no current rate exists, request .-establishment
of such a rate, in accordance with the instructions in Chapter 13, "Determination
of Costs." If the award of assistance involves verification of the recipient
having met the required Level of Effort (Sections 105, 106 and 205(g) assistance),
the Financial Status Report and supporting documentation must be carefully
reviewed to assure that the requirement is met;
(3)	Verify presence and completeness of cost review summary format if
there are any subagreements in excess of $10,000 and if the cost review form is
required by the applicable program and assistance regulations. (If the applicant
is self certified, there is no need to conduct a cost review of subagreements.);
(4)	Request cost analysis in accordance with the instructions in Chapter
22, "Cost and Price Analysis," if a cost analysis or pre-award audit is needed;
(5)	Request frcm the applicant additional or revised documents needed to
correct deficiencies noted;
(6)	Establish a "tickler" file to follow up on all requests initiated
during the administrative review;
(7)	Enter information into the EPA Grants Information and Control
System (GICS) for tracking application throughout the review process in accord-
ance with the GICS Manual;
(8)	For Headquarters administered applications, forward one copy of
the application to the appropriate Regional Administrator for information.
Any policy canments the Regional Administrator may have should be forwarded to
the appropriate Headquarters technical reviewing office;
(9)	Forward the designated number of applications to the appropriate
program staff for technical evaluation;
(10) Forward one copy of the following applications to the Associate
Administrator for International Affairs for clearance:
(a)	Applications involving support to international meetings,
conferences, symposiums, etc;
(b)	Applications involving international travel conducted under
domestic assistance; and
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ASSISTANCE ADMINISTRATION
5700
12/3/84
(c) Applications for foreign grants or cooperative agreanents;
(11)	Provide GICS with subsequent updating information (status and
corresponding dates of action, changes, etc.); and
(12)	If the application involves assistance to Intergovernmental Constituent
Organizations (ICO), the Office of Intergovernmental Liaison should be contacted
for input to the review process. The ICO's include groups such as the National
Governors Association, American Legislative Exchange Council, National Conference
of State Legislatures, National League of Cities, State and Territorial Air
Pollution Program Administrators, etc..
3-18
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5700
ASSISTANCE ADMINISTRATION	12/3/84
LIST OP ASSISTANCE ADMINISTRATION UNITS
HEADQUARTERS ADMINISTERED R&D, Including "Special Studies, Surveys, and
Investigations"
Grants Administration Division (PM-216)
Grants Operation Branch
401 M Street, SW
Washington, DC 20460
(CML: 202 382-5252)
REGIONALLY ADMINISTERED CONSTRUCTION GRANTS & CONTINUING ENVIRONMENTAL PROGRAMS,
Including "Special Studies, Surveys, and Investigations"
Grants Administration, Finance
and Procurement Branch
EPA - Region I
JFK Federal Bldg. - Rm. 2300
Boston, MA 02203
(CML: 617 223-5741)
Grants Administration Branch
EPA - Region II
26 Federal Plaza - Rn. 937A
New York, NY 10278
(CML: 212 264-9860)
Grants Administration Branch
EPA - Region VI
First International Building
1201 Elm Street
Dallas, TX 75270
(CML: 214 767-2650)
Grants Administration Section
EPA - Region VII
324 East 11th Street
Kansas City, MD 64106
(CML: 816 374-2921)
Grants Management Section
EPA - Region III
Office of the Comptroller
Curtis Building
6th & Walnut Streets
Philadelphia PA 19106
(CML: 215 597-3735)
Grants Administration Unit
EPA - Region IV
345 Courtland St., ME
Atlanta, GA 30365
(CML: 404 881-3402)
Financial Management Branch
EPA - Region V
230 S. Dearborn Street
Chicago, IL 60604
(CML: 312 353-7555)
Grants and Financial
Management Branch
EPA - Region VIII
i860 Lincoln Street
Denver, CO 80295
(CML: 303 844-3853)
Grants and Pennlts
Administration Section
EPA - Region IX
215 Fremont Street
San Francisco, CA 94105
(CML: 415 974-8010)
Grants Administration Office
EPA - Region X
1200 Sixth Avenue
Seattle, WA 98101
(CML: 206 442-2899)
Figure 3-1
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ASSISTANCE ADMINISTRATION
5700
12/3/84
UNSOLICITED PROPOSAL ACKNOWLEDGEMENT LETTER
Re: Proposal No.
Title:
Receipt Date:
Dear
Your unsolicited proposal, as referenced by the title above, has been
received on the date indicated. The proposal, which now bears the U.S.
Environmental Protection Agency Assistance Identification Number stown above,
is being forwarded to the appropriate office for evaluation as a preapplication
for a grant or cooperative agreenent or a procuranent contract and will be
considered for technical merit and relevance to the progran mission.
Please be aware that this is neither a ccmmitment of finds ror a notice to
initiate the work. Should the review be favorable, you will be contacted with
advice as to how to proceed further; if unfavorable, you will be notified to
that effect.
Federal Acquisition Regulations require that competition be utilized to the
maximum extent possible. Vtfule an in solicited proposal may receive a favorable
technical evaluation, prior to its finding, it must be determined that the sub-
stance of the proposed is sufficiently inique to justify acceptance as an
original proposal, is not available from another source, or does not closely
resemble that of a pending competitive solicitation.
We appreciate your interest in our program. If we can be of further
assistance, please do not hesitate to contact us.
Sincerely yours,
Assistance Specialist
Grants Administration Division
Figure 3-2
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5700
ASSISTANCE ADMINISTRATION	12/3/84
NOTE: THIS FORM IS NOT AVAILABLE FOR USE PENDING CLEARANCE BY
THE OFFICE OF MANAGEMENT AND BUDGET.
US 8
I f \
V -J
Figure 3~3
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5700
ASSISTANCE ADMINISTRATION	12/3/84
ENVIRONMENTAL PROTECTION AGENCY
AUTHORIZED ASSISTANCE PROGRAMS
This excerpt from the Office of Management,and Budget's June 1984
Catalog of Federal Domestic Assistance contains descriptions of
technical and financial assistance programs available from the
Environmental Protection Agency (EPA), including reference to the
appropriate program office for each program. General questions
about these programs may be directed to the Grants Policy and
Procedures Branch (PM-216), Grants Administration Division,
Environmental Protection Agency, 401 M St., S.W., Washington, D.C.
20460, (202) 382-5268.
Piufiaui Description
ENVIRONMENTAL PROTECTION AGENCY
OFFICE OF AIR AND RADIATION, ENVIRONMENTAL PROTECTION AGENCY
66.001 Air Pofhrtion Control hogim Grants (B)	
Air Follnrinn Control Miu|wu Truing Omtt (B)...
Air PoOnttOB Control—Technical Tnmmg (M).
66X103
66l006
66-007	Air Pollution ControJ—National Aabol Air ad Source
6&008	Air PoOmiop Couuol Technical Anilimr (JJCX)	
66.009	Air WnHmw Control—'Techncal Infomitinn Services (L)
X
X
Datm(I)-
OFFKE OF WATER
(6,411 Constractxn Orant* for Wastewater Treatment Wafa (B)	
66.419 Water PoOotioo Control—State and Intcntate Program Oranta (A).
<6.423
Water Quality Control Iiifornution System—Oricntation/Tn»nmg Semmari, Data and
Monitoring Pablitalioni (M)..
State PoNic Water Syttem Sapervmoo Piugiain Oranta (A)..
66.432
66.433	State Underground Water Somce Protecooo—Program Qranti (B)_
66.438	Conatrnctioo Maiujrnu at Ajsstancc Oranti (A).._		
66.434	Water Quality Managrnrffnt Plaamag (A)	
66.433	Marine Combined Sewer Overflow Speoai Fund (B)	
OFFICE OF RESEARCH AND DEVELOPMENT
66.300	Protection—CotwnlriiMl Rwicfa Oranta (B).
66.301	Air Pottnnon Control Research Grants (B)			
66lS02 Pttttddo Control Research Grants (B)	
66.304 Waste Disposal Research Oranta (B)	
66.303	Water PoOntm Control Bnrsrrtt. Development and Democ
66.306	Safe Drinking Water Research and Demonstration Oranta (B)..
(6l30T Toxic	Reaesrch Grants (B)	
i Oram* (B).
OFFICE OF ADMINISTRATION
66.600 Envtromntntal Piotectka ComuJnlal'id Grants—Program Support (A)_
tiffin | M <>—¦ •¦¦'»»« rnntlmrlnn nf Tlfllliwil Worfa 
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ASSISTANCE ADMINISTRATION	12/3/84
ENVIRONMENTAL PROTECTION AGENCY
OFFICE OF AIR, NOISE, AND RADIATION
66.001 AIR POLLUTION CONTROL PROGRAM
GRANTS
FEDERAL AGENCY: OFFICE OF AIR, NOISE, AND RADI-
ATION, ENVIRONMENTAL PROTECTION AGENCY
AUTHORIZATION: Clean Air Act, as b mauled; Public Law 95-93,
42 USC. 7401 etseq.
OBJECTIVES: To assist State, municipal, lntermumcipal, and inter-
state agencies in planning, developing, establishing, improving, and
mmntmmng adequate programs for prevention and control of air
pollution or implementation of national primary and secondary air
quality standards.
TYPES OF ASSISTANCE: Project Grants.
USES AND USE RESTRICTIONS: Grant funds may be used for
costs specifically incurred in the conduct of a State/Local Air
Pollution Program project in accordance with the purposes enu-
merated in the approved application. These include personnel
costs, supplies, equipment, training of personnel, travel, and other
necessary expenditures during the approved project period. Funds
may not be used for construction of facilities, nor for expenses in-
curred other than during each approved award period. JOINT
FUNDING. This program is considered suitable for joint funding
with closely related Federal financial assistance programs in ac-
cordance with the provisions of OMB Circular No A-lll. For
programs that are not identified as suitable for joint funding, the
applicant may consult the headquarters or field office of the ap-
propriate funding agency for further information on statutory or
other restrictions mvolved
ELIGIBILITY REQUIREMENTS:
Applicant nigtbfllty; Any municipal, intermumcipal. State, or inter-
state agency with legal responsibility for appropriate air pollution
planning and control is eligible for grant support provided such
organization furnishes funtls for the current year in excess of its
expenditures for the previous year for its air pollution program
The determination of expenditures is subject to decisions based on
provisions of the Clean Air Act and applicable grant regulations
This program is available to each State, territory and possession of
the U S., including the District of Columbia.
Beneficiary Eligibility: Same as Applicant Eligibility
Credentiali/Documentatioa: The application must supply evidence of
legal authority for air pollution control, evidence of the availabil-
ity of non-Federal matrhing funds, evidence that the Governor or
his designated State agency has been given the opportunity to
comment on the relationship of the program to be funded to the
State plan; and a workable program officially adopted for the
agency Principles for determining allowable costs are set forth m
applicable Federal management circulars described in the general
grant regulations and procedures 40 CFR Part 30 of the Federal
Regulations.
APPLICATION AND AWARD PROCESS:
PreappHcatioa CoordinatkM: The standard application forms as fur-
nished by the Environmental Protection Agency and required by
OMB Circular No A-102 must be used for this program Applica-
tions are subject to the State's review
Application Procedure: Requests for application forms and completed
applications must be submitted to the appropriate EPA Regional
Grants Administration Branch. Application must meet the require-
ments of the grant regulations and will be reviewed to determine
merit and relevancy of the proposed project
Award Proewluie: Procedures for awards are outlined in GeMral
Grant Regulations 40 CFR Part 30
DradUaet: None.
Range at Appmal/Dtsapproral Time: Ninety days.
Appeals None
Renewals: None
ASSISTANCE CONSIDERATIONS;
Formula aad Matching Reqabonenta: State, interstate and intermum-
cipal programs with an approved applicable State Implementation
Plan may receive up to 7$ percent Federal funding; others 66 2/3
percent Federal funding. The amount of Federal share of grant
costs should be determined by reference to the entitlement criteria
set forth in Section 105 of the Act and in 40 CFR 35 205. Not
more than ten percent of the funis available shall be granted for
air pollution control programs in any one Stite. Up to one-half of
one percent of the funds are to be made available as a mimmnm to
a State. However, award of these funds will be made only if the
agencies withm the State meet the requirements of the act and
grant regulations.
Length and Time Phasing of Aariatance: The terms of the grant shall
V determined at time of grant award.
POST ASSISTANCE REQUIREMENTS:
Reports: As specified in the grant award and through applicable reg-
ulations (usually quarterly interim, and final progress and expendi-
ture reports)
Audita: Subject to inspection and audit by EPA and Comptroller
General Periodic audits should be made as part of the recipient's
systems of financial management and internal control to meet
terms and conditions of grants and other agreements. In accord-
ance with the provisions of Attachment P to Circular A-102,
"Uniform Requirements for Grants to State and Local Govern-
ments," audits shall be made of organizations carrying out this
program at least once every two yean. These audits will be made
in accordance with the General Accounting Office guidelines,
"Standards for Audit of Government Organizations, Programs,
Activities and Functions," and additional OMB guidance.
Records: Financial records, including all documents to support en-
tries on accounting records and to substantiate charges to each
grant, must be kept available to personnel authorized to examine
EPA grant accounts. All records must be maintained for three
years from the date of submission of the annual financial status
report If questions still remain, such as those raised as a result of
audit, related records should be retained until the matter is com-
pletely resolved.
FINANCIAL INFORMATION:
Aeeoont IiImiHUmHm- 6&-0108-0-1-304.
Obligations: (Grants) FY 82 587,730,000; FY 83 est S84.700.000; and
FY 84 est S69.9SS.000.
Range and Average of Fbaadal Aaalstance: 17,025 to S6.449.000;
S700.000
PROGRAM ACCOMPLISHMENTS: During fiscal year 1982, grant
awards (including amendments and unexpended balances) totaling
$91,000,000, were made to State, local, and regional air pollution
control agencies to develop, establish, improve and maintain air
pollution control programs. A smaller level of effort is planned for
fiscal year 1983 with a decrease of effort in fiscal year 1984
REGULATIONS, GUIDELINES, AND LITERATURE: Air Pollution
Control Program Grants, EPA, 40 CFR Part 35; General Grant
Regulations and Procedures, EPA, 40 CFR Part 30; "Grants Ad-
ministration Manual," available from the National Technical Infor-
mation Services, Department of Commerce, Springfield, VA
22161 on a subscription basis. Order No. NTIS UB/031.
INFORMATION CONTACTS:
Rrghmal or Local Office: Contact appropriate EPA Regional Office
listed in Appendix IV of the Catalog.
Headqnarien Office: For program information: Donald Smith, Con-
trol Programs Development Division, Office of Air Quality Plan-
ning and Standards, Office of Air, None, and Radiation, Environ-
mental Protection Agency, Research Triangle Park, NC 27711.
Telephone (919) 541-5526; FTS (8) 629-5526
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ASSISTANCE ADMINISTRATION
5700
12/3/84
RELATED PROGRAMS: 66.003, Air Pollution Control Manpower
Training Grants, 66.006, Air Pollution Control—Technical Train-
ing; 66.007, Air Pollution Control—National Ambient Air and
Source Emission Data; 66.003, Air Pollution Control—Technical
Assistance; 66009, Air Pollution Control—Technical Information
Services, 66 501, Air Pollution Control Research Grants, 66.600,
Environmental Protection Consolidated Grants—Program Sup-
port
EXAMPLES OF FUNDED PROJECTS; 1) State Department of Envi-
ronmental Protection, Bureau of Air Control, 2) County Air Pol-
lution Control, 3) State Board of Health; 4) State Air Control
Board, S) State Air Resources Board, and 6) Local Air Pollution
Control Agencies. Air control program grants are provided to
State and local control agencies for purpose of operating programs
that plan and implement activities to achieve ambient air quality
standards.
CRITERIA FOR SELECTING PROPOSALS: The criteria for award-
ing air pollution control program assistance grants are provided in
1977 Clean Air Act Amendments, Section 105, and set forth in
State and local assistance grant regulations (40 CFR 35). Some of
the criteria considered for award include the following: 1) No
grant may be awarded unless the program contained in the grant
application meets the requirements of Section 35.200 and has been
approved by the Regional Administrator. (Paragraphs 35.125 and
35 130 describe EPA annual guidance and preparation generally in
consultation with the Regional Administrator. The State or local
needs to prepare an adequate application. 2) No grant may be
awarded until the Regional Administrator has consulted with the
official designated by the Governors) of the State(s) affected by
such award pursuant to section 105(b) of the Clean Air Act Such
consultation should consider the role of the applicant in the en-
forcement of any applicable implementation plan and confirm that
the applicant's program will be generally compatible with the ob-
jectives of the applicable implementation plan. 3) No grant may be
awarded for any budget period when the estimated recurrent ex-
penditures of non-Federal funds for the agency will be less than
the recurrent expenditure} of non-Federal funds were for such
agency during the preceding budget period 4) No grant may be
awarded unless the Regional Administrator has determined that
the agency has adequate air pollution control authority and neces-
sary regulations lo implement such authority
66.003 AIR POLLUTION CONTROL MANPOWER
TRAINING GRANTS
FEDERAL AGENCY: OFFICE OF AIR. NOISE. AND RADI-
ATION, ENVIRONMENTAL PROTECTION AGENCY
AUTHORIZATION: Clean Air Act, as amended, Public Law 95-95,
42 USC 7401 etseq
OBJECTIVES: To develop career-oriented personnel qualified to work
in pollution abatement and control Grants are awarded for main-
tenance of environmental training programs and to increase the
number of professionally trained pollution control abatement prac-
titioners in State and local air pollution control agencies
TYPES OF ASSISTANCE: Project Grants.
USES AND USE RESTRICTIONS: In addition to the EPA general
grant conditions, each training grant is subject to the following
conditions (a) Recipients of assistance under training grants must
be citizens of the U S, its territories, or possessions or lawfully ad-
mitted to the U S for permanent residence, (b) The grantee shall
not require the performance of personal services by trainees re-
ceiving financial grant assistance, (c) Generally, grants provide for
student support through loans which are forgivable if the student
serves two yean in a governmental air pollution program.
Amount of support is announced annually In program guidance
issued by the program office (See Section 152)
ELIGIBILITY REQUIREMENTS:
Applicant Eligibility: Training grants are awarded to nonprofit aca-
demic institutions in the US. and tern tones. Traineeships are
awarded to individuals by these grantee educational institutions.
Trainees may be employees of state or local governmental air pol-
lution control agencies and others who desire a career in govern-
mental air pollution control work, but priority in awards is as-
signed to state/local air pollution control agency personnel.
Benefidary EMgtMHty. Same as Applicant Eligibility.
rvwimHah/nni u—Costs will be determined in accordance
with OMB Circular No. A-87 for State and local governments,
and OMB Circular No. A-21 for educational institutions.
APPLICATION AND AWARD PROCESS:
PreappUeattoo Coordiaatioa: Discussion with program office is advis-
able. The standard application forms as furnished by the Federal
agency and required by OMB Circular No. A-102 most be used
for this program.
Application Procedure: This program is subject to the provisions of
OMB Circular No A-110 Requests for application forms and
completed applications must be submitted to the Grants Adminis-
tration Division, PM 216, U.S Environmental Protection Agency,
Washington, DC 20460.
Award Procedure: Each application shall be subjected to administra-
tive evaluation to determine the adequacy of the application tn re-
lation to grant regulations and to technical and program evalua-
tion to determine the merit and relevancy of the project
Deadlines: Established by annual program guidance.
Range of Approval/Ditapfroval Time: Ninety days.
Appeals: None.
Renewals: None.
ASSISTANCE CONSIDERATIONS:
Formula and Matching Requfreeente A minimum of five percent
cost sharing is required of academic institutions.
Length and Time Phasing of Aariatance: The project period for a
training grant may not exceed three years. Traineeships may not
exceed one year of full-bme study.
POST ASSISTANCE REQUIREMENTS:
Repoctn Interim and final progress reports, expenditure, invention,
and equipment reports.
Audits: Grants are subject to inspection and audit by representatives
of EPA and the Comptroller General of the U S.. or any author-
ized representative. Periodic audits should be made as part of the
recipient's systems of financial management and internal control to
meet terms and conditions of grants and other agreements. In ac-
cordance with the provisions of Attachment P to Circular A-102,
"Uniform Requirements for Grants to State and Local Govern-
ments", audits shall be made of organizations carrying out this
program at least once every two yean. These audits will be made
in accordance with the General Accounting Office guidelines,
"Standards for Audit of Government Organizations, Programs.
Activities and Functions", and additional OMB guidance.
Records: Financial records, including all documents to support en-
tries on accounting records and to substantiate charges to each
grant, must be kept available to personnel authorized to examine
EPA grant accounts. All records must be maintained until expira-
tion of three years from the date of submission of the final expend-
iture report If questions still remain, such as those raised as a
result of audit, related records should be retained until the matter
is completely resolved.
FINANCIAL INFORMATION:
Account Identification: 68-0180-0-1-304.
Obligations: (Grants) FY 82 $300,000; FY 83 est S310,000; and FY
84 est JO
Range and Average of Financial Anhtinrf S45.000 to 555,000;
$50,000.
PROGRAM ACCOMPLISHMENTS: In fiscal year 1982, grants were
made to 8 universities with one year support for student education
m the air pollution control field.
REGULATIONS, GUIDELINES, AND LITERATURE: Fonns and
instructions for filing are included in application kit Training
Grants and Fellowships (Final Regulations), Environmental Pro-
tection Agency (40 CFR Part 45); General Grant Regulations and
Procedures, EPA (40 CFR Part 30). "Grants Admunstratkn
Manual," available from the National Technical Information Serv-
3-A-2
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ASSISTANCE ADMINISTRATION
ices. Department of Commerce, Springfield, VA 22161 on ¦ sub-
scription basis, Order No.: NTIS UB/031.
INFORMATION CONTACTS;
or Local Office: Individuals are encouraged to cotnmtmi-
cate with the appropriate EPA Regional Office listed in Appendix
IV of the Catalog.
HtnliHiitw OfHee: For information continuing grant applications
and procedures, contact Environmental Protection Agency,
Grants Administration Division, PM 216, Washington, DC 20460.
For program information, contact Ramie Townsend, Control
Programs Development Division, Office of Air Quality Planning
and Standards, Office of Air, Noise, and Radiation, Environmental
Protection Agency, Research Triangle Park, 27711. Telephone:
(919) 341-2401; FTS (8) 629-2401.
RELATED PROGRAMS: 66.001, Air Pollution Control Program
Grants; 66.006, Air Pollution Control—Technical Training.
EXAMPLES OP FUNDED PROJECTS: Not applicable.
CRITERIA FOR SELECTING PROPOSALS: Not applicable.
66.006 AIR POLLUTION CONTROI^-TECHNICAL
TRAINING
FEDERAL AGENCY: OFFICE OF AIR, NOISE, AND RADI-
ATION, ENVIRONMENTAL PROTECTION AGENCY
AUTHORIZATION: Clean Air Act, as amendnd; Public Law 95-95;
42 U.S.C 7401 et seq.
OBJECTIVES: To provide technical training to personnel from State
and local air pollution control agencies, to insure continued tech-
nical competence of State and local agency personnel, and to pro-
vide	training of selected personnel from the Federal
Government and industry.
TYPES OF ASSISTANCE: Training.
USES AND USE RESTRICTIONS: Courses are offered primarily at
university area training center ntcs across the nation. Self instruc-
tional courses and correspondence courses are also available. In-
terested applicants should write for a course schedule.
ELIGIBILITY REQUIREMENTS:
Applicant EUgbOtty: This program is available to those who are (1)
employed by State or local air pollution control agrncirs m each
State, territory and possession of the U.S., mcludmg the District
of Columbia, or (2) otherwise qualified occupauonally, and meet
the requirements of the particular course. Contact Registrar for
details on specific courses.
Beaefldary Eligibility: Sum* as Applicant Eligibility.
Gredentiala/Dociiiiieatatfoa: None.
APPLICATION AND AWARD PROCESS:
PreappHftWoa CoonUnaHoo: None.
Application Piueedaiei Course applications are required and may be
obtained from office listed in INFORMATION CONTACTS Sec-
tion
Award Piooeduie; Not applicable.
Deadlines Varies with course; file application at least 45 days before
course begins.
Range of Approval/DbapproTal Time: Approximately 14 days.
Appeals: Not applicable.
Renewals Not applicable.
ASSISTANCE CONSIDERATIONS:
Formula and Matchlag Reqatreneats: Not applicable.
Length and Thne Phasing of Aailslaiire: Not applicable.
POST ASSISTANCE REQUIREMENTS:
Reports: Not applicable.
Aadfta: Not applicable.
Retorts: Not applicable.
FINANCIAL INFORMATION:
Aecnat IiWtHlesttac 68-0108-0-1-304.
Obligations: (Salaries and Expenses) FY 82 $800,000; FY 83 est
$960,000; and FY 84 eat 1250,000.
Rsnse and Avenge at Financial ^sslsHai n, Not applicable.
PROGRAM ACCOMPLISHMENTS: This program tssiitfri 1,400 per-
sons in fiscal year 1982. The level of antistsnr* a expected to be
5700
slightly higher in fiscal year 1983 becauae^ o/ ^sdf-etudy
courses now available.
REGULATIONS, GUIDELINES, AND LITERATURE: Chronological
Schedule of Air Pollution Training Courses.
INFORMATION CONTACTS:
Brgkwal or Local Office: Contact appropriate EPA Regional Office
listed in Appendix IV of the Catalog.
Headquarters Office: Betsy Dodson, Air Pollution Training Institute,
or Ronnie Townsend, Control Piugiaua Development Division,
Office of Air Quality Planning and Standards, Office of Air,
Noise, and Radiation, EPA, Research Triangle Park, NC 27711
Telephone: (919) 341-2401; FTS (8) 629-2401.
RELATED PROGRAMS: 66.001, Air Pollution Control Program
Grants; 66.003, Air Pollution Control Manpower Training Grants;
66.008, Air Pollution Control—Technical Assistance.
EXAMPLES OF FUNDED PROJECTS: Not applicable.
CRITERIA FOR SELECTING PROPOSALS: Not applicable.
66.007 AIR POLLUTION CONTROL—NATIONAL
AMBIENT AIR AND SOURCE EMISSION DATA
FEDERAL AGENCY: OFFICE OF AIR, NOISE, AND RADI-
ATION, ENVIRONMENTAL PROTECTION AGENCY
AUTHORIZATION: Clean Air Act, as amrnrttd; Pubhc Law 95-95,
42 U.S.C 7401 et seq.
OBJECTIVES: To establish and operate a single, standarriirrrt system
for acquisition, validation and editing, analysis, snd retrieval of
source data for wntsriofm and air quality data for	the
extent of air pollution for use by Federal, State, and local agencies
as well ss other organizations.
TYPES OF ASSISTANCE: Provision of SprriaHmt Services.
USES AND USE RESTRICTIONS: Provides data processing and
analysis of raw air quality and source inventory data submitted by
State and local Air Pollution Control Agencies or collected by
Environmental Protection Agency. Make available to Federal,
State, and local agenrirs data received from all locations and pro-
vide a data base for concerned citizens groups, academic research,
and other investigators as well as for the Environmental Protec-
tion Agency Fees for certain services may be charged in accord-
ance with notice published in Federal Register 12/3/71. Fee
schedule may be obtained from fePA Public Information Office,
telephone: (202) 735-2808.
ELIGIBILITY REQUIREMENTS;
Applicant EUgMBtr Data provided to Federal, State, and local
government agencies, profit and nonprofit organizations, and indi-
viduals in each State, territory and posseimwi of the U.S., includ-
ing the District of Columbia.
BeMfidary TMglMttty: Same as Applicant Eligibility.
QedcatiaJa/DocaBartatiaa: None.
APPLICATION AND AWARD PROCESS:
PreappUcatioa CoonUaatiaK None.
Application Ptocaduies Information on available SAROAD and
NEDS data and publications can be obtained bom the AEROS
representative m each EPA Regional Office or from the National
Air Data Bank, telephone (919) 541-5582 or FTS 629-5382 or at
Mail Drop 14, U.S. EPA. Research Triangle Park, NC 27711.
Award Piueedaie. Not applicable.
None.
Rssy ot Appmal/DUaptnoTal Itw: Not applicable.
Appeals Not applicable.
Riwriwals Not applicable.
ASSISTANCE CONSIDERATIONS:
F<—da and Mitrttn Reqah—Ik Not applicable.
LeqlkaslltaFkad^tfAriaant Not applicable
POST ASSISTANCE REQUIREMENTS:
Reports: None.
Aadtte EPA personnel maintain records at computer usage.
Records: None.
FINANCIAL INFORMATION:
Aeeo—t IdwlHVaHiw, 6841084-1-304
3-A-3
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82 Sl.467.000; FY 83 est
SI,428,000; and FY 84 est SI,631,000
P,wy* nd Avenge of Ftandal AiiIsUdcci Not applicable.
PROGRAM ACCOMPLISHMENTS: Standardized air quality and
source (emissions) inventory data handling systems have been es-
tablished at the Federal level; air quality data from State and local
agencies have been converted to standard formats; emission and
source data have been collected and reduced to standard formats;
data have been edited, validated, and statistically analyzed, and
prepared for access by batch and interactive terminals.
REGULATIONS, GUIDELINES, AND LITERATURE: "AEROS
Users Manual"-EPA-450/2-76-029; "AEROS Summary and Re-
trieval Man ual"-EPA-450/2-76-009
INFORMATION CONTACTS:
Regkaal or Local Office Contact appropriate EPA Regional Office
listed in Appendix IV.
Headqoarten Office James R. Hammerle, National Air Data
Branch, Monitoring and Data Analysis Division, Office of Air
Quality Planning and Standards, Office of Air, Noise, and Radi-
ation, EPA, Research Triangle Park, NC 27711 Telephone. (919)
541-5582, FTS (8) 629-5582.
RELATED PROGRAMS: 66001, Air Pollution Control Program
Grants, 66.003, Air Pollution Control Manpower Training Grants;
66006, Air Pollution Control—Technical Training; 66008, Air
Pollution Control—Technical Assistance; 66.009, Air Pollution
Control—Technical Information Services, 66.501, Air Pollution
Control Research Grants.
EXAMPLES OF FUNDED PROJECTS: Not applicable.
CRITERIA FOR SELECTING PROPOSALS: Not applicable.
66.008 AIR POLLUTION CONTROL—TECHNICAL
ASSISTANCE
FEDERAL AGENCY: OFFICE OF AIR. NOISE, AND RADI-
ATION. ENVIRONMENTAL PROTECTION AGENCY
AUTHORIZATION: Clean Air Act, as amended. Public Law 95-95;
42 USC 7401 et seq.
OBJECTIVES: To assist State and local Air Pollution Control Agen-
cies in carrying out their responsibilities under the Clean Air Act
TYPES OF ASSISTANCE: Provision of Specialized Services, Adviso-
ry Services and Counseling; Dissemination of Technical Informa-
tion
USES AND USE RESTRICTIONS: Assistance includes the develop-
ment of necessary plans to achieve and maintain national standards
and to conduct necessary implementing programs There are no
use restrictions other than those of applicability to the control or
prevention of air pollution and judgment as to propriety by the
OANR. EPA
ELIGIBILITY REQUIREMENTS:
Applicant Eligibility: This program is available to each State, terri-
tory and possession of the U S , including the District of Colum-
bia. Applicant for assistance must be a State or local Air Pollution
Control Agency or a Federal Agency
Beneficiary Eligibility: Beneficiaries may be any public authorities,
agencies, and institutions, private agencies, institutions, and indi-
viduals.
Credentiala/Doctimentattoo: None
APPLICATION AND AWARD PROCESS:
Preapplicatioa Coordination: None.
Application Procedure: An application, preferably written, should be
directed to the EPA Regional Office by the appropriate State or
local Air Pollution Control Agency
Award Procedure: Not applicable
Deadlines: None
Range of Approral/DisapproTal Time: Not applicable
Appeals: Not applicable
Renewal*: Not applicable
ASSISTANCE CONSIDERATIONS:
Formula and Matching Requirements: None, in general the requesting
parties are expected to participate in projects within limitations
imposed by their available resources.
5700
Length and Tine Pfcariat of »*"—*¦ No ^It^o^/except as may
be imposed by resources available to the EPA Regional Office
and the assignment of priority relative to other requests.
POST ASSISTANCE REQUIREMENTS:
Reports: No reports by recipient required. Project reports by the
OANR, EPA may vary from letters to extensive technical docu-
ments.
AadltK None.
Records Nose.
FINANCIAL INFORMATION:
Account Mortification: 68-0108-0-1-304
ObttgriMK (Salaries and Expenses) FY 82 $3,550,000; FY 83 est
$2,560,000; and FY 84 est S3,034,000.
Range cad Artrrge of F1 sandal Aadstncc: Not applicable.
PROGRAM ACCOMPLISHMENTS: Provided assistance to States
and local agencies in the technical aspects of Air Pollution Con-
trol; the assessment of Control Strategies Effectiveness; and the
review, approval, and preparation of State Implementation Plans
(SIP), either through assistance to the States or direct EPA action
in cases of Promulgated Plans.
REGULATIONS, GUIDELINES, AND LITERATURE: There is no
general program publication available. There are, however, a vari-
ety of published documents for completed technical studies and
specific aspects of air pollution.
INFORMATION CONTACTS:
Regional or Local Office: Contact appropriate EPA Regional Office
listed in Appendix IV of the Catalog
Headquarter* Office: None.
RELATED PROGRAMS: 66001, Air Pollution Control Program
Grants, 66.003, Air Pollution Control Manpower Training Grants,
66006, Air Pollution Control—Technical Training; 66.007, Air
Pollution Control—National Ambient Air and Source Emission
Data, 66 009, Air Pollution Control—Technical Information Serv-
ices; 66 501, Air Pollution Control Research Grants.
EXAMPLES OF FUNDED PROJECTS: Not applicable
CRITERIA FOR SELECTING PROPOSALS: Not applicable.
66.009 AIR POLLUTION CONTROL—TECHNICAL
INFORMATION SERVICES
FEDERAL AGENCY: OFFICE OF AIR, NOISE, AND RADI-
ATION, ENVIRONMENTAL PROTECTION AGENCY
AUTHORIZATION: Clean Air Act, as amended, Public Law 95-95,
42 U S C 7401 et seq.
OBJECTIVES: To provide information on the published literature on
air pollution and to provide copies of EPA (and to a limited
degree, other) publications as long as supplies last
TYPES OF ASSISTANCE: Dissemination of Technical Information.
USES AND USE RESTRICTIONS: Information on the published lit-
erature and publications can be used to plan, support, and facilitate
many kinds of air pollution control activity
ELIGIBILITY REQUIREMENTS:
Applicant Eligibility: Literature searches are made for State and
local governmental air pollution control agencies, U S. territories
and possessions; nonprofit citizens environmental groups, foreign
governments, and EPA grantees and contractors. Publications are
provided, while supplies last, to all parties upon request Parties
may be referred to USGPO or NTIS if a publication is not availa-
ble
Beaefidary Eligibility: Same as Applicant Eligibility.
Credentials/Docnmcntatioti: For literature searches, verification of
requester's identity is needed. For EPA contractors and grantees,
project officer approval is needed.
APPLICATION AND AWARD PROCESS:
Prapp ligation Coordlnatioii: None.
Application Pimeduie For literature searches, a letter or phone call
describing the subject upon which information is needed should be
communicated to the EPA/ERC library To request copies of
publications, a letter or telephone call specifying the item desired
699
3-A-4
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for address and
telephone number.
Award Piutedme. Not applicable.
Deadlines: None.
Range of A|pml/DI«iwwHl Tbme: Not applicable.
Appeals: Not applicable.
Rcaewata: Not apphcable.
ASSISTANCE CONSIDERATIONS
Formula aad Matching Requirements: Not applicable.
Lcagtfe sad Xlne Phasing of Aariftaaee: Not applicable.
POST ASSISTANCE REQUIREMENTS:
Riportc None.
Aodita None.
Records: None.
FINANCIAL INFORMATION:
Accocal IdeotiHettkn 68-0108-0-1-304.
Obttgattoec (Salaries and Expenses) FY 82 $60,000; FY S3 est
J51,000, and FY M est S50,000-
5700
Range and Ayerag* of Financial Asnlilanct. NotjgjKt^bJ^
PROGRAM ACCOMPLISHMENTS: 2,700 literature starches; 60,000
publications provided per year.
REGULATIONS, GUIDELINES, AND LITERATURE: The foUowmg
service is indicative of the data collected and disseminated, techni-
cal abstracts on air pollution from retrospective literature searches.
INFORMATION CONTACTS:
Regional or Local Office: None.
Headquarter* Office: Library Services Office, MD-33; U.S. Environ-
mental Protection Agency; Research Triangle Park, NC 27711
Telephone: (919) 541-2777; FTS (8) 629-2777
RELATED PROGRAMS: 66.006, Air Pollution Control—Technical
Training; 66.007, Air Pollution Control—National Ambient Air
and Source Emission Data; 66.004, Air Pollution Control—Tech-
nical Assistance; 66.301, Air Pollution Control Research Grants.
EXAMPLES OF FUNDED PROJECTS: Not applicable
CRITERIA FOR SELECTING PROPOSALS: Not applicable.
3-A-5
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ASSISTANCE ADMINISTRATION
5700
12/3/84
OFFICE OF WATER
66.418 CONSTRUCTION GRANTS FOR
WASTEWATER TREATMENT WORKS
FEDERAL AGENCY: OFFICE OF WATER, ENVIRONMENTAL
PROTECTION AGENCY
AUTHORIZATION: Clean Water Act, as amended; Sections 101(e),
109(b), 201 through 203, 207, 208(d), 210 through 212, 213
through 219, 304(dX3), 313, 301, 302, 311, and 316(b); Public Law
97-117; Public Law 93-217; Public Law 96483; 33 U.S.C 1231 et
seq.
OBJECTIVES: To assist and serve as an incentive in construction of
municipal Wastewater treatment works which are required to
meet State and Federal water quality standards.
TYPES OF ASSISTANCE: Project Grants (Cooperative Agreements).
USES AND USE RESTRICTIONS: Far construction of municipal
wastewater treatment works including privately owned individual
treatment systems, if a municipality applies on behalf of a number
of such systems. Such works may serve all or portions of individu-
al communities, metropolitan areas, or regions- A project may in-
clude, but may not be limited to, treatment of industrial wastes.
Orantee must require pretrcatment of any industrial wastes which
would otherwise be detrimental to efficient operation and mainte-
nance, or grantee must prevent the entry of such waste into the
treatment plant The grantee must initiate an acceptable system of
user charges. JOINT FUNDING- This program is considered
suitable for joint funding with closely related Federal financial as-
sistance programs m accordance with the provisions of OMB Cir-
cular No A-lll For programs that are not identified as suitable
for joint funding, the applicant may consult the headquarter* or
field office of the appropriate funding agency for further informa-
tion on statutory or other restrictions involved.
ELIGIBILITY REQWREMErfTS:
Applicant HigfMHtT: Any municipality, mtermuoicipal agency, State,
or interstate agency, or Federallyrecogmzed Indian tribal govern-
ments, having jurisdiction over waste disposal. This program is
available to each State, territory and possession of the U.S., in-
cluding the District of Columbia.
Beaefidary Eligibility: Anyone to be served by a wastewater treat-
ment works assisted by this program
Qtdfllah/Dof umeu tattoo: (1) Certified copy of authorization from
the applicant's governing body Authorization must be current,
and most designate by name and title the individual who will rep-
resent the applicant; (2) current description of the project; (3)
statement explaining exact nature of any other Federal funds
which may be used to finance the project, (4) applicant assurance
(which is acceptable to the Regional Administrator) that any nec-
essary discharge permit has been or will be obtained in accordance
with Section 401, of Public Law 92-300, as	(3) conform-
ance with requirements set forth in 40 CFR Part 33; Subpart E (or
Subpart I Applicable to giants awarded after May 12, 1982)
Second class directions published m the Federal Register at Vol.
47, No. 19. page 4066, dated January 28, 1981 Application may be
made for grant assistance for building and erection of the treat-
ment works with an allowance for planning and design costs at
the time that the grant for construction is made.
APPLICATION AND AWARD PROCESS:
PreanUestta CoerdfnatloEi Preapphcabon assistance, including nec-
essary application forms, and, where appropriate, a preapplication
conference should be scheduled with the State water pollution
control agency. The standard application forms as furnished by
the Federal agency and required by OMB Circular No. A-102
must be used by this program. An environmental assessment is re-
quired for this program, which may require the development of an
environments! unpad statement by EPA.
Application Pwcriuu Application must be submitted through the
State water pollution control agency to the appropriate EPA Re-
gional Office.
Award Pi medai e. Projects considered for award must be approved
by the State water pollution control agency and certified by
such agency as to priority over any other eligible projects. Award
is made following such certification and approval by a Regional
Office of EPA- Funds authorized by the Congress are allotted to
the states in accordance with Public Law 92-300, as
Grant awards within individual states are limited by the funds
which have been allotted to such states.
IVaJtifr None. However individual States may have
their own. Applicants should check with their respective State
Water Polluton Control Agency.
Raage of Appraval/Dtaqpproval Tbne: Up to 43 days.
Appeal* Appeals possible under 40 CFR, Part 30.
Renewals: None.
ASSISTANCE CONSIDERATIONS:
Farmmla and Matching Reqafranenta: This program operates under
Section 202 of the Clean Water Act The Federal grant may be
for 73 percent of eligible project costs, or 83 percent for innova-
tive or alternative technology processes. States may lower these
percentages with the concurrence of the Regional Administrator
pursuant to section 202(aXl) of the Clean Water Act as amended
by P L. 96-483. The grantee must assure that they will provide all
remaining costs. Some States sssist grantees in providing all or
part of the non-Federal share. See "USES AND USE RESTRIC-
TIONS" for discussion of Joint Funding. The statistical factors
used for altottmeat are 1) estimate of total cost of construction
needed by States to meet requirements of the Clean Water Act -
source- 1982 Needs Survey, cost Estimates for construction of
Publicly Owned Wastewater Treatment Facilities, EPA; and 2)
State level population - source- P25, Census. There are no statisti-
cal factors used for eligibility
Length and Tfane Phasing of Aasfitante. Grant payments are baaed on
work completed, equipment delivered, or sometimes off-site manu-
facturing or services rendered. Final grant payment when con-
struction is completed and after satisfactory final inspection.
POST ASSISTANCE REQUIREMENTS:
Report*: Annual inspection by State agency for compliance with
permit requirements inclnding a written report concerning oper-
ation and maintenance of waste treatment facility, and certification
one year after beginning operation that the works are meeting
design specifications.
Audita: Preaward. interim, and/or final audits may be performed. Pe-
riodic audits should be made as part of the recipient's systems of
financial management and internal control to meet terms °n^ con-
ditions of grants and other agreements. In accordance with the
provisions of Attachment P to Circular A-102, "Uniform Require-
ments for Grants to State and Local Governments," audits shall
be made of organizations carrying out this prograpi at least once
every two years. These audits will be made in accordance with
the General Accounting Office guidelines, "Standards for Audit of
Government Organizations, Programs, Activities and Functions,"
and additional OMB guidance.
Record*: Financial records, including ail docmncnts to support en-
tries on accounting records and to substantiate charges to each
grant, must be kept available to penonnel authorized to
EPA grant accounts. AD records must be rannwiwrf for three
yean after final settlement, and if questions still remain, such as
those raised as a result of audit related records should be retained
until the matter n completely resolved.
FINANCIAL INFORMATION:
Aceoot IilcallfUathw: 68-0103-0-1-304.
701
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ASSISTANCE ADMINISTRATION
5700
12/3/84
OMieMfeK (Grants) FY 82 $2,116,802,000; FY 83 est I30C.000.000;
and FY M est 1700,000,000.
toff and Awni rf Fbmadml Aadrtaaee: J675 to 1290,800,000;
$5,000,000
PROGRAM ACCOMPLISHMENTS: During 1982, construction grant
awards totalled 586 and Federal outlays totalled $3,756,152,000.
By the end of 1982, there were 8,346 active projects. Approxi-
mately 1,290 projects completed construction in 1982 and are
operational
REGULATIONS, GUIDELINES, AND LITERATURE; Grants for
Construction of Treatment Works, Environmental Protection
Agency (40 CFR Part 35,Subpart E (and subpart I applicable to
grants awarded after May 12, 1982) General Grant Regulations
and Procedures, EPA (40 CFR Part 30) "Grants Administration
Manual," available from the National Technical Information Serv-
ice, Springfield, VA 22161 on a subscription basis. Order No •
NT1S UB/031, "How to Obtain Federal Grants to Build Munici-
pal Wastewater Treatment Works" (MCD-04 free) For other pub-
lications, make direct inquiry to EPA, WH-547, 401 M Street,
S W , Washington, D C 20460
INFORMATION CONTACTS:
Bfgjnail or Local Office: Information regarding appropriate waste
treatment requirements and State and Federal assistance may be
obtained from the Stale water pollution control agency Individ-
uals may also communicate with appropriate EPA Regional Office
listed in Appendix IV of the Catalog
Headquarters Office: James R. Murphy, Acting Director. Municipal
Construction Division, WH-547, Office of Water Program Oper-
ations, Environmental Protection Agency, Washington, DC 20460
Telephone (202) 382-5859 (use same 7-digit number for FTS); or
Myron F Tiemens, Acting Director, Facility Requirements Divi-
sion, Office of Water Program Operations, Environmental Protec-
tion Agency, Washington. DC 20460 Telephone (202) 426-9404
(use same 7-digit number for FTS)
RELATED PROGRAMS: 10 418, Water and Waste Disposal Systems
for Rural Communities, 14 218, Community Development Block
Grants/Entitlement Grants, 66 419, Water Pollution Control—
State and Interstate Progfam Grants, 66 438, Construction Man-
agement Assistance Grants, 66 505, Water Pollution Control—Re-
search. Development, and Demonstration Grants
EXAMPLES OP FUNDED PROJECTS: New wastewater treatment
plants, tnfiltraoon-inflow correction, new interceptors, new collec-
tor sewers, and correction of combined sewer overflows (CSO),
including marine CSO projects for which a special fund ha: been
established under section 201(n)(2)
CRITERIA FOR SELECTING PROPOSALS: The project must be
given priority by the State water pollution control agency through
its pnonty system
66.419 WATER POLLUTION CONTROl^-STATE
AND INTERSTATE PROGRAM GRANTS
(Section 106 Grants)
FEDERAL AGENCY: OFFICE OF WATER, ENVIRONMENTAL
PROTECTION AGENCY
AUTHORIZATION: Clean Water Act, as nmrnrVrj, Section 106;
Public Law 95-217, 33 USC 1251 et acq
OBJECTIVES: To assist State and interstate agencies m establishing
and maintaining adequate measures for prevention and control of
water pollution.
TYPES OF ASSISTANCE: Formula Grants (Cooperative Agree-
ments)
USES AND USE RESTRICTIONS: Broad support for the prevention
and abatement of water pollution including permitting, pollution
control studies, planning, surveillance and enforcement, advice
and assistance to local agencies, training, and public information.
Funds cannot be used for construction, operation, or maintenance
of waste treatment plants, nor can they be used for costs financed
by other Federal grants. JOINT FUNDING This program a
considered suitable for joint funding with closely related Federal
financial nmmnnnr programs in accordance with the provisions of
OMB Circular No. A-l II. For piogiains that are rot iAntifi—t ts
suitable for joint funding, the applicant may consult the headquar-
ters or field office of the appropriate funding agency for Further
information cm statutory or other restnebons involved.
ELIGIBILITY REQUIREMENTS:
Applicant BHgMHty: State and interstate water pollution control
agencies as defined m the Federal Water Pollution Control Act.
Agencies making application for funds must submit annually their
pollution-control program to the appropriate EPA Regional Ad-
ministrator for approval. Requirements of the program are baaed
on Section 106 of the Act, and 40 CFR Part 35 This program is
available to each State, territory and possession of the U.S., in-
cluding the District of Columbia.
ncmrfli Uij EHgtMttty; Same as Applicant Eligibility.
OwtentlaWDocnfliHon. Costs will be determined m accordance
with OMB Circular No. A-87 for State and local governments.
State and interstate agencies show compliance with 40 CFR 35.
Subpart G
APPLICATION AND AWARD PROCESS:
PrwppHfrios Cwnllaalton: Informal meetings are held between re-
gional office and State applicant agency concerning progiaiu prep-
aration. The standard application forms as furnished by the Feder-
al agency and required by OMB Circular No A-102 most be used
for this program. The grant agreement must adequately reflect the
priorities identified m the State/EPA Agreement.
Application Piumluie. The grants application must be submitted to
the appropriate EPA Regional Office, Grants Administration
Branch (See Appendix TV of the Catalog)
Award Piucalme. Application is reviewed by appropriate EPA Re-
gional Office and if approved, is signed by the Regional Adminis-
trator
Deadlines: Application forms must be submitted according to dates
established by the Regional Administrator.
Raagr of Apprcral/Dlnna uial Ttae: Approximately 30 days.
Appeals: None
Renewals: None
ASSISTANCE CONSIDERATIONS:
Formula and MmtcUag Recall mta: Thu program has no statutory
formula. As stated m the Clean Water Act, appropriated funds are
prorated among the State and Interstate Water Pollnbon Control
agencies on the basis of the extent of the water pollution problems
in the respective states for an amount not less than its fiscal year
1973 grants. State allotment ratios are baaed on a count of pollu-
tion sources for each state compared to a count of pollution
sources in the Nation. Interstate allotment rams are baaed on the
level of funding received ui fiscal year 1973 Currently four fac-
tors are used in the formula, municipal dischargers, industrial da-
chargers, power generators and feed lots. The range of match
vanes greatly among states, reflecting their 1971 level of efTorL
This program has maintenance of effort fMOE) requirements, see
funding agency for further details, and 40 CFR Part 35, Subpart
A.
Length and Ttae Phasing of Assistance: One year, payments are ap-
proved quarterly and disbursed monthly
POST ASSISTANCE REQUIREMENTS:
Reports: Annual expenditure reports, srmntnnnal piogiain evalua-
tions, revised budget following reallocation of funds; other reports
as Grant Agreement requires.
Audits: In accordance with the provisions of Attachment P to Circu-
lar A-102, "Uniform Requirements for Grants to State and Local
Governments," audits shall be made of organization carrying oat
thn program at least once every two yean. These audita will be
made in accordance with the General Accounting Office guide-
lines, "Standards for Audit of Government Organhations, Pro-
grams, Activities and Functions," and additional OMB guidance.
Records: Financial records, mrJnrtmg all documents to support en-
tries on accounting records and to substantiate charge* to each
grant, must be kept available to personnel authorized to rsaminr
EPA grant accounts. Ail records most be	for three
years from the date of submissK» of the annual financial status
3-A-7
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ASSISTANCE ADMINISTRATION
upon. If queittans (tSl remain, inch as those raised as a result of
¦adit, related records should be mined until the matter b com-
pletely resolved.
FINANCIAL INFORMATION:
Accent HwIHIhIIm 68010WM-30*.
Obttgatfaaa: (Orants) FY 82 131,204000; FY 83 at 534,200,000; and
FY 84 cat (24,000400.
Raap ad Aiuap of Ftaaadal Aariitite. 18,000 to 1X870,000.
PROGRAM ACCOMPLISHMENTS: In each fiscal year, 63 grants
were awarded to encourage and support the conduct of Water
Pollution Control programs by the 50 States, six territories, the
nwtrjr* of f!r>himW« «|H fntwHatg rVtmmkii^nl
REGULATIONS, GUIDELINES, AND LITERATURE: General Grant
Regulations and Procedures, Environmental Protection Agency
(40 CFR Part 30); Handbook of Procedures, State and Interstate
Program Grants; Environmental Protection Agency, State and
Local Assistance Programs, Subpart Q-Grants for Water Quality
Planning, Management and Implementation (40 CFR Part 35 and
40 CFR Part 35 Subpart A); "Chants A <1 in migration Manual,''
available from the National Technical Information Service,
Springfield, VA 22161 on a subscription basis, Order No.: NTIS
UBAJ31.
INFORMATION CONTACTS;
Bcglosal or Local Office: Contact appropriate EPA Regional Offioe
listed in Appendix IV of the Catalog.
Heaifaartans Oflka: Carl Myers, Acting Director, Water Planning
Division, Offioe of Water Ptogiam Operations, Office of Water,
Environmental Protection Agency. Washington, DC 20(60. Tele-
phone: (202) 382-7080 (use same 7digit number for FTS).
RELATED PROGRAMS: 66.418, Construction Grants for Wastewater
Treatment Worts; 66.600, Environmental Protection Consolidated
Grants—Program Support
EXAMPLES OP FUNDED PROJECTS: Grants to States for the ad-
ministration of State programs for the prevention, reduction and
control of pollution. Activities funded include administration of
State NPDES permit programs;	and enforcement,
monitoring, and hazardous mawrials spills response.
CRITERIA FOB SELECTING' PROPOSALS: Section 106 ftmda are
awarded to State agencies in accordance with overall water qual-
ity management needs, the requirements of piugiams covered by
these agreements, and annual EPA programs guidance.
66423 WATER QUALITY CONTROL
INFORMATION SYSTEM—ORIENTATION/
TRAINING SEMINARS, DATA AND MONITORING
Publications
(STORET—STOrage and RETrleval System)
FEDERAL AGENCY: OFFICE OF WATER, ENVIRONMENTAL
PROTECTION AGENCY
AUTHORIZATION: Clean Water Act, as amended, Public Law 95-
217, 33 U.S.C 1251 et aeq.
OBJECTIVES: To provide State, interstate, and other water pollution
control and water resource management agencies orientation, and
where requested, training in the use of the storage and retrieval
(STORE!} system used by EPA for handling water quality data;
to provide user documentation on the capabilities and use of the
system.
TYPES OF ASSISTANCE: Training.
USES AND USE RESTRICTIONS: For State, interstate, intrastate,
local sponsored organizations or other governmentally related
water pollution control and resource management agencies, train-
ing provides uae of ADP services available through EPA for han-
dling water data. There are no use-restrictions on the training
service; however, course will normally not be schwdiilnri more
than oace per year for the same agency nor for fewer than 15
people. User documentation is available to these agencies with no
use ratnctKm
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ELIGIBILITY REQUIREMENTS:
Applicant EUgMUtr Training services an famished to government
or government connected (e.g, Federal, State, interstate) agency*
where access to water quality and related data is required to
pursue the official functions of the organization noncrrned This
program is available to each State, territory and |mcuiun of the
U.S. mchnting the District of Colombia.
IWiimIIi laij FHflMlfty: Water pollution oontrol professionals, scien-
tists/researchers, and other employees of State; interstate, local
sponsored organizations, and other governmentally related water
pollution control and water reaouiue management ywi
CMHah/Dw aialillgs. None.
APPLICATION AND AWARD PROCESS:
PraappUeatta OiowHaalhw: For training, verbal notice should be
famished to either a regional office or to headquarters, OW, EPA,
that an orientation or training —"l™ or coarse is desired. User
documentation is available from the same sources and is usually
sent by return mail.
Application Prwulam When verbal notice has been given, the re-
quest for the course should be formalized by letter, memorandum,
etc., giving precise dates, places, and number of personnel who
will be attwwting User documentation may be requested verbally
or by written request.
Award Pi utedai a. Not applicable.
Dwfllw! As noted above, verbal requests for seminars should be
initiated at least 30 days in advance.
Range of Ajprml/Dlaajprotal The: Not applicable
Appeals: Not applicable.
Renewals: Not applicable.
ASSISTANCE CONSIDERATIONS:
Formula and Matcttag Requirements: Not applicable.
Leagti and lime Phasing of Asatataner Indefinite length of assistance
period. As previously noted, rescheduling is about one year apart.
POST ASSISTANCE REQUIREMENTS:
Reports: None.
Aadtta: None.
Records: None.
FINANCIAL INFORMATION:
Account Identification: 68-0108-0-1*30*.
Obligations: (Salaries and Eapcnaes) Not separately identifiable.
Range and Arerage of Financial Aaslatanm, Not applicable.
PROGRAM ACCOMPLISHMENTS: Training services furnished to
governmental! y related water pollution control and water resource
management agencies range from providing documentation to pro-
vision of technical aswstanrf They vary according to expressed
need. Forty-sii states have direct access via remote computer ter-
minal.
REGULATIONS, GUIDELINES, AND LITERATURE: Not applica-
ble.
INFORMATION CONTACTS:
Regional or Local Office: Requests for training should normally be
handled through the regional field office of OW, EPA where tele-
communication facilities are installfri Information pertaining to
training, however, may bit obtained at any one of the OW, EPA
offices, including headquarters in Washington, DC Publications
are available from headquarters snd regional offices (See Appen-
dix IV of the Catalog).
Headquarters Office: Edmund M. Notion, Director, Monitoring and
Data Support Division, Office of Water Regulations and Stand-
aids, Office of Water, Washington, DC 20460. Telephone: (202)
382-7040 (use same 7-digjt number for FTS).
RELATED PROGRAMS: 66.423, Drinking Water Supply—Technical-
Assistance.
EXAMPLES OF FUNDED PROJECTS: Not applicable.
CRITERIA FOR SELECTING PROPOSALS: See ELIGIBILITY
REQUIREMENTS.
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ASSISTANCE ADMINISTRATION
66.425 DRINKING WATER SUPPLY—TECHNICAL
ASSISTANCE
FEDERAL AGENCY: OFFICE OF WATER, ENVIRONMENTAL
PROTECTION AGENCY
AUTHORIZATION: The Safe Drinking Water Act, as amended by
Public Law 93-323, as amrnrtrrl by Public Law 95-190, Public
Law 96-16, and Public Law 96-502.
OBJECTIVES; To assure that water supply systems serving the public
meet mmimnm national standards for the protection of public
health.
TYPES OF ASSISTANCE: Advisory Services and Counseling; Do-
semination of Technical Information.
USES AND USE RESTRICTIONS: Assistance is available to any State
and any utility which coordinates their request through a State.
Technical —staff members commonly work through the
State agency to provide asswtmnr
ELIGIBILITY REQUIREMENTS:
Applicant HJgMllty: State and local water supply regulatory agen-
cies and public water supply operators or officials in each State,
territory and possession of the U.S., including the District of Co-
lumbia.
Beneficiary EUgOflity: The general public served by a water supply.
OedentfaWDouuutatatleM: None.
APPLICATION AND AWARD PROCESS:
Pmppllcation Coordination: None.
AppUctHoa Piocedaie. Apply to regional offices of EPA; or to EPA
headquarters, Office of Drinking Water, Office of Water, Wash-
ington, DC 20460.
Award Piutedme. Not applicable.
Deadlines: Not applicable.
Range of Approral/Dtappoval Ttae: Not applicable.
Appeals Not applicable.
Renewal*: Not applicable.
ASSISTANCE CONSIDERATIONS:
Formula and Matching Requireacatx: Not applicable.
Length and Time Phasing of Awlmntr Not applicable.
POST ASSISTANCE REQUIREMENTS:
Reports: Not applicable. *
Audits Not applicable.
Records: Not applicable.
FINANCIAL INFORMATION:
Account Mentffieatfoo: 68-0108-0-1-304.
Obligations: Figures for salaries and expenses not identified.
Range and Average of Financial A Ml stance: Not applicable.
PROGRAM ACCOMPLISHMENTS: During fiscal year 1982, techni-
cal assistance was provided to States and through States, to a sig-
nificant number of utilities.
REGULATIONS, GUIDELINES, AND LITERATURE: Publications
include (1) the Public Notification Handbook, (2) Non-Commum-
ty Water Systems Serving a Non-Residential Population, (3) State
Management Practice on Small Water Systems. (4) Surface Im-
poundments and their Effects on Ground Water Quality in the
U.S, (3) a Manual for Evaluating Contamination Potential of Sur-
face Impoundments (6) various papers and reports produced by
the staff and (7) Federal Register notices dealing with Non-Com-
munity Systems (FR 7-2-79), Intengi Primary Drinking Water
Regulations (40 CFR Part 141), Secondary Drinking Water Regu-
lations, THM Regulations, and the Small System Strategy
INFORMATION CONTACTS:
Regional or Local Office Contact appropriate EPA Regional Office
listed m Appendix IV of the Catalog.
Headquarters Office: John R. Trax, Office of Drinking Water,
Office of Water, Environmental Protection Agency, Washington,
DC 20460 Telephone- (202) 382-3326 (use same 7-digit number for
FTS)
RELATED PROGRAMS: 66.423, Water Quality Control Information
System—Onentatxm/Training Seminars, Data and Monitoring
Publications; 66.432, State Public Water System Supervision Pro-
gram Grants, 66433, State Underground Water Source Protec-
tion—Program Grants.
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EXAMPLES OF FUNDED PROJECTS: Advisory services and coun-
seling to States, development of training and certification pro-
grams for water supply operators, and evaluation of the public no-
tification provisions of the Act; a study of employment practices
in State Drinking Water Agencies;	guides for water
treatment and regionalization of water systems; and an assessment
of the number of surface impoundments and their potential for
groundwater contamination.
CRITERIA FOR SELECTING PROPOSALS: Criteria to be deter-
mined on a case-by-case basis of program office
66.432 STATE PUBLIC WATER SYSTEM
SUPERVISION PROGRAM GRANTS
FEDERAL AGENCY: OFFICE OF WATER, ENVIRONMENTAL
PROTECTION AGENCY
AUTHORIZATION: Public Health Service Act, as	by the
Safe Drinking Water Act, Public Law 93-323, as amended by
Public Law 93-190, Public Law 96-16, and Public Law 96-502.
OBJECTIVES: To foster development and maintenance of State pro-
grams which implement the Safe Drinking Water Act
TYPES OF ASSISTANCE: Formula Grants.
USES AND USE RESTRICTIONS: The funds are to be used to de-
velop and implement a public water system supervision program
adequate to enforce the requirements of the Safe Drinking Water
Act JOINT FUNDING' This program is considered suitable for
joint funding with closely related Federal financial assistance pro-
grams in accordance with the provisions of OMB Circular No. A-
111. For programs that are not identified as suitable for joint fund-
ing, the applicant may consult the headquarters or field office of
the appropriate funding agency for further information on statu-
tory or other restrictions involved.
ELIGIBILITY REQUIREMENTS:
Applicant Eligibility: State agencies	by the Governor or
Chief Executive Officer of one of the States of the United States,
the District of Columbia, the Commonwealth of Puerto Rico, the
Northern Manana !«!««<«, the Virgin Islands, Guam, American
Samoa, or the Trust Territory of the Pacific Islands.
Benefldary fVgfhntty State agencies responsible for supervision of
water supply within State will receive funds.
Qwdfntiate/DocuiueuUUon: Costs will be determined in accordance
with OMB Circular No A-87 for State and local governments.
APPLICATION AND AWARD PROCESS:
Preapplieation Coonttnatloa: Preapplication coordination with ap-
propriate regional office recommended The standard application
forms as furnished by the Federal agency and required by OMB
Circular No A-102 must be used for this program.
Application Procedure: The grant application including State Pro-
gram Plan, must be submitted to the appropriate EPA Regional
Administrator
Award Procedure: State Program Plan is reviewed, and if approv-
able, signed by the Regional Administrator.
Deadlines: Applications must be submitted 60 days before the begin-
ning of the agreed upon budget period.
Range of Approval/Disapproval Time: Maximum of 60 days.
Appeals: None
Renewals: None.
ASSISTANCE CONSIDERATIONS:
Formula md Matching Requirements: Funds appropriated each year
are allotted on the basis of State population (30 percent) as con-
tained in the most currently available Statistical Abstract; State
land area (10 percent) as con tamed m the most currently available
Statistical Abstract; the number of community water systems in
the State (48 percent) and the number of non-community water
systems m the State (12 percent); all water system inventories
being provided by the states. No State except American Samoa,
Guam, the Northern Mariana Islands, and the Virgin Islands may
be allotted less than 1 percent of the total appropriation. The four
territories noted shall not be allotted less than 1/3 percent of the
total appropriation. The formula factors and mmnnnnw are statu-
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ASSISTANCE ADMINISTRATION
5700
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tory and the weightings are Agency imposed. Federal twifinrr is
limited to 75 percent of eligible costs, not to exceed the State al-
lotment.
Leagth and Time Ptiaifag of AaWnea: Annual granta. There a no
restriction placed upon the time permitted to spend the award.
Awards released through letters of Credit or retmbunemAit
POST ASSISTANCE REQUIREMENTS:
Reports: Annual onsite evaluation, final financial and progress
report as set forth m the grant agreement
Audits: Grants are subject to inspection and audit by EPA, the
Comptroller General of the U,S., or any authorized representative.
Periodic audits should be made as part of the recipient's systems
of financial management internal control to nwrt terms and
conditions of grants and other agreements. In accordance with the
provision of Attachment P to Circular A-102, "Uniform Require-
ments for Chants to State and Local Governments," audits shall
be made of organizations carrying out this program at least once
every two years. These audits will be made in accordance with
the General Accounting Office guidelines, "Standards for Audit of
Government Organizations, Programs, Activities and Functions,"
and additional OMB guidance.
Records: Financial records including all documents to support en-
tries on accounting records and to snhmantuitr charges to each
grant must be kept available to personnel authorized to examine
EPA grant accounts. All records must be maintained for three
years from the date of submission of the innml financial status
report or until any audit exceptions have been resolved.
FINANCIAL INFORMATION:
Account Idcntlficatfam: 68-0108-0-1-304
Obligations: (Grants) FY 82 S29.430.000; FY 83 est $27,*50,000; and
FY 84 est $21,204,000.
Range and Average of Financial Aaristance: (FY 82) 1134,400 to
$2,174,300; $389,000. (FY 83 est) $91,300 to $1,732,800; $538,200.
PROGRAM ACCOMPLISHMENTS: During fiscal year 1982, there
were 49 original grant awards and 30 additional grants through
rcallotments. To date, in fiscal year 1983, 46 States have received
giants. Five additional stdcs are expected to receive grants during
fiscal year 1983. It is expected that 31 states will be eligible for
grants in fiscal year 1984
REGULATIONS, GUIDELINES, AND LITERATURE; Financial As-
sistance for Continuing Environmental Programs (40 CFR 33,
Subpart A), General Grant Regulations and Procedures (40 CFR
Part 30) "Grants Administration Manual," available from the Na-
tional Technical Information Service, Springfield, VA 22161 on a
subscription basis.
INFORMATION CONTACTS:
Regional or Local Office: Contact appropriate EPA Regional Office
listed in Appendix IV
Headquarters Office: John Trax, Office of Drinking Water, Office
of Water, Environmental Protection Agency, Washington, DC
20460 Telephone (202) 382-3329 (use same 7-digit number for
FTS)
RELATED PROGRAMS: 66 423, Drinking Water Supply—Technical
Assistance, 66.433, State Underground Water Source Protection—
Program Grants.
EXAMPLES OF FUNDED PROJECTS: Not available.
CRITERIA FOR SELECTING PROPOSALS: (I) Adequacy of State's
annual program plan for the adoption and enforcement of drinking
water regulations which are no less stringent than the national pri-
mary drinking regulations. (2) Designation of a State agency to re-
cave the grant and be responsible for conducting the public water
system supervision program (3) Compliance with requirements of
40 CFR 30 and 40 CFR 35
66.433 STATE UNDERGROUND WATER SOURCE
PROTECTION—PROGRAM GRANTS
FEDERAL AGENCY; OFFICE OF WATER, ENVIRONMENTAL
PROTECTION AGENCY
AUTHORIZATIONS The Safe Drinking Water Act Public Law 93-
323, aa amended by Public Law 96-16, Public Law 93190k and
Public Law 96-502.
OBJECTIVES: To foater development and implementation of under-
ground byectxm control (UIC) programs under the Safe Drinking
Water Act (SDWA).
TYPES OF ASSISTANCE: Project Grants (Cooperative Agreements).
USES AND USE RESTRICTIONS: The funds arc to be used to de-
velop and implement an underground injection control piugiam
adequate to enforce the requirements of the Safe Drinking Water
Act. KOyor program elements and outputs are listed in the Annual
Program Guidance. JOINT FUNDING: This program is consid-
ered suitable for joint funding with closely related Federal finan-
cial assistance programs in accordance with the provmom of
OMB Circular No. A-l 11. For prog/ama that are not identified aa
suitable for joint ftmding, the applicant may consult the headquar-
ters or field office of the appropriate funding agency for father in-
formation on statutory or other restrictions involved.
ELIGIBILITY REQUIREMENTS:
Applicant FHgtMHty: The Governor or Chief Executive Officer de-
clares to EPA its intention to obtain delegations and names a re-
sponsible agency eligible to receive assnrtanoc are the states of the
United States, the District of Columbia, the Commonwealth of
Puerto Rico, the Northern Mariana Ialanda, the Virgin
Guam, American Samoa, or the Trust Territory of the Pacific Is-
lands.
Bwirflrtarj KHglMHty: Same as Applicant Eligibility.
(Vtdmtlala/'Dm iwiilitlca: Coats will be determined m accordance
with OMB Circular No. A-87 for State and local governments.
APPLICATION AND AWARD PROCESS:
PreappUcatk* Coordination: Preapplicatxxi coordination with ap-
propriate regional offices recommended. Applications are subject
to State and area wide clearinghouses review pursuant to proce-
dures in the proposed 40 CFR Part 19. The standard •IT1*"*"*""
forms as furnished by the Federal agency and required by OMB
Circular No. A-102 must be used for this program.
AppHcathw Pluceduie. The grant application must be submitted to
the appropriate EPA Regional Administrator.
Award Proeednre: Program plan is reviewed, and if approvable,
signed by the Regional Administrator.
DrarfHncr State program plans should be submitted to the appropri-
ate Regional Administrator by June 1.
Range of Approral/Dbapproval Time: Approximately 60 days.
Appeals: None
Reoewala: None.
ASSISTANCE CONSIDERATIONS:
Formula and Matching Requirements: This program operates under a
formula which uses criteria set forth in the SDWA, Section
81443(bX4). Federal assistance is limited to 73 percent of eligible
costs, not to exceed the State allotment The statistical factors
used for allocation include 1) population of State, based on data
from Estimates, Statistical Abstracts, 1980 Census, 2) State land
area, based on data from Statistical Abstracts, 1980, Census and
official updates; 3) injection practices by State, based on data from
"Water Problems Associated with Oil Production m the United
States," 1964, EPA; and 4) disposal wells by State, based on data
from EPA "Review and Assessment of Deep Well Injections and
Hazardous Waste," 1971 There are no statistical factors for eligi-
bility
Length and Time rhasfag of Aasistaace: Annual granta.
POST ASSISTANCE REQUIREMENTS:
Reports Annual onsite evaluation, final	and piugress
report as set forth in the giant agreement
Aadtta: Grants are subject to inspection and audit by EPA, the
Comptroller General of the United States, or any authorized rep-
resentative. Periodic audits should be made aa part of the recipi-
ent's systems of financial management and internal control to meet
terms and conditions of granta and other agreements. In accord-
ance with the provnons of Attachment P to Circular A-102,
"Uniform Requirements for Grants to State aad Local Govern-
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ASSISTANCE ADMINISTRATION
5700
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menu," audits shall be made of organizations carrying oat this
program at least once every two yean. These audits will be made
in accordance with the General Accounting Office guideline!,
"Standards Tor Audit of Government Organisations, Programs,
Activities and Functions," and additional OMB guidance.
Records: Financial records including all documents which support
entries on accounting records and substantiate charges to each
grant must be kept available to personnel authorized to fumnw
EPA grant accounts. All records must be maintained for three
years from the date of submission of the annual financial status
report, or until any audit exceptions have been resolved.
FINANCIAL INFORMATION:
Account Identification: 68-0108-0-1-304.
Obligations: (Grants) FY 82 S6.383.000; FY 83 est S7.074.000; and
FY 84 est S6.094.000.
Range and Average of Financial Assistance: FY 83 531,300 to
SS03.400; $124,100.
PROGRAM ACCOMPLISHMENTS: The grant regulations were pro-
mulgated in October 1978 and last revised October 12, 1982. The
Underground Injection Control Regulations were promulagated m
May 1980 as 40 CFR Parts 122, 123, and 124 and in June 1980 ss
CFR Part 146. Fifty-seven states and territories have been desig-
nated by the EPA Administrator as of March 1980. In fiscal year
1980, forty Mates received program grants, given to the States, or
through EPA direct implementation. In fiscal year 1981, forty
states received grant ftmds and programs were implemented in
seventeen States. For fiscal year 1982, thirty-nme states received
grant funds, and the remaining eighteen states/territories will be
under direct program implementation. In fiscal year 1983, 36
States will receive program grants and the other 21 States will
have their programs implemented by EPA. The Program will be
fully delegated or implemented in all jurisdictions.
REGULATIONS, GUIDELINES, AND LITERATURE; Grants for
State Underground Water Source Protection Programs (40 CFR
35), General Grant Regulations and Procedures (40 CFR Part 30);
"Grant Administration Manual," available from the National
Technical Information Service, Springfield, VA 22161, on a sub-
scription basis.
INFORMATION CONTACTS:
Regional or Local Office: Contact appropriate EPA Regional Office
listed in Appendix IV of the Catalog.
Headquarters Office: Thomas Belk, Chief, Ground Water Protection
Branch, Office of Drinking Water, Office of Water, Environmen-
tal Protection Agency, 401 M Street, S.W. Washington, DC
20460 Telephone: (202) 426-3934 (use same 7-digit number for
FTS).
RELATED PROGRAMS: 66.423, Drinking Water Supply—Technical
Assistance; 66.432, State Public Water System Supervision Pro-
gram Grants.
EXAMPLES OF FUNDED PROJECTS: Grant funds are utilized by
the States for such purposes as State regulation review, program
plan developments, data management, inventory of injection facili-
ties, identification of aquifers, public participation, technical assist-
ance and review, permit approval and enforcement, and surveil-
lance and investigation
CRITERIA FOR SELECTING PROPOSALS: 1. Adequacy of State's
mrniml program plan for an enforceable underground injection
control program; 2. compliance with requnementa of 40 CFR 30
and 33, and Executive Order No. 12367 (Revised); 3. designation
of a State agency to receive the grant and be responsible for co-
ordinating the underground water source protection program, 4
affirmation of the State's establishment of, or mtent to establish, a
UIC program before September 30, 1983. 3. Demonstration of the
State's mtent, adequate legal authority and resources to implement
specific program elements outlined m 40 CFR 122, 123, 124, 146;
and 6 evidence that Federal grant funds will not supplant the
Stale's non-Federal funding nonumttrd to underground water
source protection efforts.
66.438 CONSTRUCTION MANAGEMENT
ASSISTANCE GRANTS
(Construction Gnats Ddcptfan to States)
FEDERAL AGENCY: OFFICE OF WATER, ENVIRONMENTAL
PROTECTION AGENCY
AUTHORIZATION: Clean Water Act, Section 203(g), as ««m«ui by
Public Law 93-217 and Public Law 97-117; 33 U.S.C. 1231 et acq.
OBJECTIVES: To assist and serve as an incentive in the process of
delegating to the States a maximum amount of authority for con-
ducting day-to-day matters related to the management of the con-
struction grant program. An overriding goal is to fHminatr unnec-
essary duplicative reviews and functions.
TYPES OF ASSISTANCE: Formula Grants.
USES AND USE RESTRICTIONS: To defray «p>nmi incident to
the States' assumption of fall responsibility for the certification of
the technical and administrative adequacy of specifically required
construction grant documentation. Responsibilities which may be
delegated include the certification of documents pertinent to the
award of grants and related activities. The Regional Administrator
shall retain authority for actual award amendment and termination
of grants and payments, and shall make- (a) final determinations
under the National Environmental Policy Act of 1969, (b) final
civil rights determinations, (c) final procurement protest appeal de-
terminations, (d) final resolution of audit exceptions, and (e) deter-
mination that an overriding Federal interest exists in a particular
project which requires greater Federal involvement. Restrictions
also include required adherence to specifically defined functional
areaa/activities and output qualities which the State must maintain.
In addition, EPA periodically monitors the State's program and
the appropriateness and adequacy of its outputs. Section 203(g) of
the Clean Water Act, 40 CFR Part 33, Subpart A, requires States
to maintain 1977 level of effort unless there has been a general
non-selective reduction in the piogiauis of the executive manage-
ment agencies of the State. JOINT FUNDING: Tha program is
considered suitable for joint funding with closely related Federal
programs in accordance with provisions of OMB Circu-
lar No. A-lll. For programs that axe not identified as suitable for
joint funding, the applicant may consult the headquarters office of
the appropriate funding agencies for farther information on statu-
tory or other restrictions involved.
ELIGIBILITY REQUIREMENTS:
Applicant EHgfbffltr State Water Pollution Control Agency, or
other agency	by the Governor in any State, territory
and possession of the U.S., including the District of Columbia.
Beneficiary EHgtMHty: State agencies involved m the administration
of the construction grants program.
QrednitMs/Puuuatatation: Formal agreement accompanying the
application: (a) n«mine the State agency, (b)itemizing the grant
functions to be delegated, and (c) outlining organization, staffing,
and EPA overview requirements. Costs will be determined in ac-
cordance with OMB Circular No. A-87 for State and local gov-
ernments.
APPLICATION AND AWARD PROCESS:
Prcappiieatioa Coordtaatica: Preappbcatioo assistance should be ob-
tained from the appropriate regional office. A delegation agree-
ment must be executed between the State agency and the Regional
Administrator before award of the initial grant The standard ap-
plication forms as furmshed by the Federal agency and required
by OMB Circular No. A-102 must be used to this program, (EPA
form 3700-31, Application for Federal Assistance, Short Form).
Application Piocedm. Requests to application forms and complet-
ed applications must be submitted to the appropriate EPA regional
office. Negotiation of the tlrlegation agreement uuiBlitutea a major
part of the application procedure.
Award Piutwlsia. Grant application and delegation agreement are*
reviewed by the appropriate EPA regional office and, if approved,
grant is awarded by the Regional Administrator.
DeadUaec None.
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ASSISTANCE ADMINISTRATION
5700
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Range of Aumwl/Dliiwroiil Ttoe: There a no established time
range.
Appeal® Since agreements ire not contaminated until problems are
reconciled there should be no need for appeals. However, there is
of course the possibility of appeal under 40 CFR Part 30, Subpart
J and 40 CFR 35.960.
Reaewab: None.
ASSISTANCE CONSIDERATIONS:
Foranla aid MatcUag Reqptreneati: Each fiscal year the Admima-
trator may reserve an amount not to exceed 4 percent of a State's
annual allotment based on authorized appropriations or $400,000,
whichever amount is greater, for the purpose of making construc-
tion management assistance grants to defray costs of performing
the delegated functions.
aad Ttaac Phasing of Assistance: No time limitation is placed
on assistance Disbursements are made m accordance with prear-
ranged schedules (supported by cost documentation from the re-
cipient agency). Grants should cover at least two full years of op-
eration.
POST ASSISTANCE REQUIREMENTS:
Reports Periodic reports (timed as specified in the agreement) are
required from the recipient agency. Evaluations will be conducted
to review 203(g) grant expenditures, progress in meeting bench-
marks in the delegation schedule, and the achievement of annually
established program goals.
Audita: Pre-award, interim and/or final audits may be performed by
EPA auditors or their	representatives. Other author-
ized EPA personnel may also conduct reviews/inspections as ap-
propriate or necessary Periodic audits should be made as part of
the recipient's systems of financial management and internal con-
trol to meet terms and conditions of grants and other agreements.
In accordance with the provisions of Attachment P to Circular A-
102, "Uniform Requirements for Grants to State and Local Gov-
ernments," audits shall be made of organizations carrying out this
program at least once every two years. These audits will be made
in accordance with the General Accounting Office guidelines,
"Standards for Audit of Government Organizations, Programs,
Activities and Functions," and additional OMB guidance
Records: Financial records, including all documents to support en-
tries on accounting records and to substantiate charges to the
grant, must be kept available to personnel authorized to examine
EPA grant accounts. All records must be maintained for three
years after final settlement and if questions still remain, such as
those raised as a result of audit, related records should be retained
until the matter is completely resolved
FINANCIAL INFORMATION:
Account Identification: 68-0103-0-1-304
Obligations: (Orants) FY 82 *50,131,000; FY 83 est S107.103.000;
and FY 84 est $90,797,000
Range and Average of Financial Assistinrr S493.072 to S10.473.744,
SI,952,844
PROGRAM ACCOMPLISHMENTS: As of February 1983, 45 States
and Puerto Rico have received grants and have been certified to
conduct certain aspects of the grant program
REGULATIONS, GUIDELINES, AND LITERATURE: General
Grant Regulations and Procedures (40 CFR Part 30), State Man-
agement Assistance Grants (40 CFR Part 35, Subpart F; Septem-
ber 27, 1978, soon to be replaced by Subpart J), Grants for Con-
struction of Treatment Works—Subpart E (40 CFR Part 35, Sub-
part E, September 27, 1978, soon to be replaced by Subpart I
Construction Grant Delegation and Overview Guidance to be
published concurrently with Subpart J
INFORMATION CONTACTS:
Regional or Local Office Interested parties may contact the appro-
priate regional office listed in Appendix IV of the Catalog.
Headquarters Office Albert Pelmoter, Chief, Program Policy
Branch, Municipal Construction Division, WH-547, Office of
Water Programs Operations, Environmental Protection Agency,
Washington. DC 20460. Telephone (202) 382-7359 (use same 7-
digit number for FTS)
RELATED PROGRAMS: 66.418, Construction Grants for
Wastewater Treatment Works.
EXAMPLES OF FUNDED PROJECTS: State water pollution control
agencies are provided funds to defray expenses incident to the
State's assumption of full responsibility for the conduct of certain
construction giants requirements. These activities mclude review
and certification functions, related to facilities plans and plans and
specifications, inspections, grant applications, construction con-
tracts, financial management systems,	and administrative
adequacy, adequacy of requests for payments, O & M	en-
gineering subagreements, change orders, etc.
CRITERIA FOR SELECTING PROPOSALS: Grants are given only
to States and the State must poaaess (or be able to gam) the exper-
tise requisite to carrying out the delegated functions. Agreements
for such grants will stipulate the State's organizational unit (to
carry out the functions), staffing plan, accounting and auditing
system, detailed statement on delegated functions, and
for assuming additional delegated functions.
66.454 WATER QUALITY MANAGEMENT
PLANNING
(205(|))
FEDERAL AGENCY: OFFICE OF WATER, ENVIRONMENTAL
PROTECTION AGENCY
AUTHORIZATION: Clean Water Act, as	Section 2050);
Public Law 97-117
OBJECTIVES: To assist States in carrying out water quality manage-
meat planning.
TYPES OF ASSISTANCE: Formula Grants.
USES AND USE RESTRICTIONS: Funds are provided to State water
quality management agencies to carry out water quality manage-
ment planning States may contract with area wide and local agen-
cies.
ELIGIBILITY REQUIREMENTS:
Applicant Eligibility: State Water Quality Management Agencies.
Beneficiary Eligibility-. Same as Applicant Eligibility
Qrrrirntiiln/Docmneiilaliuu: Compliance with 40 CFR 35, Subpart G
and Subpart A. Costs will be determined m accordance with OMB
Circular No A-87 for State and local governments.
APPLICATION AND AWARD PROCESS:
Prrapfil (ration Coordination: Preapplication coordination with appro-
priate Regional Office is recommended. The standard application
forms as furnished by the Federal agency and required by OMB
Circular No A-102 must used for this program.
Application Procedure: The grant application must be submitted to
the appropriate EPA Regional Administrator's Office
Award Procedure: Grant application is reviewed by appropriate EPA
Regional Office
Deadlines Grant application forms must be submitted according to
dates established by the Regional Administrators. Consult the ap-
propriate EPA Regional Office for details.
Range of ApproTal/Disapproral Time: Approximately 45 days.
Appeals: None.
Renewals: Not applicable.
ASSISTANCE CONSIDERATIONS:
Formula and Matching Requirements: Each fiscal year, the Adminis-
trator shall reserve an amount not to exceed one percent of the
amount allotted and available for obligation or $100,000, which-
ever is greater, for the purposes of making grants to the Stales to
carry out water quality management planning.
Length and Time Phasiag at Assistance: As determined m accordance
with Section 205(j) of Public Law 97-117.
POST ASSISTANCE REQUIREMENTS:
Reports: Annual expenditure reports.
Audita: In accordance with the provisions of Attachment P to Circu-
lar A-102, "Uniform requirements for grants to State and local
governments, audits shall be made of organizations carrying out
this program at least once every two years. These audits will be
made in accordance with the General Accounting Office gtnde-
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ASSISTANCE ADMINISTRATION
5700
12/3/84
lines, 'Standards for Audit of Oovexmtteat Organizations, Pro-
grams, Activities and Functions,' and additions! OMB guidance."
Records Financial records, including all documents to support en-
tries on accounting records and to substantiate charges to each
grant, must be kept available to personnel authorized to riammr
EPA grant accounts. All records kept for three years from date of
submission of the	status report. If questions
remain, records retained until matter is completely resolved.
FINANCIAL INFORMATION:
Account Meatiflcatiaa: 68-0103-0-1-304.
ObUjatfons: (Grants) FY 82 SO; FY 83 est *45,000,000; and FY 84
est 124,400,000.
Range and Avenge ot Financial Asslstme. 1100,000 to S2.S00.000;
$300,000.
PROGRAM ACOOMPUSHMDTIS: In fiscal year 1983, 15 grant
awards were made.
REGULATIONS, GUIDELINES, AND LITERATURE: General Grant
Regulations and Procedures, EPA; State and Local Assistance
Programs. Subpart A and Subpart O of 40 CFR 33; Grants Ad-
ministration Manual
INFORMATION CONTACTS:
Regional or Local Office Contact appropriate EPA Regional Office
listed in Appendix IV of the Catalog.
Headquarters Office: Carl F Myers, Acting Director, Water Plan-
ning Division, Office of Water Program Operations. Office of
Water, EPA, 401 M Street, S.W., Washington, DC 20460. Tele-
phone. (202) 382-7080.
RELATED PROGRAMS: 66.419, Water Pollution Control—State and
Interstate Program Grants; 66.418, Construction Grants for
Wastewater Treatment Works.
EXAMPLES OF FUNDED PROJECTS: Grants to States for revising
water quality standards; performing wasteload allocations/total
maximum daily loads, nonpoint source activities and planning.
CRITERIA FOR SELECTING PROPOSALS: Funds are awarded to
State agencies m accordance with Section 205(j) of the Clean
Water Act and annual EPA program guidance.
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ASSISTANCE ADMINISTRATION
5700
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OFFICE OF RESEARCH AND DEVELOPMENT
6&500 ENVIRONMENTAL PROTECTION-
CONSOLIDATED RESEARCH GRANTS
FEDERAL AGENCY: OFFICE OF RESEARCH AND DEVELOP-
MENT, ENVIRONMENTAL PROTECTION AGENCY
AUTHORIZATION: Clean Air Act a* «m>
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ASSISTANCE ADMINISTRATION
INFORMATION CONTACTS;
Regional or Local Office Individuals are encouraged to communi-
cate with the appropriate EPA Regional Office listed in Appendix
IV of the Catalog.
Hcadqnrten Office: For information on grant applications and pro-
cedures contact Environmental Protection Agency, Grants Ad-
ministration Division, PM 21& Washington, DC 20440. For pro-
gram information contact Richard E. Mariand, Office of Research
and Development, RD-675, Environmental Protection Agency,
Washington, DC 20460. Telephone. (202) 382-5744 (use same 7-
digit number for FTS).
BELATED PROGRAMS: 66.501, Air Pollution Control Research
Grants; 66.502, Pesticides Control Research Gnats; 66.504, Solid
Waste Disposal Research Grants; 66.505, Water Pollution Con-
trol—Research, Development, and Demonstration Grants; 66.506,
Safe Drinking Water Research and Demonstration Giants, 66.507,
Toxic Substances Research Grants; 66.801, Hazardous Waste Man-
agement Financial Assistance to States.
EXAMPLES OF FUNDED PROJECTS; None.
CRITERIA FOR SELECTING PROPOSALS: A proposal is judged
for (A) scientific merit in terms of: (1) strengths and weaknesses of
the project; (2) adequacy of overall project design; (3) competen-
cy of proposed staff, (4) suitability of applicant's available re-
sources; (J) appropriateness of the proposed project period and
budget; and (6) probability that the project will accomplish stated
objectives; and for (B) program interest in terms of' (1) the need
for the proposed research; and (2) relationship to objective^) in an
approved work plan.
66.501 AIR POLLUTION CONTROL RESEARCH
GRANTS
FEDERAL AGENCY: OFFICE OF RESEARCH AND DEVELOP-
MENT, ENVIRONMENTAL PROTECTION AQENCY
AUTHORIZATION: Clean Air Act, as nmmrtrd, Public Law 93-95;
42 U S C 7401 et seq
OBJECTIVES: To support and promote research and development
projects relating to the causes, effects, extent, prevention and con-
trol of air pollution. '
TYPES OF ASSISTANCE: Project Grants (Cooperative Agreements).
USES AND USE RESTRICTIONS: Available for allowable direct
cost expenditures incident to research performance plus allocable
portions of allowable indirect costs of the institutions, in accord-
ance with the established policies of EPA. JOINT FUNDING-
This program is considered suitable for joint funding with closely
related Federal financial assistance programs in accordance with
the provisions of OMB Circular No A-lll For programs that are
not identified as suitable for joint funding, the applicant may con-
sult the headquarters or field office of the appropriate funding
agency for further information on statutory or other restrictions
involved.
ELIGIBILITY REQUIREMENTS:
Applicant PHgWUly: This program is available to each State, terri-
tory and possession of the U S., including the District of Colum-
bia, for public, private. State universities and colleges, hospitals,
laboratories, State and local health departments, and other public
or private nonprofit institutions. Grants may also be awarded to
individuals who have demonstrated unusually high scientific abili-
ty. Profit wHig organizations are not eligible.
B—rflrliry HlglMHtyr Same as Applicant Eligibility
QrJwMala/Dor—rntaWnw Costs will be determined m accordance
with OMB Circular No A-87 for State and local governments and
OMB Circular No. A-21 for educational institutions.
APPLICATION AND AWARD PROCESS:
PreapfikatkM CoanttaatkM: Discussion with the Office of Research
and Development laboratories is advisable for research coopera-
tive agreement applications. No preapplicaaon assistance a availa-
ble for research grant applications. An environmental impact as-
sessment is required for this program.
AfpUodioa Pioteduie. Requests for application forma and completed
applications must be submitted to the Environmental Protection
5700
12/3/84
Agency, Grants Administration Division, PM 216, Washington,
DC 20460. This program is subject to the provisions of OMB Cir-
cular No. A-110. The standard application forms as ftirnished by
the Federal agency and required by OMB Circular No. A-102
must be used for this program.
Award Piotedaisc Each application shall be subjected to administra-
tive evaluation to determine the adequacy of the application in re-
lation to grant regulations and to program evaluation;
and extramural review determines the merit and relevance of the
project
Dcadttaes: None.
Rage of Appnwal/Dtmpnwal Hoe: Approximately 180 days.
Appeals: No appeals procedure; however, revised proposals may be
submitted.
Renewals: None. Standard grant application should be prcpaied and
submitted which will be reviewed in same """" as a new appli-
cation and will compete for available funds.
ASSISTANCE CONSIDERATIONS:
Formula sad MateMag Requirements: A mmimnm of 3 percent cost
sharing is required.
Length aad Time Pharing of Aadstance Giants normally funded on a
12-month basts (yearly). Total approved period may not exceed
five years.
POST ASSISTANCE REQUIREMENTS:
Reports Quarterly interims and final progress, expenditure, equip-
ment and invention reports.
Aadttc Grants are subject to inspection and audit by representatives
of the Comptroller General of the United States and EPA or any
authorized representative Federal audits will be made in accord-
ance with the policies of OMB Circular No. A-73 to ensure that
ftinda have been -applied efficiently, economically, and effectively
Periodic audits should be made as part of the recipient's systems
of financial management and internal control to meet terms and
conditions of grants apd other agreements In accordance with the
provisions of Attachment P to Circular A-102, "Uniform Require-
ments for Grants to State and Local Governmenta", audits shall
be made of organizations carrying out this program at least once
every two years. Tbeae audita will be made in accordance with
the General Accounting Office guidelines, "Standards for Audit of
Governmental Organizations, Programs, Activities and Func-
tions", and additional OMB guidance.
Rccorda: Financial record*, including all documents to support en-
tries on accounting records and to substantiate charges to each
grant, must be kept available to personnel authorized to examine
EPA grant accounts. All records must be maintained for three
years from the date of submission of the final expenditure report
If questions still remain, such as those raised aa a result of audit,
related records shoold be retained until the matter is completely
resolved.
FINANCIAL INFORMATION:
Aecoant MeilMcalkaai 68-0107-0-1-999.
nMiguiLi— (Grants and Cooperative Agreements) FY 82
SI 1,721,000; FY 83 est $10,157,000; and FY 84 est $3,639,000
Range aad Average of Raaadal Aadstaaee: (FY 82) $10,000 to
$1,074,164, $127,402. (FY 83 est) S10.000 to 1500,000; $125,000.
(FY 84 est) average $125,000.
PROGRAM ACCOMPLISHMENTS: In fiscal year 1982, 92 awards
were made. A slight decrease m the number of projects will be
funded in fiscal year 1983 In fiscal year 1984, 60 grants and coop-
erative agreements are expected to be awarded. Detailed program
information available m ORD Pmgiam Guide (see REGULA-
TIONS. GUIDELINES, and LITERATURE Section below)
REGULATIONS, GUIDELINES, AND LITERATURE: General Grant
Regulations and Procedures, Environmental Protection Agency
(40 CFR Part 30); Interim Regulations, Research and Demonstra-
tion Grants, Environmental Protection Agency (40 CFR Part 40)
"Grants Administration Manual" available from the Natxmal
Technical Information Service, Springfield, VA 23161 on a sub-
scription basis , "EPA and the Academic Community, Solicitation
for Grant Proposals," and the "Office of Research and Devdop-
3-A-15
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ASSISTANCE ADMINISTRATION
5700
12/3/84
mcnt Program Guide" available free from ORD Publications,
EPA/CERI, Cincinnati. OH 43268.
INFORMATION CONTACTS:
"ta*—1 or Local Office: Individuals are encouraged to communi-
cate with the appropriate EPA Regional Office listed in Appendix
IV of the Catalog.
Headqaartcn Office: For information concerning grant applications
and procedures contact Environmental Protection Agency, Chants
Administration Division, PM 216, Washington, DC 20460. For
program information contact Richard E. Marland, Office of Re-
search and Development, RD-675, Environmental Protection
Agency, Washington. DC 2046a Telephone: (202) 382-3744 (use
same 7-digit number for FTS).
RELATED PROGRAMS: 47.050, Astronomical. Atmospheric, Earth
and Ocean Srirnmt; 66.001, Air Pollution Control Program
Grants; 66.003, Air Pollution Control Manpower Training Grants;
66.006, Air Pollution Control—Technical Training; 66.007, Air
Pollution Control—National Ambient Air and Source Emission
Data, 66.008, Air Pollution Control—Technical Assistance; 66.009,
Air Pollution Control—Technical Information Services, 66.500,
Environmental Protection—Consolidated Research Grants.
EXAMPLES OF FUNDED PROJECTS: None.
CRITERIA FOR SELECTING PROPOSALS: A proposal is judged
for (A) scientific merit m terms of: (I) strengths and weaknesses of
the project; (2) adequacy of overall project design, (3) competen-
cy of proposed staff; (4) suitability of applicant's available re-
sources; (J) appropriateness of the proposed project period and
budget; and (6) probability that the project will accomplish stated
objectives, and for (B) program interest in terms of- (1) the need
for the proposed research; and (2) relationship to object!ve(s) in an
approved work plan.
66*02 PESTICIDES CONTROL RESEARCH
GRANTS
FEDERAL AGENCY: OFFICE OF RESEARCH AND DEVELOP-
MENT, ENVIRONMENTAL PROTECTION AGENCY
AUTHORIZATION: Federal Insecticide, Fungicide and Roden trade
Act, Public Law 92-516; 7 USC. 136 et seq as amended by
Public Laws 94-140 and 95-396
OBJECTIVES: To support and promote the coordination of research
projects relating to human and ecological effects from pesticides,
pesticide degradation products, and alternatives to pesticides.
TYPES OF ASSISTANCE: Project Grants (Cooperative Agreements).
USES AND USE RESTRICTIONS: Available for the allowable direct
cost expenditures incident to research performance plus allocable
portions of allowable indirect costs of the institutions, in accord-
ance with the established policies of EPA. JOINT FUNDING
This program is considered suitable for joint funding with closely
related Federal financial nmHtamr programs in accordance with
the provisions of OMB Circular No A-l 11 For programs that are
not identified as suitable for joint funding, applicant may consult
the headquarters or field office of the appropriate funding agency
for further information on statutory or other restrictions involved.
ELIGIBILITY REQUIREMENTS:
Applicant Eligibility; This program is available to each State, terri-
tory and possession of the U S., including the District of Colum-
bia, for public or private State colleges and universities, State and
local governments, and individuals.
Beneficiary Eligibility: Same as Applicant Eligibility.
CrwVntliti/Docnmfiitation: Costs will be determined in accordance
with OMB Circular No. A-87 for State and local governments,
and OMB Circular No A-21 for educational institutions.
APPLICATION AND AWARD PROCESS:
Piwpplterton Coordination: Discussion with the Office of Research
and Development laboratories is advisable for research coopera-
tive agreement applications No preapplication nssmancf is availa-
ble for research grant applications. An environmental impact as-
sessment is required for this program.
Application Procedure: Requests for application forms and completed
applications must be submitted to Environmental Protection
Agency, Grants Administration Division, PM 216, Washington,
DC 20460. This program is subject to the provisions of OMB Cir-
cular No. A-l 10. The standard application forms as furnished by
the Federal agency and required by OMB Circular No. A-102
must be used for this program.
Award Procedure: Each application shall be subjected to administra-
tive evaluation to determine the adequacy of the application m re-
lation to grant regulations, and to program evaluation;
and extramural review determines the merit and relevance of the
project
Deadlines: None.
Range of Approral/Dtapfroval lime: Approximately 180 days.
Appeals: No appeals procedure; however, revised proposals may be
submitted.
Renewals: None. Standard grant application should be prepared and
submitted which will be reviewed in same mnnw as a new appli-
cation and will compete for available funds.
ASSISTANCE CONSIDERATIONS:
Formula and Matching ReqntrancatK A minimum of 5 percent cost
sharing is required.
Leagtfc and TlaM Pkastng of Assistance: Grants normally funded on a
12-month basis (yearly). Total approved project period may not
exceed five years.
POST ASSISTANCE REQUIREMENTS:
Reports: Quarterly interims and final progress, expenditure, equip-
ment and invention reports.
A adits: Grants are subject to inspections and audit by representatives
of the Comptroller General of the United States and EPA or any
authorized representative. Periodic audits should be as part
of the recipient's systems of financial management and internal
control to meet terms and conditions of grants and other agree-
ments. Federal audits will be made m accordance with the policies
of OMB Circular No. A-73 to ensure that funds have been applied
efficiently, economically, and effectively. In accordance with the
provisions of Attachment P to Circular A-102, "Uniform Require-
ments for Grants to State and Local Governments", audits shall
be made of organizations carrying out this program at least once
every two years. These audits will be made in accordance with
the General Accounting Office guidelines, "Standards for Audit of
Government Organizations. Programs, Activities and Functions",
and additional OMB guidance.
Records: Financial records, including all documents to support en-
tries on accounting records and to substantiate changes to each
grant, must be kept available to personnel authorized to examine
EPA grant accounts. All records must be maintained until expira-
tion of three years from the date of submission of the final expend-
iture report If questions still remain, such as those raised as a
result of audit, related records should be retained until the matter
is completely resolved.
FINANCIAL INFORMATION:
Account Identification: 68-0107-0-1-999
Obligations (Grants and Cooperative Agreements) FY 82
$3,202,000; FY 83 est J1,000,000; and FY 84 est $708,000.
Range and Ayerage of Fhaadal Assistance: (FY 82) $10,000 to
$367,292; $123,149 (FY 83 est) average $120,000 (FY 84 est)
average $120,000
PROGRAM ACCOMPLISHMENTS: In fiscal year 1982, 26 awards
were made A decrease is estimated for fiscal year 1983 Fiscal
year 1984 awards are expected to decrease slightly Detailed pro-
gram information is available u ORD Program Guide (see REG-
ULATIONS, GUIDELINES, AND LITERATURE Section
below).
REGULATIONS, GUIDELINES, AND LITERATURE: General
Grant - Regulations and Procedures, Environmental Protection
Agency (40 CFR Part 30); Interim Regulations, Research and
Demonstration Grants, Environmental Protection Agency (40
CFR Part 40) "Grants Administration Manual," available from
the National Technical Information Service, Springfield, VA
22161 on a subscription basis; "EPA and the Academic Communi-
ty, Solicitation for Grant Proposals", and the "Office of Research
3-A-16
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assistance administration
5700
12/3/84
and Development Program Guide" available free from ORD Pub-
bcatxma, EPA/CBRI, Cwirmniti. OH 43268.
INFORMATION CONTACTS:
"H*—i or Local Office: Individuals arc encouraged to communi-
cate with the appropnate EPA Regional Office listed m Appendix
TV of the Catalog.
Headqaarten Office: For infomnitim concerning grant applications
and procedures contact Environmental Protection Agency, Grants
Administration Division, PM 216. Washington, DC 20460. For
program information contact Richard E. Marlsnd, Office of Re-
search and Development, RD-675, Environmental Protection
Agency, Washington, DC 20460. Telephone- (202) 382-5744 (use
tame 7-digit number for FTS).
RELATED PROGRAMS: 10.033, Dairy Indemnity Payments; 13.607,
Environmental Contaminant Evaluation; 66.500, Environmental
Protection—Consolidated Research Grants.
EXAMPLES OF FUNDED PROJECTS: None.
CRITERIA FOR SELECTING PROPOSALS: A proposal is judged
for (A) scientific merit m terms of: (1) strengths and weaknesses of
the project; (2) adequacy of overall project design; (3) competen-
cy of proposed staff; (4) suitability of applicant's available re-
sources; (3) appropriateness of the proposed project period and
budget, and (6) probability that the project will accomplish stated
objectives; and for (B) program interest in terms of: (1) the need
for the proposed research; and (2) relationship to objective(s) in an
approved work plan.
66304 SOLID WASTE DISPOSAL RESEARCH
GRANTS
FEDERAL AGENCY: OFFICE OP RESEARCH AND DEVELOP-
MENT, ENVIRONMENTAL PROTECTION AGENCY
AUTHORIZATION: Solid Waste Disposal Act, as amended by the
Resource Conservation and Recovery Act of 1976; 42 U S.C.
6901, Public Law 94-3B0-, Section 8001.
OBJECTIVES: To support and promote the coordination of research
and development to the area of collection, storage, utilization, sal-
vage or final disposal of solu} waste.
TYPES OF ASSISTANCE: Project Orsnts (Cooperative Agreements)
USES AND USE RESTRICTIONS: Available for the allowable direct
cost expenditures incident to research performance plus allocable
portions of allowable indirect costs of the institutions, in accord-
ance with established EPA policies. JOINT FUNDING This pro-
gram is considered suitable for joint funding with closely related
Federal financial assistance programs id accordance with the pro-
visions of OMB Circular No. A-lll. For programs that are not
identified as suitable for joint funding, the applicant may consult
the headquarters or field office of the appropnate funding agency
for further information on statutory or other restrictions involved.
ELIGIBILITY REQUIREMENTS:
AppUeaat Eligibility: This program is available to each State, terri-
tory and possession of the U S.. including the District of Colum-
bia, for pubbc or private agencies, public, private, State universi-
ties and colleges, State and local governments, and individuals.
Profit-making organizations are not eligible.
BfwBriary Eligibility: Same as Applicant Eligibility
Orwtwthlt/DociaMillation. Coats will be determined m accordance
with OMB Circular No A-87 for State and local governments,
and OMB Circular No. A-21 for educational institutions.
APPLICATION AND AWARD PROCESS:
Prtaupllcatke CoqnttaatfcT1 Discussion with the Office of Research
and Development laboratories is advisable for research coopera-
tive agreement applications. No preapplication amntsnce is availa-
ble for research grant applications. An environmental impact as-
sessment a required for this program.
Application Piumduie. Requests for application forms and completed
applications must be submitted to EPA Grants Administration Di-
vision, PM 216, Washington, DC 20460 This program is subject
to the provisions of OMB Circular No A-l 10 The standard appli-
cation forms as furnished by the Federal agency and required by
OMB Circular No. A-102 most be used for this program.
Award Piocadaie. Each application shall be subjected to administra-
tive evaluation to determine adequacy of application m relation to
grant regulations, and to program evaluation; twhni^fi gad extra-
mural review determines the merit and relevance of the project
DradHnnr None.
Range of Approral/Dbapproral Time: Approximately 180 days.
Appeals: No appeals procedure; however, revised proposals may be
submitted.
Renewals: None. Standard grant application should be prepared and
submitted, which will be reviewed in same ""¦m as a new appli-
cation and will compete for available funds.
ASSISTANCE CONSIDERATIONS;
Fanmda ami Matching Reqatroaemts: A minimum of 3 percent coat
sharing is required.
Leogtk «ad Time Phasing ot Amlitimt. Grants normally funded on a
12-month basis (yearly). Total approved project penod may not
exceed five year*.
POST ASSISTANCE REQUIREMENTS:
Repasts: Quarterly interims and fi"»l progress, expenditure, equip-
ment and invention reports.
Audita: Grants are subject to inspection and audit by representatives
of the Comptroller General of the United States and EPA or any
authorized representative. Federal audits will be made m accord-
ance with the policies of OMB Circular No. A-73 to ensure that
funds have been applied efficiently, economically, and effectively
Periodic audita should be made as part of the recipient'* systems
of financial management and internal control to meet terms and
conditions of grants and other agreements. In accordance with the
provisions of Attachment P to Circular A-102, "Uniform Require-
ments for Grants to State and Local Governments", audits shall
be made of organizations carrying out this program at least once
every two yean. These audits will be made in accordance with
the General Accounting Office guidelines, "Standards for Audit of
Government Organizations, Programs, Activities and Functions",
and additional OMB guidance.
Records: Financial records, including all documents to support en-
tries on accounting records and to substantiate charges to each
giant, must be kept available to personnel authorized to examine
EPA grant accounts. All records most be main tamed until expira-
tion of three years from the date of submission of the final expend-
iture report. If questions still remain, such as those raised as a
result of audit, related records should be retained imtil the matter
is completely resolved.
FINANCIAL INFORMATION:
Account Mentmeatfcm: 68-0107-0-1-999.
Obligations: (Grants and Cooperative Agreements) FY 82
18,800,000; FY 83 est 18,363,000; and FY 84 est S4.324.000.
Range and Avenge of Financial Aartstance: (FY 82) $7,500 to
$1,088,200, $162,963; (FY 83 est) SI0.000 to $300,000; $130,000.
(FY 84 est) average $130,000.
PROGRAM ACCOMPLISHMENTS: In fiscal year 1982, 34 awards
were made In fiscal year 1983, 30 projects are expected to be
awarded The estimate of projects for fiscal year 1984 is 30. De-
tailed program information is available in ORD Program Guide
(see REGULATIONS, GUIDELINES, AND LITERATURE
Section below)
REGULATIONS, GUIDELINES, AND LITERATURE: General Grant
Regulations and Procedures, Environmental Protection Agency
(40 CFR Part 30); Interim Regulations Research and Demonstra-
tion Grants, Environmental Protection Agency (40 CFR Part 40).
"Grants Administration Manual," available from the National
Technical Information Service, Springfield, VA 22161 on a sub-
scription basis, "EPA and the Academic Community, Solicitation
for Grant Proposals", and the "Office of Research and Develop-
ment Program Guide" available free from ORD Publications,
EPA/CERI, Cincinnati, OH 43268.
INFORMATION CONTACTS:
Regional or Local Office: Individuals are encourage to communicate
with the appropriate EPA Regional Office listed in Appendix IV
of the Catalog
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ASSISTANCE ADMINISTRATION
5700
12/3/84
llindijanlm Office For information concerning giant application!
and procedure* contact Environmental Protection Agency, Grants
Administration Division, PM 216, Washington, DC 20460 For
program information contact Richard E. Mariand, Office of Re-
search and Development, RD-675, Environmental Protection
Agency, Washington, DC 20460, Telephone: (202) 382-3744 (use
same 7-digit number for FTS).
RELATED PROGRAMS: 66.500, Environmental Protection—Consoli-
dated Research Grants.
EXAMPLES OP FUNDED PROJECTS: None.
CRITERIA FOR SELECTING PROPOSALS: A proposal is judged
for (A) scientific merit in terms of. (1) strengths and weaknesses of
the project; (2) adequacy of overall project design; (3) competen-
cy of proposed staff, (4) suitability of applicant's available re-
sources, (3) appropriateness of the proposed project period and
budget, and (6) probability that the project will accomplish stated
objectives, and for (B) program interest in terms of: (1) the need
for the proposed research; and (2) relationship to objective^) in an
approved work plan.
66.505 WATER POLLUTION CONTROL-
RESEARCH, DEVELOPMENT, AND
DEMONSTRATION GRANTS
FEDERAL AGENCY: OFFICE OF RESEARCH AND DEVELOP-
MENT, ENVIRONMENTAL PROTECTION AGENCY
AUTHORIZATION: Clean Water Act as	Public Law 95-
217; 33 U.S.C 1231 et seq.
OBJECTIVES: To support and promote the coordination and accelera-
tion of research, development, and demonstration projects relating
to the causes, effects, extent, prevention, reduction and elimination
of water pollution.
TYPES OF ASSISTANCE: Project Orants (Cooperative Agreements)
USES AND USE RESTRICTIONS: Available for allowable direct coat
expenditures incident to research performance plus allocable por-
tions of allowable indirect costs of the institution, in accordance
with established EPA policies. JOINT FUNDING This program
is considered suitable for joint funding with closely related Feder-
al finmwiiil assistance programs in accordance with the provisions
of OMB Circular No. A- 111 For programs that are not identified
as suitable for joint funding, the applicant may consult the head-
quarters or field office of the appropriate funding agency for fur-
ther information on statutory or other restrictions involved
ELIGIBILITY REQUIREMENTS:
Applicant Eligibility: This program is available to each State, terri-
tory and possession of the U S., including the District of Colum-
bia, for public, private, State, and community universities and col-
leges, hospitals, laboratories, State water pollution control agen-
cies, interstate agencies. State and local governments, other public
or private nonprofit agencies, institutions; organizations, grants
may also be awarded to individuals who have demonstrated un-
usually high scientific ability Grants under certain sections of this
law may be awarded to profit-making organizations.
Beneficiary Hlglbfitty: Same as Applicant Eligibility
tv
Federal funds shall not exceed 73 percent
Length aid TbM Phasing of Assistance: Grants normally Funded on a
12-month basis (yearly). Total approved project penod may not
exceed five years.
POST ASSISTANCE REQUIREMENTS:
Reports: Quarterly interims and final programs, expenditure, equip-
ment and invention reports.
Aadtts: Grants are subject to inspection and audit by EPA and the
Comptroller General of the U. S. or any authorized representa-
tive. Federal audits will be made in accordance with the policies
of OMB Circular No. A73 to ensure that funds have been applied
efficiently, economically, and effectively. Penodic audits should
be made as part of the recipient's systems of	management
and internal control to meet terms and conditions of grants and
other agreement*. In accordance with the provisions of Attach-
ment P to Circular A102, "Uniform Requirements for Grants to
State and Local Governments", audits shall be made of organiza-
tions carrying out this piogiam at least once every two yean.
These audits will be made m accordance with the General Ac-
counting Office guidelines, "Standards for Audit of Government
Organizations, Programs, Activities and Functions," and addition-
al OMB guidance.
Records; Financial records, including all documents to support en-
tries on accounting records and to substantiate charges to each
grant, must be kept available to personnel authorized to examine
EPA grant accounts. All records must be maintained until expira-
tion of three years from the date of submission of the final expend-
iture report If questions still remain, such as those rased as a
result of audit, related records should be retained until the nt»ttrr
is completely resolved.
FINANCIAL INFORMATION:
Account Identification: 68-0107-0-1-999.
Obligations: (Grants and Cooperative Agreements) FY 82
*17,869,000; FY 83 est $7,686,000; and FY 84 est $4,376,000.
Range and Average of Fbaadal Aaslslawti; Research Grants: (FY 82)
$13,000 to $834,433; 1119,800. (FY 83 est) $10,000 to $500,000;
$113,000. (FY 84 est) average $120,000. Demonstration Grants:
(FY 82) $1201000 to $746,783; $228,363. (FY 83 est) $73,000 to
$300,000; $200,000. (FY 84 est) average $193,000.
PROGRAM ACCOMPLISHMENTS: In fiscal year 1982, 141 awards
were made. A large decrease in the number of projects is expected
in fiscal year 1983 and a large decrease is nprrted in fiscal year
1984. Detailed program information b available in the ORD Pro-
gram Guide (see REGULATIONS, GUIDELINES, AND LIT-
ERATURE Section below)
REGULATIONS, GUIDELINES, AND LITERATURE: General Giant
Regulations and Procedures, Environmental Protection Agency
(40 CFR Part 30); Interim Regulations, Research and Demonstra-
tion Grants, Environmental Protection Agency (40 CFR Part 40).
"Grants Administration Manual," available from the National
Technical Information Service, Springfield, VA 22161 or a sub-
scription basis; "EPA and the Academic Community, Solicitation
for Grant Proposals," and the "Office of Research and Develop-
ment Program Guide" available free from ORD Publications,
EPA/CERi, Cincinnati, OH 43268
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ASSISTANCE ADMINISTRATION
INFORMATION CONTACTS:
Regional or Local Office: Individuals are encouraged to communi-
cate with appropriate EPA Regional Office listed in Appendix [V
of the Catalog Grants authorized under Section 108 deal with
pollution control in those areas which drain into the Great Irtrn
and are handled by the Great Lakes Coordinator in the Region V
office
Headquarters OfSce: For information concerning grant applications
and procedures contact Environmental Protection Agency, Grants
Administration Division, PM 216. Washington, DC 20460. For
program information contact Richard E. Marland, Office of Re-
search and Development, RD-675, Environmental Protection
Agency, Washington, DC 20460 Telephone. (202) 382-5744 (use
same 7-digit number for FTS).
RELATED PROGRAMS: 15 505, National Water Research and Devel-
opment Program, 66.418, Construction Grants for Wastewater
Treatment Works; 66.500, Environmental Protection—Consoli-
dated Research Grants; 66 506, Safe Drinking Water Research and
Demonstration Grants.
EXAMPLES OP FUNDED PROJECTS: None.
CRITERIA FOR SELECTING PROPOSALS: A proposal is judged
for (A) scientific merit in terms of: (I) strengths and weaknesses of
the project, (2) adequacy of over-all project design; (3) competen-
cy of proposed staff; (4) suitability of applicant's available re-
sources, (5) appropriateness of the proposed project period and
budget, and (6) probability that the project will accomplish stated
objectives, and for (B) program interest m terms of. (I) the need
for the proposed research, and (2) relationship to objectve(s) in an
approved work plan.
66.506 SAFE DRINKING WATER RESEARCH AND
DEMONSTRATION GRANTS
FEDERAL AGENCY: OFFICE OF RESEARCH AND DEVELOP-
MENT, ENVIRONMENTAL PROTECTION AGENCY
AUTHORIZATION: Public Health Service Act as	by the
Safe Drinking Water Act as amended by Public Law 95-190.
OBJECTIVES: To conduct research relating to the causes, diagnosis,
treatment, control, and prevention of physical and mental diseases
and other impairments of man resulting directly or indirectly from
contaminates in water or to the provision of a dependably safe
supply of drinking water. Development and demonstration of any
project which will demonstrate a new or unproved method, ap-
proach, or technology for providing a dependably safe supply of
drinking water to the public or which will investigate and demon-
strate health implications involved in the reclamation, recycling,
and reuse of waste waters for drinking and/or the preparation of
safe and acceptable drinking water
TYPES OF ASSISTANCE: Project Grants (Cooperative Agreements).
USES AND USE RESTRICTIONS: Available for the allowable direct
cost expenditures incident to research performance plus allocable
portions of allowable indirect coats of the institutions, in accord-
ance with the established policies of EPA. JOINT FUNDING:
This program is considered suitable for joint funding with closely
related Federal financial assistance programs in accordance with
the provisions of OMB Circular No A111 For programs that are
not identified as suitable for joint funding, the applicant may con-
sult the headquarters or field office of the appropriate funding
agency for further information on statutory or other restrictions
involved.
ELIGIBILITY REQUIREMENTS:
Applicant EHgMUty: This program a available to each State, terri-
tory and possession of the U S, including the District of Colum-
bia, for public, private State colleges and umvenmo, public agen-
cies, State and local governments, other organizations and individ-
uals. Profit-making organizations are not eligible.
Burtlriary EHgOOftr Same as Applicant Eligibility
OfdftUh/DonimmaUun: Costs will be determined in accordance
with OMB Circular No A-87 for State and local governments and
OMB Circular No A-21 for educational msbtutKms.
5700
12/3/84
APPLICATION AND AWARD PROCESS:
n«^i..n... Discussion with the Office of Research
and Development laboratories is advisable for research coopera-
tive agreement applicants. No preapplicabon	ia available
for research gnu applications. An environmental hbjmk assess-
ment is required for this program.
AipHcaMm Proceduie. This program is subject to the provisions of
OMB Circular No A-110. The standard application forms as fur-
nished by the Federal agency and required by OMB Circular No.
A-102 most be used for this program. Requests for application
forms and completed applications must be submitted to the Envi-
ronmental Protection Agency, Grants Administration Division,
PM-216, Washington, DC 20460.
Award Procedure: Each application shall be subjected to administra-
tive evaluation to determine the adequacy of the application in re-
lation to grant regulations and to program evaluation,
and extramural review to determine the merit and relevance of the
project Applications submitted under Section 1444 will be re-
viewed by the National Drinking Water Advisory Council prior
to award.
Deadlines None.
Ruga of ApprOTal/Dfsapgroral Ttae: Approximately 180 days.
Appeals No appeals procedure as nidi. However, revised proposals
may be submitted.
Renewals: None. Standard grant application should be prepared and
submitted and will be reviewed m ««« immw as a new applica-
tion and will compete for available ftmds.
ASSISTANCE CONSIDERATIONS:
Formala aad Matching Rujali unite Section 1442. minimum of 5
percent cost sharing is required. Section 1444: Total coos of con-
struction of any facility shall not exceed 66 2/3 percent Federal
and 75 percent of any other costs.
Length and Use Phasing of Assistance: Grants normally funded on
a 12-month basis (yearly). Total approved project period may not
exceed five yean.
POST ASSISTANCE REQUIREMENTS:
Reports: Quarterly interims and final ptogitss, expenditure, equip-
ment and invention reports.
Aadita: Grants are subject to inspection and audit by representatives
of the Comptroller General of the United States and EPA or any
authorized representative. Federal audits will be made in accord-
ance with the policies of OMB Circular No. A-73 to ensure that
funds have been applied efficiently, economically, and effectively.
Periodic audits should be made as part of the recipient's systems
of financial management and interna] control to meet terms and
conditions of grants and other agreements. In accordance with the
provisions of Attachment P to Circular A-IQ2, "Uniform Require-
ments for Grants to State and Local Governments", audits shall
be made of organizations carrying out this piugiam at least aace
every two years. These audita will be made in accordance with
the General Accounting Office guidelines, "Standards for Audit of
Government Organisations, Programs, Activities and Functions",
and additional OMB guidance.
Records: Financial records, mr.lndmg all documents to support en-
tries on accounting records and to substantiate charges to each
grant, must be kept available to personnel authorised to
EPA grants accounts. AO such records most be maintained until
expiration of three yean from the date of	of the final
expenditure report. If questions still remain, such as those raised as
a result of audit, related records should be retained until the
matter is completely resolved.
FINANCIAL INFORMATION:
Aeeoaat HwHBmhs: 68-0107-0-1-999.
OUgMkac (Grants and Cooperative Agreements) FY 82
518,050,000; FY 83 est 510,136^00; and FY 84 eat $6,679,000
Raage aad Average of Ftnadal	(FY 82) <24,767 to
(470,000; $150,417, (FY 83 est) 124,000 to 1400,000; $145,000; (FY
84 est) average $145,000.
PROGRAM ACCOMPLISHMENTS: In fiscal year 1982, 120 awards
were made. A decrease in the number of projects supported is an-
3-A-19
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ASSISTANCE ADMINISTRATION
J I
12/3/84
hcipsted for fiscal year 1983. In fiscal year 1984, the number of
awards is estimated to be approximately 43. Detailed program in-
formation is available in ORD Program Guide (see REGULA-
TIONS, GUIDELINES, AND LITERATURE Section below).
REGULATIONS, GUIDELINES, AND LITERATURE: General
Grant Regulations and Procedures, Environmental Protection
Agency (40 CFR Part JO); Interim Regulations, Research and
Demonstration Grants, Environmental Protection Agency (40
CFR Part 40). "Grants Administration Manual," available from
the National Technical Information Service, Springfield, VA
22161 on a subscription basis: "EPA and the Academic Communi-
ty, Solicitation for Grant Proposals" and the "Office of Research
and Development Program Guide" available free from ORD Pub-
lications, EPA/CERI, Cincinnati, OH 43268.
INFORMATION CONTACTS:
Reghwfl or Local Office: Individuals are encouraged to communi-
cate with the appropriate EPA Regional Office listed in Appendix
IV of the Catalog.
Headquarters Office: For information concerning grant applications
and procedures, contact Environmental Protection Agency,
Grants Administration Division, PM 216, Washington, DC 20460.
For program information contact Richard E. Marland, Office of
Research and Development, RD-673, Environmental Protection
Agency, Washington, DC 20460. Telephone- (202) 382-3744 (use
same 7-digit number for FTS).
RELATED PROGRAMS: 13 303, National Water Research and Devel-
opment Program; 66.500, Environmental Protection—Consoli-
dated Research Grants; 66 303, Water Pollution Control—Re-
search, Development, and Demonstration Grants.
EXAMPLES OF FUNDED PROJECTS: None.
CRITERIA FOR SELECTING PROPOSALS: A proposal ts judged
for (A) scientific merit in terms of. (1) strengths and weaknesses of
the project, (2) adequacy of overall project design; (3) competen-
cy of proposed staff, (4) suitability of applicant's available re-
sources, (5) appropriateness of the proposed project period and
budget, and (6) probability that the project will accomplish stated
objectives, and for (B) program interest in terms of (1) the need
for the proposed research, and (2) relationship to objective(t) in an
approved work plan.
66.507 TOXIC SUBSTANCES RESEARCH GRANTS
FEDERAL AGENCY: OFFICE OF RESEARCH AND DEVELOP-
MENT, ENVIRONMENTAL PROTECTION AGENCY
AUTHORIZATION: Tone Substances Control Act, Public Law 94-
469; 13 U S C 2609; Section 10.
OBJECTIVES: To support and promote the coordination of research
projects relating to the effects, extent, prevention, and control of
toxic chemical substances or matures.
TYPES OF ASSISTANCE: Project Grants (Cooperative Agreements).
USES AND USE RESTRICTIONS: Available for the allowable direct
cost expenditures incident to research performance plus allocable
portions of allowable indirect costs of the institutions, in accord-
ance with the established policies of EPA JOINT FUNDING:
This program is considered suitable for joint funding with closely
related Federal financial assistance programs in accordance with
the provisions of OMB Circular No. Alll For programs that are
not identified as suitable for joint funding, the applicant may con-
sult the headquarters or field office of the appropriate funding
agency for further information on statutory or other restrictions
involved.
ELIGIBILITY REQUIREMENTS:
Applicant HlgMity: This program is available to each State, terri-
tory and possession of the U S., including the District of Colum-
bia, public or private State universities and colleges, hospitals, lab-
oratories, State and local government departments, other public or
private nonprofit institutions and individuals who have demon-
strated unusually high scientific ability
Beneficiary Eligibility: Same as Applicant Eligibility
QwfcHah/Dnt ¦¦l alatliw Costs will be determined m accordance
with OMB Circular No. A-87 for State and local governments and
OMB Circular No. A-21 for flducatKnaJ institutions.
APPLICATION AND AWARD PROCESS:
PlllWlt stlun CdobHmHck Discussion with the Office of Research
and Development laboratories is advisable for research coopera-
tive agreement applications. No preappHcation swtasnre is availa-
ble for research grant applications. An environmental impact as-
sessment is required for this piogiam. The standard application
forms as furnished by the Federal agency and required by OMB
Circular No. A-102 must be used for this program.
Application Piomluiei Request* for application forms and complet-
ed applications must be submitted to Environmental Protection
Agency, Grants Administration Division, PM 216, Washington,
DC 20460. This program is subject to the provisions of OMB Cir-
cular No. A-110. The standard application forms as furnished by
the Federal agency and required by OMB Circular No. A-102
must be used for this program.
Award riuuduie. Each application shall be subjected to administra-
tive evaluation to determine the adequacy of the application in re-
lation to grant regulations, and to program evaluation; *~-»"i"--i
and extramural review determines the merit and relevance of the
project.
Deadlines: None.
Range of Approral/DUa^mal Time: Approximately 180 days.
Appeal*: No appeals procedure; however, revised proposals may be
submitted.
Renewals: None. Standard grant application should be prepared and
submitted which will be reviewed in same muniwr as a new appli-
cation and will compete for available funds.
ASSISTANCE CONSIDERATIONS:
Forntola and Matching Requirements: A minimum of 3 percent cost
sharing is required
Length and Time Phasing of Aastetaaee: Grants normally funded on
a 12-month basis (yearly) Total approved project period may not
exceed 3 years.
POST ASSISTANCE REQUIREMENTS:
Reports: Quarterly interims and final progress, expenditure, equip-
ment and invention reports.
Audits: Grants are subject to inspections and audit by representa-
tives of the Comptroller General of the United States and EPA or
any authorized representative. Federal audits will be made in ac-
cordance with the policies of OMB Circular No. A-73 to ensure
that funds have been applied efficiently, economically and effec-
tively Periodic audits should be made as part of the recipient's
systems of financial management and internal control to meet
terms and conditions of grants and other agreements. In accord-
ance with the provisions of Attachment P to Circular A-102,
"Uniform Requirements for Grants to State and Local Govern-
ments", audits shall be made of organizations carrying out this
program at least once every two years. These audits will be made
in accordance with the General Accounting Office guidelines,
"Standards for Audit of Government Organizations, Programs,
Activities and Functions", and additional OMB guidance
Records: Financial records, including all documents to support en-
tries on accounting records and to substantiate changes to each
grant, must be kept available to personnel authorized to examine
EPA grant accounts. All records must be	until expira-
tion of three years from the date of submission of the final expend-
iture report If questions still remain, such as those raised as a
result of audit, related records should be retained until the matter
is completely resolved.
FINANCIAL INFORMATION:
Account IiWtiflrttina; 68-0101-0-1-999.
Obligations: (Grants and Cooperative Agreements) FY 82
18.230,000; FY 83 est $4,697,000; and FY 84 est S3,391,000
Range and Amass of Financial Aasbtfnce: (FY 82) S3.000 to
$487,000; $119,279 (FY 83 est) $10,000 to $400,000; $113,000 (FY
84 est) sversge $113,000
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ASSISTANCE ADMINISTRATION
5700
12/3/84
PROGRAM ACCOMPLISHMENTS: In fiscal year 1982, 69 awards
were made. Hie number of grafts and cooperative agreements to
be awarded in fiscal year 1983 is expected to decrease. Awards in
fiscal year 1984 will decrease slightly. Detailed program informa-
tion is available in ORD Program Guide (see REGULATIONS,
GUIDELINES, AND LITERATURE Section below).
REGULATIONS, GUIDELINES, AND LITERATURE: General Orant
Regulations and Procedures, Environmental Protection Agency
(40 CFR Part JO); Interim Regulations, Research and Demonstra-
tion Grants, Environmental Protection Agency (40 CFR Part 40);
"Grants Administration Manual," available from the National
Technical Information Service, Springfield, VA 22161 on a sub-
scription basis; Order No.: NTIS UB/031, "EPA and the Aca-
demic Community, Solicitation for Grant Proposals," and the
"Office of Research and Development Program Guide" available
free from ORD Publications, EPA/CERI, Cincinnati, OH 45268
INFORMATION CONTACTS:
Regional or Local Office: Individuals are encouraged to communi-
cate with the appropriate EPA Regional Office listed m Appendix
IV of the Catalog
Hesdqnarters Office: For information concerning grant applications
and procedures, contact Environmental Protection Agency,
Grants Administration Division, PM 216, Washington, DC 20460.
For program information contact Richard E. Marland, Office of
Research and Development, RD-675, Environmental Protection
Agency, Washington, DC 20460. Telephone: (202) 382-5744 (use
same 7-digit number for FTS).
RELATED PROGRAMS: 66.500, Environmental Protection—Consoli-
dated Research Grants.
EXAMPLES OF FUNDED PROJECTS: None.
CRITERIA FOR SELECTING PROPOSALS: A proposal is judged
for (A) scientific merit in terms of (I) strengths and weaknesses of
the project; (2) adequacy of overall project design; (3) competen-
cy of proposed staff, (4) suitability of applicant's available re-
sources; (5) appropriateness of the proposed project period and
budget; and (6) probability that the project will accomplish stated
objectives; and for (B) program interest in terms of: (1) the need
for the proposed research; and (2) relationship to objective(s) in an
approved work plan.
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ASSISTANCE 'ADMINISTRATION
5700
12/3/84
OFFICE OF ADMINISTRATION
66.600 ENVIRONMENTAL PROTECTION
CONSOLIDATED GRANTS—PROGRAM SUPPORT
(Consolidated Program Support Grants)
FEDERAL AGENCY: OFFICE OF ADMINISTRATION, ENVI-
RONMENTAL PROTECTION AGENCY
AUTHORIZATION: Including byt not limited to: Clean Air Act, ss
amended; Public Law 93-93; 42 U.S.C 7401 et seq.; Clean Water
Act, as	Public Law 93-217; 33 U.S.C. 1231 et seq.; Solid
Waste Disposal Act, as amended by the Resource Conservation
and Recovery Act of 1976; 42 U.S.C 6901; Public Law 94-380;
Federal Insecticide, Fungicide and Rodentiode Act; Public Law
92-316; 7 U.S.C 136 et seq., as amended by Public Laws 94-140
and 95-396; Public Health Service Act as amended by the Safe
Dnnlang Water Act, as ¦nwnHi-H by Public Law 93-190.
OBJECTIVES: The consolidated program support grant is an alterna-
tive grant delivery mechanism which allows a State or local
agency responsible for continuing pollution control programs to
develop an integrated approach to pollution control. An agency
eligible for ansntancc for two or more pollution control programs
may consolidate its awwtsnce requests into a single application and
receive a single consolidated award.
TYPES OF ASSISTANCE: Formula Grants.
USES AND USE RESTRICTIONS: The following pollution control
programs are eligible for consolidation' 66.001, Air Pollution Con-
trol Program Grants; 66.419, Water Pollution Control—State and
Interstate Program Grants; 66 432, State Public Water System Su-
pervision Program Grants; 66433, State Underground Water
Source Protection—Program Grants, 66.438, Construction Man-
agement Assistance Grants; 66.451, Hazardous Waste Management
Financial Assistance to States; and 66 700, Pesticides Enforcement
Program Grants. JOINT FUNDING- This program is considered
suitable for joint funding with closely related Federal financial as-
sistance programs in accordance with the provisions of OMB Cir-
cular No. A-lll.
ELIGIBILITY REQUIREMENTS:
Applicant Eligibility: Any State or local agency eligible to receive
and administer funds for more than one pollution control program.
See the appropriate program descriptions for specific Applicant
Eligibility
Beneficiary Eligibility: Same as Applicant Eligibility.
Ondnrtiafa/DoHimcnlatioQ: Costs will be determined in accordance
with OMB Circular No. A-87 for State and local governments
APPLICATION AND AWARD PROCESS:
PreapplicatkMi Coordination: Preapplicabon communications should
be directed to the appropriate EPA Regional Administrator Devi-
ations from procedures and requirements of EPA grants adminis-
tration regulations which impede the development and administra-
tion of a consolidated grant, may be approved by the Director,
Grants Administration Division in EPA Headquarters. The stand-
ard application forms as furnished by the Federal agency and re-
quired by OMB Circular No A-102 must be used for this pro-
gram. If an environmental impact assessment is needed for any of
the individual programs being consolidated, it will be noted in the
"Preapphcabon Coordination" section of each of the programs.
Application Piocediue; The application should be submitted to the
appropriate EPA Regional Office
Award Procedure: States will be notified of Federal	awards
through the Federal Assmtanor Awards Data System (FAADS).
DeadUaec Sixty days before beginning of proposed budget period.
Range of Approral/Disapproral Time: Up to 90 days.
Appeals As described in 40 CFR Part 30, Subpart L.
Renewal*: None.
ASSISTANCE CONSIDERATIONS:
Fonaala aad Matching Requirements: See applicable program de-
scriptions for the Formula and Matching Requirements of each
Length ad Ttaa Pfcialai of Aaristaaee: Assistance is usually award-
ed for a one-year period. Letter of Credit with quarterly release of
ftmda is the preferred payment method.
POST ASSISTANCE REQUIREMENTS:
Reports: Progress reporting by the State or local agency and per-
formance monitoring by EPA will be the minimnm Decenary for
sound program management. The nwwtwinm may vary from
agency to agency depending upon the specific agency's demon-
strated management abilities. There should be at least one progress
report midway through the budget period. This may be either
written or unwritten at the discretion of the Regional Office. A fi-
nancial status report is required within 90 days of the end of the
budget period.
Aaditr In accordance with the provisions of Attachment P to Circu-
lar A-102, "Uniform Requirements for Assistance to State and
Local Governments", audits shall be made of organizations carry-
ing out this program at least once every two years. These audits
wQl be made m accordance with the General Accounting Office
guidelines, "Standards for Audit of Government Organizations,
Programs, Activities aad Functions", and	OMB guid-
ance.
Records: All records mrimtmg Hwimwin to support entrvs on ac-
counting records and to substantiate charges to each grant must be
kept available to personnel	to >"¦""»» EPA grant ac-
counts. All record* must be maintained for three years from the
date of submission of the annual financial statu report If any liti-
gation, claim or audit is started before the end of the three-year
period, the records must be retained until the	rl»lm« or
audit findings have been resolved.
FINANCIAL INFORMATION:
Aceoot IiVatiflrathw 68-0108-0-1-304.
OMgetiw (Grants) FY 82 $24,580,000; FY 83 est S27.203.000; and
FY 84 est not available.
Range and Average of Pl-*—'¦« Aasistaaee: Not available.
PROGRAM ACCOMPLISHMENTS: Thirteen	[noym
support grants totaling approximately $23,393,000 were awarded
in fiscal year 1981 for an average grant of 11,953^)00. Twelve con-
solidated grants totaling approximately $7,236,000 have been
awarded for fiscal year 1982 to date for an average grant of
$603,000. Both the number of grants and the average grant
amount are expected to increase to approximately the fiscal year
1981 levels before the close of fiscal year 1983. Condolidated
grants for fiscal yean 1981 and 1982 to date have ranged from
$25,000 to $3,430,000. There n not a separate consolidated grant
appropriation. Therefore, the ftmds identified here are the aggie-
gate of the individual progiaui foods awarded through consoli-
dated grants.
REGULATIONS, GUIDELINES, AND LITERATURE: 40 CFR Part
30, General Giant Regulations and Procedures; 40 CFR Part 33,
State and Local Assistance Regulations; EPA Annual Guidance
provided to State and local «gcncies; and the "EPA Grants Ad-
ministration Manual" available from the National Technical Infor-
mation Service, Springfield, VA 22161 on a subscription basis,
Order No NTIS UB/031.
INFORMATION CONTACTS:
Regional or Local Office: Contact appropriate EPA Regional Office
listed in Appendix IV of the Catalog.
Headquarters Office: Comne Allison, Orants Administration Divi-
sion, PM 216, Environmental Protection Agency, Washington,
DC 20460. Telephone: (202) 382-5294 (use same 7-digit number for
FTS)v and headquarters office* listed for applicable programs. See
the individual program descriptions for program office contacts.
RELATED PROGRAMS: 66.001, Air Pollution Control Program
Grants; 66 419, Water Pollution Control—State and Interstate Pro-
gram Grants, 66.432, State Public Water System Supervision Pro-
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ASSISTANCE ADMINISTRATION
gram Grants, 66.433. State Underground Water Source Protec-
tion—Program Grants, 66.801, Hazardous Waste Management Fi-
nancial Assistance to States; 66.700, Pesticides Enforcement Pro-
gram Grants.
EXAMPLES OF FUNDED PROJECTS: Projects have been funded
which combined as few as two of the eligible pollution control
puigmma and as many as four.
CRITERIA FOR SELECTING PROPOSALS: Applications are ap-
proved if funds are available, if the application satisfies the re-
quirements of 40 CFR Parts 30 and 33 and applicable statutes, and
if the proposed work program is feasible and compatible with the
program priorities m EPA annual guidance.
66.603 LOAN GUARANTEES FOR
CONSTRUCTION OF TREATMENT WORKS
FEDERAL AGENCY: OFFICE OF ADMINISTRATION, ENVI-
RONMENTAL PROTECTION AGENCY
AUTHORIZATION: Clean Water Act, as amended, Public Law 9J-
217; Section 213, 33 U S.C 12S1 et seq.
OBJECTIVES: To assist and serve as an incentive in construction of
municipal sewage treatment works which are required to meet
State and Federal water quality standards. To ensure that inability
to borrow accessary funds from other sources on reasonable terms
does not prevent the construction of any wastewater treatment
works for which a grant has been, or will be awarded.
TYPES OF ASSISTANCE: Guaranteed/Insured Loans.
USES AND USE RESTRICTIONS: Applications for loan guarantees
will be	to financing certain portions of the eligible and al-
lowable local share of a grant for construction of wastewater
treatment works. EPA guarantees a loan from the Federal Financ-
ing Bank (FFB).
ELIGIBILITY REQUIREMENTS:
Applicant Eligibility: A State, interstate agency, a municipality, or
an intermumcipal agency, which has applied for a construction
grant under Title II of the Act (including grantees whose projects
are eligible for reimbursement under Section 206 of that title) or
which has committed itself to finance the local share of any
projects) for which a grant* has beta awarded, or for which an
application is being processed This program is available to each
State, territory and possession of the U S., including the District
of Columbia.
Beneficiary Eligibility: Same as Applicant Eligibility.
Crtdentiah/Doainientatioo: The application shall include documenta-
tion of the following (1) inability to obtain necessary financing;
(2) ability to repay; and (3) other documentation required by 40
CFR 39 110.
APPLICATION AND AWARD PROCESS:
Prappl (ration Coordinatioa: Consultation with appropriate Regional
Construction Grants and Grants Administration offices is recom-
mended (see Appendix IV of the Catalog).
Applkatioa Procedure: Apply through the State agency to the ap-
propriate EPA Regional office. Information required for a loan
application should be provded in accordance with Part IV, Sec-
tion C of EPA Form 5700-32, "Application for Federal Assist-
ance" (Construction Grants), doted August, 1977 or later).
Award Procedure: If approved by EPA Administrator, loan guaran-
tee contract will be issued to the Federal Financing Bank which
disburses funds.
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DeadlittK None
Range of Approval/Disapproval Time: Information not yet available,
no loan guarantees have been issued under this program.
Appeals Appeals possible under 40 CFR 30, Subpart L, and 40 CFR
33.
Renewals: Not applicable.
ASSISTANCE CONSIDERATIONS:
Formula and Matching Requirements: None. However, fees are
charged as follows. (1) Application processing. A non-refundable
minimum fee of $1,000 or 1/8 of 1 percent of the loan amount,
whichever is greater, but not to exceed 123,000 for processing ap-
plications. This fee will be submitted with the application and will
be retained by EPA whether or net a loan is consummated. (2)
Fee for issuance of a commitment to guarantee. This fee will be 1/
2 of 1 percent of the principal amount of the loan. This fee is con-
tingent upon the loan being obtained by the applicant and is pay-
able within 30 days of the date of loan approval.
Length end Time Phasing of Awliliaw; Available for entire con-
struction period. Funds are released as required, or m lump sum,
as negotiated m loan agreement
POST ASSISTANCE REQUIREMENTS:
Reports Fulfilled by requirements of "Construction Grants for
Wastewater Treatment Works" program.
Audits: Fulfilled by requirements of "Construction Grants for
Wastewater Treatment Works" program. In accordance with the
provisions of Attachment P to Circular A-102, "Uniform Require-
ments for Grants to State and Local Governments", audits shall
be made of organizations carrying obt this program at least once
every two years. These audits will be made m accordance with
the General Accounting Office guidelines, "Standards for Audit of
Government Organizations, Programs, Activities and Functions",
and additional OMB guidance.
Records: Financial records must be	and preserved until
three years after the notes or the obligations	by the Fed-
eral Financing Bank have been retired.
FINANCIAL INFORMATION:
Account Identification: 68-9301-0-3-304.
Obligations (Loans Guaranteed) Not separately identifiable.
Range and Average of Financial Assistance: Information not available.
PROGRAM ACCOMPLISHMENTS: No loan guarantees have been
issued as of February, 1983.
REGULATIONS, GUIDELINES, AND LITERATURE: 40 CFR Part
39, "Loan Guarantees for Construction of Treatment Works."
INFORMATION CONTACTS:
Region! or Local Offlee: Contact appropriate Regional offices for
Grants Administration and Construction Grants listed in Appendix
IV of the Catalog
Headquarters Office: Harvey G Pippen, Jr., Director, Grants Ad-
ministration Division (PM-216), EPA, Washington, DC 20460.
Telephone: (202) 382-5240 (use tame 7-digit number for FTS).
RELATED PROGRAMS: 66.418, Construction Grants for Wastewater
Treatment Works
EXAMPLES OF FUNDED PROJECTS: Not applicable.
CRITERIA FOR SELECTING PROPOSALS: Selection criteria are
the same as the application requirements set forth m 40 CFR 39,
"Loan Guarantees for Construction of Treatment Works," section
39.110
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ASSISTANCE ADMINISTRATION
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OFFICE OF PESTICIDES AND TOXIC SUBSTANCES
66.700 PESTICIDES ENFORCEMENT PROGRAM
GRANTS
FEDERAL AGENCY: OFFICE OF PESTICIDES AND TOXIC
SUBSTANCES, ENVIRONMENTAL PROTECTION
AGENCY
AUTHORIZATION: Federal Insecticide, Fungicide, and Rodcnticade
Act, as amended; Public Law 92-316; 7 USC 136 et seq as
.mwuiwl )>y Public Laws 94-140, Section 23(a) and 95-396
OBJECTIVES: To (a) assist States in developing and mamtnining
comprehensive pesticide enforcement programs, (b) sponsor coop-
erative surveillance, monitoring and analytical procedures, and (c)
encourage regulatory activities withm the States.
TYPES OF ASSISTANCE: Project Grants (Cooperative Agreements)
USES AND USE RESTRICTIONS; Available for costs specifically in-
curred in purchasing inspectional supplies and equipment, reim-
bursing State travel and per diem expenses associated with the
performance of grant outputs, purchasing essential laboratory
equipment and supplies; paying salaries for personnel performing
inspectiooal, analytical, or managerial functions related to grant
activities, and for administrative costs associated with the perform-
ance of grant outputs. JOINT FUNDING. This program is con-
sidered suitable for joint funding with closely related Federal fi-
nancial assistance programs in accordance with the provisions of
OMB Circular No Alll For programs that are not identified as
suitable for joint funding, the applicant may consult the headquar-
ters or field office of the appropriate funding agency for further
information on statutory or other restrictions involved
ELIGIBILITY REQUIREMENTS:
AppUcaat Hlglldlhy: State agencies having pesticide enforcement re-
sponsibilities in each State, territory and possession of the U S, in-
cluding the District of Columbia, and Indian tribes.
Beneficiary Eligibility: Same as Applicant Eligibility
n«h.«.ii/niii uimiiiiwi- ¦ The application must supply evidence
of legal authority to conduct pesticides enforcement activities con-
templated under the grant and a workable program officially
adopted for the agency Costs will be determined in accordance
with OMB Circular No A-87 for State and local governments.
Program Guidance suggests applicants submit consolidated coop-
erative agreement applications for Pesticides Enforcement and Ap-
plicator Certification and Training
APPLICATION AND AWARD PROCESS:
PreappUcation Coordination; Discussions or informal meetings with
Regional program office concerning program preparation are ad-
visable. Prior to approval of any grants, the official State Pesti-
cides Regulatory Agency must coordinate local pesticide enforce-
ment efforts. The standard application forms as furnished by the
Federal agency and required by OMB Circular No A-102 must be
used for this program.
Application Procedure: Requests for application forms and complet-
ed applications should be submitted to the appropriate EPA Re-
gional Office (see Appendix IV of the Catalog)
Award Procedure: Each application shall be subjected to administra-
tive coordination to determine adequacy in relation to grant regu-
lations, and to twlinKml and program evaluation to determine
ment and relevancy of the project. States will be notified of Fed-
eral assistance awards through the Federal Assistance Awards
Data System (FAADS).
Deadlines: August 1, 1983.
Raage of Aipraral/Dbapproral Time: 60 days.
Appeal*: Renegotiation with Regional Administrator of outputs who
must disapprove m writing.
Reaewala: Applicant must reapply
ASSISTANCE CONSIDERATIONS:
Foraala and Matching Reqalrenenta: None, Annual Guidance sug-
gests a minimum of IS percent cost sharing
Length and The Pkasiag of Aarfstaace: Cooperative Agreements are
normally funded for a 12-month period. Payments will be on an
advance letter of credit or reimbursement basis; recipient must re-
quest the initial advance payment on SF 270, Request for Advance
or Reimbursement.
POST ASSISTANCE REQUIREMENTS:
Reportn As requested in the Annual Guidance for inclusion in the
grant award, usually quarterly with mid-year and year-end evalua-
tions
Audita: Cooperative Agreements are subject to inspection and audit
by representatives of the Comptroller General of the U.S, EPA,
or any authorized representative. Federal audits will be made in
accordance with the policies of FMC 73-2 to ensure that hinds
have been applied efficiently, economically, and effectively Peri-
odic audits should be made as part of the recipient's system of fi-
nancial management and internal control to meet terms and condi-
tions of grants and other agreements. In accordance with the pro-
visions of Attachment P to Circular A-102, "Uniform Require-
ments for Grants to State and Local Governments", audits shall
be made of organizations carrying out this program at least once
every two years. These audits will be made in accordance with
the General Accounting Office guidelines, "Standards for Audit of
Government Organizations, Programs, Activities and Functions",
end additional OMB guidance.
Records: Financial records including all documents to support en-
tries on accounting records and to substantiate charges to each co-
operative agreement must be kept available to personnel author-
ized to examine EPA grant accounts. All records must be main-
tained for 3 years from the date of the submission of the annual fi-
nancial status report or longer if questions still remain, such as
those raised as a result of audit
FINANCIAL INFORMATION:
Account Identification: 68-0108-0-1-304
Obligations: (Grants) FY 82 S9,087,000; FY 83 est $8,703,000; and
FY 84 est $6,918,000
Range and Average of Financial Assistance: $10,000 to $428,000;
$139,000
PROGRAM ACCOMPLISHMENTS: Fifty-nine grants have been
awarded as of March 1983 Agencies participating in the Federal
enforcement cooperative agreement program receive funds to sup-
port and strengthen pesticide compliance mo tutoring, inspection,
and enforcement activities. Typical program activities, which are
generally common to all cooperative agreements, include inspec-
tions and observations at pesticide application ntes to ensure user
compliance with label directions and acceptable use practices, in-
spections of pesticide products at producing facilities and m the
retail marketplace to ensure industry compliance with registration,
classification, and labeling requirements, and initiation of appropri-
ate enforcement action when violations are detected including
civil and criminal prosecution, stop sale orders, seizures, recalls,
and warning nonces.
REGULATIONS, GUIDELINES, AND LITERATURE: General
Grant Regulations and Procedures, EPA (40 CFR Part 30); Envi-
ronmental Protection Agency, State and Local Assistance (40
CFR Part 3S Subpart A), October 12, 1982; Regulations - Assist-
ance for Pesticide Enforcement and Applicator Training and Cer-
tification Programs (40 CFR Part 35), October 12, 1982; 730-786;
"Grants Administration Manual," available from the National
Technical Information Service, Springfield, VA 22161 on a sub-
scription basis. Order No. NTIS UB/031.
INFORMATION CONTACTS:
Regional or Local Office: Contact appropriate EPA Regional Office
listed in Appendix IV of the Catalog
Headquarter* Office: For program information: A.E. Conroy II, Di-
rector, Compliance Monitoring StafT, Office of Pesticides and
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ASSISTANCE ADMINISTRATION
Toxic Sobtfanpfa, (EN-J42X EPA, Wadrington. DC 20460. Tele-
phone- (202) 382-3807 (me none 7-digtt namhw for FTS).
BELATED PROGRAMS: Nooe.
EXAMPLES OF FUNDED PROJECTS: State agenda pertidpeliiig
in the Federal/State enforcement cooperative agreement program
receive fands to support and strengthen pesticide compliance moo-
itoring, inspection. and enforcement activities. Typical program
activities, which are generally common to all cooperative agree-
ments, include inspections and observations at pesticide application
sites to ensure user	with label directions and aoeept-
aMc use practices, inspections of pesticide products at producing
and in the retail marketplace to ensure industry compli-
ance with registration, classification, and labeling requirements,
and	of appropriate enforcement action when violations
5700
12/3/84
ate delected	civil and criminal prosecution, nop sale
orders, seizures, recalls and waning notices.
CRITERIA FOR SELECTING PROPOSALS: Each application will
be reviewed by die EnvfaVwimrntal Protection Agency arrowllng
to the following criteria: 1) Need: The need for the development,
improvement and/or	of §	pceticidei
enforcement program within the State. 2) State Pesticide Activity:
The relative amount of pratiraVi production, formulation and use
in a State, and die potential risk to hnrnan health and the environ-
ment from peiticidf -l{—*» or abuse. 3) Long-Term imp"*-*- The
potrrmal of the cooperative agreement to have a long-term benefi-
cial	on !"¦««¦ health and the environment resulting from
the comprehensive enforcement program. 4) Effectiveness of pro-
gram: The past level and effectiveness of the State peaticide regu-
latory [MUgiuu.
66.702 ASBESTOS HAZARD ABATEMENT (SCHOOLS) PROGRAM LOANS AND GRANTS
Federal Agency: Office of Pesticides and Toxic Substances, EPA
Authorization: Asbestos School Hazard Abatanent Act, Public Law 98-377
Objectives: lb create a program of information distribution, technical and
scientific assistance, and financial assistance to local education agencies,
for abating of asbestos hazards in schools.
Types of Assistance: Financial assistance in the form of direct loans and
project grants on a school-by-school basis to local education agencies.
Uses and Use Restrictions: Loans up to 100% of an abatanent project. Grants
may be awarded (alone or in combination with a loan) not to exceed 50% of the
total cost of the abatanent project. Assistance may only be anployed for
abatanent, replacement, and restoration activities for reducing the risk of
exposure to astestos-containing friable materials.
Eligibility: Public and private local education agencies.
Application and Award Process: Application must be completed by the local
education agency (LEA) on a school-by-school basis and submitted to the
appropriate governor for review, ranking and submission to EPA.
Deadlines: Governors are to submit the first round of applications to EPA
not later than February 6, 1985-
Regional Contact: Regional Asbestos Coordinator in appropriate EPA regional
office.
Headquarters Office:
Asbestos Action Program (TS-788)
Office of Pesticides and Toxic Substances
US EPA
(202) 554-1^04
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ASSISTANCE ADMINISTRATION
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CHAPTER 4 ~ NUMBERING OF ASSISTANCE PROPOSALS
Table of Contents
PARAGRAPH	PARAGRAPH
TITLES	TITLES
Structure of Assistance Identification Number		1
Responsibility for Numbering		2
Assigning Identification Numbers - Headquarters
Administered Prograns		3
Assigning Identification Numbers - Regionally
Administered Prograns		4
FIGURE	FIGURE
TITLES	NUMBERS
Structure of Financial Assistance Identification Numbers		4-1
Financial Assistance Program Codes,
Titles, Catalog Numbers and Object Class Codes		4-2
Examples of Assistance Identification Numbers		4-3
Assigned Blocks of WWT Construction Serial Numbers		4-4
i
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ASSISTANCE ADMINISTRATION	12/3/84
CHAPTER 4 - NUMBERING OF ASSISTANCE PROPOSALS
1. STRUCTURE OF ASSISTANCE IDENTIFICATION NUMBER. A unique Assistance
Identification Number (ID#) is assigned to each application for a grant or
cooperative agreement, or unsolicited proposal. An EPA Assistance Identification
Number consists of ten characters and uses both letters of the alphabet and
numbers (See figure 4-1, "Structure of Financial Assistance Identification
Numbers"). Sequential identification of these characters is as follows:
a.	Program Code. A single alpha code identifies the assistance program.
(See figure 4-2, "Financial Assistance Program Codes, Titles, Catalog Numbers
and Object Class Codes").
b.	Serial Number. A six-digit number identifies either a specific grant
in the Construction Grants for Wastewater Treatment Wbrks (WWT) program or a
specific project in all other assistance programs.
c.	Sequence Number. A two-digit number identifies either the specific
project of a WWT Construction Grant or a specific budget period or fiscal year
in all other assistance programs.
d.	Preapplication/Amendment Designator.
(1)	Preapplication Designator. An asterisk (*) identifies a preappli-
cation. The WWT Construction program and most other assistance prograns do
not use preapplications.
(2)	Amendment Designator. A single character identifies a specific
formal amendment to an Assistance Agreement/Amendment. Numerals "0 - 9" are
used for no amendments through the ninth amendment and the alpha codes "A - Z"
are used for the tenth through thirty-fifth amendment.
e.	Example of Assistance Identification Number. (See Figure 4-3)
.Progran Code
..Serial Number
...Sequence Number
....Amendment Designator
A 000000 00 0
2 . RESPONSIBILITY FOR NUMBERING.
a.	Headquarters. The Grants Administration Division, Grants Operations
Branch, will assign an Assistance Identification Number to all unsolicited
proposals, and to each application, (or preapplication) for EPA assistance
prograns administered by Headquarters.
b.	Region. The Assistance ^ministration unit (AAU) in each Region will
assign an Assistance Identification Number to each application (or preapplication)
received for State and Local Assistance programs, other than WWT Construction,
and for any other assistance program for which awatrd authority has been delegated
to the Regional Administrator.
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ASSISTANCE AEMINISTRATION
5700
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c. State. Ihe appropriate State office, as part of its annual State Water
^Dilution Control Plan, will assign an Assistance Identification Number to each
WWT Construction project included in the State Rroject Priority List. Ihe
assigned ID# contains a Serial Number and Sequence Number. Note that any
Amendment Designator within the Assistance Identification Number will be assigned
by the appropriate EPA Regional office (or delegated State) for WWT Construction
projects.
3. ASSIGNING IDENTIFICATION NUMBERS - HEADQUARTERS ADMINISTERED PROGRAMS.
a.	Program Code. Using figure 4-2, identify the assistance progran for
which the application has been submitted and assign the appropriate program
code.
b.	Serial Number. Assign a serial number frcm the appropriate block of
numbers. The following predetermined blocks of six-digit serial numbers have
been assigned to the assistance programs administered by Headquarters. Serial
numbers are to be assigned in sequential order within each series.
Program Code	Assistance Program	Serial Number
R
Research	
...)


S
Demonstration	
...)



Special Investigations,



X
Surveys or Studies	
...)...

- 899999
Y
Consolidated - Environmental)



Special Purpose	
...)


Z
Unsolicited Proposals....
.. .)


T
Training	


- 909999
U
Fellowships	

...910000
- 919999
c.	Sequence Number. Assign a two-digit number to identify the budget
period governing the application or agreement. Ihe budget period (sequence
number) for a new project will be "01." The budget period for the first
continuation (and second budget period) will have a sequence number of "02,"
etc.
d.	Preapplication/Amendment Designator.
(1)	Preapplication. Assign an asterisk (*) as the tenth character of
the Assistance Identification Number for all preapplications.
(2)	Amendment. Each augmentation or revision, whether an increase or
decrease, or other proposed change to a funded project requiring a formal
amendment is assigned a single character designator when the amendment is
prepared for approval of the Award Official. Assign the amendment designator
as follows:
(a) New agreanent - no amendment, assign a numeric "0";
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ASSISTANCE ADMINISTRATION
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(b)	First through ninth amendment, assign a one-digit character
"1-9," in sequential order;
(c)	Tenth through thirty-fifth amendment, assign an alpha character
"A-Z," in sequential order.
4. ASSIGNING IDENTIFICATION NUMBERS - REGIONALLY ADMINISTERED PROGRAMS,
a. Programs Funded with Wastewater Treatment Construction Grant Funds.
(1)	Program Code. Assign the alpha code "C" to all projects for WWT
Construction, Construction Management Assistance grants (§205(g)), Water
Quality Management Planning grants (§205(j)), and grants to States for Advance
of Allov^nces for Facilities Planning and Project Design.
(2)	Serial Number.
(a) WWT Construction Project. Assign a serial number from the
appropriate block of nunbers of figure 4-4. The first two digits identify the
State and the last four identify the specific facility need (grant objective)
including the Step 1 facilities planning project and the Step 2 design project(s),
if any; the Step 3 construction projects, if any; or the Step 2+3 design and
construction projects. All projects originating from a facility plan will be
assigned the same serial number and be funded through a single grant unless two
or more municipalities are applicants. In the latter case, a separate serial
number is assigned the project(s) of each municipality regardless of the fiscal
year in which the project will be certified. Serial numbers are to be assigned
in sequential order. Once a serial number is assigned to a prospective grant
(facility need) it MAY NOT be used again. Also, serial numbers assigned to
P.L. 84-660 projects MAY NOT be reassign®! to P.L. 92-500 projects.
(b)	Construction Management Assistance Agreements (§205(g)). The
first twD digits of the serial number identify the recipient State. Use the
first two digits from the "Serial Nunber" on figure 4-4 to identify the appro-
priate State. The next four digits will ALWAYS be "0000."
(c)	Advances for Allowances for Facilities Planning and Project
Design (§201(1)(1)). The first two digits of the serial number identify the
recipient State. Use the first two digits fran the "Serial Number" on figure
4-4 to identify the appropriate State. The next four digits will ALWAYS be
"0000."
(d)	Water Quality Management Planning Grants (§205(j)).
The first two digits of the serial number identify the recipient State. Use
the first two digits fran the "Serial Number" on figure 4-4 to identify the
appropriate State. The next four digits will \IWAYS BE "0000."
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ASSISTANCE ADMINISTRATION
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(3) Sequence Number.
(a)	WWT Construction Projects. Assign a two-digit number to
identify the first and each succeeding (usually sequential) project (if any)
toward satisfying the identified facility need. Efforts which are segmented
into two or more projects will normally be sequentially numbered. (Note: The
Sequence Number does not always correlate to the Project Step.) Variations of
this system are available for a municipality that had a Step 1 project which
was expected to generate more than one Step 2 project (each of which might have
resulted in a number of Step 3 or Step 2+3 projects) or Step 2+3 projects. A
suggested methodology was to:
_1 Assign the Step 1 project sequence 01.
2	Assign the Step 2 project sequence numbers divisable by
10 (10, 20, ...90).
3	Assign Step 3 or Step 2+3 projects sequence numbers
(11-19, 21-29, ...91-99) sequentially following the sequence number of the
respective Step 2 project, if any. This assumes a maximum of nine Step 3
projects resulting from any Step 2 project.
(b)	Construction Management Assistance Agreements (§205(g)).
Assign a two-digit number, "70-99," to identity the latest fiscal year appropri-
ation frcm which monies are awarded. Subsequently, if additional funds are
awarded from the same fiscal year ironies, the sequence number (latest fiscal
year) will remain the same and the appropriate amendment designator (see paragraph
4d(l)(d) below) will be assigned. Mien additional funds are added frcm later
fiscal year monies, assign the fiscal year fran which these monies will be
awarded. (These may not always be consecutive.)
(c)	Advances for Allowances for Facilities Planning and Project
design (§201(1)(1)). Assign the two-digit number "01" to identify the first
grant agreement. Subsequently, if additional funds are awarded from the same
fiscal year monies, and the appropriate amendment designator (see paragraph
4a(4) below) will be assigned to that agreement. When additional funds are
awarded from a later fiscal year's nonies, assign that agreement the next two-
digit number in the sequence "01-19," to identify the continuation agreement
prepared to award that fiscal year's monies.
(d)	Water Quality Management Planning Agreements (§205(j)).
Assign the two-digit number "21" to identify the first grant agreement. Subse-
quently, if additional funds are awarded frcm the same fiscal year ironies, the
appropriate amendment designator (see paragraph 4a(4) below) will be assigned
to that agreement. When additional funds are awarded frcm a later fiscal
year's monies, assign that agreerrent the next two-digit number in the sequence
"21-49," to identify the continuation agreement prepared to award that fiscal
year's ironies.
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ASSISTANCE ADMINISTRATION
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(4) Amendment Designator. Each augmentation or revision, whether
an increase or decrease, or other proposed change to a funded project requiring
a formal amendment, is assigned a single character designator when the amendment
is prepared for approval by the EPA Award Official (see 40 CFR 30.700). Assign
the amendment designator as follows:
(a)	New ^reanent - no amendment, assign a numeric "0";
(b)	First through ninth amendment, assign a one-digit character
"1-9," in sequential order;
(c)	Tenth through thirty-fifth amendment, assign an alpha character
"A-Z," in sequential order.
b. Programs Funded with Other Than WWT Construction Grant Funds.
(1)	Program Code. Fran figure 4-2, identify the assistance progran
for which the application has been submitted and assign the appropriate code.
(2)	Serial Number. Assign a serial nunber frcm the appropriate block
of numbers. The following predetermined blocks of six-digit serial numbers
have been assigned to the regional offices for identifying those applications
received for State and tocal Assistance programs, other than those funded by
WWT Construction Grant funds. Serial numbers are to be assigned in sequential
order within each regional block as explained below. Once a serial number is
assigned to an application in one program, it may NOT be used again to identify
an application/agreement in a different progran.
REGION	REGIONAL SERIAL NUMBERS
Region	10	000001	- 000999
Region	1	001001	- 001999
Region	2	002001	- 002999
Region	3	003001	- 003999
Region	4	004001	- 004999
Region	5	005001	- 005999
Region	6	006001	- 006999
Region	7	007001	- 007999
Region	8	008001	- 008999
Region	9	009001	- 009999
The first two digits are always zeros and the third digit indicates the region
in which the applicant is located (with a zero representing Region 10). The
fourth, fifth, and sixth digits will be assigned as follows for:
(a) Water Pollution Control State Program Agreements. The fourth
and fifth digits are coded to identify the recipient State.
Alabana	 01	Arizona	 04
Alaska	 02	Arkansas	05
Uhassigned	 03	California	 06
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ASSISTANCE AEMINISTRATION
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Unassigned		07
Oolorado		08
Connecticut	09
Delaware		10
District of Columbia ....	11
Florida		12
Qeotgia	13
Unassigned		14
Hawaii	15
Idaho		16
Illinois	17
Indiana		18
Iowa	19
Kansas		20
Kentucky		21
Louisiana		22
Maine		23
Maryland		24
Massachusetts		25
Michigan		26
Minnesota		27
Mississippi		28
Missouri		29
Montana		30
Nebraska		31
Nevada		32
New Hampshire		33
New Jersey		34
New Mexico		35
New York		36
North Carolina		37
North Dakota		38
Ohio		39
Oklahoma		40
Oregon		41
Pennsylvania		42
Unassigned		43
Rhode Island	44
South Carolina	45
South Dakota	46
Tennessee	47
Texas	48
Uteih	 49
Vermont	50
Virginia	 51
Unassigned	52
Washington	 53
West Virgina	 54
Wisconsin	 55
Wyoming	 56
Unassigned	 57
Unassigned	58
Unassigned	 59
American Samoa	60
Uhassigned	 61
Unassigned	62
Unassigned	 63
Unassigned	64
Unassigned	 65
Guam	66
Unassigned	67
Unassigned	68
Northern Marianas	69
Unassigned	70
Midway Island	 71
Puerto Rico	72
Unassigned	73
Unassigned	74
Trust Territories of the
Pacific Islands	75
Unassigned	76
U.S. Misc. Pacific Islands
(incl. Wake islands)....77
Virgin Islands	78
Unassigned	79
The sixth digit is AIWAYS a zero. Once assigned, the six-digit serial number
for each of these State agreements remains the same each >ear.
(b) Water Pollution Control Interstate Program Support Agreements.
Assign the fourth, fifth, and sixth digits in sequential order frcm the prede-
termined block of numbers "990-999" to identify the recipient interstate
Agency. Once assigned, the six-digit serial number of each of these Interstate
agreements remains the same each year.
(c) Other Regionally Administered Assistance Agreements Funded with
Other Than WWT Grant Funds. Assign the fourth, fifth, and sixth digits in
4-6
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ASSISTANCE ADMINISTRATION
5700
12/3/84
sequential order frcm the predetermined block of numbers "001-989" regardless
of program. The six-digit serial number assigned to an agreement for one of
a State or local government's continuing environmental progranis does not change
but rmains the same with continuation agreements year after year. The serial
number assigned to a project of fixed duration, (research, training, etc.) is
permanent and never changes.
(3) Sequence Number.
(a) Continuing Environmental Program Support Agreements (State
and Interstate). Assign a two-digit number, "70-99," to identify the fiscal
year of program support for which Federal assistance is beirg awarded for one
of the following continuing environmental support programs:
Program Code	Title
A	Air Pollution Control Program Support (§105)
C	Construction Management Assistance (§205(g)) (see H 4a(3)(b).)
C	Water Quality Management Planning (§205(J)) (see H 4a(3)(d).)
D	Hazardous Waste Management State Program Support (§3011)
E	Pesticides Enforcement Program Support (§23(a)(l))
E	Pesticides Applicator Certification and Training (§23(a)(2)
F	State Public Water System Supervision (§l4i)3(a))
G	State Underground Water Source Protection (§l443(b))
I	Water Pollution Control State and Interstate Program
Support (§106)
M	Environmental Protection Consolidated Program Support
(b) All Other Regionally Administered Assistance Agreements.
Assign a two-digit number, "01-99," to identify the budget period for the
agreement. For example, the budget period (sequence number) for a new project
and first budget period will be "01," the first continuation and second budget
period will be "02," etc.
(4) Amendment Designator. Each augmentation or revision, whether an
increase or decrease, or other proposed change to a funded project requiring a
formal amendment is assigned a single character designator at the time that
the amendment is prepared Tor approval by the EPA award official (see 40 CFR
30.700). Assign the amendment designator as follow:
(a)	New agreement - no amendment, assign a numeric "0";
(b)	First through ninth amendment, assign a one-digit character
"1-9," in sequential order;
(c)	Tenth through tfiirty-fifth amendment, assign an alpha character
"A-Z," in sequential order.
4-7
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ASSISTANCE ADMINISTRATION
STRUCTURE OF FINANCIAL ASSISTANCE I DENTIFICATION NUMBER
5700
12/3/84-
ASSISTANCE
PROGRAMS
PROGRAM
CODE
SERIAL NUMBER
SEQUENCE NUMBER
PRE APPLICATION/
AMENDMENT
DESIGNATOR


POSITION
1
POSITION
2
POSITION
3
POSITION
4
POSITION
5
POSITION
6
POSITION
7
POSITION
8
POSITION
9
REGIONAL PROGRAMS


CONSTRUCTION
GRANTS FOR
WASTEWATER
TREATMENT
WORKS




"0001" - "9999"
FACILITY NEED/GRANT OBJECTIVE
(TREATMENT WORKS)
PROJECT SEQUENCE
NUMBER
"O" - "9"
"A" - "Z"
PROJECT
AMENDMENT
DESIGNATOR
CONSTRUCTION
MANAGEMENT
ASSISTANCE
"C"
"01"-"79"
STATE CODE




"70" - "99"
FISCAL YEAR OF
STATE OBLIGATION
ADVANCES FOR
ALLOWANCES FOR
FACILITIES
PLANNING AND
DESIGN PROJECT

"0000"

"01"- "19"
SEQUENTIAL NUMBER

WATER QUALITY
MANAGEMENT
PLANNING
AGREEMENTS








"21" -"49"
SEQUENTIAL NUMBER

WPC STATE AND
INTERSTATE





"01"-"79"
STATE CODE
"0"
ZERO FILL



PROGRAM

"00"


"0" - "9"
"990" - "999"
INTERSTATE COMMISSION
IDENTIFIER
"00" - "99"
FISCAL YEAR

OTHER STATE

STATE AND LOCAL
ASSISTANCE
IDENTIFIER
REGION
NUMBER



OF PROJECT

AND INTERSTATE
PROGRAM SUPPORT
"A","D"
"E","F"





"0" - "9"
"A" - "Z"
AMENDMENT
ASSISTANCE
(ANNUAL SUPPORT)
"G" , "H"
"M"




"001"-"989"
SEQUENTIAL NUMBER


ALL OTHER
STATE & LOCAL
ASSISTANCE
"B" ,"L"
"P","R"
"S","T"
"V","Y"
"X"




(NOT OTHERWISE RESERVED
FOR STATE AND INTERSTATE)


DESIGNATOR
OR
PREAPPLICATION
DESIGNATOR
HEADQUARTERS PROGRAMS
"01" - '
99"
TRAINING
"T","X"
"90"
TRAINING IDENTIFIER
"0000" - "9999"
SEQUENTIAL NUMBER
BUDGET PERIOD
NUMBER

FELLOWSHIPS
"U"
"91"
FELLOWSHIPS
IDENTIFIER
"0000" - "9999"
SEQUENTIAL NUMBER



ALL OTHER
HEADQUARTERS
PROGRAMS
"J"
"8"









"R" , "S"
RESEARCH,

"00000" - "99999"
SEQUENTIAL NUMBER




"V","Y"
"X","Z"
DEMO
& MISC
IDENTIFIER





Figure 4-1
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5700
ASSISTANCE ADMINISTRATION	12/3/84
FINANCIAL ASSISTANCE PROGRAM CODES, TITLES, CATALOG NUMBERS AND OBJECT CLASS CODES
Program CFDA #*	Program Title	Object Class.
State and Local Assistance
Wastewater Treatment Construction Programs:
C 66.418 Construction Grants for Wastewater Treatment Works	41.11
C 66.455 Construction Grants for Wastewater Treatment Works for
Combined Sewer Overflows to Marine Bays and Estuaries	41.11
C 66.438 Construction Management Assistance (§205(g)) #	41.11
C Advances for Allowances for Facilities Planning
and Project Design	41.11
Other State and Local Assistance Programs
A 66.001 Air Pollution Control Program Support (§105) #	41.12
B	Comprehensive River Basin Planning	41.55
C 66.454 Water Quality Management Planning (§205(j)) #	41.11
D 66.801 Hazardous Waste Management State Program Support (§3011) # 41.57
D	Hazardous Waste Site Inventory Program Support (§3012) 41.57
E 66.700 Pesticides Enforcement Program Support (§23(a)(L)) #	41.61
E	Pesticide Applicator Certification and Training (§23(a)(2))#
F 66.432 State Public Water System Supervision (§l443(a)) #	41.18
G 66.433 State Underground Water Source Protection (§1443(d)) #	41.19
H	Safe Drinking Water Stat"; and Local Program Development 41.20
H	Safe Drinking Water State Surface Impoundment Assessment
I 66.419 Water Pollution Control State and Interstate
Program Support (§106) ff	41.17
L	Solid Waste Disposal Demonstration and Planning
M 66.600 Consolidated Continuing Environmental Program Support H	41.10
P	Water Pollution Control-State and AreawidQ Water Quality
Management Dlanning ($208)	41.51
V	66.802 Super-fund Remedial PLanning and Implementation
(Hazardous Substances Response Trust Fund)	41.85
Y	Environmental Drotection Consolidated - Special Purpose
(other than Environmental Protection Consolidated
- Program Support -- see Program Code "IT above)	41.8L
Figure 4-2
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ASSISTANCE ADMINISTRATION
5700
12/3/8H
R
66.501
R
66.500
R

R
66.502
R
66.506
R
66.504
R
66.507
R
66.505
Program CFDA *	Object Class
Code No.	Program Title	Code
Research Grants and	41.41
Cooperative Agreements Including:	41.42
Air Pollution Control Research
Environmental Protection Consolidated Research
Hazardous Waste Disposal Research
Pesticides Control Research
Safe Drinking Water Research and Demonstration
Solid Waste Disposal Research
Toxic Substances Research
Water Pollution Control Research, Development and Demonstration
Demonstration Grants and Cooperative Agreements Including:	41.45
S 66.506 Safe Drinking Water Research and Demonstration
S	Solid Waste Management Demonstration
S 66.505 Water Pollution Control Research, Development and Demonstration
S	Water Pollution Control Lake Restoration Demonstration
(Clean Lakes)
Training Grants and Fellowships including:
T	66.003 Air Pollution Control Manpower Training	41.21
T	Safe Drinking Water Inspection and Supervisory Training	41.21
T	Safe Drinking Water Occupational Training	41.21
T	Safe Drinking Water Professional Training	41.21
T	Solid Waste Management Training	41.21
T	Water Pollution Control Professional Training	41.21
T	Water Pollution Control Technical Training	41.21
T	Water Pollution Control State and Local Manpower
Program Development	41.21
T	Water Quality Management Public Participation Training	41.21
U	Air Pollution Control Fellowships	41.25
U	Safe Drinking Water Fellowships	41.25
U	Water Pollution Control Fellowships	41.25
Other:
R/S	Great Lakes Pollution Control Research and Demonstration	41.16
J 66.702 Asbestos Hazards Abatement (Schools) Assistance	41.84
X Investigations, Surveys or Studies considered to be
neither research, demonstration, nor training	41.83
* Sane programs listed above are not included in the current Catalog of Federal
Domestic Assistance Programs (CFDA) and may no longer be funded or authorized.
4'¦ Continuing Environmental Program Support
Figure 4-2A
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5700
ASSISTANCE ADMINISTRATION	12/3/84
Assigned Blocks of WWT Construction Serial Numbers
STATE
SERIAL NUMBER
Alabama
010001
_
019999
Alaska
020001
-
029999
Unassigned
030001
-
039999
Arizona
040001
-
049999
Arkansas
050001
-
059999
California
060001
-
069999
Unassigned
070001
-
079999
Colorado
080001
-
089999
Connecticut
090001
-
099999
Delaware
100001
-
109999
District of Columbia
110001
-
119999
Florida
120001
-
129999
Georgia
130001
-
139999
Unassigned
140001
-
149999
Hawaii
150001
-
159999
Idaho
160001
-
169999
Illinois
170001
-
179999
Indiana
180001
-
189999
Iowa
190001
-
199999
Kansas
200001
-
209999
Kentucky
210001
-
219999
Louisiana
220001
-
229999
Maine
230001
-
239999
Maryland
240001
-
249999
Massachusetts
250001
-
259999
Michigan
260001
-
269999
Minnesota
270001
-
279999
Mississippi
280001
-
289999
Missouri
290001
-
299999
Montana
300001
-
309999
Nebraska
310001
-
319999
Nevada
320001
-
329999
New Hampshire
330001
-
339999
New Jersey
340001
-
349999
New Mexico
350001
-
359999
New York
360001
-
369999
North Carolina
370001
-
379999
North Dakota
380001
-
389999
Ohio
390001
-
399999
Oklahcn\a
400001
-
409999
Oregon
410001
-
419999
Pennsylvania
420001
-
4299 9 9
Unassigned
430001
-
439999
Rhode Island
440001
-
449999
Figure 4-4
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ASSISTANCE ADMINISTRATION
5700
12/3/84
STATE
SERIAL
NUMBER
South Cardlina
450001
—
459999
South Dakota
460001
-
469999
Tennessee
470001
-
479999
Texas
480001
-
489999
Utah
490001
-
499999
Vermont
500001
-
509999
Virginia
510001
-
519999
unassigned
520001
-
529999
W&shington
530001
-
539999
West Virginia
540001
-
549999
Wisconsin
550001
-
559999
Wycming
560001
-
569999
Unassigned
570001
-
579999
Unassigned
580001
-
589999
Unassigned
590001
-
599999
Anerican Samoa
600001
-
609999
Unassigned
610001
-
619999
Unassigned
620001
-
629999
Unassigned
630001
-
639999
Unassigned
640001
-
649999
Unassigned
650001
-
659999
Guam
660001
-
669999
Unass igned
670001
-
679999
Unassigned
680001
-
689999
Northern Marianas
690001
-
699999
Unassigned
700001
-
709999
Midway Island
710001
-
719999
Puerto Rico
720001
-
729999
Unassigned
730001
-
739999
Unassigned
740001
-
749999
Trust Territories of the



Pacific Islands
750001
-
759999
Unassigned
760001
-
769999
U.S. Misc. Pacific Islands



(incl. Wake Island)
770001
-
779999
Virgin Islands
780001
-
789999
Unassigned
790001
-
799999
Figure 4-4A
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5700
ASSISTANCE ADMINISTRATION	12/3/84
CHAPTER 5 ~ OFFICIAL EPA FINANCIAL ASSISTANCE FILES
Table of Contents
PARAGRAPH	PARAGRAPH
TITT.ES	NUMBERS
General		1
Responsibility		2
Recording Media (Paper/Microform)		3
File Creation		4
File Organization and Structure		5
Contents of Official Financial Assistance File		6
File Folders		7
Micrographic Files		8
Security of Proprietary Information		9
Accessibility		10
FIGURE	FIGURE
TITLES	NUMBERS
Financial Assistance Related Records Control Schedules	 5-1
i
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ASSISTANCE AEMINISTRATION
CHAPTER 5 - OFFICIAL EPA FINANCIAL ASSISTANCE FILES
5700
12/3/84
1.	GENERAL. The official EPA file for a financial assistance project actually
consists of three interdependent supporting files, each maintained by their
respective organization, the Assistance Administration unit (AALJ), the servicing
Financial Management Office (FMO), and the sponsoring program office. The official
administrative file maintained by the AAU is supported by the financial documen-
tation that is maintained by the servicing FMO, and by the technical documentation
that is maintained in the files of the sponsoring program office and the EPA
Project Officer. Figure 5-1 lists the assistance-related files as shown in the
Agency's Records Management Manual.
2.	RESPONSIBILITY.
a.	Official Administrative File. The official administrative file must
provide EPA's funding or rejection, principal operating activities, and required
reporting through project completion, closeout and audit.
(1)	The Grants Operations Branch (PM-216) will establish and maintain
the official administrative file for each preapplication, application and unsol-
icited proposal received and administered in Headquarters.
(2)	The Regional Administrator will designate the Assistance Administration
Unit to establish, maintain and retire the official administrative files for
those agreements administered through that regional office. EPA may delegate
responsibility for creating and maintaining the official administrative files
of WWT construction grant activities, or portions thereof, to individual States
under the Construction Management Assistance Program (§205(g)).
b.	Technical File. The sponsoring progran office/EPA Project Officer
establishes and maintains the official technical record of activities under
supported assistance agreanents. EPA may delegate responsibility for creating
and maintaining the official technical files of WWT Construction Grant activities
to individual States under the Construction Management Assistance Program. The
appropriate AAU will coordinate the assembly, packing, delivery and storage of
the technical and administrative records of assistance agreanents with their
closeout.
c.	Financial Management File. The servicing FWO establishes, maintains
and retires the official financial records of assistance agreements. A copy of
Financial Status Reports and certain other financial documents will be included
in the administrative file also.
3.	RECORDING MEDIA (PAPER/MICROFORM). The official EPA financial assistance
files may consist of paper (hard copy) records or, when specifically authorized
by the Agency Records Management Officer (Information Management and Services
Division), a ccmbination of paper and microform records. Each request for
approval of a micrographic system must be supported by a feasibility study
that follows the guidelines provided in Appendix A, Chapter 6, of the EPA
Records Management Manual. Regional proposals to convert financial assistance
records to a micrographic systsn must address those records generated and
maintained for EPA by each of their States under delegation agreanents.
5-1
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ASSISTANCE AEMINISTRATION
5700
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4.	FILE CREATION. The responsible EPA or State assistance administration staff
will establish the official assistance file immediately after assigning an EPA
Assistance Identification Number, as soon as or before it informs the applicant
that EPA has received the application.
5.	FILE ORGANIZATION AND STRUCTURE. Most of EPA's official assistance files
consist of hard copy paper records stored in file folders in traditional file
cabinets. Bulky items such as plans and specifications, environmental impact
statements, reports, etc. may be filed elsewhere and cross referenced to one or
more related projects. Any well-thought-out system that provides for orderly
filing of the documents and easy access for their subsequent recall meets the
criteria for an official file system. The key lies in adherence to a system,
inclusion of all appropriate material, and consistency in use.
6.	CONTENTS OF OFFICIAL FINANCIAL ASSISTANCE FILE.
a. General. The official financial assistance file must document all
significant actions arri decisions having to do with the application and resulting
agreement, if any. True copies of original paper documents are acceptable for
the official administrative file. The official file of each EPA assistance
agreement must include the application and award documents with their supporting
attachments, certifications and related correspondence, and such other required
administrative and technical documents as those listed below. Those underlined
are especially relevant to WWT Construction Grant supported projects (see
subparagraph f(2) below).
(1) Application Phase
0	Preapplication;
°	Complete original application and any requests for amendment;
°	State certification of project priority and project approval;
°	Required planning documents;
°	Proposed Work Plan;
°	Specific references to State plans;
°	Facility Plan;
°	Plans and specifications;
°	Correspondence relating to the application;
0	Clearances;
0	Assurances;
°	Record of emergency waiver fran intergovernmental review
requirements;
°	Environmental Assessment, Finding of No Significant Impact,
or Environmental Impact Statement;
°	Determination regarding patents and copyrights;
°	Notice of approval of plans and specifications;
°	Procuranent System Certification (EPA Form 5700-48);
0	Indirect Cost Negotiation Agreement;
5-2
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ASSISTANCE ADMINISTRATION
5700
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(2)	EPA Preaward Review
° Intergovernmental review carments;
0 Relevance determination;
0 Cost estimates;
° Cost analysis and EPA staffs' comments on findings;
0 Fiscal data sheets;
0 Programmatic reviews, in-house and extramural;
° Regional and/or laboratory canments on Headquarters
administered application;
° Certification of Compliance w/subagreement regulations
including EEO;
0 Correspondence relating to resolution of cost analysis
findings;
0 Description of approved user charge system, if required;
° Intermunicipal service agreements, if required;
0 Evidence of force account approval;
(3)	Funding Decision
0	Decision memorandum;
°	Regional policy comments (research/training);
°	Funding order or rejection letter;
0	Commitment notice;
0	Clearance for any foreign activities;
0	Subagreement cost reviews (EPA Form 5700-41) (see paragraph 9,
Security of Proprietary Information, below);
0	Resolution of cost analysis issues;
0	tonacconmnodation letter;
(4)	Award Documentation
0 Assistance Agreement/Amendment (retain a copy until original
is returned by the recipient with acceptance signature)
0 Fellowship Agreement and Fellowship Amendment (retain a copy
until original is returned with signature of the fellow);
0 Any letter advising applicant of award decision;
0 Fellowship Activation Notice;
(5)	Active Projects
0	Correspondence concerning negotiations and agreements;
0	Correspondence concerning proposed project changes;
°	Recipients' requests for deviation;
°	Recanmendations for approval/denial of deviation requests;
0	Decision (Director, GftD) on deviation request;
0	Correspondence concerning continuation or renewal of project;
0	Site visit reports;
°	Technical progress reports required by Assistance Agreement;
0	Fferiodic administrative reports;
°	Fiscal data sheet for continuations;
5-3
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ASSISTANCE ADMINISTRATION
5700
12/3/84
0 Financial Status Report (each budget period);
° Invention Report (each budget period; research agreements
only);
° Notice of approval to advertise and award construction contracts?
° Construction contract bid tabulations;
0 Construction contracts and subagreements;
° Architectural and engineering subagreements;
0 Procurement protest determinations;
° Approved change orders;
° Vouchers (R&D reimbursement payments only);
0 Payment vouchers and schedules;
° Notice of approval of Operations and Maintenance manual;
0 Other technical documentation such as shop drawings, etc.
(including records of nonaccanmodation/emergency waivers),
public hearings, bid protests, and any other matter of
consequence which is relevant to the project, its funding,
design, performance, recipient or contractor integrity,
etc.
(6)	Non-Canpliance/Disputes
0	Stop-work-order and related correspondence;
°	Program or recipient request for termination;
0	Letter of intent to terminate;
°	Correspondence concerning early termination;
°	Suspension or termination actions;
°	Formal letter of terminationl
°	EPA Fellowship Termination Notice;
0	Correspondence concerning disputes and appeals;
°	Final determinations;
°	Annulment;
(7)	Audit
° Regional Office/State pre-audit certification;
° Requests for audit;
0 Audit reports;
° Correspondence related to audit reports and resolution of
audit findings;
° Regional and General Counsel opinions;
0 Interim and final audit reports, comments and resolution;
0 Final determinations;
° Final disputes decision and any appeal or reconsideration
determination/resolution documents.
(8)	Closeout of Completed Agreement/Project
0 One-year performance certification (grants awarded after
12/28/81);
5-4
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5700
ASSISTANCE ADMINISTRATION	12/3/84
0 Final on-site inspection report (including expiration of the
budget period and evidence of action taken to correct
deficiencies);
0 Final "Outlay Report and Request for Reimbursement for
Construction" forms and reconciliation to final EPA
payment;
° Completion letter;
0 Closeout "alert" letter reninding recipient of approaching end
of agreement and advising of closeout requirements:
-	Final project report
-	Final Financial Status report
-	Invention Report
-	Records of disposition of Federally owned property
-	Records of disposition of recipient owned nonexpendable
equipment purchased with assistance funds
-	Report on relocation and acquisition activities
-	Follow-up correspondence on closeout items
0 Closeout letter.
(b)	Specific WWT Construction Grant Requirements. Those documents
listed above that are underlined must be included in the official EPA file of
each WWT construction project (whether administered by an EPA regional office or a
delegated State) if the document is required in order to comply with the terms of
the grant agreement. Major documents that are retained with records of a Step 1,
Step 2, or a previous Step 3 segment may be incorporated into the official file
of a current Step 3 or Step 2+3 by reference.
(c)	Specific Superfund Remedial Planning and Implementation Requirements.
(Reserved for any special Hazardous Substance Trust Fund project requirements).
7.	FILE FOLDERS. File folders that are subdivided are convenient in that
they allow for segregrating paper documents by type or subject category. This
greatly facilitates file maintenance and use, particularly vdien project records
are voluminous. The standard file folder available from the Federal Supply
Service (GSA) stores under Stock Number 7530990-8884, has several backers with
prongs to hold paper that has been punched with two holes.
8.	MICROGRAPHIC FILES. Any Award Official who has been authorized by the Agency's
Records Management Officer to maintain official financial assistance records on
microform (any system of reducing documents to film) should establish a system
for categorizing and segregating documents whether using microfiche, tape, or
other medium. In that way for example, the application and those documents
associated with it will be filed/filmed consecutively in chronological sequence,
thereby facilitating file search and retrieval. Each request for authorization
of a micrographic system should outline the arrangement of financial assistance
records that is proposed and discuss the plans, if any, for official EPA records
maintained by States under delegation agreements.
5-5
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ASSISTANCE ADMINISTRATION
5700
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9.	SECURITY OF PROPRIETARY INFORMATION. Generally, the information that an
applicant/recipient submits to EPA in support of an application for financial
assistance, or in execution of an assistance agreement, is not confidential. As
such it becomes a part of the Agency's official records. It need not be afforded
unusual security protection and is subject to EPA's disclosure of information
policy (40 CFR Bart 2). Applicants and recipients may assert a claim of business
confidentiality over sane of the information submitted. They must clearly label
the material subject to the claim with such terms as "trade secret," "proprietary,"
or "company confidential." Assistance Administratior, Units and program offices
receiving proprietary information must take appropriate measures to safeguard the
documents and prevent inadvertent or unauthorized release or reproduction of the
information. Refer to the Freedom of Information chapter of this Manual regarding
requests for the release of information as authorized by the Freedom of
Information Act.
10.	ACCESSIBILITY. Information contained in the official file can be made
available to anyone with a legitimate purpose subject to the limits noted in
paragraph 9 above. The file serves as the official reference source for all
inquiries and decision making purposes including Freedom of Information requests,
judicial queries, recipient appeals, and equipment disposition actions. The EPA
Office of the Inspector General may obtain the file, or copies of selected material
in the file, to assist in the performance of an audit.
5-6
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ASSISTANCE AEMINISTRATION
5700
12/3/84
Program/
Page
Financial Assistance Related Records Control Schedules
(Cross referenced to Records Management Manual)
Item	Name of Records
Appendix B - Agencywide Grant [and Cooperative Agreement] Records
B-4-1
B-4-2
R-4-3
Legislative Records
C-5-1	4
Mobile Source - APC
C-fi-1	1
Public Awareness
C-7-7
Solid Waste
C-R-l
C-R-2
Noise
C-Q-l
Water Supply
C-10-3
1	program Management File
2	Administrative Reports-Data Relating to Grants
3	R&D, Training Grants, and Fellowships
4a	Program and State Operator Training Grants
4b/c	Construction Grants
4d	Deviation Requests
5	Rejection of Grant and Fellowship Applications
Appendix C - Headquarters Office Records
Grant File - Congressional Data Transfer
Contracts & Grants File
Contracts & Grants File
25
I
Q
11
]?
Radiation
C-U-i
Water Planning
C-12-1
C-12-2
C-12-3
Air Ouality
C-14-?
3
4
in
State & Local Government File
Contracts & Grants
Contracts & Grants Program File
Final Reports & Evaluation on Contracts, Grants,
& Jn-house & Interagency Studies & Surveys
Contracts, Grants, & Agreements
Contracts & Grants Program File
Contracts & Grants Project Group File
Final Reports from Contractor, Inter & Intra Agency
Studies, Surveys, & Services
Areawide Waste Treatment Management "20R" File
Contract/Grant Project File
Figure 5-1
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ASSISTANCE ADMINISTRATION
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Program/


Page
I ton
Name of Records
Water Program Operations

C-15-]
2
Contracts & Grants - Project Group File

3
Final Reports Resulting frcm Contractors, Grantee


Inters Intra-Agency Studies & Services
C-15-2
8
School Training Grants

9
Fellowship Folders
C-)5-3
10
On the Job & Waste Treatment Works Personnel


Training Grants
C-15-4
12
Grant Guidance Memorandums

13
Project Management Waste Water Treatment


Construction Grant Program File
Pesticides


C-lfi-5
25
Contracts, Grants, & Agreement File
Research and
Development

C-19-4
]0
Research Projects Case Files—Grants
Toxics


C-20-J
3
Contracts & Grants File

4
Final Reports Resulting from Contractor or


Grantee Studies & Services


Appendix D - Regional Offices
D-l-T
4
Research & Development Grants

5
Rejection of R&D Grant Applications

6
Manpower Development File
Air and Hazardous Materials
D-2-1
2
Section 105 APC Grants

4
Section 204 Hazardous Waste Grants
D-2-3
14
Section 23 Pesticides Grants
D-P-S
23
State Hazardous Waste Program File

28
Section 104(c) CERCLA Cooperative Agreements
Water Program

0-3-1
1
Section ]06 program Grant

3
Section lOfi Grant Correspondence
iv 3-3
]7
Cctnprehensive River Basin Planning (3-C) Grants

18
Section 201 Construction Grant Planning File
D-3-4
]Q
Section 208 Areawide Planning Grants
Figure 5-lA
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5700
ASSISTANCE ADMINISTRATION	12/3/84
CHAPTER 6 - INTERGOVERNMENTAL REVIEW
Table of Contents
PARAGRAPH	PARAGRAPH
TITLES	NUMBERS
Background		1
Purpose		2
General Provisions and Policies		3
Applicability		4
Responsibilities		5
Basic Procedures		6
Delegation to States		7
APPENDIX	APPENDIX
TITLES	NUMBERS
40 CFR Part 29, "Intergovernmental Review of Environmental
Protection Agency Prograns and Activities"	 6-A
"Notice of Procedures to Establish Comment Period Start
Dates for Programs and Activities Subject to Executive
Order 12372"	 6-B
"Notice of Supplemental Procedures for Establishing Start
Dates of Comment Period for Activities Subject to
Executive Order 12372"	 6-C
Instructions to Applicants	 6-D
i
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ASSISTANCE AEMINISTRATION
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CHAPTER 6 ~ INTERGOVERNMENTAL REVIEW
1.	BACKGROUND. On October 1, 1983, States and Federal agencies began operating
a new intergo/errmental review process under Executive Order 12372. The Crder
rescinded the review system prescribed by Office of Management and Budget
(OMB) Circular Number A-95, and replaced it with the system described below.
The Order also implements the consultation requirements of Section 401 of the
Intergovernmental Cooperation Act of 1968, as amended, and Section 204 of the
Demonstration Cities and Metropolitan Development Act of 1966, as amended.
The ESwirormental Protection Agency's (EPA) regulation, 40 CFR Part 29, sets
forth the Agency's obligations and procedures for consulting with and responding
to views expressed by State and local elected officials on proposed EPA direct
development activities, and applications submitted for EPA financial assistance
under programs subject to the Order. Under 40 CFR Part 29, the Administrator
or his delegatees execute intergovernmental review responsibilities for EPA
programs and activities that States elect to cover under an official E.O.
12372 review process.
2.	PURPOSE. This chapter provides basic information and procedures to help
EPA program and assistance administration staff meet their responsibilities
under 40 CFR Part 29. It is to be used with the Rart 29 regulation, related
Federal Register Notices, and any supplemental guidance issued for specific
programs (see Appendixes 6-A through 6-D).
3.	GENERAL PROVISIONS AND POLICIES.
a.	States are allowed to:
(1)	Choose whether to establish an official E.O. 12372 process;
(2)	Choose which programs and activities covered by the Order they
will review under their process;
(3)	Design their own system to coordinate State and local review of
projects proposed under EPA assistance programs and direct development activities;
(4)	Designate an official or organization to be the State's single
point of contact (SPOC);
(5)	Delegate responsibilities for review, coordination, and communi-
cation with EPA to an entity other than the SPOC; and
(6)	If not inconsistent with law, try to simplify, consolidate, or
substitute their own plans for Federally required State plans without the
Administrator's prior approval.
b.	EPA is required to:
(1) Use a State's process as soon as feasible after it is established and
the State has notified EPA of its program selections;
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(2)	Notify the State process of financial assistance applications and
direct development activities subject to the Order that EPA is considering for
their jurisdictions. If there is no State process or if the progran/activity
is not covered by the State process, EPA must notify directly affected State,
areawide, Regional and local entities or officials. EPA's notice must establish
a ccmment period and identify an EPA contact for additional information about
the proposal (see Appendixes 6-A and 6-B). Except in unusual circumstances, EPA
must provide 30 days for comment on nonccmpeting continuation applications and
60 days for comment on proposed direct development activities and other than
nonccmpeting continuation applications;
(3)	Consider all ccmments submitted within the comment period and
respond in accordance with the procedures provided in 40 CFR 29.9 through
29.11 and make efforts to accommodate an official State process recommendation
submitted through a SPOC. If unable to accommodate, EPA must explain its
reasons in writing to the SPOC;
(4)	Review applications in light of areawide, Regional or local ccmments
to determine if the planning is consistent with Federal law and planning activities/
decisions at State, Regional, and local levels;
(5)	Ensure that applicants have complied with Section 204 of the
Demonstration Cities and Metropolitan Development Act where applicable; and
(6)	Accept a State's simplified, consolidated or substitute plan only
if it meets Federal requirements.
c. Applicants are required to:
(1)	Contact their State's SPOC to learn about their State's process
and canply with its procedures and requirements (see Appendix 6-D);
(2)	Notify EPA of the "Catalog of Federal Domestic Assistance" (CFDM
number and title of the program (see below) in which they are applying; their
name; whether their application is subject to their State's process and or
Section 204 of the Demonstration Cities and Metropolitan Development Act; and
the date they sent the material to their State process for review, if applicable;
and
(3)	Comply with Section 204 if they are proposing an open-space land
project, construction project, veter development, or land conservation project.
They must allow areawide agencies designated to perform planning for the geo-
graphic location of the proposed project 60 days for review and canment. If
the project is proposed by a specialized unit of local government, the same
opportunity to canment must be given to the general unit of local government
having jurisdiction over the project area.
4. APPLICABILITY. States may select any or all of the following EPA programs
and activities for review under their official E.O. 12372 process. (Note: An
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ASSISTANCE ADMINISTRATION
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EPA program or activity that 1s administered by a State agency under a State
delegation agreement or authorization is subject to the review process only if
EPA retains the authority to sign/issue final documents. See paragraph 7 for
specific detail.) Programs subject to Section 204 are identified with an
asterisk(*); programs having State plans eligible for modification are identified
with a plus sign (+).
Financial Assistance Programs
1. State and Local Assistance Programs
CFDA Number	Program Title
*66.001	+Air Pollution Control Program Support
*66.418 Construction Grants for Wastewater Treatment Works
*66.419	+Water Pollution Control State and Interstate Program Support
*66.432	+State Public Water System Supervision
*66.433	+State Underground Water Source Protection
*66.435 Water Pollution Control Lake Restoration Demonstration
*66.438	+Construction Management Assistance
*66.454	-Water Quality Management Planning
*66.455 Marine Combined Sewer Overflow Special Fund
*(N/A) State Inventories of Uncontrolled Hazardous Waste Sites
*66.600	+Consolidated Continuing Environmental Program Support
*66.603 loan Guarantees for Construction of Treatment Works
*66.700	+Pesticides Enforcement Program Support
*66.801	+Hazardous Waste Management State Program Support
*66.802 Superfund Remedial Planning and Implementation (Hazardous
Substance Response Trust Fund)
(to be assigned) Asbestos Hazards Aoatement (Schools) Assistance Program
2. Research, Development, and Demonstration Programs 1/
CFDA Number	Program Title
66.500	Environmental Protection Consolidated Research
66.501	Air Pollution Control Research
66.502	Pesticides Control Research
66.504	Solid V/aste Disposal Research
*66.505	Water Pollution Control Research, Development, and
Demonstration
*66.506	Safe Drinking Water Research and Demonstration
66.507	Toxic Substances Research
1/ Selection is limited to proposals which (a) require an Envirormental Impact
Statement (EIS); or (b) do not require an EIS but will be newly initiated at a
particular site and require unusual measures to limit the possibility of adverse
exposure or hazard to the general public; or (c) have a unique geographic focus
and are directly relevant to the goverrmental responsibilities of a State or
local government within that geographic area.
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ASSISTANCE ADMINISTRATION
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Direct Development Activities
*(N/A)	Real property acquisition or disposition, including obtaining
major leases or easements
*(N/A)	Construction of new EPA facilities
*(N/A)	EPA issued plans and permits which do not impact interstate areas
5. RESPONSIBILITIES. On December 7, 1983, the Administrator officially delegated
his authority to execute 40 CFR Part 29 responsibilities to Regional Administrators
and Assistant Administrators previously delegated the authority to approve grants,
cooperative agreenents, direct development activities, and State plans. With
the exception of v*estewater treatment construction grants, tho authority for
40 CFR Part 29 may be redelegated within EPA to Regional Division Directors
and to Headquarters Office Directors. Each Regional and Assistant Administrator
affected by this delegation must document officially any redelegation(s) they
make. (Management and Organization Division staff is available to assist with
this requirement.)
a.	Management and Oversight. Ihe Chief, Grants Policy and Procedures Branch
(GPPB), Grants Administration Division (PM-216), manages EPA's basic procedures
and oversees the implementation by Regional and Headquarters assistance
administration and program staff to ensure that EPA applies the provisions of
40 CFR Part 29 consistently. The GPPB is responsible for:
(1)	Approving agencywide, Regional, and supplemental program-specific
guidance before they are implemented;
(2)	Receiving, coordinating and distributing materials relating to
all State processes to appropriate EPA Regional and Headquarters offices;
(3)	Publishing for canment in the Federal Register any changes EPA
proposes to make in its procedures or in its list of programs and activities
eligible for States to review under an official E.O. 12372 process before
implementing any changes; distributing same to appropriate EPA Reqional and
Headquarter offices for their distribution to SPOCS and or designated areawide
entities in their jurisdictions; and
(4)	Maintaining central recordkeeping of all nonacccmmodations and
emerqency waivers that Reqional and Headquarters offices issue, and of any
ccmplaints they receive about EPA's procedures, decisions or actions.
b.	Regional operations. Regional Assistance Administration Units responsible
for the administrative processing of financial assistance applications will
serve as focal paints for all of their Region's intergovernmental review activi-
ties. As such, they will:
(1)	Be a contact for additional information about projects subject to the
new review process;
(2)	Maintain a central file of information received frcm the GPPB and
distribute copies to appropriate Regional program staff;
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ASSISTANCE ADMINISTRATION
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(3)	Alert the Chief, GPPB before the Region issues a controversial
nonaccanmodation or emergency waiver to the regulation;
(4)	Send a copy of each nonaccanmodation or emergency waiver issued
and of any ccmplaint received about EPA's procedures, decisions or actions to
the Chief, GPPB, and file a copy in the official project file;
(5)	Assist Regional program staff in matters related to intergovernmental
procedures, i.e., not programmatic decisio.is; and
(6)	Not issue an assistance agreement without evidence that, if applicable,
the requirements of Section 204, 401 and 40 CFR Part 29 were met.
c.	Headquarters Operations. The Grants Operations Branch, Grants
Administration Division will assume similar responsibilities as the Regional
Assistance Administration units; however, the Chief, GPPB will continue to be
responsible for distributing information to Headquarters program offices.
d.	Programmatic Decisions. EPA delegatees are responsible for decisions
to nonaccanmodate an official State process recommendation, for waiving a pro-
vision of the regulation in an emergency situation, and for developing supplemental
procedures, if necessary, to implenent the provisions of E.O. 12372 in their
respective programs. Whenever possible, they should consult with the Chief,
GPPB before issuing a noncontroversial nonaccanmodation or emergency waiver.
All supplemental procedures must be submitted to the Chief, GPPB for approval
before they are implemented. Program offices should also notify SPOC's of
situations that require an emergency waiver as soon as possible and involve
them in any subsequent decisions about the matter.
6. BASIC PROCEDURES. The EPA Assistance Administration Units responsible for
the administrative processing of financial assistance applications should
encourage potential applicants in prograns subject to E.O. 12372 and or Section
204 to notify and talk with officials and entities who have the opportunity to
review their applications as early as possible. Each EPA Assistance Administration
Unit may establish its own procedures to ensure that the Agency meets its
obligations under 40 CFR Part 29. At a minimum, each office must:
a.	Provide a copy of the regulation and "Instructions to Applicants"
(see Appendix 6-D) in each application kit for programs subject to E.O. 12372;
b.	Review applications received for evidence of the applicant's compliance
with its State process and or Section 204 (see Section II of the SF 424 and the
form fran the "Instructions to Applicants" that must be returned to EPA);
c.	Telephone those applicants whose applications should have gone through a
SPOC but did not ("renegade application"). Inform them that EPA will not fund
the application until the intergovernmental review process is completed, and
telephone the appropriate SPOC to notify them of the "renegade application."
Note that applications submitted in programs not subject to E.O. 12372 are not
considered to be "renegade applications;"
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ASSISTANCE ADMINISTRATION
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d.	Continue processing the application but not award an assistance agree-
ment iffitil intergovernmental review requirements are net;
e.	Forward a State process recanmendation/other comments received within the
official comment period on an application to the appropriate progran office;
f.	Forward copies of nonaccammodations and emergency waivers to the official
project file and to the Chief, GPFB; and
g.	Assist States interested in simplifying, substituting, or consolidating
State plans required under EPA's continuing environmental programs (See 40 CFR
Part 35, Subpart A).
7. DELEGATION TO STATES.
a.	General. In sane programs, State agencies have assumed administrative
responsibilities in accordance with individual State delegation agreements or
authorizations that clearly define a State agency's authorities and obligations.
These delegated/authorized State agencies may want to also assume responsibility
for administering certain provisions of 40 CFR Part 29. This is applicable to
the following prograns where EPA retains authority to sigr\/issu8 final documents:
(1)	Construction Grants for Wastewater Treatment Works.
(2)	Intrastate Permits/Licenses for:
(a)	Prevention of Significant Deterioration (PSD);
(b)	National Rallutant Discharge Elimination System (NPDES);
(c)	Treatment, storage, and disposal permits under RCRA.
b.	Conditions for Delegation.
(1)	The State agency itself is not the applicant or the permittee in
the EPA program;
(2)	The State agency is not also the Single PDint of Contact;
(3)	The State agency has not been delegated intergovernmental review
responsibility for the EPA progran by the State process; and
(4)	The Single FOint of Contact and the State agency agree on the
functions the State agency will perform. Note: this agreement is separate fran
EPA's formal delegation or authorization document.
c.	Delegable/Nondelegable Functions of Part 29.
(1) The authority to notify a State process of actions proposed under
the delegated EPA programs, to receive and consider comments, and to either
6-6
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ASSISTANCE ADMINISTRATION
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accommodate a State process recommendation or work out a mutually agreeable
solution can be delegated.
(2) The authority to issue a nonaccammodation or to approve/deny a
request for an emergency waiver cannot be delegated. A State agency may,
however, provide EPA a draft nonaccanmodation letter for possible use and
recommend approval/denial of a request for an emergency waiver provided the
agency itself is not the applicant or permittee.
d. State Agency and Single Point of Contact Agreements. These agreements
must clearly define both State agencies' responsibilities. The delegated State
agency must forward a copy of the agreement to the appropriate EPA Regional or
Headquarters office to review for compliance with 40 CFR Part 29.
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ASSISTANCE ADMINISTRATION	12/3/84
29288	Federal Register / Vol. 48, No. 123 / Friday, June 24,1983 / Rules ahd Regulations
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Parts 29,35,40,51, and 255
(OA-FRL-23SO-2(a)]
Intergovernmental Review ot the
Environmental Protection Agency
Programs and Activities
AQENCV. Environmental Protection
Agency, Office of the Administrator.
ACTION: Final rule.
SUMMARY: These regulations implement
Executive Order 12372,
"Intergovernmental Review of Federal
Programs." The regulations apply to
federal financial assistance and direct
federal development programs and
activities of the Environmental
Protection Agency (EPA) Executive
Order 12372 and these regulations
replace the intergovernmental
consultation system developed under
Office of Management and Budget
(OMB) Circular A-95. They also
implement section 401 of the
Intergovernmental Cooperation Act and
section 204 of the Demonstration Cities
and Metropolitan Development Act
EFFECTIVE DATE: September 30.1983.
FOR FURTHER INFORMATION CONTACT:
John A. Gwynn, Chief, Grants Policy
and Procedures Branch (PM-218),
Environmental Protection Agency.
Washington. D.C. 20460 (202) 382-5268.
SUPPLEMENTARY INFORMATION: On
January 24.1983 (48 FR 3208) the
Environmental Protection Agency and
25 other federal twenties published
Notices of Proposed Rulemaking
(NPRMs) to carry out Executive Order
12372, or notices proposing that their
programs not be subject to the Order.
Subsequently two more agencies
published NPRMs, bringing to 28 the
total number of proposals subject to
public comment. The EPA, in
conjunction with the other 27 federal
agencies and OMB, published a notice in
the Federal Register on April 21.1983 (48
FR 17101) reopening the comment
period, scheduling a public meeting for
May 5.1983, and requesting comments
on several tentative responses to
comments.
Including the commentsjreceived by
OMB and other federal agencies which
we incorporated in our rulemaking
docket, the EPA received approximately
160 comments on government-wide
issues during the comment penod. In
addition, the EPA received 42 comments
specifically related to the inclusion or
exclusion of our programs from the
coverage of the Order or other issues
pertaining only to our Agency
In preparing the final rule, the
Environmental Protection Agency
considered these comments as well as
testimony at public meetings held in
Washington on March 2,1983, and May
5,1983, and a hearing before the Senate
Intergovernmental Relations
Subcommittee on March 3,1983.
Following consultation with OMB and
the other 22 federal agencies that are
issuing a final rule, we made several
changes from the proposed rule. The
EPA is fully committed to carrying out
Executive Order 12372, and intends
through these regulations to
communicate effectively with state and
local elected officials and to
accommodate their concerns to the
greatest extent possible.
Several state, local, and regional
agencies asked that the regulations
not become effective on April 30,1983.
as the NPRM had contemplated
Postponing the effective date would give
state and local elected officials more
time to establish the state processes and
to consider which federal programs they
wish to select for coverage. Responding
to these requests, the President
amended the Executive Order on April
8.1983. extending the effective date of
these final regulations until September
30,1983 (48 FR 15587. Apnl 11,1983).
The EPA's existing requirements and
procedures under OMB Circular A-95
will continue in effect through
September 30.1983.
' Introduction to the Rules
The President signed Executive Order
12372, "Intergovernmental Review of
Federal Programs," on July 14,1982 (47
FR 30959, July 16,1982). The objectives
of the Executive Order are to foster an
intergovernmental partnership and a
strengthened Federalism by relying on
state and local processes for state and
local government coordination and
review of proposed federal financial
assistance and direct federal
development The Executive Order
—Allows states, after consultation with
local officials, to establish their own
process for review and comment on
proposed federal financial assistance
and direct federal development;
—Increases federal responsiveness to,
state and local officials by requiring
federal agencies to accommodate
state and local views or explain why
not;
—Allows states to simplify, consolidate,
or substitute state plans, and
—Directs OMB to revoke OMB Circular
No. A-95.
Salient Features of the Policies
Implementing E.0.12372
Three major elements comprise the
scheme for implementing the Executive
Order. These are the state process, the
single point of contact and the federal
agency's "accommodate or explain"
response to state and local comments
submitted in the form of a
recommendation.
State Process
The state process is the framework
under which state and local officials
carry out intergovernmental review
activities under the Executive Order.
The rule requires only two components
for the state process: (1) A state must
tell the federal agency which programs
and activities are being included under
the state process, and (2) a state must
provide an assurance that it has
consulted with local officials whenever
it changes the list of selected programs
and activities. (The Executive Order
provides that states are also to consult
with local governments when
establishing the state process.) Any
other components are at the discretion
of the state. This lack of
presenptiveness gives state and local
officials the flexibility to design a
process that responds to their interests
and needs.
A state is not required to establish a
state process. However, if no process is
established, the provisions of the
Executive Order and the implementing
rules (other than indicating how federal
agencies will operate under such
situations) do not apply. Existing
consultation requirements of other
statutes or regulations (except Circular
A-95) will continue in effect, including
those of the Intergovernmental
Cooperation Act of 1968. as amended
and the Demonstration Cities and
Metropolitan Development Act of 1966,
as amended. The intergovernmental
consultation provisions of Circular A-95
end as of September 30,1983
While not required by the rule, most
state processes will likely include the
following components:
—A designated single point of contact:
—Delegations of review and comment
responsibilities to particular state,
areawide, regional, or local entities;
—Procedures to coordinate and manage
the review and comment on proposed
federal financial assistance or direct
federal development, and to aid in
reaching a state process
recommendation;
—A means of consulting with local
officials, and
Appendix 6-A
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ASSISTANCE ADMINISTRATION	12/3/84
	Federal Register / Vol. 46, No. 123 / Friday, June 24, 1983 / Rules and Regulations 29269
—A means of giving notice to
prospective applicants for federal
assistance as to how an application is
to be managed under the state
process.
Federal agencies will list those
programs and activities eligible for
selection under the scope of the Order.
After consulting with local elected
officials, the state selects which of these
federal programs and activities are to be
reviewed through the state process and
sends OMB the initial list of selected
programs and activities Subsequent
changes to the list are provided directly
to the appropnate federal agencies.
The federal agency provides the state
process with notice of proposed actions
for selected programs and activities. For
any proposed action under a selected
program or activity, the state has dmong
its options those of' preparing and
transmitting a state process
recommendation through the single
point of contact; forwarding the views of
commenting officials and entities
without a recommendation; or not
subjecting the proposed action to state
process procedures.
For proposed actions under programs
or activities not selected, the federal
agency would provide notice,
opportunities for review, and
consideration of comments consistent
with the provisions of other applicable
statutes or regulations.
Single Point of Contact
The state single point of contact,
which may be an official or
organization, is the only party that can
initiate the "accommodate or explain"
response by federal agencies The single
point of contact does so by transmitting
a state process recommendation [The
terms "accommodate or explain" and
"state process recommendation" are
explained later ) As indicated, there is
to be only one single point of contact.
The other functions undertaken by the
single point of contact are submitting for
federal agency consideration any views
differing trom a state process
recommendation, and receiving a
written explanation of a federal
agency's nonaccommodation No other
responsibilities are prescribed by the
federal government for the single point
of contact, although a state could choose
to broaden the single point of contact
role
The single point of contact need not
submit for federal agency consideration
those views sent to the ,..ig!e point
contact by commenting officials and
entities regarding proposed actions
where there is no state process
recommendation Commenting officials
and entities can submit such tnews
directly to the federal agency
A state need not designate a single
point of contact. However, if a state fails
to designate a single point of contact, no
other entity or official can transmit
recommendations and be assured of an
accommodate or explain response by
the federal agency. Comments or views
may be transmitted by these other
entities or officials, but need only be
considered by the federal agency in
accordance with section 401 of the
Intergovernmental Cooperation Act and
other relevant statutory provisions.
"Accommodate or Explain"
When a single point of contact
transmits a state process
recommendation, the federal agency
receiving the recommendation must
either (1) Accept the recommendation;
(2) reach a mutually agreeable solution
with the parties preparing the
recommendation, or (3) provide the
single point of contact with a written
explanation for not accepting the
recommendation or reaching a mutually
agreeable solution, i.e,
nonaccommodation.
If there is nonaccommodation, the
federal agency is generally required to
wait 15 days after sending an
explanation of the nonaccommodation
to the single point of contact before
taking final action
A "state process recommendation" is
developed by commenting state,
areawide, regional, and local officials
and entities participating in the state
process and transmitted by the single
point of contact. The recommendation
can be a consensus, or views may differ.
A state process recommendation which
is a consensus—i e., the unanimous
recommendation of the commenting
parties—of areawide, regional, and local
officials and entities can be transmitted.
All directly affected levels o*
government need not comment on the
proposed action being reviewed to form
a state process recommendation. Also,
tha ftcte r overnment need not ae "arty
to a ci „ .kocess recommendatu i
A state process recommendation :un
be transmitted on proposed actions
under either selected or nonselected
programs cr activities.
Section by Section Analysis
In making changes from the NPRM to
this final rule, the EPA altered venous
section and paragraph numbers. To
make these changes easier to follow, we
are providing a table showing where
each portion of the proposed rule is
covered in the final rule-
Proposed rvto (tectton)
Rod rvto (section)
291 _
29 l
292
29?
29 3{a)
293
29 3(b) „
28 7(a)
294
294
29 5(a)
»#b)
29 5(b)
29 6(d)
29 5(c)
29 6(c)
29 6(a)
29 8(b)
29 6(b)
29 7(a)
29 6(c)
29 8(a)
29 6(d)
Deleted
29 6(e)
296
29 7(A)
29 10(o)
29 7(b)
29 10(b)

29 10(c)
296
29 11
299
29 12
2910
29 13
Portions of the final rule not listed in
this table (§ 29 5, 5 29 6(a), S 29.7(b), and
i 29 8(c)) are new.
Section 29.1 What is the purpose of
these regulations?
There is only one substantive change
to this section, but if is an important
one. The NPRM, while citing section 401
of the Intergovernmental Cooperation
Act as authority, did not specifically
contain provisions to implement some of
its requirements Nor did the NPRM
expressly implement section 204 of the
Demonstration Cities and Metropolitan
Development Act. These statutes
provide as follows;
BtLUNQ CODE 5540-50-11
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Section 204 of the Demonstration Cities and Metropolitan Development Act of
1966, as amended (42 USC §3334)
Section 204. (a) All applications made after June 30, 1967, for Federal
loans or grants to assist in carrying out open-space land projects or fr>r the
planning or construction of hospitals, airports, libraries, water supply
and distribution facilities, sewerage facilities and waste treatment works,
highways, transportation facilities, law enforcement facilities, and
water development and land conservation projects within any metropolitan
area shall be submitted for review —
(1)	to any areawide agency vdiich is designated to perform metropolitan
or regional planning for the area within vihich the assistance is to be
used, and which is, to the greatest practicable extent, composed of or
responsible to the elected officials of a unit of areawide government or
of the units of general local government within whose jurisdiction such
agency is authorized to engage in such planning, and
(2)	if macte by a special purpose unit of local government, to the
unit or units of general local goverrment with authority to operate in
the area within Uiich the project is to be located.
(b)(1) Except as provided in paragraph (2) of this subsection, each
application shall be accompanied (A) by the comments and reccmmenttetions
with respect to the project involved by the areawide agency and governing
bodies of the uiits of general local government to which the application
has been submitted for review, and (B) by a statement by the applicant
that such comments and recommendations have been considered prior to
formal submission of the application. Such comments shall include
information concerning the extent to vhich the project is consistent with
comprehensive planning developed or in the process of development for the
metropolitan area or the unit of general local government, as the case may
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be, and the extent to which such project contributes to the fulfillment
of such planning. The comments and the reccmmendations and the statement
referred to in this paragraph shall, except in the case referred to in
paragraph (2) of this subsection, be reviewed by the agency of the Federal
Government to which such application is submitted for the sole purpose of
assisting it in determining whether the application is in accordance with
the provisions of Federal law which govern the making of the loans or grants.
(2)	An application for a Federal loan or grant need not be accompanied
by the comments and recommendations and the statements referred to in
paragraph b(l) of this subsection, if the applicant certifies that a plan
or description of the project, maeting the requirements of such rules and
regulations as may be prescribed under subsection (c), or such application,
has lain before an appropriate areawide agency or instrumentality or unit
of general local government for a period of sixty days without contents
or recomerelations thereon being made by such agency or instrumentality.
(3)	Ttie requirements of paragraphs (1) and (2) shall also apply to
any amendment of the application which, in light of the purposes of this
title, involves a major change in the project covered by the application
prior to such amendment.
(c) The Office of Management and Budget, or such other agency as
nay be designated by the President, is hereby authorized to prescribe such
rules and regulations as are deemed appropriate for the effective
administration of this section.
Section 401 of the Intergovernmental Cooperation Act of 1968, as amended,
(31 USC 6506)
§6506. Development assistance
(a) The econcmc and social development of the United States and the
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achievenent of satisfactory levels og living depend on the sound and
orderly development of urban and rural areas. Vtten urbanization prooeeds
rapidly, the sound and orderly development of urban ccmnunities depends
to a large degree on the social and economic health and the sound
development of snaller ccmnunities and rural areas.
(b)	The President shall prescribe regulations governing the formulation,
evaluation, and review of United States Government programs and projects
having a significant impact on area and canmunity development (including
programs and projects providing assistanoe to States and localities) to
serve most effectively the basic objectives of subsection (a) of this
section. The regulations shall provide for the consideration of concurrently
achieving the following specific objectives and, to the extent authorized
by law, reasoned choices shall be made between the objectives when they
conflict:
(1)	appropriate land uses for housing, catmercial, industrial,
governmental, institutional, and other purposes.
(2)	wise development and conservation of all natural re souroe3.
(3)	balanced transportation systems, including highway, air,
veter, pedestrian, mass transit, and other means to move people and goods.
(4)	adequate outdoor recreation and open space.
(5)	protection of areas of unique natural beauty and historic and
scientific interest.
(6)	properly planned ccRinunity facilities (including utilities
for supplying power, water, and camunications) for safely disposing of
wastes, and for other purposes.
(7)	concern for high standards of design.
(c)	To the extent possible, all national, regional, State, and local
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viewpoints shall be considered in planning development programs and
projects of the United States Government or assisted by the Government.
State and local government objectives and the objectives of regional
organizations shall be considered within a framework of national public
objectives expressed in laws of the United States. Available projections
of future conditions in the United States and needs of regions, States,
and localities shall be considered in plan formulation, evaluation, and review.
(d)	To the maximum extent possible and consistent with national
objectives, assistance for development purposes shall be consistent with
and further the objectives of State, regional, and local comprehensive
planning. Consideration shall be given to all developmental aspects of
our total national caranunity, including housing, transportation, economic
development, natural and human resources development, community facilities,
and the general improvement of living environments.
(e)	To the maximum extent practicable, each executive agency carrying
out a development asistance program shall consult with and seek advice
from all other significantly affected executive agencies in an effort to
ensure completely coordinated programs. To the extent possible, systematic
planning required by individual United States Government programs (such
as highway consti*uction, urban renewal, and open space) shall be coordinated
with and, to the. extent authorized by law, made part of comprehensive
local and areawide development planning.
(f)	Vtiien a law of the United States provides that both a special-
purpose unit of local government and a unit of general local government
are eligible to receive a loan or grant, the head of an executive agency
shall make the loan or grant to the unit of general local government
instead of the special-purpose unit of local government in the absence of
substantial reasons to the contrary.
(g)	The President nvay designate an executive agency to prescribe
regulations to carry out this section.
eiLUNQ code eseo-io-c
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A broad spectrum of commenters,
including state, local, and regional
agencies, interest groups, and members
of Congress, said that the regulations
implementing Executive Order 12372
should also provide that federal
agencies carry out their responsibilities
under these statutes. In response, the
Executive Order was amended to cite
section 204 as authority as well as
section 401. Consequently, paragraph (a)
of this section (as well as the authority
citation for the entire regulation) now
cites not only the Executive Order but
also section 401 of the
Intergovernmental Cooperation Act and
section Z04 of the Demonstration Cities
and Metropolitan Development Act.
Paragraph (b) adds mention of
"arcawide" entities in keeping with
section 204. Other provisions in these
regulations carry out the Environmental
Protection Agency's responsibilities
under these statutory provisions.
' Section 401 emphasizes that federal
actions should be as consistent as
possible with planning activities and
decisions at state, regional, and local
levels. The EPA, when considering and
making efforts to accommodate
comments and recommendations it
receives under this rule, recognizes
those responsibilities under this section.
A few commenters suggested deleting
the language in paragraph (c) of this
section which states that the regulations
were not intended to create any right of
judicial review. The final rule retains
this language. Clearly, the purpose of the
Executive Order and these regulations is
to foster improved cooperation between
the EPA and other federal agencies on
one hand, and state and local elected
officials on the other. The Order and
these regulations presuppose, and rely
on, the good faith of federal, state and
local officials in communicating with
one another and seeking to understand
one another's concerns. To regard these
regulations as rigid procedures intended
to provide new opportunities for
litigation would be wholly contrary to
their purpose. Agencies have statutory
responsibilities under the laws on which
these rules are based. In some cases,
courts have held agency actions to be
judicially reviewable under these
statutes. By retaining paragraph (c) in
the regulation, the EPA is stating only
that these regulations are not grounds
for judicial review of agency action
beyond those afforded by the underlying
statutes.
Section 29 2 What definitions apply to
these regulations?
Commenters did not object to the
definitions in the proposed rule.
However, a few commenters asked that
various additional terms be defined.
EPA does not believe that it is necessary
to define any of these additional terms.
The term "environmental impact
statement" is a well-known term of art
in environmental law and planning, is
mentioned in the National
Environmental Policy Act, and is
discussed in numerous court decisions.
This term is not used in the regulation.
In any event, we would not use the term
in any but its commonly understood
sense.
EPA chose not to include a definition
of "state plans," "direct federal
development," or "federal financial
assistance." In these cases, the lists of
state plans and program inclusions
accompanying this rulemaking provide
adequate operational information upon
which state and local elected officials
can act.
We also decided not to try defining
"emergency" and "unusual
circumstances." With respect to terms
like these, the dangers of
ovennclusiveness and
underinclusiveness are particularly
great. The purpose of an emergency
waiver provision or discretion to deviate
from certain requirements in unusual
circumstances is to give federal agencies
flexibility to deal with unforeseen
situations and other problems beyond
the agencies' control. As stated in the
preamble to the proposed rules, the EPA
expects to use such provisions sparingly,
and only when absolutely necessary
Thus it would be counterproductive to
attempt, through a definition, to limit
this flexibility by anticipating all
possible circumstances when it might be
needed
In addition, the agency does not
believe a definition of "accommodate"
is necessary The concept of
accommodation is addressed in } 29.10.
The Administrator accepts the state
process recommendation or reaches a
mutually agreeable solution. If the
Agency does not provide an
accommodation in one of these two
ways, it must provide an explanation.
We believe § 29.10 describes sufficiently
what is meant by accommodation and
that a further definition of the term is
not needed.
Finally, EPA deliberated whether to
include a definition of the term "state
process recommendation." We
concluded that a definition of this term
would not materially help clanfy those
situations in which the Agency has an
obligation to "accommodate or explain"
in response to comments and
recommendations. The term's function is
discussed at great length in earlier and
subsequent sections of this preamble
and this should provide sufficient
information as to its meaning.
Section 29.3 What programs and
activities of the Environmental
Protection Agency are subject to these
regulations?
This section is the same as S 29.3 of
the NPRM. A substantial number of
commenters contended that it was
contrary to the intent of the Order for
the federal government to exclude any
programs or activities from coverage
under the Order and these regulations,
and that elected officials participating
through the state process are the only
proper parties to decide what should be
excluded from the state process. Other
commenters objected to the various
criteria used by the federal agencies in
developing their lists of programs and
activities that were being proposed for
exclusion.
The Order does not purport to cover
all federal programs and activities. Its
scope is limited to federal financial
assistance and direct federal
development programs and activities,
and the Order mandates consultation
only when state and local governments
provide nonfederal funds for. or are
directly affected by the proposed federal
action. Programs and activities not
falling into either of these categories are
clearly outside the scope of the Order
(e g , EPA source surveillance and
enforcement actions in the
implementation of federally mandated
sanctions). It is appropriate for federal
agencies to decide which of their
activities are federal financial
assistance or direct federal
development
There are also actions related to
federal financial assistance or direct
federal development activities where
review and comment as provided by the
Executive Order would be superfluous
or futile. Certain basic Federal
Government functions either have public
participation procedures of their own
(e g., rulemaking under the
Administrative Procedure Act) or are
internal government processes in which
state and local coordination and
consultation are not appropriate (e g.,
formulation of the EPA budget proposals
transmitted to OMB, or OMB's
recommendations to the President
concerning budget formulation). Many
research and development grants are
competed on a national basis and are
awcrded for studies unrelated to the
responsibilities or interests of state and
local government.
EPA believes that exclusions
proposed in January should contmOe to
be excluded from the listing of programs
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and activities which are eligible for
selection for a state process However,
in response to comments we reexamined
the criteria for exclusion as well as the
particular exclusions that were
proposed. These criteria and particular
exclusions are discussed in more detail
in the section of the preamble covering
scope issues.
To provide information on the
activities and programs eligible for
selection for state processes, the Agency
is publishing a notice listing these
".included" programs and activities.
Included programs to which section 204
of the Demonstration Cities and
Metropolitan Development Act applies
are indicated with an asterisk(*).
Section 204 obligations apply with
respect to these programs only for
projects or activities located in
metropolitan areas. Otherwise, these
projects are treated like any other
program available for selection. This
information is being published in a
separate notice rather than as part of
this rule to allow future changes to be
made more conveniently. The EPA will
seek public comment on proposed future
program or activity exclusions as these
occur.
Section 29 4 What are the
Administrator's general responsibilities
under the Order?
There were no substantive comments
about this section, which restates many
of the provisions of the Executive Order
It is unchanged from the NPRM.
Section 29.5 What is the
Administrator's obligation with respect
to federal interagency coordination?
Some comments, including those
suggesting a federal single point of
contact, asked EPA and other federal
agencies to do more in ensuring that
federal agencies communicate not only
with state and local elected officials but
also with each other. We believe that
this point is well taken. Many programs
and projects require information or
approvals from a number of federal
agencies, and federal interagency
communication is as important, m many
cases, as intergovernmental
communication. Consequendy, the EPA
added a new section 29.5, the language
of which is derived from section 401 of
the Intergovernmental Cooperation Act
to provide that the Administrator, to the
extent practicable, wil! consult with and
seek advice from all other substantially
affected federal departments and
agencies in an effort to assure full
coordination between such agencies and
EPA regarding programs and ectivitiea
covered under these regulations
Section 29.6 What procedures apply to
the selection of programs and activities
under these regulations?
Paragraph (a) of this section is new. It
makes clear that any program or activity
published in the Federal Register notice
prescribed by S 29.3 is eligible for
selection for a state process. The
paragraph also declares, more explicitly
than the NPRM, that states are required
to consult with local elected officials
before selecting programs and activities
for coverage. This addition responds to
comments that asked that the states'
obligation in this regard, as well aB in
the establishment of a state process, be
spelled out in the final rule. OMB
previously wrote all Governors asking
each to provide such an assurance when
the state submits its initial list of
selected programs and activities.
Several commenters also suggested
that these regulations should more
firmly require local involvement (e.g, a
letter of concurrence) in the
estabbshment of state processes. The
Executive Order requires, and OMB's
letter to the Governors has reiterated,
that there must be consultation between
state and local elected officials in the
establishment of the process. The Order
clearly contemplates that official
processes under the Order are
established by state and local elected
officials in cooperation and consultation
with one another. EPA believes that
these requirements are clear and that
further administrative requirements
imposed by regulations are unnecessary
and would, in many cases, delay or
interfere with the establishment of a
state process. It. particular, we do not
believe that the Order contemplates so
rigid a requirement as a sign-off by an
official of each local jurisdiction in a
state before a piocess may be valid.
Paragraphs (b), (c) and (d) of this
section derive from paragraphs fa], (c)
and (b), respectively, of { 29.5 of the
NPRM There were no comments
objecting to the substance of these
paragraphs in the NPRM. Language
added to § 29.6(c) of the final rule
specifies that the Btate must submit to
the Administrator with each change in
its program selections an assurance that
local elected officials were consulted
about the change. This language
emphasizes the continuing obligation of
states to involve local elected officials
in decisions concerning what programs
are selected for the state process. This
paragraph alBO allows EPA to establish
deadlines for states to inform the
Administrator of changes in program
selections. The primary reason for this is
to avoid delaying the Agency's
processing of assistance applications
and decision-making on projects at
times of heavy workload, such as the
end of the fiscal year. For example,
deadlines could be set to avoid having
to make, on short notice, midstream
changes in coordination procedures. In
addition, we made some editorial
changes for clarity.
A number of commenters asked what
procedures would apply when a state
chooses not to adopt a process under
the Order of when a particular program
or activity is not selected for a state
process. This question is answered in
paragraph (b) of J 29.7, discussed below.
Section 29 7 How does the
Administrator communicate with state
and local officials concerning EPA
programs and activities?
The Environmental Protection Agency
notifies the state process about a
proposed action concerning a program
or activity selected for the state process.
The notification of areawide, regional,
and local entities for purposes of
sections 401 and 204 is the responsibility
of the state process, and the single point
of contact could be the information
channel for this purpose. EPA need not
notify areawide, regional, and local
entities separately in this situation, but
may do so.
Paragraph (b) is new, and is intended
to respond to concerns expressed by
commenterB on how EPA communicates
with local elected officials in situations
where a state does not have a state
process or where the state process does
not cover a particular program or
activity. We will carry out our
responsibilities in these situations by
providing notice to state, areawide,
regional or local officials or entities that
would be directly affected by the
proposed federal financial assistance or
direct federal development. This notice
may be either through publication (e.g.,
a notice in the Federal Register or in a
publication widely available in the area
potentially affected by the proposed
federal action) or direct communication
(e g., a letter to the mayor of an affected
city). The notice will alert the directly
affected entities concerning the
proposed action and identify who to
contact for more Information.
The notice provided for by this section
is not necessarily exclusive. For
example, many programs and activities
have independent consultation or
notification requirements, which apply
even if a program is not selected for a
state process. EPA must pursue such
notification and consultation practices
under these authorities even where the
program or activity is selected for a
state process. We may also take the
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initiative at any time to contact any
interested person or entity about an EPA
program or activity. Further, we need
not rely on the slate process or the
single point of contat.f to bmig about
this communication or consultation
Section 29.8 How does the
Administrator provide states ths
opportunity of commenting on proposed
federal financial osr,, it^ncs and direct
federal development'
More commenters—over a third of the
total—addressed § 29.6(c) of the NPRM
(redesignated § 29w8(a) in the final rule)
than any other provision in the proposed
regulation. The NPRM proposed that,
except in unusual circumstances, the
Administrator would give states at least
30 days to comment on any proposed
federal financial assistance or direct
federal development. Almost all
commenters discussing this point felt 30
days was too brief a penod to develop
comments, particularly when
disagreements among various interested
parties within the state need to be
resolved. They requested a number of
longer comment periods, including 35,
45, 50, and 60 days Some suggested that
an additional period—normally between
15 and 30 days—be available to states
either at their discretion or when
disputes needed to be resolved
In response. EPA has dacidpJ to
lengthen the comment period to 60 days
in all cases (including interstate
matters), except for fedural financial
assistance in the form of noncompeting
continuation awards, for which the
comment period would remain 30 days.
Paragraph (b) of this section is
derived from $ 29 6(a) of the NPRM The
provisions of § 29 8 apply to cases in
which review, coordination, and
communication with the Environmental
Protection Agency have been delegated.
Paragraph (b) is intended to make clear
that when this responsibility is
delegated, these procedores apply just
as if the matter were handled 
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The state process recommendation
-provision is intended to clarify the
reciprocal responsibilities of the state
and federal agencies under the
Executive Order. The Order is an
important part of the Administration's
Federalism policy. Federalism means,
among other things, that federal
agencies should give greater deference
to. and make greater efforts to
accommodate, the concerns of state and
local elected officials than has
sometimes been the case in the past. But
Federalism also means, in the
Administration's view, that state and
local officials themselves have a
responsibility to attempt to solve
intrastate problems without resort to
intervention from Washington. Where
states and other directly affected parties
carry out these responsibilities by
forging a state process recommendation,
it is highly appropriate for the federal
government to give these
recommendations the increased
attention that the "accommodate or
explain" process provides. We wish to
emphasize that, in any case, EPA will
always consider all comments it
receives under these regulations.
The Agency's practical, as well as
theoretical, reasons for stressing
consensus building were described in
the NPRM. We expect that carrying out
our "accommodate or explain"
responsibility will be greatly aided
when a single, unified position is
presented for response. However,
several commenters said that it would
be difficult to achieve or undesirable to
attempt consensus with respect to some
projects or programs. Many of these
comments were in connection with the
30-day review penod proposed by the
NPRM, saying that more than 30 days
was needed if consensus were to be
reached. The extension of the review
period to BO days m the final rule should
mitigate this concern.
In addition, we will respond as
provided in § 29.10 to a state process
recommendation which does not
represent a consensus. This means that
the single point cf contact will not have
to submit a recommendation
representing unanimous agreement for
the recommendation to receive an
"accommodate or explain" response
from EPA under these rules. Moreover,
because the single point of contact is
required under paragraph (b)(2) of this
section to pass through comments that
differ from the state process
recommendation, all officials and
entities within a state are assured that
comments that differ from the state
process recommendation on a particular
program or project will be seen and
considered by the EPA.
Paragraph (b)(1) provides that the
single point of contact need not transmit
comments from directly affected entities
when there is no state process
recommendation. However, the single
point of contact should advise the
commenting officials and entities when
a state process recommendation is not
being transmitted so that these entities
will have sufficient time to send their
views directly to EPA before the review
and comment period ends. These
entities may also choose to send their
comments directly to EPA concurrent
with their sending them to the single
point of contact.
Paragraph (b)(2) obligates the single
point of contact to send EPA all
comments received concerning a
selected program or activity that differ
from a state process recommendation.
This requirement will ensure that, as
sections 401 and 204 specify, EPA
considers all views from state,
areawide. regional, and local entities or
officials. It should also reassure
commenters that the views of concerned
officials are not subject to any "pocket
veto" by the single point of contact.
In paragraphs (c) and (d), we provide
for response to comments where there is
not state process, or when a program
was not selected for a state process
Paragraph (c) provides that in the
absence of a state process, or if the
single point of contact does not transmit
a state process recommendation, the
state, areawide, regional and local
officials and entities may submit
comments either to the applicant or to
the Agency. EPA is obligated to consider
these comments. Paragraph (d) makes a
similar provision for situations where
the state process does not cover a
particular EPA program or activity
Paragraph (e) simply reiterates our
obligation to consider all the comments
we receive from state, areawide,
regional and local officials and entities
under these regulations, whether they
are transmitted through a single point of
contact or otherwise provided to EPA.
This obligation derives directly from
sections 401 and 204.
The Environmental Protection Agency
recognizes a responsibility to work with
applicants so this new
intergovernmental consultation system
functions smoothly; we do not believe it
is appropriate to impose specific
regulatory requirements regarding
administrative details. Each state
process should establish the "paper
flow" procedures best suited to its
situation. Where the state process
decides to send comments to the
applicant, EPA expects the applicant to
forward those comments with its
application to the Agency. However, this
does not obviate the necessity for
transmitting the state process
recommendation to the EPA through the
single point of contact. The point here Is
that state processes have the option of
also sending comments through the
applicant to the federal government with
each application, and thus alleviate
concerns that the application and
comments might otherwise fail to be
joined together by EPA.
Section 29.10 How does the
Administrator make efforts to
accommodate intergovernmental
concerns?
Paragraph (a) of this section now
provides that if a state process provides
a state process recommendation to the
Agency through a single point of
contact, we are obligated to
accommodate or explain. This means
that EPA need not accommodate or
explain comments that. (1) Do not
constitute or form the state process
recommendation, or (2) are not provided
through a single point of contact. We
will consider all such comments, but
there will be no "accommodate or
explain" obligation.
As under the proposed regulations,
"accommodating" a state process
recommendation'tneans either accepting
that recommendation or reaching a
mutually agreeable solution with the
state process. In response to a
substantial number of comments,
8 29.10(a)(3) of the final rule provides
that all explanations of
nonaccommodation will be in writing.
This is not to say that EPA may not also
inform the single point of contact of a
nonaccommodation by telephone, other
telecommunication, or in a personal
meeting. However, whether or not such
conversation or communication occurs,
EPA will always send a written
explanation of the nonaccommodation.
As under the proposed rule, we will
not implement a decision for ten days
after the single point of contact receives
the explanation. A few commenters
suggested that this waiting period
should be longer than ten days;
however, the Agency believes that to
avoid unduly delaying the award of
federal financial assistance or the start
of direct federal development, a longer
period should not be provided. The EPA
believes that ten days will be adequate
time for the state process to formulate
an appropriate political response if the
issue is sufficiently important within the
state.
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29298	Federal Register / Vol. 48. No. 123 / Friday, June 24, 1983 / Rules and Regulations
We included a new paragraph (c) in
the final rule to clarify when the ten-day
waiting penod begins to run. If EPA has
made a telephone call (or other oral
communication) to the single point of
contact advising of the
nonaccommodation and providing an
explanation, the ten-day penod begins
to run from the date of that
communication, even though the written
explanation arrives later. If EPA sends a
letter but does not make a telephone
call, the ten-day period begins on the
date the single point of contact is
presumed to have received it This
presumptive date of receipt is five days
from the date on which the letter is sent,
a period consistent with the
longstanding successful practice of the
Social Secunty Administration and
longer than that used for presumptive
receipt of official papers in many other
legal contexts Ir. effect, EPA will be free
to begin carrying out lis decision on the
sixteenth day after the day we sent the
letter
Some commenters indicated that what
they sought most was federal agency
responsiveness to their comments
These commenters felt the lack of
responsiveness was a significant failing
of the intergovernmental process under
OMB Circular A-95. In providing
explanations cf nonaccommodation. the
Environmental Protection Ageicy will
make an effort to be as responsive as
practicable consistent with our
responsibilities to accomplish program
objectives and to expend funds in a
sound financial manner
Section 2911 What are *he
Administrator's o'ohgat.ons m interstate
situations7
While this section is based on 5 29.8
of the NFRM, one feature—the provision
of 45 days for comment in interstate
situations—has been dropped because
the comment penod in the final rule is 60
days, except for noncompcting
continuation awdrds
EPA received several comments on its
handling of interstate situations Most of
these corrments asked for greater
federal guidance or involvement in
interstate situations, especially when
various affected states did not agree
with one another Some commenters
also said that greater attention should
be given to the role of interstate
metropolitan areas and the designated
areawide entities that represent them.
We do not believe that it is necessary to
provide a procedure for resolving
interstate conflicts It is clearly in our
interest to have affected states mutually
agree on EPA's programs and projects
that affect interstate situations On a
case-by-case basis, as appropriate, we
will work with officials of states
involved in an interstate situation in an
attempt to secure this agreement. This
should not be a regulatory requirement,
however.
The Environmental Protection Agency
believes that designated areawide
agencies in interstate metropolitan areas
have an important role to play.
Consequently, § 29.11(a)(3) now
specifically mentions designated
areawide entities as being among those
which the EPA will make efforts to
notify in interstate situations. OMB will
periodically provide us with a list of
designated interstate areawide entities
Section 2911(a)(4) provides that the
recommendation of a designated
interstate areawide entity will be given
"accommodate or explain" treatment by
us if it is sent through a state single
point of contact, and if the areawide
entity has been delegated a review and
comment role for the program or activity
being commented on by a state process.
For example, the Metropolitan
Washington. D.C. Area Council of
Governments (COG) represents
jurisdictions in an; interstate area
including parts of Maryland, Virginia
and the District of* Columbia. If that
Council of Governments was delegated
a specific review role and makes a
recommendation on an EPA proposed
action, and that recommendation is
transmitted to us through the single
point of contact of either Maryland,
Virginia, or the District of Columbia.
EPA is obligated to accommodate or
explain. If a state process
recommendation differing from 'he
Washington COG recommendation is
also transmitted by another state's
single point of contact. EPA would also
accommodate or explain that
recommendation as well
Section 2912 How may a state
simplify, consolidate or substitute
federally required state plans?
This section is unchanged from the
NPRM, however, we did receive a
number of comments on it Several
agreed that states should be able to
simplify state plans, but objected to
allowng states to consolidate their
plans The reasons for these ob,ections
differed, most appeared to be frcm those
who feared that consolidation of state
plans would cause the interests of
particular groups or particular programs
to be ignored As this section merely
implements the requirement of the Order
that federal agencies allow the
consolidation of state plans, the
Environmental Protection Agency had
little discretion m developing this
provision. In addition, EPA is obligated
to ensure that any simplified or
consolidated state plan continues to
meet all federal requirements. For
example, a consolidated plan that failed
to meet statutory or regulatory
requirements for a particular program
would not be approved.
One commenter recommended that an
appeals process be established to deal
witn situations where federal agencies
disapprove modified state plans. The
EPA believes that such a process is not
necessary, because if a federal agency
disapproves a modified pian for failure
to meet federal requirements, the state
can appeal the decision through normal
agency mechanisms. In any event, EPA
will work with states during the review
process to resolve problems that could
impede approval.
A few commenters recommended that
there be a federal "single point of
contact" for state plans or other
purposes. We believe this idea would
not work, because of differing agency
responsibilities under the wide variety
of program statutes that vanous federal
agencies carry out. In addition, federal
agencies need to retain existing
delegations of state plan approval
authority However, EPA and other
federal agencies wiil each designate a
focal point with whom s'ates can
contact cn state plan matters In
addition, the federal agencies having
state plans intend to establish en
informal interagency steering group,
which w.ll meet quarterly to discuss
state plan matters. Through this steering
group, as well as by interagency
contacts in specific situations, federal
agencies will coordinate with each other
in cases when states consolidate plans
across federal lines This coordination
should promote consistent
determinations among and within
agencies on state plans
Finally, one commenter suggested that
the federal agencies develop a model
state plan format that could be used by
the states. While we are willing to
provide suggestions m response to
specific state questions (including
providing formats that have been used
successfully by other states), we believe
that states should be free to develop
their own formats to reflect their own
situations. Consequently, EPA will not
develop model formats, since formats
developed as models for the voluntary
use of states cculd come to be regarded,
either by federal agencies or by states,
as required
A list of state plans that may be
simplified, consolidated, or substituted
for appears elsewhere in today's Federal
Register and will be updated
periodically
Appendix 6-A-10
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Federal Register / Vol. 4fl. No. 123 / Friday, June 24, 1983 / Rules and Regulations 29299
——^¦————^
Section 29.13 May the Administrator
waive any provision of these
regulations?
This provision is unchanged from the
NPRM, although the section number is
changed. A few commenters ^objected to
this waiver provision, apparently in the
belief that it was a loophole allowing
federal noncompliance with the
Executive Order. The Environmental
Protection Agency is strongly committed
to compliance with the Order, and will
use the emergency waiver provision
only in those rare instances where an
unanticipated situation makes prompt
action necessary without full
compliance with all provision of these
regulations. If EPA uses the emergency
waiver provision, we will attempt, to the
extent feasible and meaningful, to
involve the state process in subsequent
decision making concerning the matter
about which the waiver was used. In
addition, EPA will keep records of all
situations in which the emergency
waiver was used.
Other Comments
In addition to comments specifically
pertaining to various features of these
regulations, there are several other
comments made to the Agency to which
we would like to respond. Several
commentero said that the Office of
Management and Budget should have a
stronger oversight role, thus ensuring
that federal agencies carry out their
obligations under the Order and these
regulations. Behind these comments
seems to be a concern that federal
agencies are not really interested in
consulting with state and local
governments and a view that, in the
absence of an OMB "policing" role,
agencies would tend to ignore these
obligations.
The Environmental Protection Agency
wants to state unequivocally that it is
fully committed to implementing all of
the provisions of the Order and these
regulations, and will act quickly to
respond to complaints from states,
areawide, regional and local officials
and entities that mistakes or omissions
have been made with respect to our
obligations. Carrying out this Order
faithfully and forcefully is an important
part of the Administration's Federalism
policy, and the Administration's
policymaking officials intend the policy
to be carried out fully by everyone in
their agencies.
OMB will have a general oversight
role with respect to federal agency
implementation of the Order, including
the required preparation of a report in
late 1984 concerning the operation of the
new process. OMB will periodically
review agency records of
nonaccommodations and waivers. OMB
has advised the agencies, however, that
a detailed operating review or "policing"
relationship would not be consistent
with the role of OMB vis-a-vis the other
federal agencies. OMB is not intended to
have day-to-day operational
responsibilities with respect to federal
programs. Concerning these regulations,
as with respect to other agency
operation responsibilities, the officials
of EPA are responsible to the
Administrator who in turn is responsible
to the President for carrying out
important Adminstration policy.
Finally, a number of commenters
reminded EPA and other agencies that
we should continue to follow existing
statutory requirements that affect many
federal agencies with respect to
environmental impact statements,
historic preservation, civil rights, etc.
We will continue to follow all such
crosscutting requirements and other
independent consultation requirements.
To the extent that it is feasible to do so,
EPA will work with states to intergrate
handling of some of these crosscutting
requirements with the official state
process. However, regardless of the
structure of a state's process or whether
there is a state process at all, the
Agency will continue to meet all legal
requirements in these areas.
In a related question, some
commenters asked how certain
requirements concerning environmental
impact statements, coastal zone
management, and health systems
agencies would be handled
administratively under these
regulations. Under the A-95 system,
clearinghouses often coordinated
responses to federal agencies relating to
these matters. Under the Executive
Order system, a state could, if it wished,
designate the single point of contact or
other entity to circulate documents and
to bear the administrative responsibility
for coordination and review. Federal
agencies could also continue any
arrangements or relationships with
entities in the state that now exist to
facilitate this review and comment.
Where it is feasible, we encourage a
coordinated response under these
regulations and other coordination
requirements.
Scope
A few commenters specifically
objected to this Agency's exclusion of
certain plan and permit piograms from
the Order's provis.v-.'.d for Interstate
situations. We have retained these
exclusions in our final rule and wan' to
clarify our reasons for so doing.
All section 110(a) State
Implementation PlanB (SIP's], and
revisions thereto, are state-developed
and undergo an extensive
intergovernmental review prescribed by
sections 110(a), 121,126, and 174 of the
Clean Air Act before they are adopted.
EPA's regulation, 40 CFR Part 51 (§ 51.4
and Subpart M) implements those
requirements. They exist because most
section 110(a) SIFs have an interstate
impact.
A SIP or revision issued under section
110(c) of the Clean Air Act is one that
EPA must develop and issue in iieu of a
state's plan or portion thereof, when the
state's is found inadequate. A federally
promulgated SIP under section 110(c)
not only considers the pertinent results
of the state's section 110(a) process, but
is also subject to the Administrative
Procedure Act requirements for public
comment and review. To subject such a
federal action to an additional, duplicate
process would further delay
implementing a necessary
environmental control plan mandated
by Congress.
Our reason for excluding certain
federally issued permits that may have
an impact on interstate areas are much
the same. Each permit program's
regulation implements specific
requirements for public input before an
EPA final decision or action. To require
another intergovernmental review and
consultation system is unnecessary. Our
program specific statutes and
implementing regulations provide ample
opportunity for notification,
consultation, and public comment on
permits which may affect an interstate
area.
One commenter notified EPA that its
state process would require that:
* * * all state agency applications for any
type of Federal assistance, MUST be
submitted to the State Clearinghouse for a
review and comment process * * *. In
additioa any Direct Federal Development
Project, Environmental Assessment or Impact
Statement which affects the State * ' '.or
has nationwide impact, should also be
transmitted to us for review
The state may include any programs and
activiUes it wishes to review in its own
process. The criteria that agencies used
allowed certain federal financial
assistance programs and direct federal
development activities to be excluded.
We excluded only those EPA programs
and activities which met the general
criteria agencies used for class
exclusion (training grants, fellowships,
technical assistance, advisory services,
specialized services, dissemination of
technical information, counseling,
specific research, development and
Appendix 6-A-ll
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5700
ASSISTANCE ADMINISTRATION	12/3/84
29300 Federal Register / Vol. 4B. No. 123 / Friday, june 24, 1983 / Rules and Regulations
demonstration projects). The separate
notice in today's Federal Register lists
all of the EPA programs and activities
included in the scope of the Order.
Conforming Amendments
In the NPRM, we cited other EPA
regulations that we expected to amend
as part of this final rule. Because the
effective date for implementing rule9
under the Order was extended, we do
not need to amend the existing general
grant regulation (40 CFR Part 30) and
construction grant regulation (40 CFR
Part 35—Subparts E and I). EPA is
completing new general assistance and
construction grant regulations which
reflect the new intergovernmental
review process. They are expected to be
effective by October 1,1983, as will this
final rule.
Executive Order 12291, Paperwork
Reduction Act, and Regulatory
Flexibility Act
The Environmental Protection Agency
has determined that this is not a major
rule under Executive Order 12291 The
rule wil) simplify consultation with the
Agency and allow state and local
governments to establish cost effective
consultation procedures For this reason,
the EPA believes that any economic
impact the regulation has will be
positive In any event, it is unlikely that
its economic impact will be significant.
Consequently, the EPA certifies, under
the Regulatory Flexibility Act, that this
rule will not have a significant economic
impact on a substantial number of small
entities This rule is not subject to
section 3504(h) of the Paperwork
Reduction Act, since it does not require
the collection or retention of
information.
List of Subjects in:
40 CFR Part 29
Intergovernmental relations
40 CFR Part 35
Air pollution control.
Grant programs—environmental
protection
Indians,
Intergovernmental relations.
Pesticides and pests,
Reporting and recordkeeping
requirements,
Waste treatment and disposal.
Water pollution control.
40 CFR Part 40
Environmental protection,
Grant programs—environmental
protection.
Intergovernmental relations,
Reporting and recordkeeping
requirements.
Research.
40 CFR Part 51
Administrative practice and
procedure.
Air pollution control,
Intergovernmental relations,
Reporting and recordkeeping
requirements,
Ozone,
Sulfur oxides,
Nitrogen dioxide,
Lead,
Particulate matter,
Hydrocarbon,
Carbon monoxide.
40 CFR Part 255
Waste treatment and disposal.
Intergovernmental relations.
Dated June 17,1983
William D. Ruckelshaus,
Administrator
1. For the reasons set out in the
Preamble, the U S. Environmental
Protection Agency amends Title 40.
Code of Federal Regulations, by adding
a new Part 29, to read as follows.
PART 29—INTERGOVERNMENTAL
REVIEW OF ENVIRONMENTAL
PROTECTION AGENCY PROGRAMS
AND ACTIVITIES
Sec
29 1 What is 'he purpose of these
regulations7
29 2 What definitions apply to these
regulations?
29 3 What programs and activities of the
Environmental Protection Agency are
subiect to these regulations?
29 4 What are the Administrator's general
responsibilities under 'he Order'
29 5 What is the Administrator s obligation
with r<*spect to federal interagency
coordination'
29 8 Wha( procedures aprly to the selsc'ion
of programs and activities under these
regulations?
29 7 How does the Adminstrator
communions with state and local
ofPcu^s concerning EPA programs and
activities'
29 8 How does the Administrator provide
std'eB an opportunity to comment on
proposed federal financial assistance
and direct federal development?
29 9 How does the Admm'strator receive
and respond to comments?
2910 How does the Aammistrator make
efforts to accommodate
intergovernmental concerns?
29 11 What are the Administrator's
obligations in interstate situations'
29 12 How may a state simplify.
consolida'e. or substitute federally
required state plans'
2913 May the Administrator waive any
provision of these regula'ions'
Authority Executive Order 12372, July 14,
1982 (47 FR 30959), as amended April 8.1983
(48 FR 15887), Sec 401 of the
Intergovernmental Cooperation Act of 1968
as amended (31 U S.C 6506). Sec 204 of the
Demonstration Cities and Metropolitan
Development Act of 1986, as amended (42
U S.C. 3334)
$ 29.1 What Is the purposa of these
regulations?
(a)	The regulations in this part
implement Executive Order 12372.
"Intergovernmental Review of Federal
Programs," issued July 14,1982, and
amended, on April 8,1983. These
regulations also implement applicable
provisions of section 401 of the
Intergovernmental Cooperation Act of
1988, as amended and section 204 of the
DemonstraUon Cities and Metropobtan
Development Act of 1988, as amended.
(b)	These regulations are intended to
foster an intergovernmental partnership
and a strengthened Federalism by
relying on state processes and on state,
areawide, regional and local
coordination for review of proposed
federal financial assistance and direct
federal development.
(c)	These regulations are intended to
aid the internal management of the
Environmental ProtecUon Agency (EPA)
and are not intended to create any right
or benefit enforceable at law by a party
against EPA or its officers.
5 29.2 What definitions apply to these
regulations?
"Administrator" means the
Administrator of the L' S Environmental
Protection Agency or an official or
employee of the Agency acting for the
Administrator under a delegation of
authority
"Agency" means the U S.
Environmental Protection Agency (EPA).
"Order" means Executive Order 12372,
issued July 14.1982, and amended Apnl
8,1983, and titled "Intergovernmental
Review of Federal Programs "
"States" means any of the 50 states,
the District of Columbia, the
Commonwealth of Puerto R»co, the
Commonwealth of the Northern Mariana
Islands, Guam, American Samoa, the
U S V.rgm Islands, or the Trust
Territory of the Pacific Islands.
§ 29.3 What programs and activities of ttw
Environmental Protection Agency are
sub|ect to theso regulations?
The Administrator publishes in the
Federal Register a list of the EPA
programs and activities that are subject
to these regulations and identifies which
of these are subject to'the requirements
of section 204 of the Demonstration
Cities and Metropolitan Development
Act
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ASSISTANCE ADMINISTRATION 12/3/84
Federal Register / Vol. 48. No. 123 / Friday, June 24. 1983 / Rules and Regulations	29301
3 28.4 What are the Administrator's
general raaponaMOtlaa undar the Order?
(a)	The Administrator provides
opportunities for consultation by elected
officials of those state and local
governments that would provide the
non-federal funds for, or that would be
directly affected by, proposed federal
financial assistance from, or direct
federal development by, the EPA.
(b)	If a state adopts a process under
the. Order to review and coordinate
proposed federal financial assistance
and direct federal development, the
Administrator to the extent permitted by
law;
(1)	Uses the state process to
determine official views of state and
local elected officials;
(2)	Communicates with state and local
elected officials as early in a program
planning cycle as is reasonably feasible
to explain specific plans and actions;
(3)	Makes efforts to accommodate
state and local elected officials'
concerns with proposed federal
financial assistance and direct federal
development that are communicated
through the state process;
(4)	Allows the states to simplify and
consolidate existing federally required
state plan submissions;
(5)	Where state planning and
budgeting systems are sufficient and
where permitted by law, encourages the
substitution of state plans for federally
required state plans;
(6)	Seeks the coordination of views of
affected state and local elected officials
in one state with those of another state
when proposed federal financial
assistance or direct federal development
has an impact on interstate metropolitan
urban centers or other interstate areas;
and
(7)	Supports state and local
governments by discouraging the
reauthorization or creation of any
planning organization which is
federally-funded, which has a limited
purpose, and which is not adequately
representative of, or accountable to,
state or local elected officials,
9 29.5 What la tha Administrator"*
obligation with raapact to fadaral
Interagency coordination?
The Administrator, to the extent
practicable, consults with and seeks
advice from all other substantially
affected federal departments and
agencies in an effort to assure full
coordination between such agencies and
EPA regarding programs and activities
covered under these regulations.
(2M What procaduraa apply to tha
selection of programa and actMtlea undar
thaaa regulations?
(a)	A state may select any program or
activity published in the Federal
Re^ster in accordance with $ 29.3 of
this part for intergovernmental review
under these regulations. Each state,
before selecting programs and activities,
shall consult with local elected officials.
(b)	Each state that adopts a process
shall notify the Administrator of EPA
programs and activities selected for that
process.
(c)	A state may notify the
Administrator of changes in its
selections at any time. For each change,
the state shall submit an assurance to
the Administrator that the state has
consulted with local elected officials
regarding the change. EPA may
establish deadlines by which states are
required to inform the Administrator of
changes in their program selections.
(d)	The Administrator uses a state's
process as soon aB feasible, depending
on individual programs and activities,
after the Administrator is notified of its
selections.
S 29.7 How does the Administrator
communicate with state and local officials
concerning the EPA programa and
activities?
(a)	For those programs and activities
covered by a state process under § 29.6.
the Administrator, to the extent
permitted by law*
(1)	Uses the state process to
determine views of state and local
elected officials; and
(2)	Communicates with state and local
elected officials, through the state
process, as early in a program planning
cycle asis reasonably feasible to explain
specific plans and actions.
(b)	The Administrator provides notice
of proposed federal financial assistance
or direct federal development to directly
affected state, areawide, regional, and
local entiUes in a state if.
(1)	The state has not adopted a
process under the Order or
(2)	The assistance or development
involves a program or activity not
selected for the state process.
This notice may be published in the
Federal Register or issued by other
means which EPA. in its discretion
deems appropriate.
§ 29.8 How doea tha Administrator
provide Stataa an opportunity to comment
on proposed federal financial assistance
and direct Federal development?
[a) Except in unusual circumstances,
the Administrator gives state processes
or directly affected stete, areawide,
regional and local officials and entities;
(1)	At least 30 days from the date
established by the Administrator to
comment on proposed federal financial
assistance in the form of noncompeting
continuation awards; and
(2]	At least 60 days from the date
established by the Administrator to
comment on proposed direct federal
development or federal financial
assistance, other than noncompeting
continuation awards.
(b)	This section also applies to
comments in cases in which the review,
coordination, and communication with
the Environmental Protection Agency
have been delegated.
(c)	Applicants for programs and
activities subject to section 204 of the
Demonstration Cities and Metropolitan
Development Act shall allow areawide
agencies a 60-day opportunity for review
and comment.
S 29.9 How doaa tha Administrator racatva
and raapond to comments?
(a)	The Administrator follows the
procedures in i 29.10 if:
(1)	A state office or official is
designated to act as a single point of
contact between a state process and all
federal agencies, and
(2)	That office or official transmits a
state process recommendation for a
program selected under 8 29.6.
(b)	The single point of contact is not
obligated to transmit comments from
state, areawide, regional or local
officials and entities where there is no
state process recommendation.
However, if a state process
recommendation is transmitted by a
single point of contact, all comments
from state, area-wide, regional, and
local officials and entities that differ
from it must also be transmitted.
(c)	If a state has not established a
process, or is unable to submit a state
process recommendation, the state,
areawide, regional and local officials
and entities may submit comments
directly either to the applicant or to
EPA.
(d)	If a program or activity is not
selected for a state process, the state,
areawide, regional and local officials
and enUties may submit comments
either directly to the applicant or to
EPA. In addition, if a state process
recommendation for a nonselected
program or activity is transmitted to
EPA by the single point of contact the
Administrator follows the procedures of
§ 29.10 of this Part
(e)	The Administrator considers
comments which do not constitute a
state process recommendation
submitted under these regulations and
for which the Administrator is not
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5700
12/3/84
required to apply the procedures of
8 29.10 of this pert, when such
comments are provided by a single point
of contact by the applicant, or directly
to the Agency by a commenting party.
29.10 How does the Administrator maka
efforts to accommodate Intergovernmental
concerns?
(a)	If a state process provides a state
process recommendation to the Agency
through the state's single point of
contact, the Administrator either
(1)	Accepts the recommendation,
(2)	reaches a mutually agreeable
solution with the state process; or
(3)	Provides the single point of contact
with such written explanation of the
decision, aa the Administrator, in his or
her discretion, deems appropriate. The
Administrator may also supplement the
written explanation by providing the
explanation to the single point of
contact by telephone, other
telecommunication, or other means.
(b)	In any explanation under
paragraph (a)(3) of this section, the
Administrator informs the single point of
contact that:
(1)	EPA will not implement its
decision for at least ten days after the
single point of contact receives the
explanation; or
(2)	The Administrator has reviewed
the decision and determined that,
because of unusual circumstances, the
waiting period of at least ten days is not
feasible.
(c)	For purposes of computing the
wailing penod under paragraph (b)(1) of
this section, a single point of contact is
presumed to have received written
notification 5 days after the date of
mailing of such notification.
J 29.11 What are the Administrator's
obligations In Interstate situations?
(a) The Administiator is responsible
for.
(1)	Identifying proposed federal
financial assistance and direct federal
development that have an impact on
interstate areas;
(2)	Notifying appropriate officials and
entities in states which have adopted a
process and selected an EPA program or
activity.
(3)	Making efforts to identify and
notify the affected state, areawide,
regional, and local officials and entities
in those states that do not adopt a
process under the Order or do not select
an EPA program or activity;
(4)	Responding in accordance with
J 2910 of this part to a recommendation
received from a designated areawide
agency transmitted by a single point of
contact, in cases in which the review.
coordination, and communication with
EPA were delegated.
(b) The Administrator uses the
procedures in 8 29.10 if a state process
provides a state process
recommendation to the Agency through
a single point of contact.
8 29.12 How may a state simplify,
consolidate, or substitute tode rally
required state pians?
(a)	As used in this section:
(1)	"Simplify" means that a state may
develop its own format, choose its own
submission date, and select the planning
period for a state plan.
(2)	"Consolidate" means that a state
may meet statutory and regulatory
requirements by combining two or more
plans into one document and that the
state can select the format, submission
date, and planning penod for the
consolidated plan.
(3)	"Substitute" means that a state
may use a plan or other document that it
has developed for its own purposes to
meet federal requirements.
(b)	If not inconsistent with law, a
state may decide to try to simplify,
consolidate, or substitute federally
required state plans without prior
approval by the Administrator.
(c)	The Administrator reviews each
state plan that a state has simplified,
consolidated, or substituted and accepts
the plan only if its contents meet federal
requirements.
§29.13 Maytho Administrator waive any
provision of these regulations?
In an emergency, the Administrator
may waive any provision of these
regulations.
2. For the reasons set forth in the
preamble. 40 CFR Parts 35, 40, 51, and
255 are amended as follows:
PART 35—[AMENDED]
Section 35.1620-6 is revised in its
entirety to read as follows:
8	35.1620-6 Intergovernmental review.
EPA will not award funds under this
subpart without review and consultation
in accordance with the requirements of
Executive Order 12372, as implemented
in 40 CFR Part 29 of this chapter.
PART 40—{AMENDED]
Section 40.135-1 is amended by
removing 8 40.135-l(b) and
redesignating 8 40.135-l(c) as 8 40.135-
1(b); by amending 8 40.135-2 to add a
new paragraph (e) to read as follows:
9	40.135-2 Application requirements.
• « • • *
(e) Intergovernmental review. EPA
will not award funds under this subpart
without review and consultation, if
applicable, in accordance with the
requirements of Executive Order 12372,
as implemented in 40 CFR Part 29 of this
chapter.
PART 51—[AMENDED]
{51.241 [Amended]
Section 51.241(c) is amended by
removing the last sentence, "Attention is
directed to Part IV of the Office of
Management and Budget Circular A-95
(41 FR 2050) which encourages the
designation of established, substate
comprehensive planning agencies as the
agencies to carry out Federally assisted
or required areawide planning."
8 51.248 [Amended]
Section 51.248(b) is amended by
removing the last sentence, "The
provisions of items 3a through d, Part IV
of the Office of Management and Budget
Circular A-95 shall be considered in the
preparation of memoranda of
understanding."
Section 51.251 is revised in its entirety
to read as follows
851.251 Conformity wttti Executive Order
12372.
The organization responsible for
developing the state implementation
plan revision shall submit a draft of any
major implementation plan revision
including any of the six elements listed
in 8 51.244 to the state process, if one
has been designated by the state under
Executive Order 12372,
"Intergovernmental Review of Federal
Programs" (47 FR 30959, July 18,1982) as
amended April 8,1983 (48 FR 15587,
April 11,1983) for review and comment
for a period of 80 days. The draft plan or
portions thereof, shall be submitted to
the state process either prior to or
concurrent with announcement of public
hearings on the plan. Comments
received from the state process within
that 60-day period shall be considered.
The organization initiating the plan
revision shall retain copies of these
comments for inspection by the
Administrator and the public.
8 51.252 [Amended]
Section 51.252(b) is amended by
removing the words "in the A-05
clearing house" and adding, in their
place, "from the state process
designated under Executive Order
12372".
PART 255—[AMENDED]
8 256.2 [Amended]
Section 255.2 is amended by removing
the words "OMB Circular A-95 Part IV
Appendix 6-A-14
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5700
ASSISTANCE ADMINISTRATION	12/3/84
Federal Register / Vol. 48. No. 123 / Friday, June 24, 1983 / Rules and Regulations 29303
of Attachment A" and adding in their
place, "40 CFR Part 29 of this chapter".
{25&20 [Ammded]
Section 255^0 is amended by
removing the words "the chief
executives of all agencies designated
pursuant to OMB Circular No. A-05, and
with" and adding in their place,
"regional and areawide planning
agencies."
§ 255.23 [Amended]
Section 255.23(a) is amended to
remove the words, "A-95
clearinghouses" and adding, in their
place, "agencies and the state process
under Executive Order 12372"
(FR Doc 83-17025 Filed 8-23-81 D.4S am]
BILLING COOE S560-S0-M
Appendix 6-A-15
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ASSISTANCE ADMINISTRATION
5700
12/3/84
29304
Federal Register / Vol. 48. No. 123 / Friday, June 24,1983 / Notices
ENVIRONMENTAL PROTECTION
AGENCY
lOA-FRL-2380-2(t>)l
Programs and Activities Eligible for
Intergovernmental Review Under 40
CFR Part 29 and Subject to Section
204 of the Demonstration Cities and
Metropolitan Development Act
The Environmental Protection Agency
(EPA) is publishing this list of programs
and activities in conjunction with its
final rule appearing elsewhere in today's
Federal Register, 40 CFR Part 29,
"Intergovernmental Review of
Environmental Protection Agency
Programs and Activities." This list
identifies EPA's financial assistance
programs and direct developmert
activities which states may select for
intergovernmental review under a
process established in accordance with
Executive Order 12372. Programs subject
to the requirements ol Section 204 of the
Demonstration Cities and Metropolitan
Development Act are designated with
an asterisk (*).
The effective date for all regulations
implementing the Order is September 30,
1983. Because this is the last day of the
Federal Fiscal Year, the Administrator
determined that it is neither feasible nor
practicable for EPA to apply its new
regulation to any of the awards that the
Agency makes on that date. Therefore,
EPA will implement 40 CFR Part 29
procedures beginning October 1,1963,
for programs and activities that states
select from the following list
Financial Assistance Programs
1. State and Local Assistance
Programs.
CFDA
NO
Trtte
*66001
Air PoQuboo Control Program.
*66418
Construction Grants lor Wastewater Treatment

Works.
*66 419
Water Pollution Control—Stata and Interstate

Program Grants.
*66454
Water Oua'ity Management Ptarwng.
*66 432
State Pubbc Water System Supervision Pro-

Oram Grants.
*66433
State Underground Water Some Protection—

Program Grants.
*66 436
Construction Management Assistance
*66 451
Hazardous Waste Management Financial Assist-

ance to States.
(')
State trwentones of UnoontroOed Hazardous

Waste Sites.
"66 600
Envronmental Protection Consolidated Grants—

Program Support
•66603 -
Loan Guarantees for Construction of Treatment

Wotfcs
*66 700
Pesticides Enforcement Program Grants.
*66 602
Supertund Cooperative Agreements (RemedtaJ

Ctoen Ups)
2. Research, Development, and
Demonstration Projects. (Selection is
limited to proposals which (a) require an
Environmental Impact Statement (EIS);
or (b) do not require an EIS but will be
newly initiated at a particular site and
require unusual measures to limit the
possibility of adverse exposure or
hazard to the general public; or (c) have
a unique geographic focus and are
directly relevant to the governmental
responsibilities of a Btate or local
government within that geographic
area.)
CFDA
NO
66 900.
66 501
66 902
66 904 .
*66 505
•66 506
Tltta
I
Emtanmental Protection—Consolidated He-
March Qrants.
Air PoButnn Control Research Grants.
Pestludea Control Research Qranta.
Scfid Waste Disposal Research Grants.
Water Pollution Control—Research, Oowtop-
mem. and Demonstration Grants.
Safe Drinking Water Research and Demonstm*
ton Grams
Tone Substances Research Grants.
Direct Development Activities
*1 Real Property Acquisition or
DisposiUon, Including Obtaining Major
Leases oi Easements.
*2. Construction of New EPA Facilities.
*3 EPA Issued Plans and Permits Which
Do Not Impact Interstate Areas.
Dated- june 17,1983
William D. Ruckelshaus,
Administrator.
[FR Doc. 83-17028 Filed 6-23-63, S 45 am]
BILUNO COOE 6580-50-M
Appendix 6-A-16
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ASSISTANCE ADMINISTRATION
5700
12/3/81
29098	Federal Register / Vol. 48, No. 123 / Friday, fune 24, 1983 / Notices
OFFICE OF MANAGEMENT AND
BUDGET
Implementation of Executive Order
12372, "Intergovernmental Review of
Federal Programs"
agency: Management Reform Division
and Associate Director for Management,
Office of Management and Budget
action: Notice.
SUMMARY: This notice contains a letter
from the President to governors,
legislative leaders, and officers of major
local government organizations. The
notice also discusses how comments
addressed to the Office of Management
and Budget (OMB) during the public
comment period on agency proposed
rules on E.0.12372 were handled, and
future steps being undertaken to
implement the Order.
FOR FURTHER INFORMATION CONTACT
Walter S. Groszyk Jr., Room 10238, New
Executive Office Building, 720 JacksoA
Place NW, Washington, D.C. 20503.
SUPPLEMENTARY INFORMATION:
Letter from the President
On June 23,1983, the President wrote
an identical letter to the state and local
officials indicated above. The letter is as
follows:
THE WHITE HOUSE
Washington
June 23,1983.
Dear Scott: Nearly a year ago, I signed
E.O 12372, "Intergovernmental Review
of Federal Programs." which clearly set
out the direction I wanted Federal
agencies to take in their dealings with
state and local governments.
Remembering my days in California, I
specifically wanted the Federal agencies
to be responsive to you and your fellow
state and local elected officials I
wanted you to have greater Influence in
the actions we take that affect your
jurisdictions—whether building a
highway, awarding an elderly nutrition
grant, or locating a sewage treatment
plant.
With their joint publication of final
rules tomorrow, the Federal agencies
will clearly indicate to you and your
colleagues how they will be responsive
to your concerns. In essence, we have
established an approach that is based
on your own review and comment
processes.
You now have three months to finalize
your approach as we work together
toward September 30th, the day this
major change takes effect.
I pledge to you the full cooperation
and support of my Administration as
together, in the spirit of Federalism, we
make intergovernmental cooperation a
reality.
Sincerely,
[The Honorable Scott M. f-(e'hepon, Governor
of Utah, Salt Lake City, Utah 84114]
The Office of Management and Budget
is publishing this letter for state and
local officials who will be working
together over the next several months to
finalize a state process on
intergovernmental coordination and
review, and to select federal programs
and activities to be covered under that
state process.
Comments on Agency Proposed Rules
OMB received numerous comments on
the agencies' Notices of Proposed
Rulemaking These comments were
provided to all affected agencies as
appropriate for inclusion in the agency
dockets. As OMB did not publish any*
Notice of Proposed Rulemaking, we
asked the agencies to consider the
comments that were sent us. The
agencies have done so, and have
addressed these comments in the
preambles to their final rules.
There were, however, several
comments that the rulemaking agencies
were unable to respond to. These
comments asked that the United States
Synthetic Fuels Corporation and the
Interstate Commerce Commission be
included among the federal agencies to
which the Executive Order applies.
OMB does not believe the Executive
Order should be applied to these
agencies. The Interstate Commerce
Commission does not engage in federal
financial assistance or direct federal
development. The developmental
activities of the Synthetic Fuels
Corporation involve non-governmental
entities and the Corporation itself is not
an Exective Branch agency in the
traditional sense.
Future Steps
OMB intends to work with the 23
federal agencies publishing final rules
implementing the Executive Order in
today's Federal Register on their efforts
to carry out these rules. OMB will also
receive from each state the initial
selection of programs and activites to be
covered under the state process and the
name of the office or official designated
as the single point of contact. OMB has
also asked the governors to provide an
assurance that their states have taken
official action to designate a process,
and that local elected officials were
involved in the development of the
process and in the selection of covered
program.
For the time being, state and local
officials and other interested parties are
asked to contact the federal agency
official identified in each final rule as a
contact person if questions or concerns
arise during the next several months.
The federal agencies aiu directly
responsible for the implementation of
the Executive Order and will devote
adequate staff resources to provide
immediate and responsive help. OMB
will not have day-to-day operational
responsibilities regarding federal
programs and activities under the Order,
but will oversee agency implementation
to ensure federal responsiveness to state
and local governments.
Dated' June 23,1983.
Harold 1. Steinberg,
Associate Director for Management
(FR Doc 83-17259 Filed 0-21-63, 8.45 am]
BtLUHQ CODE 1110-01-M
State Plans Eligible for Modification
Under Executive Order 12372
Section 2(d) of Executive Order 12372
directs Federal agencies to "allow"
states to simplify or consolidate existing
Federally required State Plans and,
where permitted by law, to "encourage"
states to substitute their own plans for
Federally required state plans.
State plans required by the Federal
Government that are eligible for
modification (i.e., simplification,
consolidation, or substitution) under the
Order are listed below.
Dated June 23,1983
Harold I. Steinberg.
Associate Director for Management.
State Plans Eligible for Modification
Under Executive Order 12372
Agency and
CTDA No.
Program tide
Agriculture

10 550
Food Distribution
10 557
Special Supplemental Food Program for

Women, Infants and Ctokfren (WIC).
10559
Summer Food Service Program for CW-

dren
10 560
State Administrative Expense* for Chid

Nutrition
10 564 .
Nutation Education and Training Program.
10565 .
Commodfty Supplemental Food Program.
Contact John Stokes (202/756-3017)
Educaborr

64 002
Adutt Education—State Administered Pro
64 034
grama.
Public library Services.
64 035
tnterUbrwy Cooperation.
64 046
Vocational* Education—Basic Grants to

State*.
64 049
VocaMnal Education—Consumer and

Homemofcng Education
64 050
Vocational Education—Program Improve-

men and Supportive Service*.
64 052
Vocational Education—Specal Programs

for the Disadvantaged
Appendix 6-A-17
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ASSISTANCE ADMINISTRATION
5700
12/3/84
Federal Register / Vol. 48, No. 123 / Friday, June 24, 1983 / Notices
23097
State Plans Eligible for Modification
Under Executive Order 12372—Continued
Agency and
CFDA No
Program title
34 053
Vocational Education—State Advisory
Councds
64 121
Vocational Education—State Ptannmg and
Evaluation
64 126
Rehabilitation Services—Basic Support
Contact Leroy Walser (202/447-9043)
Energy

61 0041
State Energy Conservation
81 0042
Weathenzabon Assistance tor Low-Income
Persons.
01 0043
Supplemental State Energy Conservation.
S1 0050 „
Energy Extension Service
81 0052
Energy Conservation for Institutional Build-
ings
Contact Richard Brancato (202/2S2-9240)
HHS

13 630
Administration on Developmental Disabil-
ities—Basic Support and Advocacy
Grants
13 633
Special Programs for the Aging—Title II,
Parts A and B—Grants for Supportive
Services and Senior Centers
13 635
Specta) Programs for the Agtng—Title III,
Part C—Nutntion Services
13 645
Chdd Welfare Services—State Grants
13 646
WIN
13 659
Adoption Assistance
Interior

15 252
Abandoned Mme Land Redamaton Pro-
gram
State Plans Eligible for Modification
Under Executive Order 12372—Continued
Agency and
OFOA No
Program trtto
Contact Gordon Boe (202/245-6036)
15 605
15611 ..
15916
15904
Ftsh Restoration
Wddhfe Restoration.
Outdoor Recreation—Acqusition, Develop-
ment and Ptanrwig
Hrstonc Preservation Grants-ovAid
Contact Timothy S Elliott (202/343-4722)
Justice
16 540
Juverde Justice and Oebnquency Proverv
bon—formula Grant Program,
Juvende Justice and Delinquency Preven-
tion—Spoca) Emphasis and Technical
Assistance Grants (except Grants to
Nongovernmental Entities)
Contact Lyrm C Dixon (202/724-5947)
Labor

(Sec 104) ..
Job Trammg Partnership Act (PI 97-300)
17 207
Employment Service
Contact Joyce Kaiser (202/376-6503)
Transportation

20 306
Local Rail Service Assistance
20 600
State and Highway Community Safety
20 700
Gas Ptpeitne Safety
EPA

66 001
Ar Pollution Control Program Grants
66419
Water Pollution Control—State and ln*er-

state Program Grants.
State Plans Eligible for Modification
Under Executive Order 12372—Continued
$3?
and
No
Program trite
Contact KeUey Andrews (202/426-1524)
66432
66433
66 433
66 451
66 600
66 700
Water Ouabty Management Pfannmg.
State Public Water System Supervision
Program Grants.
State Underground Water Source Protec-
tion Program Grant*.
Construction Management Assistance
Grants
Hazardous Waste Management Financial
Assistance to States.
Environmental Protection Consolidated
Grants—Program Support
Pesbodes Enforcement Program Grants
Pesticides Applicator Certification and
Training
Contact Jack Gwynn (202/382-5266)
FEMA
63 503	Emergency Management Assistance
63 505	State Disaster Preparedness Grants
63 506	Earthquake and Humcane Losa Study and
Contingency Planning Grants
63 516	Disaster Assistance Two subprograms—
1	Temporary Housing (if the State
assumes operational resporwbdity),
2	Individual and Family Grants
Contact Herb Jones (202/287-3899)
'CFDA=Cata!og of Federal Domestic Assistance
[FR Doc 63-17260 Filed 6-23-63. 6 45 ami
BILLING CODE 3110-01-M
09W32 DO uoj6uiL|seAA
SC O ONimjjej
Vd3
pie,j S03.J pueaBeisod
SSBQ-ISJIJ
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asp sieAuj joj Aiieuaj
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ssieis penun
Appendix 6-A-18
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ASSISTANCE ADMINISTRATION
Federal Register / Vol. 48 No. 190
5700
12/3/84
/ Thursday, September 29, 1983 / Notices
ENVIRONMENTAL PROTECTION AGENCY
OFFICE OF ADMINISTRATION
[OA-FRL-244 3-4]
AGENCY: U.S. ENVIRONMENTAL PROTECTION AGENCY
ACTION: NOTICE OF PROCEDURES TO ESTABLISH COMMENT PERIOD
START DATES FOR PROGRAMS AND ACTIVITIES SUBJECT
TO EXECUTIVE ORDER 12372
SUMMARY: On October 1, 1983, the Environmental Protection
Agency (EPA) will implement a new intergovernmental review
process for programs and activities subject to Executive Order
12372 and 40 CFR Part 29. EPA published its regulation and
separate lists of financial assistance programs, direct
development activities, and state plans subject to the new
process in the FEDERAL REGISTER on June 24, 1983 (48 FR
29288; 29304 and 29096) .
This FEDERAL REGISTER Notice is EPA's official notifi-
cation of the start date for comment periods on programs and
activities covered by the new process and of the EPA contacts
for further information about the proposals under consideration,
If any changes to these procedures are necessary, EPA will
publish them in a FEDERAL REGISTER Notice before implementing
them.
FOR FURTHER INFORMATION CONTACT:
John A. Gwynn, Chief
Grants Policy and Procedures Branch (PM-216)
Environmental Protection Agency
Washington, DC 20460
(202) 382-5268
SUPPLEMENTARY INFORMATION: The Order and regulation require EPA
to notify a state process or directly affected state, areawide,
regional, and local entities of activities proposed for Federal
funding in their jurisdictions. The notice must establish the
start date for a 30/60 day official comment period and identify
an EPA contact for additional information. Because EPA does not
have formal program announcements or deadlines, we developed
the following procedures to:
1. establish the start date for comment periods on
activities proposed under EPA financial assistance programs
and direct development activities, and
Appendix 6-B
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ASSISTANCE ADMINISTRATION
5700
12/3/84
2. identify EPA offices to contact regarding additional
information about the proposals under consideration.
PROCEDURES
I. TRANSITION FROM A-95 REVIEW SYSTEM TO E.O.I 2372 SYSTEM
Any applications still undergoing A-95 review as of October
I,	1983, will continue under that process. Also step 2+3 and
step 3 construction grant applications that had completed an A-95
review on either the step 1 or step 2 application do not have to
undergo review under the new process.
II.	WHERE A STATE PROCESS EXISTS AND INCLUDES THE EPA PROGRAM
OR ACTIVITY UNDER CONSIDERATION
A.	CONSTRUCTION AND CONTINUING ENVIRONMENTAL PROGRAMS
The 30/60 day comment period on these applications will begin
on the date that the EPA Regional office receives written
notice from the appropriate state pollution control agency,
or delegated entity, that it forwarded the application to
its state process for review. EPA will presume an additional
5 days from the date of application transmittal for receipt
and entry into the state process. The written notice and
any request for additional information about the application
should be directed to the appropriate EPA Regional Office
listed in the Appendix to these procedures. The 30 day
comment period is limited to applications tor noncompeting
continuation awards, i.e., Continuing Environmental Programs.
B.	RESEARCH, DEVELOPMENT AND DEMONSTRATION PROJECTS (R&D)
The 30/60 day comment period for R&D applications subject to
the Order (see 48 FR 29304) will begin on the date that EPA
receives written notice from the applicant that it submitted
required material to its state process. EPA will presume an
additional 5 days from the date of application transmittal
for receipt and entry into the state process. The written
notice and any request for additional information about the
application should be directed to the Grants Administration
Division (see Appendix). The 30 day comment period is limited
to applications for noncompeting continuation awards, i.e.,
R&D, including "Special Studies, Surveys, and Investigations."
C.	DIRECT DEVELOPMENT ACTIVITIES
The 60 day comment period for proposed direct development
activities will begin on the date that the state process (or
delegated entity) receives oral or written notice from the
EPA office proposing the direct development activity.
Appendix 6-B-l
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ASSISTANCE ADMINISTRATION
5700
12/3/811
III.	WHERE A STATE PROCESS DOES NOT EXIST OR INCLUDE THE EPA
PROGRAM OR ACTIVITY UNDER CONSIDERATION
A.	CONSTRUCTION AND CONTINUING ENVIRONMENTAL PROGRAMS
The 30/60 day comment period on these applications will begin
on the date that EPA receives written notice from the appro-
priate state pollution control agency that it notified each
directly affected state, areawide, regional, and local entity
of the application. The 30 day comment period is limited to
applications for noncompeting continuation awards, i.e.,
Continuing Environmental Programs.
B.	RESEARCH, DEVELOPMENT AND DEMONSTRATION PROJECTS (R&D)
The 30/60 day comment period for applications subject to the
Order (see 48 FR 29304) will begin on the date that state,
areawide, regional, and local entities that would be directly
affected by the proposal receive written notice from EPA
that an application was received. The 30 day comment period
is limited to applications for noncompeting continuation
awards, i.e., R&D including "Special Studies, Surveys, and
Invest igat ions."
C.	DIRECT DEVELOPMENT ACTIVITIES
The 60 day comment period for proposed direct development
activities will begin on the date that state, areawide, regional,
and local entities that would be directly affected by the
proposed activity receive oral or written notice from EPA.
IV.	CONTENT OF NOTICES
A.	APPLICANT/STATE AGENCY NOTICE TO EPA
The written notice to EPA must provide the "Catalog of Federal
Domestic Assistance" number and title for the application, the
name of the applicant, and the date that the application was
transmitted to the state process.
B.	EPA NOTICE TO STATE PROCESS/DIRECTLY AFFECTED STATE, AREA-
WIDE, REGIONAL AND LOCAL ENTITIES
1. EPA's oral or written notice concerning a proposed
direct development activity must identify the EPA office pro-
posing the action, the nature of the activity, who the EPA
Appendix 6-B-2
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ASSISTANCE ADMINISTRATION
!?700
12/3/?4
contact will be for additional information, and the start
date for the 60 day comment period.
2. EPA's written notice concerning receipt of an appli-
cation for review must provide the "Catalog of Federal Domestic
Assistance" number and title for the application, the name of
the applicant, the start date for the 30/60 day comment period,
and identify whether the application is for a noncompeting
continuation award.

Harvey G. Pi
Grants Admin
Ppej/r
r/, Jr. , Director
ration Division
ist
Appendix 6-B-3
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ASSISTANCE ADMINISTRATION
5700
12/3/84
HEADQUARTERS ADMINISTERED R&D, Incl. "Special Studies, Surveys, and
Investigations"
Grants Administration Division (PM-216)
Grants Operation Branch
401 M Street, SW
Washington, DC 20460
(CML: 202 382-5252)
REGIONALLY ADMINISTERED CONSTRUCTION GRANTS & CONTINUING ENVIRONMENTAL
PROGRAMS, Incl. "Special Studies, Surveys, and Investigations"
Grants Administration, Finance
and Procurement Branch
EPA - Region I
JFK Federal Bldg. - Rm. 2300
Boston, MA 02203
(CML: 617 223-5741)
Grants Administration Branch
EPA - Region II
26 Federal Plaza - Rm. 937A
New York, NY 10278
(CML: 212 264-9860)
Grants Administration Branch
EPA - Region VI
First International Building
1201 Elm Street
Dallas, TX 75270
(CML: 214 767-2650)
Grants Administration Section
EPA - Region VII
324 East 11th Street
Kansas City, MO 64106
(CML: 816 374-2921)
Grants Management Section
EPA - Region III
Otfice of the Comptroller
Curtis Building
6th & Walnut Streets
Philadelphia PA 19106
(CML: 215 597-3735)
Grants Administration Unit
EPA - Region IV
345 Courtland St., NE
Atlanta, GA 30365
(CML: 404 881-3402)
Grants and Financial
Management Branch
EPA - Region VIII
1860 Lincoln Street
Denver, CO 80295
(CML: 303 837-3853)
Grants and Permits
Administration Section
EPA - Region IX
215 Fremont Street
San Francisco, CA 94105
(CML: 415 974-8010)
Financial Management Branch
EPA - Region V
230 S. Dearborn Street
Chicago, IL 60604
(CML: 312 353-7555)
Grants Administration Office
EPA - Region X
1200 Sixth Avenue
Seattle, WA 98101
(CML: 206 442-2899)
Appendix 6-B-4
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5700
Federa^¥^isC?erI^II,\S,f!A,1?5)NNo. 235 / Tuesday, December 6, 1983 / Notices
ENVIRONMENTAL PROTECTION AGENCY
NOTICE OF SUPPLEMENTAL PROCEDURES FOR ESTABLISHING kTART DATES OF
COMMENT PERIOD FOR ACTIVITIES SUBJECT TO EXECUTIVE ORDER 12372
On September 29, 1983, EPA published a notice of procedures
to establish start dates for comment periods under Executive
Order 12372 and 40 CFR Part 29 (Intergovernmental Review). The
Executive Order and regulation require EPA to notify a State
process or directly affected governmental entities of activities
proposed for Federal funding in their jurisdictions. (A State
process is the framework under which State and local officials
carry out Intergovernmental Review activities under the Executive
Order; see 48 FR 29288 for other definitions and background.)
The notice must establish the start date for a 60-day official
comment period and identify an EPA contact for additional
information.
The EPA has determined that the documents to be reviewed
under the intergovernmental review process for activities under
the Comprehensive Environmental Response, Compensation, and
Liability Act of 1980 (CERCLA), will differ from those reviewed
for other EPA programs. The Hazardous Substance Response Trust
Fund (CFDA No. 66.802) is the CERCLA program subject to Executive
Order 12372. The major components of this program are the remedial
investigation/feasibility study, which constitute the first
phase, and remedial design/remedial action, which constitute the
second phase. This notice explains the procedures to be followed
for the CERCLA programs.
PROCEDURES
I.	TRANSITION FROM A-95 REVIEW SYSTEM TO E.O. 12372 SYSTEM
Any proposed funding on which A-95 review was initiated
prior to October 1, 1983, will continue under that process.
II.	WHERE A STATE PROCESS EXISTS AND INCLUDES THE CERCLA PROGRAM
OR ACTIVITY UNDER CONSIDERATION
A. REMEDIAL INVESTIGATION/FEASIBILITY STUDY (RI/FS)
The 60-day comment period on the proposed funding for
a RI/FS will begin 5 days after the date that the appropriate
State pollution control agency or EPA Regional Office sends a
letter to the State process explaining the proposed action. The
letter will give the name and location of the site, the site's
rank on the National Priorities List, the nature of the problem
at the site, a description of the activities to be undertaken
under the RI/FS, the estimated cost of the RI/FS, the date on
which the proposed RI/FS would begin, an estimate of when the
RI/FS is expected to be completed, and the State and/or EPA
Project Officers to be contacted for additional information.
Appendix 6-C
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ASSISTANCE ADMINISTRATION
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If, in this or any of the following sections, the official
application involves any substantial change from the information
provided for intergovernmental review, then EPA will provide
another 60-day comment period for intergovernmental review of the
official application. When the State has lead responsibility
for the RI/FS, the appropriate State pollution control agency
will send the letter to the State process and to the appropriate
EPA Regional Office (see 48 FR 44643, September 29, 1983). When
EPA has lead responsibility for the RI/FS, the EPA Regional Office
will coordinate with the appropriate State pollution control agency
and will send the letter to the State process.
B. REMEDIAL DESIGN/REMEDIAL ACTION (RD/RA)
The 60-day comment period on the proposed funding for a RD/RA
will begin 5 days after the date the appropriate State pollution
control agency or EPA Regional Office sends the feasibility
study containing the proposed remedy to the State process. The
60-day comment period for the State process generally will run
concurrently with the public's comment period on the feasibility
study and the proposed remedy. As in the case of RI/FS, when
the State has the lead responsibility for the RD/RA, the State
pollution control agency will send the document to the State
process and will send a copy of the transmittal letter to EPA.
When EPA has the lead responsiblliity for the RD/RA, the EPA
Regional Office will coordinate with the appropriate State
pollution control agency and will send the document to the
State process.
III. WHERE A STATE PROCESS DOES NOT EXIST OR DOES NOT INCLUDE
THE EPA PROGRAM OR ACTIVITY UNDER CONSIDERATION
A. REMEDIAL INVESTIGATION/FEASIBILITY STUDY
The 60-day comment period on the proposed funding for
a RI/FS will begin 5 days after the date that the appropriate
State pollution control agency or EPA Regional Office sends a
letter to officials of directly affected governmental entities
(i.e., the Governor of the State, officials of directly affected
areawide and Regional planning agencies and officials of directly
affected local governments). The letter will contain the same
information listed in Section II.A. above. When the State has
the lead responsibility for the RI/FS, the appropriate State
pollution control agency will send the letter to the governmental
entities and will send a copy to the appropriate EPA Regional
Office. When EPA has the lead responsibility for the RI/FS, the
EPA Regional Office will coordinate with the State pollution
control agency and will send the letter to the directly affected
governmental entities.
Appendix 6-C-l
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ASSISTANCE ADMINISTRATION
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B. REMEDIAL DESIGN/REMEDIAL ACTION (RD/RA)
The 60-day comment period on the proposed funding for a
RD/RA will begin 5 days after the date that the appropriate
State pollution control agency or EPA Regional Office sends the
feasibility study containing the proposed remedy to the directly
affected governmental entities (see III.A.). The 60-day comment
period generally will run concurrently with the public's comment
period on the feasibility study and the proposed remedy. As in
the case of the RI/FS, when the State has the lead responsibility
for the RD/RA, the State pollution control agency will send the
feasibility study to the governmental entities and will send a
copy of the transmittal letter to EPA. When EPA has the lead
responsibility for the RD/RA, EPA will coordinate with the State
pollution control agency and will send the document to the
governmental entities.
For further information on these procedures, contact
Cristina N. Griffin, Office of Emergency and Remedial Response,
Environmental Protection Agency, 401 M Street, S.W., Washington,
D.C. 20460. The telephone number is: (202) 382-2443.
DATE:
Lee\M. Thomas, Assistant Administrator
Office of Solid Waste and Emergency Response
Appendix 6-C-2
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ASSISTANCE ADMINISTRATION
SUFERFUND PROCEDURES FOR INITIATING COMMENT PERIOD
12/3/8J*
1
State Process
Exists and
Activity Covered
RI/FS
RD/RA
State Lead Responsibility
EPA Lead Responsibility
State pollution control
agency (SPCA) sends
notification letter to
State process. State
sends copy of letter to
EPA and 60-day comment
period begins 5 days after
the State sends the letter.
SPCA sends the feasibility
study containing the
proposed remedy to the
State process. SPCA sends
copy of transmittal notice
to EPA and 60-day comment
period begins 5 days after
the State sends the
feasibility study.
EPA Regional Office sends
notification letter to
State process and 60-day
comment period begins 5 days
after EPA sends the letter.
EPA Regional Office sends
the feasibility study
containing the proposed
remedy to the State process
and 60-day comment period
begins 5 days after EPA
sends the feasibility study.
No State Process
or Activity is
not covered
RI/FS
RD/RA
1
SPCA sends notification
letter to the
"governmental entities"
(see III A). SPCA sends
copy of letter to EPA
and 60-day comment period
begins 5 days after the
State sends the letter.
SPCA sends the feasibility
study containing the
proposed remedy to the
"govern^mental entities".
SPCA sends copy of
transmittal notice to EPA
and 60-day comment period
begins 5 days after the
State sends the feasibility
study.
EPA Regional Office
consults with SPCA and
sends notification letter
to the "governmental
entities" and 60-day comment
period begins 5 days after
EPA sends the letter.
EPA Regional Office consults
with SPCA and sends the
feasibility study containing
the proposed remedy to the
"governmental entities" and
60-day comment period begins
5 days after EPA sends the
feasibility study.
Appendix 6-C-3
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ASSISTANCE ADMINISTRATION
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INSTRUCTIONS TO APPLICANTS
Intergovernmental Review Procedures
BACKGROUND
On June 24, i 9 8 3, the Environmental Protection Agency (EPA)
published a final regulation (40 CFR Part 29) to implement Execu-
tive Order 12372, "Intergovernmental Review of Federal Programs."
That Order revoked and replaced the intergovernmental consultation
system required by OMB Circular A-95.
The objective of the new system is to foster an intergovern-
mental partnership and strengthened federalism by relying on State
and local processes for coordination and review of proposed Federal
financial assistance. EPA's regulation took effect October 1, 1983
APPLICABILITY
The EPA program for which you are applying may be subject to
your State's intergovernmental review process and or the consultation
requirements of Section 204, Demonstration Cities and Metropolitan
Development Act. Programs eligible for State review and subject to
Section 204 are identified on page 29304 of the Federal Register
Notice following the enclosed regulation (40 CFR Part 29). If your
application is under a program listed, you must contact your State's
single point of contact to find out if the program was selected for
coverage by the State process and, if the program was selected, to
receive information about your State's review process requirements
and procedures. The present roster of State contacts is attached to
these instructions. If the program in which you are applying is sub-
ject to Section 204, you must notify areawide metropolitan or regional
planning agencies and or general government units authorized to govern
planning for the locale of your project of your intended application.
EPA WILL NOT PROCESS YOUR APPLICATION WITHOUT EVIDENCE OF YOUR COMPLI-
ANCE WITH THESE REQUIREMENTS.
COMPLETE THIS FORM AND MAIL TO APPROPRIATE EPA OFFICE LISTED ON
REVERSE OF THIS SHEET.
A.	APPLICANT NAME:	
B.	CATALOG OF FEDERAL DOMESTIC ASSISTANCE NUMBER AND TITLE:
66.	"
(NO.)	(TITLE)
1.	Program Subject to State Process: 			
YES	NO
2.	Application/Preapplication/Notice of Intent Sent To
State Process On:
( DATE)
3.	Program Subject To Section 204: 			
YES	NO
*************************************************************
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ASSISTANCE ADMINISTRATION	12/3/84
Revised 10/16/84
State Single Point of Contact List
ALABAMA
Mrs. Donna J. Snowden, SPOC
Alabama State Clearinghouse
Alabama Department of Economic and
Corrmunity Affairs
3465 Norman Bridge Road
Post Office Box 2939
Montgomery, Alabama 36105-0939
ARIZONA
Office of Economic Planning and Development
State of Arizona
NOTE: Correspondence & questions concerning
this state*s E.O. 12372 process should
be directed to:
Jo Stephens, Director
Local Government Assistance
ATTN: Arizona State Clearinghouse
1700 West Washington, Rm. 205
Phoenix, Arizona 85007
Tel. (602) 255-5004
ARKANSAS
State Clearinghouse
Office of Intergovernmental Services
Department of Finance and Administration
P.O. Box 3278
Little Rock, Arkansas 72203
Tel. (501) 371-2311
CALIFORNIA
Office of Planning and Research
1400 Tenth Street
Sacramento, California 95814
Tel. (916) 445-0282
COLORADO
State Clearinghouse
Division of Local Government
1313 Sherman Street, Rm. 520
Denver, Colorado 80203
Tel. (303) 866-2156
Appendix 6-D-l
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CONNECTICUT
Gary E. King
Under Secretary
Comprehensive Planning Division
Office of Policy and Management
Hartford, Connecticut 06106-4459
NOTE: Correspondence & questions concerning
this state's E.O. 12372 process should
be directed to:
Intergovernmental Review Coordinator
Comprehensive Planning Division
Office of Policy and Management
80 Washington Street
Hartford, Connecticut 06106-4459
Tel. (203) 566-4298
DELAWARE
Executive Department
Thomas Collins Building
Dover, Delaware 19903
Attn: Franchine Booth
Tel. (302) 736-4204
FLORIDA
Ron Fahs
Executive Office of the Governor
Office of Planning and Budgeting
The Capitol
Tallahassee, Florida 32301
Tel. (904) 488-8114
GEORGIA
Charles H. Badger
Administrator
Georgia State Clearinghouse
270 Washington Street, S.W.
Atlanta, Georgia 30334
Tel. (404) 656-3855
HAWAII
Kent M. Keith
Director
Department of Planning and Economic
Development
P.O. Box 2359
Honolulu, Hawaii 96804
For Information Contact:
Hawaii State Clearinghouse
Tel. (808) 548-3085
ILLINOIS
Tom Berkshi re
Office of the Governor
State of 111i no i s
Springfield, Illinois 62706
Tel. (217) 782-8639
Appendix 6-D-2
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INDIANA
Ms. Susan J. Kennel 1
State Budget Agency
212 State House
Indianapolis, Indiana 46204
Tel. (317) 232-5604
IOWA
Office for Planning and Programming
Capital Annex
523 East 12th Street
Des Moines, Iowa 50319
Tel. (515) 281-6483
KANSAS
Kansas Department of Human Resources
Office of The Secretary
Attention: Judy Krueger
401 Topeka Avenue
Topeka, Kansas 66603
Tel. (913) 296-5075
KENTUCKY
Kentucky State Clearinghouse
2nd Floor, Capital Plaza Tower
Frankfort, Kentucky 40601
Tel. (502) 564-2382
LOUISIANA
Michael J. Jefferson
Dept. of Urban & Community Affairs
Office of State Clearinghouse
P.O. Box 44455, Capitol Station
Baton Rouge, Louisiana 70804
Tel. (504) 925-3722
MAINE
State Planning Office
Attn: Intergovernmental Review Process
State House Station #38
Augusta, Maine 04333
Tel. (207) 289-3154
MARYLAND
Guy W. Hager, Director
Maryland State Clearinghouse
for Intergovernmental Assistance
Department of State Planning
301 West Preston Street
Baltimore, Maryland 21201-2365
Tel. (301) 383-7875
MASSACHUSETTS
Executive Office of Communities and
Deve1opmen t
100 Cambridge Street, Km. 1401
Boston, Massachusetts 02202
Tel. (617) 727-7078
Appendix 6-D-3
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ASSISTANCE ADMINISTRATION
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MICHIGAN
Carol Hoffman
Director, Office of Business and
Conmunity Development
Michigan Department of Commerce
P.O. Box 30004
Lansing, Michigan 48909
Tel. (517) 373-0933
MISSISSIPPI
Office of Federal State Programs
Department of Planning and Policy
1504 Walter Sillers Bldg.
500 High Street
Jackson, Mississippi 39202
For Information Contact:
Mr. Marian Baucum
Department of Planning and Policy
Tel. (601) 359-3069
MINNESOTA
Thomas N. Harren
Minnesota State Planning Agency
Capitol Square Building - Room 101
550 Cedar Street
St. Paul, Minnesota 55101
Tel. (612) 296-3698
MISSOURI
Missouri Federal Assistance
Clear inghouse
Office of Administration
Division of Budget and Planning
Room 129 Capitol Building
Jefferson City, Missouri 65102
Tel. (314) 751-4834 or 751-2345
MONTANA
Agnes Fipperian
Intergovernmental Review Clearinghouse
c/o Office of the Lieutenant Governor
Capitol Station
Helena, Montana 59620
Tel. (406) 444-5522
NEBRASKA
Policy Research Office
P.O. Box 94601
Room 1321, State Capitol
Lincoln, Nebraska 68509
Tel. (402) 471-2414
Appendix 6-D-4
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ASSISTANCE ADMINISTRATION
5TOO
12/3/84
NEVADA
Ms. Linda A. Ryan
Director, Office of Community Services
Capitol Complex
Carson City, Nevada 89710
Tel. (702) 885-4420
NOTE: Correspondence & questions concerning
this state's E.O. 12372 process should
be directed to:
John Walker
Clearinghuse Coordinator
Tel. (702) 885-4420
NEW HAMPSHIRE
David G. Scott
Acting Director
New Hampshire Office of State Planning
2 1/2 Beacon Street
Concord, New Hampshire 03301
Tel. (603) 271-2155
NEW JERSEY
Mr. Barry Skokowski
Director, Division of Local Government
Servi ces
Department of Community Affairs, CN 803
363 West Street
Trenton, New Jersey 08625
Tel. (609) 292-6613
NOTE:	Correspondence & questions concerning
this state's E.O. process should be
directed to:
Nelson S. Silver
State Review Process
Division of Local Government Services - CN 803
Trenton, New Jersey 08625-0803
Tel: (609) 292-0803
NEW MEXICO
Peter C. Pence, Director
Department of Finance and Administration
State of New Mexico
515 Don Gaspar
Santa Fe, New Mexico 87503
Tel. (505) 827-3885
NEW YORK
Director of the Budget
New York State
NOTE:	Correspondence & questions concerning the
state's E.O. 12372 process should be directed to:
New York State Clearinghouse
Division of the Budget
State Capitol
Albany, New York 12224
Tel. (518) 474-1605
Appendix 6-D-5
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NORTH CAROLINA.
Mrs. Chrys Baggett
Director, State Clearinghouse
Department of Administration
116 West Jones Street
Raleigh, North Carolina 27611
Tel. (919) 733-4131
NORTH DAKOTA
Office of Intergovernmental Assistance
Office of Management and Budget
14th Floor - State Capitol
Bismarck, North Dakota 58505
Tel. (701) 224-2094
OHIO
State Clearinghouse
Office of Budget and Management
30 East Broad Street
Columbus, Ohio 43215
For Information Contact:
Mr. Leonard E. Roberts
Deputy Director
Tel. (614) 466-0699
OKLAHOMA
Office of Federal Assistance Management
4545 North Lincoln Blvd.
Oklahoma City, Oklahoma 73105
Tel. (405) 528-8200
OREGON
Intergovernmental Relations Division
State Clearinghouse
Executive Building
155 Cottage Street, N.E.
Salem, Oregon 97310
Tel. (503) 373-1998
PENNSYLVANIA
Pennsylvania Intergovernmental Council
P.O. Box 1288
Harrisburg, Pennsylvania 17108
ATTN: Charles Griffiths
Executive Director
Tel. (717) 783-3700
RHODE ISLAND
Daniel W. Varin, Chief
Rhode Island Statewide Planning Program
265 Melrose Street
Providence, Rhode Island 02907
Tel. (401) 277-2656
SOUTH CAROLINA
Danny L. Cromer
Grant Services
Office of the Governor
1205 Pendleton Street, Room 47 7
Columbia, South Carolina 29201
Tel. (803) 758-2417
Appendix 6-D-6
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assistance administration
5700
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SOUTH DAKOTA
Jeff Stroup
Corrmissioner of the Bureau
of Intergovernmental Relations
Second Floor, Capitol Building
Pierre, South Dakota 57501
Tel. (605) 773-3661
TENNESSEE
Tennessee State Planning Office
1800 James K. Polk Building
505 Deaderick Street
Nashville, Tennessee 37219
Tel. (615) 741-1676
TEXAS
Bob McPherson
State Planning Director
Office of the Governor
Austin, Texas 78711
Tel. (512) 475-6156
UTAH
Michael B. Zuhl
Director, Office of Planning and Budget
State of Utah
116 State Capitol Building
Salt Lake City, Utah 84114
Tel. (801) 533-5245
VERMONT
State Planning Office
Pavilion Office Building
109 State Street
Montpelier, Vermont 05602
Tel. (802) 828-3326
VIRGINIA
Robert H. Kirby
Intergovernmental Review Officer
Department of Planning and Budget
Post Office Box 1422
Richmond, Virginia 23211
Tel. (804) 786-1921
WASHINGTON
Ken Black
Washington Department of Community Development
Ninth and Columbia Building
Olympia, Washington 98504
Tel. (206) 753-2200
WEST VIRGINIA
Mr. Fred Cutlip, Director
Corrmunity Development Division
Governor's Office of Economic and
Cormiunity Development
Building #6, Room 553
Charleston, West Virginia 25305
Tel. (304) 348-4010
Appendix 6-D-7
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WISCONSIN
Secretary Doris J. Hanson
Wisconsin Department of Adminstration
101 South Webster Street - GEF 2
Madison, Wisconsin 53702
Tel. (608) 266-1212
WYOMING
Wyoming State Clearinghouse
State Planning Coordinator's Office
Capitol Building
Cheyenne, Wyoming 82002
Tel. (307) 777-7574
VIRGIN ISLANDS
Federal Programs Office
Office of the Governor
The Virgin Islands of the United States
Charlotte Amalie, St. Thomas 00801
Tel. (809) 774-0001
DISTRICT OF COLUMBIA
Pauline Schneider
Director, Office of Intergovernmental
Relat i ons
Room 416, District Building
Washington, D.C. 20004
Tel. (202) 727-6265
PUERTO RICO
Nelson Soto, President
Puerto Rico Planning Board
P.O. Box 4119 Minilla Station
San Juan, Puerto Rico 00940
Tel. (809) 724-7900
NORTHERN MARIANA ISLANDS
Planning and Budget Office
Office of the Governor
Saipan, CM 96950
Appendix 6-D-8
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5700
ASSISTANCE AEMINISTRATION	12/3/84
CHAPTER 7 - ASSISTANCE TO PROJECT ACTIVITIES OUTSIDE THE UNITED STATES
Table of contents
PARAGRAPH	PARAGRAPH
TITT.RS	NUMBERS
General	 1
Special Review, Processing and Decision Procedures	 2
Correspondence and Communications	 3
FIGURE	FIGURE
TITT.F.q	NUMBERS
EPA Form 4540-1, "Clearance of Foreign Research Award"	 7-1
EPA Form 4540-1, "Clearance of Foreign Research Award"	 7-2
i
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ASSISTANCE ADMINISTRATION	12/3/84
CHAPTER 7 - ASSISTANCE TO PROJECT ACTIVITIES OUTSIDE THE UNITED STATES
1. GENERAL.
a.	Scope. For the purpose of this manual, a foreign grant or
cooperative agreement means an EPA averd of assistance for a project to be
performed entirely, or in part, in a foreign country by (1) a U.S. recipient,
(2) a foreign recipient, or (3) an international organization, and is to be
funded by other than U.S. owned excess foreign currencies.
b.	Exception for Scientific Activities O/erseas Program. Projects
undertaken with funds under the Scientific Activities Overseas Program which use
U.S. owned excess foreign currencies are not subject to the policies and procedures
included in 40 CFR Chapter I, Subchapter B, or this Manual.
c.	Approval Requirements. A foreign grant or cooperative agreement
may be awarded by EPA only after the proposal:
(1)	Has been approved by the Assistant Administrator or Regional
Administrator (AA/RA) responsible for the progran activity to be accomplished or
his/her designee;
(2)	Has received the concurrence of the Associate Administrator for
International Activities (OIA), or his/her designee; and
(3)	Has Department of State concurrence, which is obtained by the
Office of International Activities. Each reviewer must consider the technical
merit of the proposed project, its potential benefit to the Ajency, and the
allowability of proposed costs.
d.	Stipulation of Currency for Payment. Unless otherwise specified
in the assistance agreement, EPA will make all payments in U.S. currency. If
payment is made in foreign currency, the payment will be made at the official
exchange rate at the time of payment. In no case can the payment exceed the
amount EPA obligated. Refunds and rebates should be in the currency of the
original payment.
3 . SPECIAL REVIEW, PROCESSING AND DECISION PROCEDURES.
a.	Applicable Regulations. The following procedures apply solely
to proposals for foreign grants or cooperative agreenents. These procedures
apply in addition to the policies and procedures set forth in the General
Regulations for Assistance Programs (40 CFR Part 30) and appropriate progran
regulations. Unless otherwise noted, they apply equally to new awards, contin-
uation awards, and to requests for extensions of the budget/project period for
performance beyond the initially approved budget/project period.
b.	Exception. The Award Official may waive certain requiranents of
40 CFR Subchapter B for foreign projects. The Avert! Official must state the
terms and conditions of such waiver in the assistance agreement.
7-1
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ASSISTANCE ADMINISTRATION
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c.	Initial Receipt and Processing. All foreign grant/cooperative agreement
proposals received by EPA must immediately be delivered to the Assistance
A3ministration unit (AA[J) for logging, legal and administrative review, and pre-
liminary processing. The AAU will promptly route the proposal to the appropriate
program staff for action.
d.	Foreign Proposal Review Criteria. The progran office to which an
application is referred will review the proposal to determine whether the
review criteria listed below have been met:
(1)	Legal authority for the award exists (provide specific cite);
(2)	The foreign proposal is outstanding and/or original in concept;
(3)	The proposed work is highly important to the achievement
of EPA program objectives;
(4)	The proposed work is urgently needed by the program office and
constitutes a timely opportunity which would be lost if not supported at this time;
(5)	The proposed work must be performed outside of the united States
because of particular personnel or material resources available, or other
existing conditions;
(6)	The applicant cannot obtain an adequate level of funding frcm
other sources for the p-oposed project without financial support frcm EPA; and
(7)	The proposed costs are allocable to the project and are reasonable.
e.	Preparation of Decision Document. Following review of the proposal
against the above criteria, the program office will prepare and forward one of
the following decision documents for the approval of their AA/RA:
(1)	Recommendation for Rejection. A manor and um that reccmmends disap-
proval of the proposal and describes the reasoning supporting the negative
recommendation; or a
(2)	Recommendation for Approval. A memorandum that recommends approval
of the proposal and indicates that the proposal was reviewed in terms of the
review criteria specified in subparagraph 2d above, and describes briefly the
extent to which those criteria are met. It must al9o include a completed EPA
Form 4540-1, "Clearance of Foreign Research Award" (see figures 7-1 and 7-2),
a resume' of the p"oposed Project Manager and a summary of the proposal which
describes:
(a)	Scope, objectives, and pertinent specifications of the
work to be performed;
(b)	The regulatory requirements, if any, recommended for
waiver;
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ASSISTANCE ADMINISTRATION
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(c)	Personnel, equipment, and facilities to be anployed;
(d)	Proposed budget (consistent with period of performance);
(e)	Proposed project period (not to exceed 5 years);
(f)	Legal authority for the avrard (cite the appropriate
enabling legislation); and
(g)	Other pertinent information, e.g., subagreements.
f.	Review and Approval to Fund by the Assistant or Regional Administrator.
(1)	The Approval Official (AA/RA or their designee responsible for
the program activity and the allowance from which the proposal might be funded)
must ensure that the proposal meets the review criteria and, when appropriate,
that the rationale for any regulatory waiver is adequate.
(2)	If the Approval Official concurs in a recanmendation to fund the
proposal, the appropriate AAU must conduct a legal and administrative review
to assure that all requirements are met and prepare a recanmendation for the
Award Official as to which, if any, provisions of 40 CFR Subchapter B should
be waived.
(3)	If the AA/RA concurs and approves the proposal, the approving AA/RA
will complete and indicate approval on EPA Form 4540-1, "Clearance of Foreign
Research Award." This form and all supporting documents will be forwarded to
the Associate Administrator for International Activities.
(4)	If the proposal is not recommended for funding by the Approval
Official (AA/RA), all documents must be returned to the appropriate AAU for
inclusion in the official project file. The AA/RA will also notify the
applicant that the proposal will not be funded and forward a copy of that
letter to the AAU for inclusion in the official file.
g.	Review and Concurrence by the Associate Administrator for International
Activities and Department of State.
(1)	The Associate Mministrator for International Activities
will review each foreign project proposal to ascertain its prospective benefits
to any existing or proposed formal or informal intergovernmental arrangement
as well as to EPA's overall relationships with the foreign country concerned.
(2)	If the proposal is concurred in by the Associate Administrator for
International Activities, he/she will submit all documents in triplicate
(original plus two copies) to the Department of State. A minimum of 35 calendar
days must be allowed to obtain Department of State clearance. Clearance may take
much longer.
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(3)	The Office of International Activities (OIA) is responsible for
following up with the Department of State to assure prompt action and for any
administrative activities vhich may be required with the Department of State
regarding its concurrence.
(4)	When notification of Department of State concurrence is received,
the OIA will forward one copy of the concurrence to the appropriate Approval
Official (AA/RA) for forwarding to the program office and one copy to the AAU
for inclusion in the official file.
(5)	If the Department of State or the Associate Administrator for
International Activities does not concur in the reccmmended funding, the Office
of International Activities will advise the appropriate AA/RA of the basis for
disapproval and will return all documents to him/her. The AA/RA will notify
the applicant that the proposal has been rejected and forward all documents to
the AAU for inclusion in the official file.
(6)	A request for reconsideration of an OIA or Department of State
disapproval may be made only by the appropriate AA/RA. Such a request must
reflect the reasons for reconsideration as wall as a more detailed justification
for award.
h.	Preparation and Execution of Award or Rejection Documents. The AA/RA
makes the final decision to approve the proposal for award after receiving the
Department of State concurrence on the recommended funding action.
(1)	If the decision is to award, the Approval Official submits the
funding package (see Chapter 15 of this Manual) bo the Assistance Administration
Uhit for legal, administrative, and cost evaluations. The AAU will coordinate
resolution of any remaining problems.
(2)	The award documents are prepared by the Assistance Administration Unit
and transmitted to the Award Official for review and signature (refer to Chapter 15
of this Manual).
(3)	If the decision is to reject the proposal, the AA/RA notifies
the applicant that the proposal has been rejected and forvards a copy of the
notice to the AAU for inclusion in the official file.
i.	Post-Award Actions.
(1) Notifying Associate Administrator for International Activities.
The Associate Administrator for International Activities must be kept advised
of award and post-award actions pertaining to foreign projects. The appropriate
Assistance Administration Unit must send to the OIA one copy of all formal
amendments, with related documents, reflecting charges to the initial award
(e.g., change in Project Manager, project period).
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(2) Progress Reporting. The EPA Project Officer must periodically
(not less often than at 6 month intervals) inform the OIA in writing of progress
on the project. Also, the Project Officer must provide OIA a copy of the
final report or an account of accomplishments of the completed project. It
is not necessary to provide to the Office of International Activities routine
correspondence or ccmnunications such as technical progress reports, general
or administrative correspondence, etc. However, such correspondence shall
became part of the official project file.
4 . CORRESPONDENCE AND COMMUNICATIONS.
a.	Coordination and Agency Control of Correspondence.
(1)	Official EPA correspondence and caranunications with foreign
organizations, individuals, or their representatives concerning proposed or
funded project activities require special coordination, clearance, and handling
in accordance with the guidance stated in the EPA Correspondence Manual (EPA
Manual 1320) Chapter 7, paragraph 6 and Chapter 9, paragraph 4. With the
exception of the Office of the Administrator, the OIA has sole authority to
make direct contact on foreign matters, including correspondence and
communications with the Department of State and other foreign affairs agencies.
(2)	Following approval by OIA, project officers, project managers
and other EPA, contractor, and recipient personnel may engage in direct exchanges,
keeping OIA informed through copies of incoming and outgoing correspondence,
copies of major internal reports and memoranda, and other means as appropriate.
All outgoing communications, including those for ongoing approved projects
and activities vduch involve funding or policy matters, must be approved in
advance by OIA.
b.	Incoming Correspondence. Copies of all official incoming correspondence
from foreign sources pertaining to international projects, activities, or
matters must be provided to the Office of International Activities within two
days of receipt.
(1)	Regional Offices. Regional offices receiving official
international correspondence must contact the Office of International Activities
for a determination of the appropriate action to be taken, except in those
cases where there is existing blanket authorization from OIA for a specific
purpose or purposes.
(2)	Deadlines. International correspondence must be acknowledged
within two weeks after receipt.
(3)	Invitations. No response to any invitation, except an
acknowledgement of receipt, may be sent without prior approval of OIA. In
those instances vdnere the invitation includes an offer of partial or complete
funding for travel and/or expenses, acceptance without prior OIA approval will
result in automatic disapproval of that travel.
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c.	Preparing Outgoing Correspondence.
(1)	Official EPA correspondence to a foreign individual, organization,
or its representatives which requires OIA approval in accordance with subparagraphs
3a(l) and (2) must be prepared in accordance with EPA Correspondence Manual,
Chapter 1, tetter Style Camnurucations. The original and three courtesy EPA
letterhead copies must be prepared and forwarded to the Office of International
Activities for concurrence and handling. (See EPA Correspondence Manual,
Chapters 1 and 5, for detailed guidance.) One copy must be returned to the
originator, showing OIA concurrence and the date of dispatch.
(2)	Official EPA correspondence to foreign addressees roust be processed
in accordance with the EPA Correspondence Manual Chapter 9, paragraph 4 which is
consistent with Department of State security and correspondence policies in
specifying procedures to follow in the types of circumstances listed below:
(a)	Official correspondence with Eastern European countries,
the Soviet Union, the People's Republic of China, and private individuals of
these countries;
(b)	Communications to United States Q3verrment officials based
in the coin tries listed above;
(c)	Official United States ODverrment correspondence to these
prohibited countries and areas (since this list changes frcm time to time, always
consult with OIA if there is any doubt); and
(d)	All Department of State telegrans and airgrans originating
in EPA.
If there is any doubt about outgoing canmunications to foreign individuals and
organizations, contact the Office of International Activities.
d.	Contacts with Foreign Embassies. Coordination with foreign
onbassies and other representatives in the united States regarding EPA activities
is the responsibility of OIA. EPA personnel believing that information is
required from an embassy must contact OIA to determine how it is to be obtained.
OIA program officers may authorize direct contact with embassies on a case-by-
case basis.
e.	Foreign Requests for Agency Appointments. Requests received frcm
foreign sources by progran or assistance administration staffs for scheduling
appointments with Agency officials regarding current or prospective EPA foreign
grants or cooperative agreements must be coordinated with the Office of
International Activities. OIA's International Visitors Coordinator can be
reached at 382-5437.
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CLEARANCE OF FOREIGN RESEARCH AWARD
~ INITIAL AWARD ~ RENEWAL
DATE OF REQUEST
Approval is requested for the award of a Foreign Grant/Contract to:
U S . FOREIGN OR INTERNATIONAL INSTITUTION/ORGANIZATION
PROJECT TITLE
ENCLOSED. Proposed Project or Renewal, Summary Statement complying with Foreign criteria specified in EPA Order 4540.1.
PROGRAM OFFICE
NAME
TITLE
ORGANIZATION
PERMISSION TO AWARD IS
HZ] Approved O Disapproved

ASSISTANT ADMINISTRATOR, OFFICE OF RESEARCH AND DEVELOPMENT (Signature)
DATE
DIRECTOR, OFFICE OF INTERNATIONAL ACTIVITIES (Signature)
DATE
DEPARTMENT OF STATE CONCURRENCE
Office of Environmental Affairs
U S Department of State
Washington. D. C. 20520
The Environmental Protection Agency is considering an Award to the institution/organization listed above for the amount and period
indicated below. The project is considered important and relevant to the program objectives of the Environmental Protection Agency.
It is requested that the Department of State review this application or proposal from the standpoint of American Foreign Policy Objec-
tives, keeping in mind that the purpose of the proposed Award is primarily to advance the environmental programs in the United States.
APPLICATION OR PROPOSAL NUMBER
PROPOSED AMOUNT

1« YEAH
2nd YEAR
3rd YEAR
PRINCIPAL INVESTIGATOR OR PROJECT OFFICER
NAME (Last, Firwt, Middle)
DATE OF BIRTH (Mo , Day, Yr )
PLACE OF BIRTH (City, Country)
PRESENT RESIDENCE
PRESENT CITIZENSHIP
REMARKS
~	NO OBJECTION TO AWARD
~	AWARD NOT RECOMMENDED
DEPUTY DIRECTOR, SCI/EN/STATE (Signature)
DATE
RETURN TO
PROGRAM OFFICE
ORGANIZATION
ADDRESS
ROOM NO
EPA Form 4540-1 (Rev. 3-82)	REPLACES PREVIOUS EDITIONS OF EPA FORMS 4540-1 AND 4540-2 WHICH ARE OBSOLETE
Figure 7-1
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CLEARANCE OF FOREIGN RESEARCH AWARD
[3 INITIAL AWARD ~ RENEWAL
DATE OF REQUEST |
01/03/85
Approval is requested for the award of a Foreign Grant/Contract to:
U S , FOREIGN OR INTERNATIONAL INSTITUTION/ORGANIZATION
Oxford University
London, England
PROJECT TITLE
"Acid Rain Effects on Metals & Alloys"
ENCLOSED Proposed Project or Renewal, Summary Statement complying with Foreign criteria specified in EPA Order 4540 1.
PROGRAM OFFICE
Office of Research &
Development
NAME
J.Q. Polluter
TITLE
Director, Environmental
Research Laboratory, Corvallis
ORGANIZATION
EPA
PERMISSION TO AWARD IS
0 Approved CD Disapproved

ASSISTANT ADMINISTRATOR, OFFICE OF RESEARCH AND DEVELOPMENT (Signature)
[or appropriate Regional Administrator]
DATE
DIRECTOR, OFFICE OF INTERNATIONAL ACTIVITIES (Signature)
DATE
DEPARTMENT OF STATE CONCURRENCE
Office of Environmental Affairs
U S Department of State
	 _Waihinmon. D. C.20520
The Environmental Protection Agency is considering an Award to the institution/organization listed above for the amount and period
indicated below. The project is considered important and relevant to the program objectives of the Environmental Protection Agency.
It is requested that the Department of State review this application or proposal from the standpoint of American Foreign Policy Objec-
tives. keeping in mind that the purpose of the proposed Award is primarily to advapce.the environmental programs in the United States.
APPLICATION OR PROPOSAL NUMBER
R-820000-01-0
PROPOSED AMOUNT
lit YEAR
$250,000
2nd YEAR 3rd YEAR
$250,000 -0-
PRINCIPAL INVESTIGATOR OR PROJECT OFFICER
NAME (Lait, Fir$t, Middle)
Phaft, Donald R.
DATE OF BIRTH (Mo . Day. Yr )
06/30/29
PLACE OF BIRTH (City, Country)
London, England
PRESENT RESIDENCE
10 Hagne Street
London, England
PRESENT CITIZENSHIP
British
REMARKS
The proposed project has distinct merit and does not conflict with Department of State
activities.
~	NO OBJECTION TO AWARD
~	AWARD NOT RECOMMENDED
DEPUTY DIRECTOR. SCI/EN/STATE (Sifnatur*)
DATE
RETURN TO
PROGRAM OFFICE
ORGANIZATION
ADDRESS
ROOM NO
Grants Administration
Grants Operations
401 M Street, S.W. (PM-216)
3225
Division (PM-216)
Branch
Washington, D.C. 20460

EPA Form 4540-1 (R«*. 3-82)	REPLACES PREVIOUS EDITIONS OF EPA FORMS 4540-1 AND 4540-2 WHICH ARE OBSOLETE
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CHAPTER 8 - CONSOLIDATED ASSISTANCE
Table of Contents
PARAGRAPH	PARAGRAPH
TITLE	NUMBERS
Policy		1
Types		2
General Administrative Responsibilities		3
Regional Office Procedures/Responsibilities		4
Headquarters Procedures/Responsibilities		5
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CHAPTER 8 ~ CONSOLIDATED ASSISTANCE
1.	POLICY. EPA's policy is to make financial assistance more flexible and
efficient and to reduce administrative costs by providing an optional assistance
delivery system which enables recipients to integrate their separate pollution
control programs into a single work program.
a.	Eligibility. Any applicant eligible to receive and administer finds
frcm more than one EPA assistance program may submit an application for consol-
idated assistance.
b.	Limitations. Recipients must meet all the statutory requirsnents governing
the use of funds in each assistance program (e.g., matching, level of effort,
and maintenance of effort requirements) and can not transfer funds between
different program appropriations. They must be able to track all funds received
back to the separate appropriations of the participating programs.
2.	TYPES. There are four types of consolidated assistance.
a. Consolidated Continuing Environmental Program Support. This is assistance
under more than one statutory EPA authority (e.g., Section 106, Clean water Act,
as amended, and Section 105, Clean Air Act, as amended) which provides continuing
support to State, interstate and local agencies. The award must be to an agency
that is eligible under applicable statutes and is authorized to administer the
single award and to implement the statutory requirements of the supporting EPA
assistance programs. The proposal may include any conbination of the following
prograns as long as they will support either the recipient's continuing progran
effort or development of their capability for a continuing progran effort,
consistent with applicable law:
(1)	Air Pollution Control Program Support awarded under Section 105 of the
Clean Air Act, as amended;
(2)	Water Pollution Control State and Interstate Progran Support awatxled
under Section 106 of the Clean Water Act, as amended;
(3)	Construction Management Assistance awarded under Section 205(g) of
the Clean Water Act, as amended;
(4)	Water Quality Management Planning awarded under Section 205(j) of
the Clean water Act, as amended;
(5)	State Public Water System Supervision awarded under Section 1443(a)
of the Safe Drinking Water Act, as amended;
(6)	State Underground Water Source Protection awarded under Section
1443(b) of the Safe Drinking water Act, as amended;
(7)	Hazardous Waste Management State Progran Support awarded under
Section 3011 of the Solid waste Disposal Act, as amended;
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(8)	Pesticides Ehforcement Program Support awarded under Section 23(a)(1)
of the Federal Insecticide, Fungicide, and Rodenticide Act; and
(9)	Pesticide Applicator Certification and Training awarded under
Section 23(a)(2) of the Federal Insecticide, Fungicide, and Rodenticide Act.
b.	Environmental Protection Consolidated Research. This is assistance
for multidisciplinary research projects which use more than one statutory
research authority to fund a combination of activities eligible under two or
more of the following programs:
(1)	Air Pollution Control Research awarded under Sections 103 or 104
of the Clean Air Act; as amended;
(2)	Pesticides Control Research awarded under Section 20 of the Federal
Insecticide, Fungicide, and Rodenticide Act, as amended;
(3)	Solid Waste Disposal Research awarded under Section 8001 of the
Resource Conservation and Recovery Act;
(4)	Water Fbllution Control Research, Development, and Demonstration
awarded under Sections 104(b), 104(h), 104(i), 104(r), 104(s), 105(a), 105(b),
105(c), 105(e)(1), 105(e)(2), 107, 108, and 113 of the Clean Water Act, as
amended:
(5)	Safe Drinking Water Research and Demonstration awarded under
Sections 1442(a) and 1444 of the Safe Drinking Water Act, as amended;
(6)	Toxic Substances Research awarded under Section 10 of the Tbxic
Substances Control Act; and
c.	Consolidated Training. This is assistance for multidisciplinary training
projects which use more than one statutory training authority to fund a combi-
nation of activities eligible under two or more of the following programs:
(1)	Air Pollution Control Manpower Training awarded under Section 103
of the Clean Air Act, as amended;
(2)	Water Pollution Control Professional Training awarded under Section
104(g) of the Clean Water Act, as amended;
(3)	Water Fbllution Control Technical Training awarded under Sections
109, 110, and 111 of the Clean Water Act, as amended:
(4)	Solid Waste Management Training awarded under .Sections 7007 and
8001 of the .Solid Waste Disposal Act;
(5)	Pesticides Training awarded under Section 23 of the Federal Insecticide,
Fungicide, and Rodenticide Act. as amended.
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(6)	Safe Drinking Water Occupational Training awarded under Section
1442(b)(3)(A) of the Safe Drinking W&ter Act, as amended;
(7)	Safe Drinking Water Inspection and Supervisory Training awarded under
Section 1442(b)(3)(B) of the Safe Drinking W&ter Act, as amended; and
(8)	Safe Drinking Water Professional Training awarded under Section
1442(d) of the Safe Drinking Vfeiter Act, as amended.
d. Consolidated Fellowship. This is special assistance for multidisclplinary
studies proposed by full-time undergraduate Senior and Graduate students enrolled
in historically black colleges and universities. Eligible candidates must have
at least a B average and be majoring in the physical, biological, agricultural, or
engineering sciences. A Consolidated Fellowship is funded under the following
two programs:
(1)	Water Pollution Control Fellowships awarded under Sections 104(b)(5)
and 104(g)(3)(B) of the Clean Vfeter Act, as amended; and
(2)	Safe Drinking Water Fellowships awarded under Section 1442(d)(2) of
the Safe Drinking Water Act, as amended.
3. GENERAL ADMINISTRATIVE RESPONSIBILITIES.
a.	Grants Administration Division.
(1)	Provide administrative assistance to Regional assistance administra-
tion units, Headquarters program offices, and EPA recipients;
(2)	Deviate, when appropriate, from the nonstatutory requirements of
EPA's financial assistance programs; and
(3)	Evaluate the effectiveness of the consolidated assistance systen
and initiate changes as experience dictates.
b.	Regional and Headquarters Offices. Regardless of organizational differ-
ences, Regional and Headquarters offices must ensure effective and efficient
coordination, management, and administration of consolidated projects. After
an Assistance Administration Unit receives an inquiry/preapplication/appllcation
for consolidated assistance, it should contact the program offices v^iich administer
the programs proposed for consolidation. One EPA Project Officer should be agreed
to by those offices and be designated as soon as possible. For Headquarters
administered programs, the EPA Project Officer is assigned by one of the program
offices; however, Regional offices may designate an individual frcm one of the
operating program offices or from the Assistance Administration Unit. EPA's
Project Officer for a consolidated assistance project will represent each
participating Regional or Headquarters office and, once designated, will;
(1) Assist the applicant in identifying eligible proposals that
have a strong probability of approval and their program ami administrative
advantages/disadvantages;
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(2)	Exercise appropriate authority to coordinate the negotiation,
administration3 and management of a consolidated assistance award;
(3)	Advise applicants that they must properly account for funds
from the participating programs (e.g., funds may NOT be transferred frcm one
program to another) and canply with applicable requirements for matching, level
of effort and maintainance of effort.
(4)	Monitor recipient project, administrative, and fiscal performance;
(5)	Act as the agent of the other participating programs in matters con-
cerning audit of expenditures, oversight of project progress and performance,
approval of work plan modifications and associated budget changes, and project
completion and closeout;
(6)	Request the Director, Grants Administration Division to approve
a deviation from the nonstatutory requirements of EPA's financial assistance
programs, when appropriate; and
(7)	Provide technical assistance to aid the recipient in meeting the
objectives and goals of the consolidated programs.
REGIONAL OFFICE PROCEDURES/RESPONSIBILITIES. The following paragraphs describe
preapplication, application, funding, management, and audit procedures for region-
ally administered Consolidated Continuing Ehvirormental Program Support projects.
a. Preapplication Procedures. This section describes a framework for an
applicant and Regional Office to negotiate a consolidated work program covering
all assistance programs included in the application before submittal of an
application.
(1) Regional guidance. Each Regional Administrator will disseminate
program guidance for the following fiscal year. The guidance will contain, for
each financial assistance program, EPA's objectives and priorities, the applicant's
planning target, the program elements EPA uses for budget justification and
management, the outputs which should be part of the applicant's work program,
and special conditions or limitations relevant to the applicant. Regional
guidance will be based on Headquarters' guidance and the Regional Administrator's
judgment about the applicant's ability to carry out the program.
(?) Project contacts. The applicant will designate a single individual
to serve as Project Manager for the consolidated project. The Regional Office
will designate an individual to be the EPA Project Officer. The applicant's
Project Manager and the EPA Project Officer will be the focal points for their
agencies for negotiations and activities relative to the consolidated project.
(a) If the EPA Project Officer is from an operating program, he/she
is responsible for technical review and project management art! for close coordi-
nation with the assistance specialist in the Assistance Administration Unit, who
will be responsible for administrative management of the project.
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(b) For projects covering several programs representing different
regional divisions, the EPA Project Officer may be in the Assistance Administration
Uhit. In that case, the EPA Project Officer is responsible for all administr-
tive activities related to the project and for close coordination with the
program staff responsible for technical review and project management.
(3) Negotiations. The EPA Project Officer will work with the applicant's
Project Manager and the EPA program offices during the application development
process to ensure that the application will be acceptable to the program offices.
(1) Report Reduction. The EPA Project Officer will work with the EPA
program offices to reduce the administrative program requirements to the minimum
necessary for sound program management (e.g., combined progress reports and
combined financial reports for the covered programs).
(5)	Intergovernmental Review. The applicant must contact its State's
single point of contact to find out if its State's intergovernmental review
process includes Consolidated Continuing Qrviromental Program Support for
review. If so, the applicant must comply with the State process and notify
the appropriate State official or organization of its intent to apply for EPA
assistance before submitting its application. Specific instructions for inter-
goverrmental review are provided in Chapter 6 of this Manual and in the appli-
cation kit.
(6)	Preaward Audit. The EPA Office of Inspector General may conduct a
preaward audit to determine if the applicant is "responsible" in accordance
with 10 CFR 30.301 for the separate categorical programs which are being consol-
idated. The applicant must have an accounting system which tracks expenditures
by the separate program appropriations from which assistance is received. Funds
may not be transferred from one program to another. Where applicable, the appli-
cant must be in compliance with level of effort/maintenance of effort/matching
requirements of the programs beir^ consolidated.
b. Application Procedures. 10 CFR 30.302, 30.303, 35.110 and 35.H5 explain
EPA's application requirements. This section presents policies and procedures
for the submission, review, and approval of applications for Consolidated
Continuing Environmental Progran Support.
(1)	Tne applicant for consolidated assistance will submit an "Application
for Federal Assistance," EPA Form 5700-33, to the appropriate Regional Assistance
Administration Unit which will log it and serri it to the EPA Project Officer.
(2)	The EPA Project Officer will serve as the applicant's primary EPA
contact during the application review and approval process.
(3)	The EPA Project Officer will provide copies of the application to
all of the program offices frcm which the applicant requests assistance.
(1) The F.PA Project Officer will coordinate administrative and legal
reviews of the application with the Assistance Administration Unit and Office
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of General or Regional Counsel, and the technical reviews with the program
offices.
(5)	Upon completing its review of the application, each program office
will notify the EPA Project Officer of its approval or disapproval and any
special conditions to which approval of funds are subject. Special conditions
should be based upon prior discussions between the EPA Project Officer and the
applicant's Project Manager.
(6)	The EPA Project Officer will see that the Assistance Administration
Unit prepares a consolidated notice of approval and a consolidated "Assistance
Agreanent," EPA Form 5700-20A, or a notice of disapproval (see Chapter 16 of
this Manual). Financial and program reporting and evaluation requirements
applicable to the particular consolidated award will be included in the assistance
agreement.
(7)	The Assistance Administration Unit will notify the Headquarters
Grants Administration Division, Grants Operations Branch of the award within
24 hours after it is signed by the EPA Award Official. (See Chapter 16 of
this Manual for specific instructions and procedures to follow for Congressional
notification.)
c. Payment Procedures. This section presents policies and procedures to
be followed in the transfer of Federal funds to Consolidated Continuing Environ-
mental Program Support recipients. (See Chapter 33 of this Manual and also
40 CFR 30.400.)
(1)	A single Letter of Credit (LOC) is the preferred method of payment;
however, advances or reimbursements by Treasury checks may be made where the
recipient cannot qualify for the issuance of a IOC or where the EPA Award
Official decides that advances or reimbursements are necessary to assure effec-
tive administration of funds.
(2)	Upon award of the assistance, the EPA project officer will request
the EPA Financial Management Office to Issue a single LOC (if used) Standard
Form 11935 In an amount equal to the total award frcn all participating programs.
There are two methods of LOC financing; see Chapter 33, paragraph 4d for detailed
guidance.
(3)	The recipient will submit to the bank either a single consolidated
"Payment Voucher on Letter of Credit" (TFS Form 5401-B) or a "Request for Funds"
TFS Form 5805) which identifies the programs frcn which funds are being drawn
down and the account number and dollar amount for each. This information should
be provided on the back of the TFS 5401-B or in the space for "Third Party
Infomation" on the TFS 5805- (Submit additional forms if more space is needed.)
The drawdown will be made to meet the immediate cash needs of all programs
included in the consolidated award.
(4)	When payments are made through a LOC, the recipient wil] submit a
single "Federal Cash Transactions Report," Standard Form 272, to the appropriate
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EPA Financial Management Office within 15 days after the end of each calander
quarter. This report must clearly identify the funds expended under each EPA
appropriation (i.e., participating program).
(5)	The recipient will submit a single "Financial Status Report,"
Standard Fbrm 269, to the Assistance Administration Unit within 90 calendar
days after the end of the budget period (see Chapter 37 of this Manual).
This report must clearly identify the outlays and unliquidated obligations
under each EPA appropriation (i.e., participating program).
(6)	The EPA Project Officer will review all applicable financial reports,
assure that such reports are distributed to the participating EPA program offices
and appropriate Financial Management Officer for their review and canment, and
notify the Assistance Administration (hit of any exceptions to the reports.
After verification by the Financial Management Officer, the Project Officer will
specify whether funds are to be carried forward to the next budget period or
deobligated. The Assistance Administration Unit must prepare and forward an
amendment to the Financial Management Officer to support the required accounting
transaction.
d. Management Procedures. This section presents policies and procedures
for managing Consolidated Continuing Environmental Program Support awards.
(1)	The EPA Project Officer will coordinate program office participation
in the project and will serve as the recipient's primary contact for all admin-
istrative matters related to the project and for the monitoring of project
operations.
(2)	The EPA Project Officer will coordinate with the program offices,
as necessary, to monitor and evaluate overall progress of the project.
(3)	The EPA Project Officer will monitor the recipient's compliance with
all special conditions of the assistance award.
(4)	Both the EPA Project Officer and the Assistance Administration
Unit will check the recipient's Financial Status Reports to determine if matchirig,
level of effort, or maintatnanoe of effort requirements, if applicable, are
being met.
(5)	The recipient will submit written program progress reports to the
EPA Project Officer in accordance with the schedule included in the assistance
agreement.
(6)	The EPA Project Officer will provide copies of program progress
reports to the program offices involved with the consolidated project for their
review and Garment.
(7)	The EPA Project Officer will arrange and coordinate the Regional
evaluation of the recipient's perfomance in accordance with the plan for eval-
uation included in the assistance agreement and any specific program evaluations
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in accordance with program goals and timing. Any problems/needs identified in
the review of the recipient's program progress reports should be discussed at
this meeting.
(8)	The EPA Project Officer will work with the participating program
offices and prepare an evaluation of the recipient's performance under the
assistance agreanent. The evaluation report will identify any deficiencies in
program performance and, when appropriate, recommend action for improving
current operations.
(9)	The EPA Project Officer will keep participating program offices
apprised of any problans that may arise relative to their specific program and
help arrange for the most expeditious resolution of such problems.
(10)	The EPA Project Officer will coordinate any requests by the
recipient for project revisions (increases, decreases, etc.) with the program
offices. Procedures similar to those for the original assistance award will be
used in processing such revisions. (Refer to Chapter 3^ of this Manual, "Project
Changes" and k0 CFR Part 30, Subpart G.)
(11)	The EPA Project Officer will arrange for the program offices to
provide any technical assistance and training requested by the recipient.
(12)	Participating program offices will be responsible for normal
program monitoring. Site visits and other requirements related to such monitoring
responsibilities will be coordinated with the EPA Project Officer to promote
efficient scheduling.
(13)	Participating program offices will review all financial, program
progress and administrative program reports forwarded by the EPA Project
Officer. They will notify the FPA Project Officer of their approval/acceptance
of the reports as submitted or of any problems noted and the actions necessary
to resolve such problems.
e. Audit Procedures. The policies and procedures to be followed in the
audit of consolidated projects are no different than those for other EPA
assistance agreements. Refer to Chapter 38 of this Manual for specific guidance.
A clear audit trail to the appropriation sources is required.
5. HEADQUARTERS PROCEDURES/RESPONSIBILITIES. The following paragraphs contain
procedures for preappllention, application, funding management, and audit for
Environmental Protection Consolidated Research, Consolidated Training, and
Consolidated Fellowship projects.
a. Preappllcatlon procedures.
(1) Prospective applicants should contact the appropriate Headquarters
program office director(s).
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(2)	Within 45 days of receipt at Headquarters, the program office director(s)
must make an initial assessment of the preapplication and notify the submitter
whether it is of interest to the Agency. If it is of interest to EPA, the program
office directors must designate an Individual to be the EPA Project Officer.
(3)	The EPA Project Officer will work with the applicant and the EPA
program offices during the application development process to ensure that the
application will be acceptable to the program offices.
(4)	An applicant for Environmental Protection Consolidated Research
must contact its State's single point of contact to find out about Its State's
intergovernmental review process if the proposal will (a) require an Environmental
Impact Statement, or (b) be newly initiated at a particular site and require
unusual measures to limit the possibility of adverse exposure or hazard to the
general public, or (c) have a unique geographic focus and be directly relevant
to the govermental responsibilities of a State or local government within that
geographic area. If any of these criteria apply and the State includes this
program for review, the applicant must comply with the State process and notify
the appropriate State official or organization of Its intent to apply for EPA
assistance before submitting its application. Specific instructions for inter-
governmental review are provided in Chapter 6 of this Manual and in the application
kits of programs eligible for intergovernmental review.
b. Application procedures.
(1) Applicants for Environmental Protection Consolidated Research or
Consolidated Training projects will submit an "Application for Federal Assistance,"
EPA Form 5700-12, to the Grants Administration Division, Grants Operations
Branch (PM-216), U.S. EPA, 401 M Street, SW, Washington, DC 20460. Applicants
for Consolidated Fellowships will submit a "Fellowship Application," EPA Form
5770-2, to the same address.
(a)	The applicant and EPA have flexibility in developing the
consolidated application provided that funding sources are Indicated and an
Interdisciplinary approach is presented to attain the proposed objectives.
Hie applicant should he allowed maximum flexibility in allocating funds for
common services provided that adequate expenditure records 'will be maintained.
(b)	The application should include quantified goals, objectives,
and/or environmental impacts as deemed appropriate by the applicant and the
appropriate Headquarters program office director(s) and an allocation of
resources necessary to achieve each.
(c)	If possible, the application should include critical path/
strategy charts of decision-making efforts.
(d)	Information contained in the application should not duplicate
infornatLon already provided, or to be provided, by the applicant to satisfy
other EPA requirements (e.g., air implementation plan documentation).
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(e) Applicants for Environmental Protection Consolidated Research
or Consolidated Training should enter the name of the EPA Project Officer, if
known, in block 11a of F&rt I of EPA Form 5700-12. All Consolidated Fellowship
applications should be marked "Minority Institution" on the application face
page.
(2)	The Grants Operations Branch (GOB) will log the application; assign
an assistance identification number; notify the applicant of receipt by EPA
and the number assigned, perform an administrative review and, if necessary,
coordinate legal review of the application by the Office of General Counsel
before forwarding it to the appropriate Headquarters program offices for their
technical reviews.
(3)	New applications for Ehvirormental Protection Consolidated Research
must be reviewed for technical merit by one reviewer within EPA and by at least
two reviewers outside of EPA.
(4)	GOB will request the Washington Cost Advisory Office to perform a
cost analysis, if appropriate.
(5)	Each appropriate program office will conduct a technical review of
the application. It is the EPA Project Officer's responsibility to coordinate
the review and assure that it is conducted in a timely manner. During this
period, the participating program offices will inform the EPA Project Officer
of their review findings and their requirements for monitoring the proposed
project. The EPA Project Officer will discuss those items with the applicant.
c. Award Procedures.
(1) The EPA Project Officer will coordinate all application negotiations
between the program offices and the applicant to arrive at the terms of the
assistance agreement. After completing these negotiations, the EPA Project
Officer will prepare and forward a "funding recommendation" to GOB.
(?) GOB will prepare the "Assistance Agreement/Amendment," EPA Form
5700-20A, for signature by the Headquarters EPA Award Official. Financial
and program reporting and evaluation requirements applicable to the consoli-
dated award will be included in the Assistance Agreement.
(3) GOB will provide a copy of the signed EPA 57O0-20A to the Headquarters
Office of Congressional Liaison which in turn will notify appropriate Congressional
Members of the award. (Refer to Chapter 16 of this Manual for specific instruc-
tions and procedures to follow for Congressional notification.)
d . Post Award Activities.
(1) The EPA Project Officer is the main ^oint of contact for the
recipient concerning the administration of funds awarded for the consolidated
project and the monitoring of project operations. Chapter of this Manual
explains overall responsibilities of EPA project officers. In the case of
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consolidated projects, coordinating actions and decisions when executing
project officer responsibilities is the key element for success. In general,
a project officer should:
(a)	arrange and coordinate program monitoring evaluations in
accordance with program goals and timing.
(b)	prepare and review evaluation reports;
(c)	inform participating program offices about project changes,
apprise than of any problems relative to their specific program and help arrange
for the most expeditious resolution of such problems;
(d)	make program and funding decisions subject only to limitations
agreed to by the participating program offices;
(e)	receive and forward requests for project revisions (increases,
decreases, etc.) to GOB for processing;
(f)	monitor recipient compliance with award conditions; and
(g)	prepare requests for deviations from the nonstatutory require-
ments of EPA's financial assistance regulations and submit them through GOB to
the Director, Grants Administration Division.
(2) Recipients must manage their project expenditures and report to the
EPA Project Officer in accordance with the terms of the assistance agreement.
(a)	The recipient may expend funds on any approved goal or objective
at any time during the budget period, provided the amount of Federal funds
expended for each program does not exceed the Federal funds allocated in the
budget period.
(b)	Recipients must submit a final Financial Status Report,
Standard Form 269, no later that 90 days after the end of the project period or
the completion of project work to GOB.
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JKOFOSAL REVIEW AND AWARD
CHAPTER	CHAPTER
TITLES	NUMBERS
TECHNICAL REVIEW OF IKOFOSALS		12
DETERMINATION OF COSTS		13
COST SHARING		14
ASSISTANCE AGREEMENTS, AMENDMENTS AND CONDITIONS OF ACCEPTANCE		15
NOTIFICATION OF ASSISTANCE AWARD ACTIONS		16
(RESERVED)		17
(RESERVED)		18
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CHAPTER 12 ~ TECHNICAL REVIEW OF FKOPOSALS
Table of Contents
PARAGRAPH	PARAGRAPH
TITLES	NUMBERS
General		1
Purpose		2
Review Criteria		3
Review of Preapplications		4
Review of Applications		5
Negotiation of Changes		6
Review Decision		7
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Chapter 12 - TECHNICAL REVIEW OF PROPOSALS
1.	GENERAL. ERA must review applications for financial assistance to determine
the relevance of the proposal to EPA program objectives and priorities, its
technical and/or scientific merit, its relationship to other proposals and
ongoing work, and the availability of funds.
2.	PURPOSE. Technical review is the appraisal by a program office to select
those proposals for funding that will contribute most effectively to EPA's
progran objectives and priorities. A review should highlight strengths and
weaknesses of a proposal, identify gaps between project objectives and intended
activities, clarify and define a strategy for meeting project objectives,
identify best management approaches, and suggest how a proposal might be
strengthened.
3.	REVIEW CRITERIA. Technical reviews must be consistent with applicable
regulations and established EPA criteria. These include: 40 CFR ifert 30 for
all appplicants; 40 CFR Part 35, Subpart A for State and local assistance for
continuing environmental support programs; 40 CFR Part 40 for research and
demonstration; 40 CFR Part 45 for training; 40 CFR Part 46 for fellowships;
and the guidance document, "State Participation in the Superfund Remedial
Program," dated February 1984, for Superfund.
4.	REVIEW OF PREAPPLICATIONS.
a.	Informal inquiries and submission of preapplications by prospective
applicants for assistance are encouraged. (See Chapter 3 of this Manual.) EPA
reviews preapplications generally within 45 days of receipt. The preapplication
(ERA Form 5700-30), if any, should outline objectives, project plans, budget,
staff, and facility requirements. Reviewers should not expect as detailed a
narrative or scope of work as in a formal application. However, if the infor-
mation provided by the preapplication is insufficient to adequately evaluate
the proposal, the reviewer should request additional information fran the
applicant. Such requests may be made by telephone.
b.	After evaluation, the Approval Official must notify the applicant, in
writing, of the result of the evaluation, and either:
(1)	Encourage Submission of a Formal Application for Assistance. The
reviewer may suggest any modifications or revisions necessary in the narrative
or scope of work proposed or any other aspect of the proposal. Under no cir-
cumstances should the applicant be assured funding of the proposal; or
(2)	Reject the Proposal. This letter should give specific reasons for
rejection, e.g., lack of scientific/technical merit, not relevant to the Agency's
objectives; lack of Agency funds; or
(3)	Take Other Action. Suggest that the preapplication be submitted
to another Federal.Agency which may have more direct interest in the proposed
project.
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5. REVIEW OF APPLICATIONS.
a.	General. Formal applications should be submitted on the appropriate
application form as listed in Chapter 3 of this Manual. Vhen an application
is received by EPA, it will receive an administrative review by the Assistance
Administration unit and immediately be forwarded to the designated program
official for technical/programmatic review.
b.	project-Type programs.
(1)	General. The program staff reviews the proposal for relevance to
the program mission. If there is no possibility that the application will be
funded, the program official must send the applicant a rejection letter
(outlining the reasons) and forward a ccpy of the letter to the appropriate
Assistance Administration unit. The Assistance Administration unit notifies
the Qrants Information and Control System (GICS) of the rejection and closes
out the official project file.
(2)	Review Staff.
(a)	EPA (In-House) Review. The program staff performs a technical
evaluation of the application. Vhen the technical review of a proposal requires
specific qualifications not available in the program, the reviewer must obtain
assistance frcm other EPA staff with expertise in the subject area.
(b)	Extramural (Non-EPA) Review. EPA supplements the reviews of
Agency program personnel in some programs by obtaining independent reviews from
qualified non-EPA professionals.
JL Research and Demonstration. The reviewer must arrange
for a minimum of one intramural and two extramural reviews for technical/
scientific merit of applications found to be relevant (see 40 CFR 40.150).
Extramural reviews are not required for continuation applications, or for
applications requesting support of a conference or symposium.
2 Demonstration Grants. (Safe Drinking water A:t). The ERA
Approval Official must consult with the National Drinking Water Advisory Council
before recommending funding of a demonstration project under §1444 of the Safe
Drinking Water Act.
(3)	General Review Questions. The reviewer should address the following
questions as part of the programnatic review:
(a)	Authority. Does EPA have statutory authority to support the
proposed project?
(b)	Relevancy.
1 What is proposed? Does the proposal address a current EPA
program need and priority?
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2	What will be the final product? Who will benefit, directly
or indirectly, from the project?
3	Does the proposal relate to pending legislation or
amendments being considered in Congress?
How long will it take to complete the project? Are the
proposed time frames realistic?
5 Does the proposal duplicate past efforts supported in
full or in part by EPA?
by EPA?
6 Does the proposal relate to other ongoing programs supported
]_ Can the project be linked to other Federal programs? Can
it be jointly funded by two or more Federal programs to accomplish the full
scope of the intended project effort?
(c) Technical Merit.
_1 How will the desired results be achieved?
a Are the objectives and expected results or benefits
clearly stated?
b Is the proposal feasible as presented?
2 Does the proposal look beyond the actual project to determine:
a The likely long term results of the project;
(_1) new or revised environmental policies?
(2) amendments to law or regulation?
(_3) revisions to current techniques, processes, etc.?
b How will the intended results be used?
(d) Resource Considerations.
1 Is the proposed budget (dollars, equipment, personnel)
realistic?
2	Will the project need considerable or minimal assistance
support frcn EPA? "How much? Are/will EPA funds be available for this purpose?
3	What is the proposed duration of the activity?
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Can the project be funded by other sources (not necessarily
through the Federal government)?
5	Is support from non-EPA sources proposed?
6	Can the project be institutionalized (on-going effort) or
incorporated at a later date into other Ftederal, State, local on-going efforts,
or other research and demonstration efforts?
]_ Does the applicant possess or otherwise provide for sufficient
professional project direction and execution and adequate physical capacity?
(M) Narrative Statement Review. The narrative statement serves as the
applicant's performance canmitment or work plan for the project and should
chronologically identify, the milestones In the project for which assistance is
requested. Each condition, accomplishment, milestone and goal set as a target
should be labeled to Identify the task, ongoing effort, or cost segment to
which related. A milestone will be given a time frame which will beccme a
self-imposed target equating elasped time with an estimated task or level of
accomplishment.
(a)	Structure. Ihe technical reviewer and the applicant must agree
on the elements of a narrative statement. The technical reviewer should expect
the narrative statanent format to be consistent with a conventional work plan.
The technical reviewer must be sure that the narrative statement clearly and
accurately describes the proposed scope of work. Where specific program guidelines
must be addressed by the applicant, development and evaluation must be part of
the application evaluation process.
(b)	Complexity. Projects that EPA assists financially vary in
size and scope to an extent that dictates wide flexibility in work plan design.
Simple, single-purpose efforts of a relatively short duration may be adequately
expressed in narrative statements that do not require a breakout of various
activities. Activities under such projects may be adequately expressed in
narrative statements containing a minimum number of direct statements of effort
and objectives (e.g., many research and training projects). Continuing environmental
support programs may aim at attaining or maintaining levels of environmental
effort or conditions, thus detailed activity descriptions are needed (e.g.,
air and water program agreements). Complex activities will normally be grouped as
program elements or tasks with each task showing major milestones or events
for each activity.
1 Purpose. Whatever the complexity and scope of the project
narrative statement, the reviewer must assure that it expresses as accurately
as possible what will be done; when it will be accomplished; the steps toward
the set goals, their sequence and intervals, and who will perform them; perform-
ance capability of the applicant; and the estimated cost. The reviewer must
be able to identify major objectives and sub-objectives of the proposal and
then assess the merit of the proposal in view of available EPA resources.
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2	Project Objectives. Technical review may find project
objectives clearly listed in the application or discussed in the overall description
of the project. Hie following questions will help determine the appropriateness
of the project objectives:
a What are the objectives?
b Are they clearly established? Do they reflect sound
decisions made by the applicant to meet EPA's needs? Are objectives stated in
qualifiable terms?
c Do the objectives state what work tasks are to be
accomplished?
d Are objectives stated as short or long-term goals for
the project? Are they comprehensive? Do they affect any other activity being
undertaken or proposed by the applicant?
e Do project objectives clearly relate to the problem
definition? How do the applicant's objectives affect EPA's overall objectives?
3	Technical Merits. The reviewer must assess the applicant's
qualifications in the selected field of endeavor, the soundness of the concepts
and techniques to be applied to the project, and the relationship of the scope
of the stated problems for the level of effort to be demonstrated by the project.
^ Project Accomplishments. Generally, the narrative statement
will include infomation which Indicates what project outputs are to be completed.
Projected accomplishments are often referred to as milestones. They are
qualitative or quantitative indicators of activities to be completed. Answers
to the following questions should reveal the appropriateness of the projected
accomplishments:
a Are project outputs clearly defined and identified in
the narrative statement of the application? Dd they relate, in full or in
part, to the objectives of the project?
b Are outputs clearly associated with major work tasks
to be completed during the life of the project? Are they logically timed or
sequenced to meet planned accomplishments on schedule?
c Dses the applicant expect to encounter any major work
difficulties In achieving desired output or milestone? Has the applicant
developed any alternative approaches which could be used to achieve the same
or similar results?
5 Project Work Plan. The project work plan describes how
the applicant intends to meet objectives, how activities or functions are to be
carried out, and what approaches or strategies are to be applied. The reviewer
should determine if the work plan is realistic, given time arri budget limitations.
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a Is the proposed level of effort sufficient and cost-
effective? Will it achieve the desired results? Is the project work plan well
conceived or too loosely developed in scope and size?
b Eoes the plan propose optimum use of available resources?
c Is the plan Innovative? Are there identifiable strengths
or weaknesses in the overall scope of work and organizational structure?
d What are the probable constraints or limitations that
could confront the applicant and which might impede its ability to ccmplete pro-
ject activities?
e What administrative structure will be established?
Is it adequate to mset the needs of the project?
f Is the work plan consistent with EPA program guidance,
if any?
(5)	Quality Assurance. (Reserved.)
(6)	Administrative/Management Merits.
(a)	General. The administrative and management aspects of the pro-
posed project should also be reviewed to assess the applicant's potential overall
capabilities to Implement the intended activity efficiently and effectively and
in accordance with accepted operating procedures. The review should cover such
items as project staffing, degree of consultant services, use of facilities,
adequacy of financial management and accounting procedures, project direction
and control, and budget documents.
(b)	Proposed Budget. The proposed budget provides information on
the EPA costs by project period and the costs, by matching share, to the applicant.
The reviewer must determine whether all proposed project tasks are included in
the budget and must review each budget ltan for reasonableness. Plans to
purchase personal property for the project require approval. E'ach unit item
of equipment with a purchase price of $10,000 or more must be listed and must
be specifically approved in writing by the Award Official before purchase (see
40 CPR 30.530). Purchase of equipment as proposed in the equipment budget
of the application will be considered authorized when the Award Official signs the
grant or cooperative agreement. If the budget equipment request is not approved
as proposed, a special condition must be included in the agreenent identifying
those ltans that may not be purchased.
(c) Project Staff/Facilities. The reviewer must examine staffing
requirements for the project and must determine whether project staff support
is adequate to meet the project objectives. In addition, the reviewer must
consider the facility, equipment or material proposed for use on the project.
The following questions should be addressed:
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1^ Who is charged with ultimate responsibility to manage the
project? Will key budgeted staff members participate full time on the project?
What are their professional credentials? Are they qualified to do the Job?
Are there gaps in areas of expertise?
2 What facilities, equipment, supplies or materials will be
used and why are they needed? Are services to be provided by contract?
(7) Management and Monitoring Techniques. Much of the information
contained in the application will be in narrative form. The reviewer will need
to review the narrative statement closely to assure that all tasks, milestone,
objectives, and plans are properly integrated arri are generally in line with
the overall scope of the proposed project effort. The management techniques
available to the reviewer and to the applicant to assist in planning and con-
trolling project design and Implementation include the following:
(a)	Gantt Chart or Time Line. A Gantt Chart or time line is one
technique that can be used to evaluate a proposed work program to obtain an
overview of the project tasks for a given time period. The time line can also
show simple relationships between tasks. It is a graphic representation of
tasks against the time in which they will be performed by the recipient.
(b)	Task/Time Chart. The task/time chart estimates the amount of
time each task will take In work-days or work-months, over a given period of
time. The task/time chart reflects the level of effort associated with the
project.
(c)	Flow Charts. Plow charts often provide an excellent method
for reviewing applications. A flow chart can show the beginning ard end dates
of a series of tasks or milestones that are Interrelated much more easily and
accurately than can a Gantt Chart or time line.
c.	Continuing Environmental Support Programs. In addition to the above review
procedures and the requirements of 40 CFR F&rt 35, Subpart A, the reviewer
should be familiar with the State delegation requiranents in *10 CFR Part 35,
Subpart J and the guidance document entitled, "Construction Grants Delegation
and Overview Guidance," Decanber 1983.
d.	Construction Grants for V/astewater Treatment Works. The reviewer must
be familiar with the specific requirements in *40 CFR Part 35, Subpart I. The
reviewer should use the construction grants "Handbook of Procedures," October
1984.
6. NEGOTIATION OF CHANGES. An application can be revised through negotiation
with the applicant. If negotiation results In a revision to the proposal,
the original application must be amended in writing. If the project is funded,
the revised proposal must be the basis for the funding recommendation submitted
to the Assistance Administration Unit to be incorporated into the official file.
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7. REVIEW DECISION.
a.	General~ Hie technical evaluation will be followed by a decision to
either fund or reject the proposal. For research and demonstration projects,
extramural reviews must be obtained and reconciled before the final decision to
fund is made. The decision will be made by the Approval Official having the
responsibility and delegated authority for such determination, i.e., Approval
Officials in the Office of Research and Development and, for Regional projects,
Regional Administrators or their designees.
b.	Positive Decision. Program offices must provide the appropriate
Assistance Administration Unit with the funding recommendation (see Chapter 15,
"Assistance Agreements, Amendments and Conditions of Acceptance"). Under no
circumstances should program staff notify the applicant of award approval.
The applicant will be notified of approval by the Award Official's written
offer of a grant or cooperative agreement.
c.	Negative Decision. If the decision is not to fund, the Approval Official
must inform the applicant of that decision, in writing, and send a copy of the
rejection letter to the Assistance Administration Unit for the official file
and closeout (see Chapter 40, "Closeout"). The Assistance Administration
Unit will dispose of the official file in accordance with EPA records management
standards (see Chapter 41).
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CHAPTER 13 - DETERMINATION OF COSTS
Table of Contents
PARAGRAPH	PARAGRAFH
TITLES	NUMBERS
Purpose		1
Recipient Responsibilities		2
Cost Principles				3
Allowability of Costs						4
Allocable Credits				5
Direct Costs						6
Indirect Costs				7
APPENDIX	APPENDIX
TITLES	NUMBERS
0MB Circular A-21, "Cost Ftinciples for Educational
Ins t i tut ions "	 13-A
CMB Circular A-87, "Cost Principles for State and
Local Governments"			 13-B
0MB Circular A-88, "Indirect Cost Rates, Audit, and
Audit Followup at Educational Institutions"	 13-C
0MB Circular A-122, "Cost Principles for Nonprofit
Organizations" with Lobbying Revision						 13-D
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CHAPTER 13 - DETERMINATION OF POSTS
1.	HJRPQSE. This Chapter explains EPA requirements for determining allowable
costs under EPA assistance agreanents. Compliance with these requirements will
ensure that EPA funds are used in an effective and efficient manner and only for
eligible and allowable costs. (Recipients may use in-kind contributions for
cost sharing under EPA assistance agreements, (see Chapter 14, "Cost Sharing").
2.	RECIPIENT RESPONSIBILITIES. All EPA recipients and their contractors must:
a.	Expend and account for funds in accordance with the assistance agreement,
program regulations, and statutes; and
b.	Use management systems that will adequately account for total project
costs and segregate allowable and unallowable costs (see Chapter 20, "Accounting
and Internal Management").
3.	POST PRINCIPLES.
a.	"Cost principles" establish guidelines to determine which costs are
allowable for Federal participation. Cost principles are usually divided into
two parts—general guidelines for determining allowability of costs and
statements on the allowability of specific items of cost.
b.	The type of organization determines which cost principles apply to
it, not the type of organization receiving the initial award (e.g., if a State
recipient uses part of its project funds to aoquire the services of a hospital,
the cost principles for hospitals apply to the hospital, not the cost principles
for State and Local governments). The following cost principles apply to EPA's
assistance awards:
(1)	State and Local Governments and Federally Indian Tribal Governments.
Office of Management and Budget (QMB) Circular A-87 applies to State and local
governments and Federally recognized Indian tribal governments (see Appendix 13-B).
(2)	Institutions of Higher Education.
(a)	0MB Circular A-21 applies to institutions of higher education
(see Appendix 13-A); and
(b)	0MB Circular A-88 provides policies for coordinating the
establishment of indirect cost rates and the audit of EPA assistance agreements
with institutions of higher education (see Appendix 13-C).
(3)	Other Non-Profit Institutions. CMB Circular A-122 applies to
non-profit institutions other than institutions of higher education (see
Appendix 13-D).
(4) Foreign Assistance. The Award Official will determine the appro-
priate cost principles for foreign assistance awards. Assistance awarded under
the Scientific Activities Overseas Program is not subject to EPA rules concerning
allowable costs.
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(5)	Hospitals. 45 CFR Part 74, Appendix E applies to hospitals.
(6)	Profitmaking Organizations.
(a)	For assistance awards before April 1, 1984, the Federal
Rxicureament Regulation (41 CFR Chapter 1, Subpart 1-15.2 and 1-15.4) applies
to profit-making organizations.
(b)	For assistance awards after March 31, 1984, the Federal
Acquisition Regulation (48 CFR Chapter 31, Subparts 31.1 and 31.2) applies to
profit-making organizations.
(7)	Recipients of Grants for the Construction of Wastewater Treatment
Wbrks. 40 CFR Part 35, Subpart I, Appendix A supplements the cost principles
in 0MB Circular A-87 for recipients of wastewater treatment construction assis-
tance.
4. ALLOWABILITY OF COSTS. Consistent with the cost principles applicable to
to the recipient organization, to be allowable, costs under EPA assistance
projects must:
a. Be reasonable for the performance of the project and be allocable to
the project.
(1)	A cost is reasonable if the amount paid for goods or services
reflects the amount that a prudent person would have paid under the circumstances
prevailing at the time of the decision to incur the cost. In particular, the
following items should be considered:
(a)	Whether the cost is of a type generally recognized as necessary
for the operation of the organization or the completion of the project;
(b)	The restraints imposed by Federal and State laws and regulations
and the assistance agreement's terms and conditions;
(c)	Whether the cost was arrived at by arm's length bargaining;
(d)	Whether the individuals concerned acted prudently in the
circumstances, considering their responsibilities to the organization, its
employees, the Government and the public; and
(e)	The extent to which the actions taken with respect to the
cost are consistent with established policies and practices.
(2)	In order for a cost to be allocable to an assistance agreement,
it must:
(a) Be incurred specifically for work under the assistance
agreement;
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(b)	Benefit both the assistance agreement and other work and be
distributable to each in reasonable proportion to the benefits received; or
(c)	Be necessary to the overall operation of the recipient, even
though a direct relationship to any particular cost objective cannot be shown.
Costs allocable to a specific cost objective, e.g., an assistance agreement or
subagreement, may not be shifted to other cost objectives in order to meet
deficiencies caused by overruns or other funding considerations, to avoid
restrictions imposed by law or the terms of the assistance agreement, or for
other reasons of convenience.
b.	Conform to any limitations under the cost principles, statutory, or
regulatory requirements which apply to the award. Scare costs may generally be
allowable under the cost principles and not be allowable under a particular EPA
program. For example, consultants' salaries are generally allowable under the
cost principles, but EPA's appropriation act limits EPA participation in
salaries for consultation services of designated individuals with specialized
skills who are paid at a daily or hourly rate to the maximum daily rate paid
to a GS-18. Also, a regulation may provide more detailed allowability criteria
for a particular program (e.g., see 40 CFR Part 35, Subpart I, Appendix A).
c.	Be consistent with policies and procedures that apply uniformly to both
the recipient's Federal assistance projects and the recipient's other activities.
d.	Be given consistent treatment.
e.	Be determined in accordance with generally accepted accounting princi-
ples.
f.	Not be included as a cost or used to meet cost sharing or matching
requirements of any other Federally financed program in either the current or
a previous budget period.
g.	Be adequately documented.
5. APPLICABLE CREDITS.
a.	Applicable credits are financial receipts which are allocable to EPA
assistance projects as direct or indirect costs and reduce the total allowable
cost of projects. Typical examples of applicable credits are: purchase discounts,
rebates, or allowances; recoveries or indemnities on losses; and adjustments
of overpayments or erroneous charges.
b.	In seme cases, Federal funds fran sources other than EPA are used to
finance portions of an EPA assistance project. Unless a statute permits other-
wise, such amounts must be treated as applicable credits. Guidance on the use
of funds from other Federal agencies for cost sharing purposes is in Chapter
14, "Cost Sharing".
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6.	DIRECT COSTS. Typical direct costs are: compensation of employees for
performing the project; the costs of materials used for the project; the costs
of equipment and other approved capital expenditures for the project; and
costs of other items directly related to the project, such as the cost of
extraordinary utility consumption caused by the project. (See definition in
Chapter 2, "Glossary".)
7.	INDIRECT COSTS. EPA will include indirect costs (see definition in Chapter
2, "Glossary") in an assistance agreement budget only if indirect costs are
included in the recipient's application budget and are supported by an indirect
cost rate negotiation agreement.
a.	Indirect Cost Rate Development. An indirect cost rate is normally
expressed as a percentage and represents the ratio of the indirect costs to a
representative portion of an organization's direct cost base, e.g., direct
salaries.
(1)	The cost principles identified in paragraph 3 of this Chapter
generally explain the methods that are used in determining recipients* indirect
cost rates. Indirect cost rates are negotiated by "cognizant" Federal agencies
and are normally accepted by all agencies. The cost principles also explain
how cognizant agencies are assigned for various types of recipients.
(2)	If an applicant or recipient does not have a Federally approved
indirect cost rate or has questions concerning requirements and procedures for
establishing indirect cost rates, it should contact the Cost Policy and Rate
Negotiation Section (PM-214), Procurement and Contracts Management Division at
EPA Headquarters.
b.	Provisional and Final Indirect Cost Rates. In many cases, Federal
agencies negotiate "provisional" indirect cost rates with recipients for billing
use. Provisional indirect cost rates are based on cost or budgetary data and
reflect the rate a recipient expects to experience. EPA will revise a provi-
sional indirect cost rate to a final rate after incurred costs for the appli-
cable fiscal period are known. Amounts paid by EPA for indirect costs based
on provisional rates will be adjusted when the final rate is negotiated as
follows:
(1)	If the final rate is lower than the provisional rate, EPA will
adjust the allowable indirect costs downward; or
(2)	If the final rate is higher than the provisional rate, the recipient
may transfer funds from direct cost budget categories to indirect cost, but
the total EPA share cannot exceed the approved award amount.
c.	Fixed Indirect Cost Rate. Federal agencies may negotiate fixed or
predetermined indirect cost rates in seme cases. Fixed or predetermined rates
are not adjusted to reflect the recipient's actual indirect cost rate. EPA
will adjust the dollar amount paid for indirect costs if the base to which the
rate applies changes. For example, if a recipient's indirect cost base is
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direct salaries and the actual amount spent for direct salaries is different
than the amount budgeted for direct salaries, EPA will apply the fixed indirect
cost rate to the actual amount spent for direct salaries to determine the allow-
able indirect cost.
d.	Offsite Indirect Cost Rate. A special indirect cost rate may be
negotiated for a project (or portion of a project) to be carried out at an off
campus or offsite location. A special indirect cost rate may also be negotiated
for a large nonrecurring project when the costs of the EPA project would distort
the normal direct cost base used in computing the indirect cost rate.
e.	Audit. All costs reported under an assistance agreement, including
indirect costs, are subject to audit. Except as provided in paragraph 7b of
this chapter, EPA will adjust the indirect cost rate and the amount paid to a
recipient if there are differences between the approved rate and the audited
rate.
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EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON. D.C 20903
FEB 26 1979
CIRCULAR NO. A-21
Revised-fr*# jt
l?«2
TO THE HEADS OF EXECUTIVE DEPARTMENTS AND ESTABLISHMENTS
SUBJECT: Cost principles for educational institutions
1.	Purpose. This Circular establishes principles for
determining costs applicable to grants, contracts, and other
agreements with educational institutions. The principles
deal with the subject of cost determination, and make no
attempt to identify the circumstances or dictate the extent
of agency and institutional participation in the financing
of a particular project. The principles are designed to
provide that the Federal Government bear its fair share of
total costs, determined in accordance with generally
accepted accounting principles, except where restricted or
prohibited by law. Agencies are not expected to place
additional restrictions on individual items of cost.
Provision for profit or other increment above cost is
outside the scope of this Circular.
2.	Supersession. The Circular supersedes Federal
Management Circular 73-8, dated December 19, 1973. FMC 73-8
is revised and reissued under its original designation of
OMB Circular No. A-21.
3.	Applicability.
a.	All Federal agencies that sponsor research and
development, training, and other work at educational
institutions shall apply the provisions of this Circular in
determining the costs incurred for such work. The
principles shall also be used as a guide in the pricing of
fixed price or lump sum agreements.
b.	In addition, Federally Funded Research and
Development Centers associated with educational institutions
shall be required to comply with the Cost Accounting
Standards, rules and regulations issued by the Cost
Accounting Standards Board, and set forth in 4 CFR Ch. Ill;
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provided that they are subject thereto under defense related
contracts.
4.	Responsibilities. The successful application of cost
accounting principles requires development of mutual
understanding between representatives of educational
institutions and of the Federal Government as to their
scope, implementation, and interpretation.
5.	Attachment. The principles and related policy guides
are set forth in the Attachment, "Principles for determining
costs applicable to grants, contracts, and other agreements
with educational institutions."
6.	Effective date. The provisions of this Circular shall
be effective October 1, 1979. The provisions shall be
implemented by institutions as of the start of their first
fiscal year beginning after that date. Earlier
implementation, or a delay in implementation of individual
provisions, is permitted by mutual agreement between an
institution and the cognizant Federal agency.
7.	Inquiries. Further information concerning this Circular
may be obtained by contacting the Financial Management
Branch, Budget Review Division, Office of Management and
Budget, Washington, D.C. 20503, telephone (202) 395-6823.
Ames T. McIntyre
irector
Attachment
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PRINCIPLES FOR DETERMINING COSTS APPLICABLE TO GRANTS,
CONTRACTS, AND OTHER AGREEMENTS WITH
EDUCATIONAL INSTITUTIONS
TABLE OF CONTENTS
A.	PURPOSE AND SCOPE
1.	Objectives		—			——	——			l
2.	Policy guides—				—	i
3.	Application							——		2
B.	DEFINITION OF TERMS
1.	Major functions of an institution	—		2
a.	instruction—————————————	2
b.	Departmental research-		—	——	2
c.	Organized research———————	3
d.	Other sponsored activities-—————-	3
e.	Other institutional activities—					3
2.	Sponsored agreement————————	3
3 . Allocation			3
C.	BASIC CONSIDERATIONS
1.	Composition of total costs————-——-—-	4
2.	Factors affecting allowability of costs	—	4
3.	Reasonable costs		4
4.	Allocable costs——		—		—	5
5.	Applicable credits-—						5
fe. Costs incurred by State and local governments—	s
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7. Limitations on allowance of costs	——			6
D.	DIRECT COSTS
1.	General—————————————————	6
2.	Application to sponsored agreements—-———	6
E.	INDIRECT COSTS
1.	General——————————				7
2.	Criteria for distribution	——	7
F.	IDENTIFICATION AND ASSIGNMENT OF INDIRECT COSTS
1.	Depreciation and use allowances——————	10
2.	Operation and maintenance expenses		—	11
3.	General administration and general expenses—	12
4.	Departmental administration expenses————	13
5.	Sponsored projects administration—		—		14
6.	Library expenses————————	15
7.	Student administration and services—————	16
8.	Offset for indirect expenses otherwise provided
for by the Government———————————	16
G.	DETERMINATION AND APPLICATION OF INDIRECT COST RATE
OR RATES
1.	Indirect cost pools—			—		16
2.	The distribution basis————————	17
3.	Negotiated lump sum for indirect costs		18
4.	Predetermined fixed rates for indirect costs—	18
5.	Negotiated fixed rates and carry-forward
provisions————				18
H.	SIMPLIFIED METHOD FOR SMALL INSTITUTIONS
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1.	General	
2.	Simplified procedure——	
J. GENERAL PROVISIONS FOR SELECTED ITEMS OF COST
1.	Advertising costs—————————————
2.	Bad debts—————————————
3.	Civil defense costs—————————
4.	Commencement and convocation costs———
5.	Communication costs——————
6.	Compensation for personal services———
7.	Contingency provisions——	—	—-—
8.	Deans of faculty and graduate schools———
9.	Depreciation and use allowances-—	
10.	Donated services and property		
11.	Employee morale, health, and welfare costs and
credits——			—	—		—
12.	Entertainment costs—:—-—				
13.	Equipment and other capital expenditures	
14.	Fines and penalties—		
15.	Fringe benefits—-—			
16.	Insurance and indemnification——	
17.	Interest, fund raising, and investment
management costs-—-————
18.	Labor relations costs	———	
19.	Losses on other sponsored agreements or
contracts———		—	—	
2C .	Maintenance and repair costs		—-—	
19
19
21
21
21
22
22
22
27
27
27
29
29
30
30
31
31
32
33
34
34
34
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21.	Material costs————————————	34
22.	Memberships, subscriptions, and professional
activity costs-		—		——————	35
23.	Patent costs	—							35
24.	Plant security costs				35
25.	Preagreement costs———————————	35
26.	Professional services costs———————	35
27.	Profits and losses on disposition of plant
equipment or other capital assets———	36
28.	Proposal costs—-	—			—		36
29.	Public information services costs		37
30.	Rearrangement and alteration costs————	37
31.	Reconversion costs	—	—————	37
32.	Recruiting costs—			——————	37
33 .	Rental cost of buildings and equipment	—	38
34.	Royalties and other costs for use of patents		39
35.	Sabbatical leave costs		39
36.	Scholarships and student aid costs		39
37.	Severance pay		40
38.	Specialized service facilities—			—-—	41
39.	Special services costs	—		———		—	41
40.	Student activity costs		41
41.	Taxes		41
42.	Transportation costs		—			42
43.	Travel costs—			———————-	42
44.	Termination costs applicable to sponsored	^
K. CERTIFICATION OF CHARGES				45
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PRINCIPLES FOR DETERMINING COSTS APPLICABLE TO GRANTS,
CONTRACTS, AND OTHER AGREEMENTS WITH
EDUCATIONAL INSTITUTIONS
A. Purpose and scope.
1.	Objectives. This Attachment provides principles for
determining the costs applicable to research and
development, training, and other sponsored work performed by
colleges and universities under grants, contracts, and other
agreements with the Federal Government. These agreements
are referred to as sponsored agreements.
2.	Policy guides. The successful application of these
cost accounting principles requires development of mutual
understanding between representatives of universities and of
the Federal Government as to their scope, implementation,
and interpretation. It is recognized that—
a.	The arrangements for Federal agency and
institutional participation in the financing of a research,
training, or other project are properly subject to
negotiation between the agency and the institution
concerned, in accordance with such Government-wide criteria
or legal requirements as may be applicable.
b.	Each institution, possessing its own unique
combination of staff, facilities, and experience, should be
encouraged to conduct research and educational activities in
a manner consonant with its own academic philosophies and
institutional objectives.
c.	The dual role of students engaged in research
and the resulting benefits to sponsored agreements are
fundamental to the research effort and shall be recognized
in the application of these principles.
d.	Each institution, in the fulfillment of its
obligations, should employ sound management practices.
e.	The application of these cost accounting
principles should require no significant changes in the
generally accepted accounting practices of colleges and
universities. However, the accounting practices of
individual colleges and universities must support the
accumulation of costs as required by the principles, and
must provide for adequate documentation to support costs
charged to sponsored agreements.
f.	Cognizant Federal agencies involved in
negotiating indirect cost rates and auditing should assure
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that institutions are generally applying these cost
accounting principles on a consistent basis. Where wide
variations exist in the treatment of a given cost item among
institutions, the reasonableness and equitableness of such
treatments should be fully considered during the rate
negotiations and audit.
3. Application. These principles shall be used in
determiningthe allowable costs of work performed by
colleges and universities under sponsored agreements. The
principles shall also be used in determining the costs of
work performed by such institutions under subgrants, cost-
reimbursement subcontracts, and other awards made to them
under sponsored agreements. They also shall be used as a
guide in the pricing of fixed-price contracts and
subcontracts where costs are used in determining the
appropriate price. The principles do not apply to:
a.	Arrangements under which Federal financing is in
the form of loans, scholarships, fellowships, traineeships,
or other fixed amounts based on such items as education
allowance or published tuition rates and fees of an
institution.
b.	Capitation awards.
c.	Other awards under which the institution is not
required to account to the Government for actual costs
incurred.
B. Definition of terms.
1. Major functions of an institution refers to instruction,
organized research, other sponsored activities, and other institu-
tional activities as defined below:
a. Instruction means the teaching and training activities
of an institution. Except for research training as provided in c.
below, this term includes all teaching and training activities,
whether they are offered for credits toward a degree or certifi-
cate or on a non-credit basis, and whether they are offered
through regular academic departments or separate divisions, such
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as a summer school division or an extension division. Also con-
sidered part of this major function are departmental research,
and, where agreed to, university research.
(1} Sponsored instruction and training means specific
instructional or training activity established by grant, contract,
or cooperative agreement. For purposes of the cost principles,
this activity may be considered a major function even th6ugh an
institution's accounting treatment may include it in the instruc-
tion function.
(2) Departmental research means research development
and scholarly activities that are not organized research and, con-
sequently, are not separately budgeted and accounted for. Depart-
mental research, for purposes of this document, is not considered
as a major function, but as a part of the instruction function of
the institution.
b. Organized research means all research and development
activities of an institution that are separately budgeted and
accounted for. It includes:
(1) Sponsored research means all research and develop-
ment activities that are sponsored by Federal and non-Federal
agencies and organizations. This term includes activities invol-
ving the training of individuals in research techniques (commonly
called research training) where such activities utilize the same
facilities as other research and development activities -and where
such activities are not included in the instruction function.
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(2) University research means all research and devel-
opment activities that are separately budgeted by the institution
under an internal application of institutional funds. University
research, for purposes of this document, may be considered a part
of the instruction function, or may be combined with sponsored
research under the function of organized research, or may be
treated as a separate major function, as agreed to with the cogni-
zant agency.
c.	Other sponsored activities means programs and
projects financed by Federal and non-Federal agencies and
organizations which involve the performance of work other
than instruction and organized research. Examples of such
programs and projects are health service projects, and
community service programs. However, when any of these
activities are undertaken by the institution without outside
support, they may be classified as other institutional
activities.
d.	Other institutional activities means all
activities of an institution except: {17 instruction,
departmental research, organized research, and other
sponsored activities, as defined above; (2) indirect cost
activities identified in Section F; and (3) specialized
service facilities described in Section J38. Other
institutional activities include operation of residence
halls, dining halls, hospitals and clinics, student unions,
intercollegiate athletics, bookstores, faculty housing,
student apartments, guest houses, chapels, theaters, public
museums, and other similar auxiliary enterprises. This
definition also includes any other categories of activities,
costs of which are "unallowable" to sponsored agreements,
unless otherwise indicated in the agreements.
3. Allocation means the process of assigning a cost, or
a group of costs, to one or more cost objective, in
reasonable and realistic proportion to the benefit provided
or other equitable relationship. A cost objective may be a
major function of the institution, a particular service or
project, a sponsored agreement, or an indirect cost
activity, as described in Section F. The process may entail
assigning a cost(s) directly to a final cost objective or
through one or more intermediate cost objectives.
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C. Basic considerations.
1.	Composition of total costs. The cost of a sponsored
agreement is corapriseH oT the allowable direct costs
incident to its performance, plus the allocable portion of
the allowable indirect costs of the institution, less
applicable credits as described in 5 below.
2.	Factors affecting allowability of costs. The tests
of allowability ol costl under these principles are: (a)
they must be reasonable; (b) they must be allocable to
sponsored agreements under the principles and methods
provided herein; (c) they must be given consistent treatment
through application of those generally accepted accounting
principles appropriate to the circumstances; and (d) they
must conform to any limitations or exclusions set forth in
these principles or in the sponsored agreement as to types
or amounts of cost items.
3.	Reasonable costs. A cost may be considered
reasonable IT Oie nature of the goods or services acquired
or applied, and the amount involved therefor, reflect the
action that a prudent person would have taken under the
circumstances prevailing at the time the decision to incur
the cost was made. Major considerations involved in the
determination of the reasonableness of a cost are: (a)
whether or not the cost is of a type generally recognized as
necessary for the operation of the institution or the
performance of the sponsored agreement; (b) the restraints
or requirements imposed by such factors as arm's-length
oargaimng, Federal and State laws and regulations, and
sponsored agreement terms and conditions; (c) whether or not
the individuals concerned acted with due prudence in the
circumstances, considering their responsibilities to the
institution, its employees, its students, the Government,
and the public at large; and (d) the extent to which the
actions taken with respect to the incurrence of the cost are
consistent with established institutional policies and
practices applicable to the work of the institution
generally, including sponsored agreements.
4.	Allocable costs.
a. A cost is allocable to a particular cost
objective (i.e., a specific function, project, sponsored
agreement, department, or the like) if the goods or services
involved are chargeable or assignable to such cost
objective in accordance with relative benefits received or
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other equitable relationship. Subject to the foregoing, a
cost is allocable to a sponsored agreement if (1) it is
incurred solely to advance the work under the sponsored
agreement; (2) it benefits both the sponsored agreement and
other work of the institution, in proportions that can be
approximated through use of reasonable methods, or (3) it is
necessary to the overall operation of the institution and,
in light of the principles provided in this Circular, is
deemed to be assignable in part to sponsored projects,
where the purchase of equipment or other capital items is
specifically authorized under a sponsored agreement, the
amounts thus authorized for such purchases are assignable to
the sponsored agreement regardless of the use that may
subsequently be made of the equipment or other capital items
involved.
b. Any costs allocable to a particular sponsored
agreement under the standards provided in this Circular may
not be shifted to other sponsored agreements in order to
meet deficiencies caused by overruns or other fund
considerations, to avoid restrictions imposed by law or by
terms of the sponsored agreement, or for other reasons of
convenience.
5. Applicable credits.
a.	The term applicable credits refers to those
receipts or negative expenditures that operate to offset or
reduce direct or indirect cost items. Typical examples of
such transactions are: purchase discounts, rebates, or
allowances; recoveries or indemnities on losses; and
adjustments of overpayments or erroneous charges. This term
also includes "educational discounts" on products or
services provided specifically to educational institutions,
such as discounts on computer equipment, except where the
arrangement is clearly and explicitly identified as a gift
by the vendor.
b.	In some instances, the amounts received from the
Federal Government to finance institutional activities or
service operations should be treated as applicable credits.
Specifically, the concept of netting such credit items
against related expenditures should be applied by the
institution in determining the rates or amounts to be
charged to sponsored agreements for services rendered
whenever the facilities or other resources used in providing
such services have been financed directly, in whole or in
part, by Federal funds. (See Sections F8, J9a, and J38 for
areas of potential application in the matter of direct
Federal financing.)
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6.	Costs incurred by State and local governments.
Costs incurred or paidlsy STEate or local governments on
behalf of their colleges and universities for fringe benefit
programs such as pension costs and FICA and any other costs
specifically incurred on behalf of, and in direct benefit
to, the institutions are allowable costs of such
institutions whether or not these costs are recorded in the
accounting records of the institutions, subject to the
following:
a.	The costs meet the requirements of CI through 5
above.
b.	The costs are properly supported by cost
allocation plans m accordance with applicable Federal cost
accounting principles.
c.	The costs are not otherwise borne directly or
indirectly by the Federal Government.
7.	Limitations on allowance of costs. Sponsored
agreement! may Be subject to statutory requirements that
limit the allowance of costs. when the maximum amount
allowable under a limitation is less than the total amount
determined in accordance with the principles in this
Circular, the amount not recoverable under a sponsored
agreement may not be charged to other sponsored agreements.
D. Direct costs.
1.	General. Direct costs are those costs that can be
identified specifically with a particular sponsored project,
an instructional activity, or any other institutional
activity; or that can be directly assigned to such
activities relatively easily with a high degree of accuracy.
2.	Application to sponsored agreements. Identification
with the sponsored work rather than the nature of the goods
and services involved is the determining factor in
distinguishing direct from indirect costs of sponsored
agreements. Typical costs charged directly to a sponsored
agreement are the compensation of employees for performance
of work under the sponsored agreement, including related
fringe benefit costs to the extent they are consistently
treated, in like circumstances, by the institution as direct
rather than indirect costs; the costs of materials consumed
or expended in the performance of the work; and other items
of expense incurred for the sponsored agreement, including
extraordinary utility consumption. The cost of materials
supplied from stock or services rendered by specialized
facilities or other institutional service operations may be
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included as direct costs of sponsored agreements, provided
such items are consistently treated, in like circumstances,
by the institution as direct rather than indirect costs, and
are charged under a recognized method of computing.actual
costs, and conform to generally accepted cost accounting
practices consistently followed by the institution.
E. Indirect costs.
1.	General. Indirect costs are those that are incurred
for common or joint objectives and therefore cannot be
identified readily and specifically with a particular
sponsored project, an instructional activity, or any other
institutional activity. At educational institutions such
costs normally are classified under the following indirect
cost categories: depreciation and use allowances, general
administration and general expenses, sponsored projects
administration expenses, operation and maintenance expenses,
library expenses, departmental administration expenses, and
student administration and services.
2.	Criteria for distribution.
a.	Base period. A base period for distribution of
indirect costs is the period during which the costs are
incurred. The base period normally should coincide with the
fiscal year established by the institution, but in any eVent
the base period should be so selected as to avoid iniquities
in the distribution of costs.	,
i
b.	Need for cost groupings. The overall objective
of the indirect cost allocation process is to distribute the
indirect costs described in Section F to the major functions
of the institution in proportions reasonably consistent with
the nature and extent of their use of the institution's
resources. In order to achieve this objective, it may be
necessary to provide for selective distribution by
establishing separate groupings of cost within one or more
of the indirect cost categories referred to in El above. In-
general, the cost groupings established within a category
should constitute, in each case, a pool of those items of
expense that are considered to be of like nature in terms of
their relative contribution to (or degree of remoteness
from) the particular cost objectives to which distribution
is appropriate. Cost groupings should be established
considering the general guides provided in c below. Each
such pool or cost grouping should then be distributed
individually to the related cost objectives, using the
distribution base or method most appropriate in the light of
the guides set forth in d below.
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c. General considerations on cost groupings~ The
extent to which separate cost groupings and selective
distribution would be appropriate at an institution is a
matter of judgment to be determined on a case-by-case basis.
Typical situations which may warrant the establishment of
two or more separate cost groupings (based on account
classification or analysis) within an indirect cost category
include but are not limited to the following:
(1)	Where certain items or categories of
expense relate solely to one of the major functions of the
institution or to less than all functions, such expenses
should be set aside as a separate cost grouping for direct
assignment or selective allocation in accordance with the
guides provided in E2b and d.
(2)	Where any types of expense ordinarily
treated as general administration or departmental
administration are charged to sponsored agreements as direct
costs, expenses applicable to other activities of the
institution when incurred for the same purposes in like
circumstances must, through separate cost groupings, be
excluded from the indirect costs allocable to those
sponsored agreements and included m the direct cost of
other activities for cost allocation purposes.
(3)	where it is determined that certain
expenses are for the support of a service unit or facility
whose output is susceptible of measurement on a workload or
other quantitative basis, such expenses should be set aside
as a separate cost grouping for distribution on such basis
to organized research, instructional, and other activities
at the institution or within the department.
(4)	Where activities provide their own
purchasing, personnel administration, building maintenance
or similar service, the distribution of general
administration and general expenses, or operation and
maintenance expenses to such activities should be
accomplished through cost groupings which include only that
portion of central indirect, costs (such as for overall
management) which are properly allocable to such activities.
(5)	Where the institution elects to treat
fringe benefits as indirect charges, such costs should be
set aside as a separate cost grouping for selective
distribution to related cost objectives.
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(6) The number of separate cost groupings
within a category should be held within practical limits,
after taking into consideration the materiality of the
amounts involved and the degree of precision attainable
through less selective methods of distribution.
d. Selection of distribution method.
(1)	Actual conditions must be taken into
account in selecting the method or base to be used in
distributing individual cost groupings. The essential
consideration in selecting a base is that it be the one best
suited for assigning the pool of costs to cost objectives in
accordance with benefits derived; a traceable cause and
effect relationship; or logic and reason, where neither
benefit nor cause and effect relationship is determinable.
(2)	Where a cost grouping can be identified
directly with the cost objective benefited, it should be
assigned to that cost objective.
(3)	Where the expenses in a cost grouping are
more general in nature, the distribution may be based on a
cost analysis study which results in an equitable
distribution of the costs. Such cost analysis studies may
take into consideration weighting factors, population, or
space occupied if appropriate. Cost analysis studies,
however, must (a) be appropriately documented in sufficient
detail for subsequent review by the cognizant Federal
agency, (b) distribute the costs to the related cost
objectives in accordance with the relative benefits derived,
(c) be statistically sound, (d) be performed specifically at
the institution at which the results are to be used, and (e)
be reviewed periodically, but not less frequently than every
two years, updated if necessary, and used consistently. Any
assumptions made in the study must be stated and explained.
The use of cost analysis studies and periodic changes in the
method of cost distribution must be fully justified.
(4)	If a cost analysis study is not performed,
or if the study does not result in an equitable distribution
of the costs, the distribution shall be made in accordance
with the appropriate base cited in Section F., unless one of
the following conditions is met: (a) it can be demonstrated
that the use of a different base would result in a more
equitable allocation of the costs, or that a more readily
available base would not increase the costs charged to
sponsored agreements, or (b) the institution qualifies for,
and elects to use, the simplified method for computing
indirect cost rates described in Section H.
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e. Order of Distribution.
(1)	Indirect cost categories consist of
depreciation and use allowance, operation and maintenance,
general administration and general expenses, departmental
administration, sponsored projects administration, library,
and student administration and services, as described in
Section F.
(2)	Depreciation and use allowances, operation
and maintenance expenses, and general administrative and
general expenses should be allocated in that order to the
remaining indirect cost categories as well as to the major
functions and specialized service facilities of the
institution. Other cost categories may be allocated in the
order determined to be most appropriate by the institutions,
when cross allocation of costs is made as provided in (3)
below, this order of allocation does not apply.
(3)	Normally an indirect cost category will be
considered closed once it has been allocated to other cost
objectives, and costs may not be subseguently allocated to
it. However, a cross allocation of costs between two or
more indirect cost categories may be used if such allocation
will result in a more equitable allocation of costs. If a
cross allocation is used, an appropriate modification to the
composition of the indirect cost categories described in
Section F is required.
F. Identification and assignment of indirect costs.
1. Depreciation and use allowances.
a.	The expenses under this heading are the portion
of the costs of the institution's buildings, capital
improvements to land and buildings, and equipment which are
computed in accordance with Section J9.
b.	In the absence of the alternatives provided for
in Section E2d, the expenses included in this category shall
be allocated in the following manner:
(1) Depreciation or use allowances on buildings
used exclusively in the conduct of a single function, and on
capital improvements and equipment used in such buildings,
shall be assigned to that function.
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(2)	Depreciation or use allowances on
buildings, used for more than one function, and on capital
improvements and equipment used in such buildings, shall be
allocated to the individual functions performed in each
building on the basis erf usable square feet of space,
excluding common areas such as hallways, stairwells, and
restrooms.
(3)	Depreciation or use allowances on buildings
and capital improvements where space is used jointly, and on
equipment used jointly, shall be allocated to benefiting
functions in proportion to the total salaries and wages
applicable to the joint functions.
(4)	Depreciation or use allowances on
buildings, capital improvements, and equipment used
predominantly for one function and only incidentally for
other(s), may be assigned to the function in which it is
used predominantly.
(5)	Depreciation or use allowances on certain
capital improvements to land, such as paved parking areas,
fences, sidewalks, and the like, not included in the cost of
buildings, shall be allocated to user categories of students
and employees on a full-time equivalent basis. The amount
allocated to the student category shall be assigned to the
instruction function of the institution. The amount
allocated to the employee category shall be further
allocated to the major functions of the institution in
proportion to the salaries and wages of all employees
applicable to those functions.
2. Operation and maintenance expenses.
a.	The expenses under this heading are those that
have been incurred by a central service organization or at
the departmental level for the administration, supervision,
operation, maintenance, preservation, and protection of the
institution's physical plant. They include expenses
normally incurred for such items as janitorial and utility
services; repairs and ordinary or normal alterations of
buildings, furniture and equipment; and care of grounds and
maintenance and operation of buildings and other plant
facilities. The operation and maintenance expense category
should also include the fringe benefit costs applicable to
the salaries and wages included therein, and depreciation
and use allowance.
b.	In the absence of the alternatives provided for
in Section E2d, the expenses included in this category shall
be allocated in the same manner as described in Section Fib
for depreciation and use allowances.
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3.	General administration and general expenses.
a.	The expenses under this heading are those that
have been incurred for the general executive and
administrative offices of educational institutions and other
expenses of a general character which do not relate solely
to any major function of the institution; i.e., solely to
(1) instruction, (2) organized research, (3) other sponsored
activities, or (4) other institutional activities. The
general administration and general expense category should
also include the fringe benefit costs applicable to the
salaries and wages included therein, an appropriate share of
operation and maintenance expense, and depreciation and use
allowances.
b.	In the absence of the alternatives provided for
in Section E2d, the expenses included in this category shall
be grouped first according to common major functions of the
institution to which they render services or provide
benefits. The aggregate expenses of each group shall then
be allocated to serviced or benefited functions on the
modified total cost basis. Modified total costs consist of
salaries and waqes, fringe benefits, materials and supplies,
services, travel, and subgrants and subcontracts up to
$25,000 each. When an activity included in this indirect
cost category provides a service or product to another
institution or organization, an appropriate adjustment must
be made to either the expenses or the basis of allocation or
both, to assure a proper allocation of costs.
4.	Departmental administration expenses.
a. The expenses under this heading are those that
have been incurred for administrative and supporting
services that benefit common or joint departmental
activities or objectives in academic deans' offices,
academic departments and divisions, and organized research
units. Organized research units include such units as
institutes, study centers, and research centers.
Departmental administration expenses are subject to the
following limitations.
(1)	Academic deans' offices. Salaries and
operating expenses are limited to those attributable to
administrative functions.
(2)	Academic departments:
(a) Salaries of professorial and professional staff whose
responsibilities to the institution require administrative work that benefits
sponsored projects ma^ also be included to the extent that the portion charged
to departmental administration is determined in accordance with Section J.6.
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(b) Other administrative and supporting
expenses incurred within academic departments are allowable
provided they are treated consistently in like
circumstances. This would include expenses such as the
salaries of secretarial and clerical staffs, the salaries of
administrative officers and assistants, travel, office
supplies, stockrooms, and the like.
(3) Other fringe benefit costs applicable to
the salaries and wages included in (1) and (2) above are
allowable, as well as an appropriate share of general
administration and general expenses, operation and
maintenance expenses, and depreciation and/or use
allowances.
b. In the absence of the alternatives provided for
in Section E2d, the expenses included in this category shall
be allocated as follows:
(1) The administrative expenses of the dean's
office of each college and school shall be allocated to the
academic departments within that college or school on the
modified total cost basis.
(2) The administrative expenses of each
academic department, and the department's share of the
expenses allocated in (1) above shall be allocated to the
appropriate functions of the department on the modified
total cost basis.
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5. Sponsored projects administration.
a.	The expenses under this heading are those that
have been incurred by a separate organizations) established
primarily to administer sponsored projects, including such
functions as grant and contract administration (Federal and
non-Federal), special security, purchasing, personnel
administration, and editing and publishing of research and
other reports. They include the salaries and expenses of
the head of such organization, his assistants, and their
immediate staff, together with the salaries and expenses of
personnel engaged in supporting activities maintained by the
organization, such as stock rooms, stenographic pools, and the like.
The salaries of professorial and professional stafff whose responsibilities
to the institution require administrative work that benefits sponsored projects
may also be included to the extent that the portion charged to sponsored
agreements administration is determined in accordance with Section J.6.
This category should
also include the fringe benefit costs applicable to the
salaries and wages included therein, an appropriate share of
general administration and general expenses, the operation
and maintenance expenses, and depreciation and use
allowance. Appropriate adjustments should be made for
services provided to other functions or organizations.
b.	In the absence of the alternatives provided for
in Section E2d, the expenses included in this category shall
be allocated to the major functions of the institution under
which the sponsored projects are conducted on the basis of
the modified total cost of sponsored projects.
c.	An appropriate adjustment shall be made to
eliminate any duplicate charges to sponsored agreements when
this category includes similar or identical activities as
those included m the general administration and general
expense category or other indirect cost items, such as
accounting, procurement, or personnel administration.
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6. Library expenses.
a.	The expenses under this heading are those that
have been incurred for the operation of the library,
including the cost of books and library materials purchased
for the library, less any items of library income that
qualify as applicable credits under Section C5. The library
expense category should also include the fringe benefits
applicable to the salaries and wages included therein, an
appropriate share of general administration and general
expense, operation and maintenance expense, and depreciation
and use allowances. Costs incurred in the purchases of rare
books (museum-type books) with no value to sponsored
agreements should not be allocated to them.
b.	In the absence of the alternatives provided for
in Section E2d, the expenses included in this category shall
be allocated first on the basis of primary categories of
users, including students, professional employees, and other
users.
(1)	The student category shall consist of full-
time equivalent students enrolled at the institution,
regardless of whether they earn credits toward a degree or
certificate.
(2)	The professional employee category shall
consist of all faculty members and other professional
employees of the institution, on a full-time equivalent
basis.
(3)	The other users category shall consist of
all other users of library facilities.
c.	Amounts allocated in b above shall be assigned
further as follows:
(1)	The amount in the student category shall be
assigned to the instruction function of the institution.
(2)	The amount in the professional employee
category shall be assigned to the major functions of the
institution in proportion to the salaries and wages of all
faculty members and other professional employees applicable
to those functions.
(3)	The amount in the other users category
shall be assigned to the other institutional activities
function of the institution.
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7.	Student administration and services.
a.	The expenses under this heading are those that
have been incurred for the administration of student affairs
and for services to students, including expenses of such
activities as deans of students, admissions, registrar,
counseling and placement services, student advisers, student
health and infirmary services, catalogs, and commencements
and convocations. i
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rate for each function. The rate for each function is used
to distribute indirect costs to individual sponsored
agreements of that function. Since a common pool is
established for each major function of the institution, a
separate indirect cost rate would be established for each of
the major functions described in Section B1 under which
sponsored agreements are carried out.
b. In some instances a single rate basis for use
across the board on all work: within a major function at an
institution may not be appropriate. A single rate for
research, for example, might not take into account those
different environmental factors and other conditions which
may affect substantially the indirect costs applicable to a
particular segment of research at the institution. A
particular segment of research may be that performed under a
single sponored agreement or it may consist of research
under a group of sponsored agreements performed in a common
environment. The environmental factors are not limited to
the physical location of the work. Other important factors
are the level of the administrative support required, the
nature of the facilities or other resources employed, the
scientific disciplines or technical skills involved, the
organizational arrangements used, or any combination
thereof. where a particular segment of a sponsored
agreement is performed within an environment which appears
to generate a significantly different level of indirect
costs, provision should be made for a separate indirect cost
pool applicable to such work. The separate indirect cost
pool should be developed during the regular course of the
rate determination process and the separate indirect cost
rate resulting therefrom should be utilized; provided it is
determined that (1) such indirect cost rate differs
significantly from that which would have been obtained under
a. above, and (2) the volume of work to which such rate
would apply is material in relation to other sponsored
agreements at the institution.
2. The distribution basis. Indirect costs shall be
distributed to applicable sponsored agreements on the basis
of modified total direct costs, consisting of salaries and
wages, fringe benefits, materials and supplies, services,
travel, and subgrants and subcontracts up to $25,000 each.
For this purpose, an indirect cost rate should be determined
for each of the separate indirect cost pools developed
pursuant to Gl, above. The rate in each case should be
stated as the percentage which the amount of the particular
indirect cost pool is of the modified total direct costs
identified with such pool. Other bases may be used where it
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can be demonstrated that they produce more equitable
results.
3.	Negotiated lump sum for indirect costs. A
negotiated fixed amount in lieu of indirect costs may be
appropriate for self-contained, off-campus, or primarily
subcontracted activities where the benefits derived from an
institution's indirect services cannot be readily
determined. Such negotiated indirect costs will be treated
as an offset before allocation to instruction, organized
research, other sponsored activities, and other
institutional activities. The base on which such remaining
expenses are allocated should be appropriately adjusted.
4.	Predetermined fixed rates for indirect costs.
Public Law 87-638 (7? ?tat~ TJ7) authorizes the use of
predetermined fixed rates in determining the indirect costs
applicable under research agreements with educational
institutions. The stated objectives of the law are to
simplify the administration of cost-type research and
development contracts (including grants) with educational
institutions, to facilitate the preparation of their
budgets, and to permit more expeditious closeout of such
contracts when the work is completed. In view of the
potential advantages offered by this procedure,
consideration should be given to the negotiation of
predetermined fixed rates for indirect costs in those
situations where the cost experience and other pertinent
facts available are deemed sufficient to enable the parties
involved to reach an informed judgment as to the probable
level of indirect costs during the ensuing accounting
period.
5.	Negotiated fixed rates and carry-forward provisions.
When a fixed rate is negotiated in advance for a fiscal year
(or other time period), the over- or under-recovery for that
year may be included as an adjustment to the indirect cost
for the next rate negotiation. When the rate is negotiated
before the carry-forward adjustment is determined, the
carry-forward amount may be applied to the next subsequent
rate negotiation. When such adjustments are to be made,
each fixed rate negotiated in advance for a given period
will be computed by applying the expected indirect costs
allocable to sponsored agreements for the forecast period
plus or minus the carry-forward adjustment (over- or under-
recovery) from the prior period, to the forecast
distribution base. Unrecovered amounts under lump-sum
agreements or cost-sharing provisions of prior years shall
not be carried forward for consideration in the new rate
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negotiation. There must, however, be an advance
understanding in each case between the institution and the
cognizant Federal agency as tp whether these differences
will be considered in the rate negotiation rather than
making the determination after the differences are known.
Further, institutions electing to use this carry-forward
provision may not subsequently change without prior approval
of the cognizant Federal agency. In the event that an
institution returns to a postdetermined rate, any over- or
under-recovery during the period in which negotiated fixed
rates and carry-forward provisions were followed will be
included in the subsequent postdetermined rates. where
multiple rates are used, the same procedure will be
applicable for determining each rate.
H. Simplified method for small institutions.
1.	General.
a.	Where the total direct cost of work covered by
this Circular at an institution does not exceed $3,000,000
in a fiscal year, the use of the simplified procedure
described in 2, below, may be used in determining allowable
indirect costs. Under this simplified procedure, the
institution's most recent annual financial report and
immediately available supporting information with salaries
and wages segregated from other costs, will be utilized as a
basis for determining the indirect cost rate applicable to
all sponsored agreements.
b.	The simplified procedure should not be used
where it produces results which appear inequitable to the
Government or the institution. In any such case, indirect
costs should be determined through use of the regular
procedure.
2.	Simplified procedure
a.	Establish the total amount of salaries and wages
paid to all employees of the institution.
b.	Establish an indirect.cost pool consisting of
the expenditures (exclusive of capital items and other cpsts
specifically identified as unall
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(1)	General administration and general expenses
(exclusive of costs of student administration and services,
student activities, student aid, and scholarships).
(2)	Operation and maintenance of physical
plant; and depreciation and use allowances; after
appropriate adjustment for costs applicable to other
institutional activities.
(3)	Library.
(4)	Department administration expenses, which
will be computed as 20 percent of the salaries and expenses
of deans and heads of departments.
In those cases where expenditures classified under (1) above
have previously been allocated to other institutional
activities, they may be included in the indirect cost pool.
The total amount of salaries and wages included in the
indirect cost pool must be separately identified.
c.	Establish a salary and wage distribution base,
determined by deducting from the total of salaries and wages
as established in a above the amount of salaries and wages
included under b above.
d.	Establish the indirect cost rate, determined by
dividing the amount in the indirect cost pool, b above, by
the amount of the distribution base, c above.
e.	Apply the indirect cost rate to direct salaries
and wages for individual agreements to determine the amount
of indirect costs allocable to such agreements.
J. General provisions for selected items of cost.
Sections 1 through 44 below provide principles to be applied
in establishing the allowability of certain items involved
in determining cost. These principles should apply
irrespective of whether a particular item of cost is
properly treated as direct cost or indirect cost. Failure
to mention a particular item of cost is not intended to
imply that it is either allowable or unallowable; rather
determination as to allowability in each case should be
based on the treatment provided for similar or related
items of cost. In case of a discrepancy between the
provisions of a specific sponsored agreement and the
provisions below, the agreement should govern.
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1.	Advertising costs.
a.	The term advertising costs means the costs of
advertising media and corollary administrative costs.
Advertising media include magazines, newspapers, radio and
television programs, direct mail, exhibits, and the like.
b.	The only advertising costs allowable are those
which are solely for (1) the recruitment of personnel
required for the performance by the institution of
obligations arising under the sponsored agreement, when
considered in conjunction with all other recruitment costs,
as set forth in Section J32; (2) the procurement of goods
and services for the performance of the sponsored agreement;
(3) the disposal of scrap or surplus materials acquired in
the performance of the sponsored agreement except when
institutions are reimbursed for disposal costs at a
predetermined amount in accordance with Attachment N, OMB
Circular No. A-110; or (4) other specific purposes necessary
to meet the requirements of the sponsored agreement.
c.	Costs of this nature, if incurred for more than
one sponsored agreement or for both sponsored work and other
work of the institution, are allowable to the extent that
the principles in Sections D and E are observed.
2.	Bad debts. Any losses, whether actual or estimated,
arising from uncollectible accounts and other claims,
related collections costs, and related legal costs, are
unallowable.
3.	Civil defense costs. Civil defense costs are those
incurred in planning for, and the protection of life and
property against, the possible effects of enemy attack.
Reasonable costs of civil defense measures (including costs
in excess of normal plant protection costs, first-aid
training and supplies, firefighting training, posting of
additional exit notices and directions, and other approved
civil defense measures) undertaken on the institution^
premises pursuant to suggestions or requirements of civil
defense authorities are allowable when distributed to all
activities of the institution. Capital expenditures for
civil defense purposes will not be allowed, but a use
allowance or depreciation may be permitted in accordance
with provisions set forth in Section J9. Costs of local
civil defense projects not on the institution's premises are
unallowable.
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11
4.	Commencement and convocation costs. Costs incurred
for commencements and convocations are unallowable, except
as provided for m Section F7.
5.	Communication costs. Costs incurred for telephone
services'] local an3 Tong distance telephone calls,
telegrams, radiograms, postage and the like, are allowable.
6.	Compensation for personal services
a. General. Compensation for personal services
covers all amounts paid currently or accrued by the
institution for services of employees rendered during the
period of performance under sponsored agreements. Such
amounts include salaries, wages, and fringe benefits (See
Section J15.). These costs are allowable to the extent that
the total compensation to individual employees conforms to
the established policies of the institution, consistently
applied, and provided that the charges for work performed
directly on sponsored agreements and for other work
allocable as indirect costs are determined and supported as
provided below. Charges to sponsored agreements may include
reasonable amounts for activities contributing and
intimately related to work under the agreements, such as
delivering special lectures about specific aspects of the
ongoing activity, writing reports and articles,
participating in appropriate seminars, consulting with
colleagues and graduate students, and attending meetings and
conferences. Incidental work (that in excess of normal for
the individual), for which supplemental compensation is paid
by an institution under institutional policy, need not be
included in the payroll distribution systems described
below, provided such work and compensation are separately
identified and documented in the financial management system
of the institution.
6. b. (1) General Principles
(a) The distribution of salaries and wages,
whether treated as direct or indirect costs, will be based on pay-
rolls documented in accordance with the generally accepted prac-
tices of colleges and universities. Institutions may: include in a
residual category all activities that are not directly charged to
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sponsored agreements, and that need not be distributed to more
than one activity for purposes of identifying indirect costs and
the functions to which they are allocable. The components of the
residual category are not required to be separately documented.
(b)	The apportionment of employees' salaries and
wages which are chargeable to more than one sponsored agreement or
other cost objective will be accomplished by methods which will
(1) be in accordance with Sections A-2 and C above, (2) produce an
equitable distribution, of charges for employees' activities, and
(3) distinguish the employees' direct activities from their
indirect activities.
(c)	In the use of any methods for apportioning
salaries, it is recognized that, in an academic setting, teaching,
research, service, and administration are often inextricably
intermingled. A precise assessment of factors that contribute to
costs is not always feasible, nor is it expected. Reliance,
therefore, is placed on estimates in which a degree of tolerance
is appropriate.
(d)	There is no single best method for documenting
the distribution of charges for personal services.
Methods for apportioning salaries and wages, however, must; meet
the criteria specified in J.6.b.(2) below. Examples of acceptable
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methods are contained in J.6.c. below. Other methods which meet
the criteria specfied in J.6.b.(2) below also shall be deemed
acceptable, if a mutually satisfactory alternative agreement is
reached.
(2) Criteria for Acceptable Methods
(a)	The payroll distribution system will (i) be
incorporated into the official records of the institution, (ii)
reasonably reflect the activity for which the employee is compen-
sated by the institution, and (iii) encompass both sponsored and
all other activities on an integrated basis, but may include the
use of subsidiary records. (Compensation for incidental work
described in J.6.a. need not be included.)
(b)	The method must recognize the principle of
after-the-fact confirmation or determination so that costs dis-
tributed represent actual costs, unless a mutually satisfactory
alternative agreement is reached.
Direct cost activities and indirect cost activities may be con-
firmed by responsible persons with suitable means of verification
that the work was performed. Confirmation by the employee is not
a requirement for either direct or indirect cost activities if
other responsible persons make appropriate confirmations.
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(c)	The payroll distribution system will allow
confirmation of activity allocable to each sponsored agreement and
each of the categories of activity needed to identify indirect
costs and the functions to which they are allocable* The activi-
ties chargeable to indirect cost categories or the major functions
of the institution for employees whose salaries must be appor-
tioned (see J.6.b.1.(b) above), if not initially identified as
separate categories, may be subsequently distributed by any
reasonable method mutually agreed to, including, but not limited
to, suitably conducted surveys, statistical sampling procedures,
or the application of negotiated fixed rates.
(d)	Practices vary among institutions and within
institutions as to the activity constituting a full workload.
Therefore, the payroll distribution system may reflect categories
of activities expressed as a percentage distribution of total
activities.
(e)	Direct and indirect charges may be made initi-
ally to sponsored agreements on the basis of estimates made before
services are performed. When such estimates are used, significant
changes in the corresponding work activity must be identified and
entered into the payroll distribution system. Short-term (such as
one or two months) fluctuation between workload categories need
not be considered as long as the distribution of salaries and
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wages is reasonable over the longer term, such as an academic
period.
(f)	The system will provide for independent inter-
nal evaluations to ensure the system's effectiveness and compli-
ance with the above standards.
(g)	For systems which meet these standards, the
institution will not be required to provide additional support or
documentation for the effort actually performed.
J. 6. c. Examples of Acceptable Methods for Payroll
Distribution:
1. Plan - Confirmation: Under this method, the distri-
bution of salaries and wages of professorial or professional staff
applicable to sponsored agreements is based on budgeted, planned,
or assigned work activity, updated to reflect any significant
changes in work distribution. A plan-confirmation system used for
salaries and wages charged directly or indirectly to sponsored
agreements will meet the following standards:
(a) A system of budgeted, planned, or assigned
work activity will be incorporated into the official records of
the institution and encompass both sponsored and all other activi-
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ties on an integrated basis. The system may include the use of
subsidiary records.
(b)	The system will reasonably reflect only the
activity for which the employee is compensated by the institution
(compensation for incidental work described in J.6.a. need not be
included). Practices vary among institutions and within institu-
tions as to the activity constituting a full workload. Hence, the
system will reflect categories of activities expressed as a per-
centage distribution of total activities. (But see Section H for
treatment of indirect costs under the simplified method for small
institutions. )
(c)	The system will reflect activity applicable to
each sponsored agreement and to each category needed to identify
indirect costs and the functions to which they are allocable. The
system may treat indirect cost activities initially within a
residual category and subsequently determine them by alternate
methods as discussed in J.6.b.(2)(c).
(d)	The system will provide for modification of an
individual's salary or salary distribution commensurate with any
significant change in the employee's work activity. Short-term
(such as one or two months) fluctuation between workload cate-
gories need not be considered as long as the distribution of
salaries and wages is reasonable over the longer term such as an
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academic period. Whenever it ia apparent that a significant
change in work activity which is directly or indirectly charged to
sponsored agreements will occur or has occurred, the change will
be documented over the signature of a responsible official and
entered into the system.
(e)	At least annually a statement will be signed
by the employee, principal investigator, or responsible
official(s) using suitable means of verification that the work was
performed, stating that salaries and wages charged to sponsored
agreements as direct charges, and to residual, indirect cost or
i
other categories are reasonable in relation to work performed.
(f)	The system will provide for independent
internal evaluation to ensure the system's integrity and compli-
ance with the above standards.
(g)	In the use of this method, an institution
shall not be required to provide additional support or documenta-
tion for the effort actually performed.
2. After-the-fact Activity Records: Under this
system the distribution of salaries and wages by the institution
will be supported by activity reports as prescribed below.
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(a)	Activity reports will reflect the distribution
of activity expended by employees covered by the system (compensa-
tion for incidential work as described in J.6.a. need not be
included).
(b)	These reports will reflect an after-the-fact
reporting of the percentage distribution of activity of employees.
Charges may be made initially on the basis of estimates made
before the services are performed, provided that such charges are
promptly adjusted if significant differences are indicated by
activity records.
(c)	Reports will reasonably reflect the activities
for which employees are compensated by the institution. To con-
firm that the distribution of activity represents a reasonable
estimate of the work performed by the employee during the period,
the reports will be signed by the employee, principal investi-
gator, or responsible official(s) using suitable means of verifi-
cation that the work was performed.
(d)	The system will reflect activity applicable to
each sponsored agreement and to each category needed to identify
indirect costs and the functions to which they are allocable. The
system may treat indirect cost activities initially within a
residual category and subsequently determine them by alternate
methods as discussed in J.6.b.(2)(c).
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(e)	Por professorial and professional staff* the
reports will be prepared each academic term, but no less fre-
quently than every six months. Por other employees, unless alter-
nate arrangements are agreed to, the reports will be prepared no
less frequently than monthly and will coincide with one or more
pay periods.
(f)	Where the institution uses time cards or other
forms of after-the-fact payroll documents as original documenta-
tion for payroll and payroll charges, such documents shall qualify
as records for this purpose provided that they meet the require-
ments in (a) through (e) above.
3. Multiple Confirmation Records: Under this system
the distribution of salaries and wages of professorial and profes-
sional staff will be supported by records which certify separately
for direct and indirect cost activities as prescribed below.
(a) For employees covered by the system, there
will be direct cost records to reflect the distribution of that
activity expended which is to be allocable as direct cost to each
sponsored agreement. There will also be indirect cost records to
reflect the distribution of that activity to indirect costs.
These records may be kept jointly or separately (but are to be
certified separately, see below).
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(b)	Salary and wage charges nay be nade initially
on the basis of estimates made before the services are performed
provided that such charges are promptly adjusted if significant
differences occur.
(c)	Institutional records will reasonably reflect
only the activity for which employees are compensated by the
institution (compensation for incidental work as described in
J.6.a. need not be included).
(d)	The system will reflect activity applicable to
each sponsored agreement and to each category needed to identify
indirect costs and the functions to which they are allocable.
(e)	To confirm that the distribution of activity
represents a reasonable estimate of the work performed by the
employee during the period, the record for each employee will
include:
(1)	The signature of the employee or of a
person having direct knowledge of the work, confirming that the
record of activities allocable as direct costs of each sponsored
agreement is appropriate.
(2)	The record of indirect costs will include
the signature of responsible person(s) who use suitable means of
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verification that the work was performed and is consistent with
the overall distribution of the employee's compensated activities.
These signatures may all be on the same document.
(f)	The reports will be prepared each academic
term, but no less frequently than every six months.
(g)	Where the institution uses time cards or
other forms of after-the-fact payroll documents as original
documentation for payroll and payroll charges, such documents
shall qualify as records for this purpose provided they meet
the requirements in (a) through (f) above.
d. Salary rates for faculty members.
(1) Salary rates for academic year. Charges
for work performed on sponsored agreements by faculty
members during the academic year will be based on the
individual faculty member's regular compensation for the
continuous period which, under the policy of the institution
concerned, constitutes the basis of his salary. Charges for
work performed on sponsored agreements during all or any
portion of such period are allowable at the base salary
rate. In no event will charges to sponsored agreements,
irrespective of the basis of computation, exceed the
proportionate share of the base salary for that period.
This principle applies to all members of the faculty at an
institution. Since mtra-university consulting is assumed
to be undertaken as a university obligation requiring no
compensation in addition to full-time base salary, the
principle also applies to faculty members who function as
consultants or otherwise contribute to a sponsored agreement
conducted by another faculty member of the same institution.
However, in unusual cases where consultation is across
departmental lines or involves a separate or remote
operation, and the work performed by the consultant is in
addition to his regular departmental load, any charges for
such work representing extra compensation above the base
salary are allowable provided that such consulting
arrangements are specifically provided for in the agreement
or approved in writing by the sponsoring agency.
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(2)	Periods outside the academic year.
(a)	Except as otherwise specified for
teaching activity in (b) below, charges for work performed
by faculty members on sponsored agreements during the summer
months or other period not included in the base salary
period will be determined for each faculty member at a rate
not in excess of the base salary divided by the period to
which the base salary relates, and will be limited to
charges made in accordance with other parts of this section.
The base salary period used in computing charges for work
performed during the summer months will be the number of
months covered by the faculty member's official academic
year appointment.
(b)	Charges for teaching activities
performed by faculty members on sponsored agreements during
the summer months or other periods not included in the base
salary period will be based on the normal policy of the
institution governing compensation to faculty members for
teaching assignments during such periods.
(3)	Part-time faculty. Charges for work
performed on sponsored agreements by faculty members having
only part-time appointments will be determined at a rate not
in excess of that regularly paid for the part-time
assignments; e.g., an institution pays $5,000 to a faculty
member for half-time teaching during the academic year. He
devoted one-half of his remaining time to a sponsored
agreement. Thus, his additional compensation, chargeable by
the institution to the agreement, would be one-half of
55,000, or $2,500.
%
-Q,, Noninstitutional professional activities.
Unless an arrangement is specifically authorized by a
Federal sponsoring agency, an institution must follow its
institution-wide policies and practices concerning the
permissible extent of professional services that can be
provided outside the institution for noninstitutional
compensation. Where such institution-wide policies do not
exist or do not adequately define the permissible extent of
consulting or other noninstitutional activities undertaken
for extra outside pay, the Government may require that the
effort of professional staff working on sponsored agreements
be allocated between (1) institutional activities, and (2)
noninstitutional professional activities. If the sponsoring
agency considers the extent of noninstitutional professional
effort excessive, appropriate arrangements governing
compensation will be negotiated on a case-by-case basis.
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7.	Contingency provisions. Contributions to a
contingency reserve or any similar provision made for
events, the occurrence of which cannot be foretold with
certainty as to time, intensity, or with an assurance of
their happening, are unallowable. (But see also Section
J16c.)
8.	Deans of faculty and graduate schools. The salaries
and expenses oT~deans of faculty and graduate schools, or
their equivalents, and their staffs, are allowable.
9.	Depreciation and use allowances. Institutions may
be compensated for the use ol their buildings, capital
improvements, and equipment; provided that they are used,
needed in the institutions' activities, and properly
allocable to sponsored agreements. Such compensation shall
be made by computing either depreciation or use allowance.
Use allowances are the means of providing such compensation
when depreciation or other equivalent costs are not
computed. The allocation for depreciation or use allowance
shall be made in accordance with Section Fl. Depreciation
and use allowances are computed applying the following
rules:
a.	The computation of depreciation or use
allowances shall be based on the acquisition cost of the
assets involved. For this purpose, the acquisition cost
will exclude (1) the cost of land; (2) any portion of the
cost of buildings and equipment borne by or donated by the
Government, irrespective of where title was originally
vested or where it is presently located; and (3) any portion
of the cost of buildings and equipment contributed by or for
the institution where law or agreement prohibit recovery.
For an asset donated to the institution by a third party,
its fair market value at the time of the donation shall be
considered as the acquisition cost.
b.	In the use of the depreciation method, the
following shall be observed:
(1) The period of useful service or useful life
established in each case for usable capital assets must take
into consideration such factors as type of construction,
nature of the equipment, technological developments in the
particular area, and the renewal and replacement policies
followed for the individual items or classes of assets
involved.
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(2)	The depreciation method used to charge the
cost of an asset (or group of assets) to accounting periods
shall reflect the pattern of consumption of the asset during
its useful life. In the absence of clear evidence
indicating that the expected consumption of the asset will
be significantly greater in the early portions than in the
later portions of its useful life, the straight-line method
shall be presumed to be the appropriate method.
Depreciation methods once used shall not be changed unless
approved in advance by the cognizant Federal agency.
(3)	where the depreciation method is introduced
for application to assets for which use allowance was
previously charged, the aggregate amount of use allowances
and depreciation applicable to such assets must not exceed
the total acquisition cost of the assets.
<
(4)	When the depreciation method is used for
buildings, a building "shell" may be treated separately from
other building components, such as plumbing system and
heating and air conditioning system. Each component item
may then be depreciated over its estimated useful life. On
the other hand, the entire building, including the shell and
all components, may be treated as a single asset and
depreciated over a single useful life.
(5)	Where the depreciation method is used for a
particular class of assets, no depreciation may be allowed
on any such assets that have outlived their depreciable
lives. (But see also c(3), below.)
c. Under the use allowance method, the following
shall be observed:
(1)	The use allowance for buildings and
improvements (including improvements such as paved parking
areas, fences, and sidewalks) will be computed at an annual
rate not exceeding two percent of acquisition cost. The use
allowance for equipment will be computed at an annual rate
not exceeding six and two-thirds percent of acquisition
cost.
(2)	In contrast to the depreciation method, the
entire building must be treated as a single asset without
separating its "shell" from other building components under
the use allowance method. The entire building must be
treated as a single asset, and the two-percent use allowance
limitation must be applied to all parts of the building.
The two-percent limitation, however, need not be applied to
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equipment or other assets that are merely attached or
fastened to the building but not permanently fixed and are
used as furnishings, decorations or for specialized purposes
{e.g., dentist chairs and dental treatment units, counters,
laboratory benches bolted to the floor, dishwashers, and
carpeting). Such equipment and assets will be considered as
not being permanently fixed to the building if tiiey can be
removed without the need for costly or extensive alterations
or repairs to the building to make the space usable for
other purposes. Equipment and assets which meet these
criteria will be subject to the six and two-thirds percent
equipment use allowance.
(3) A reasonable use allowance may be
negotiated for any assets that are considered to be fully
depreciated, after taking into consideration the amount of
depreciation previously charged to the Government, the
estimated useful life remaining at the time of negotiation,
the effect of any increased maintenance charges, decreased
efficiency due to age, and any other factors pertinent to
the utilization of the asset for the purpose contemplated.
d.	Except as otherwise provided in b and c above, a
combination of the depreciation and use allowance methods
may not be used, in like circumstances, for a single class
of assets (e.g., buildings, office equipment, and computer
equipment).
e.	Charges for use allowances or depreciation must
be supported by adequate property records, and physical
inventories must be taken at least once every two years to
ensure that the assets exist and are usable, used, and
needed. Statistical sampling techniques may be used in
taking these inventories. In addition, when the
depreciation method is used, adequate depreciation records
showing the amount of depreciation taken each period must
also be maintained.
10.	Donated services and property. The value of donated
services and property are not allowable either as a direct
or indirect cost, except that depreciation or use allowances
on donated assets are permitted in accordance with Section
J9a. The value of donated services and property may be used
to meet cost sharing or matching requirements, in accordance
with OMB Circular No. A-110.
11.	Employee morale, health, and welfare costs and
credits. The costs of house publications, health or first-
aid clinics and/or infirmaries, recreational activities,
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employees' counseling services, and other expenses incurred
in accordance with the institution's established practice or
custom for the improvement of working conditions, employer-
employee relations, employee morale, and employee
performance, are allowable. Income generated from any of
these activities will be credited to the cost thereof unless
such income has been irrevocably set over to employee
welfare organizations.
12.	Entertainment costs. Costs incurred for amusement,
social activities, entertainment, and any items relating
thereto, such as meals, lodging, rentals, transportation,
and gratuities, are unallowable.
13.	Equipment and other capital expenditures.
a. For purposes of this paragraph, the following
definitions apply:
(1)	Equipment means an article of nonexpendable
tangible personal property having a useful life of more than
two years, and an acquisition cost of $500 or more per unit.
However, consistent with institutional policy, lower limits
may be established.
(2)	Capital expenditure means the cost of the
asset including the cost to put it in place. Capital
expenditure for equipment, for example, means the net
invoice price of the equipment, including the cost of any
modifications, attachments, accessories, or auxiliary
apparatus necessary to make it usable for the purpose for
which it is acquired. Ancillary charges, such as taxes,
duty, protective intransit insurance, freight, and
installation may be included in, or excluded from, capital
expenditure cost in accordance with the institution's
regular accounting practices.
(3)	Special purpose equipment means equipment
which is used only Tor research, medical, scientific, or
other technical activities.
(4)	General purpose equipment means equipment,
the use of which is not limited only to research, medical,
scientific or other technical activities. Examples of
general purpose equipment include office equipment and
furnishings, air conditioning equipment, reproduction and
printing equipment, motor vehicles, and automatic data
processing equipment.
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b. The following rules of allowability shall apply
to equipment and other capital expenditures:
(1)	Capital expenditures for general purpose
equipment, buildings, and land are unallowable as direct
charges, except where approved in advance by the sponsoring
agency.
(2)	Capital expenditures for special purpose
equipment are allowable as direct charges, provided that the
acquisition of items having a unit cost of $1,000 or more is
approved in advance by the sponsoring agency.
(3)	Capital expenditures for improvements to
land, buildings, or equipment which materially increase
their value or useful life are unallowable as direct
charges, except where approved in advance by the sponsoring
agency.
(4)	Capital expenditures are unallowable as
indirect costs. But see Section J9 for allowability of
depreciation or use allowance on buildings, capital
improvements, and equipment. Also see Section J33 for
allowability of rental costs on land, buildings, and
equipment.
14.	Fines and penalties. Costs resulting from
violations of, or failure of the institution to comply with,
Federal, State, and local laws and regulations are
unallowable, except when incurred as a result of compliance
with specific provisions of the sponsored agreement, or
instructions in writing from the contracting officer or
equivalent.
15.	Fringe benefits.
a.	Fringe benefits in the form of regular
compensation paid to employees during periods of authorized
absences from the job, such as for annual leave, sick leave,
military leave, and the like, are allowable, provided such
costs are distributed to all institutional activities in
proportion to the relative amount of time or effort actually
devoted by the employees. See Section J35 for treatment of
sabbatical leave.
b.	Fringe benefits in the form of employer
contributions or expenses for social security, employee
insurance, workmen's compensation insurance, tuition or
remission of tuition for individual employees or their
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families and the like are allowable, provided such benefits
are granted in accordance with established institutional
policies, and are distributed to all institutional
activities on an equitable basis. See Section J36b for
treatment of tuition remission provided to students.
c.	Rules for pension plan costs are as follows:
(1)	Costs of the institution's pension plan
which are incurred in accordance with the established
policies of the institution are allowable, provided (a) such
policies meet the test of reasonableness; (b) the methods of
cost allocation are equitable for all activities; (c) the
amount of pension cost assigned to each fiscal year is
determined in accordance with (2) below; and (d) the cost
assigned to a given fiscal year is paid or funded for all
plan participants within six months after the end of that
year.
(2)	The amount of pension cost assigned to each
fiscal year shall be determined in accordance with generally
accepted accounting principles. Institutions may elect to
follow the "Cost Accounting Standard for Composition and
Measurement of Pension Cost" (4 CFR Part 412).
(3)	Premiums paid for pension plan termination
insurance pursuant to the Employee Retirement Income
Security Act of 1974 (Public Law 93-406) are allowable.
Late payment charges on such premiums are unallowable.
Excise taxes on accumulated funding deficiencies and
prohibited transactions of pension plan fiduciaries imposed
under the Employee Retirement Income Security Act are also
unallowable.
d.	Fringe benefits may be assigned to cost
objectives by identifying specific benefits to specific
individual employees or by allocating on the basis of the
salaries and wages of the employees receiving the benefits.
When the allocation method is used, separate allocations
must be made to selective groupings of employees, if the
costs in relationship to salaries and wages differ
significantly for different groups of employees. Also
fringe benefits related to institutional salaries and wages
treated as direct costs may be treated as direct costs.
16. Insurance and indemnification.
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a.	Costs of insurance required or approved, and
maintained, pursuant to the sponsored agreement, are
allowable.
b.	Costs of other insurance maintained by the
institution in connection with the general conduct of its
activities, are allowable subject to the following
limitations: (1) types and extent and cost of coverage must
be in accordance with sound institutional practice; (2)
costs of insurance or of any contributions to any reserve
covering the risk of loss of or damage to Government-owned
property are unallowable, except to the extent that the
Government has specifically required or approved such costs;
and (3) costs of insurance on the lives of officers or
trustees are unallowable except where such insurance is part
of an employee plan which is not unduly restricted.
c.	Contributions to a reserve for a self-insurance
program are allowable, to the extent that the types of
coverage, extent of coverage, and the rates and premiums
would have been allowed had insurance been purchased to
cover the risks.
d.	Actual losses which could have been covered by
permissible insurance (whether through purchased insurance
or self-insurance) are unallowable, unless expressly
provided for in the sponsored agreement, except that costs
incurred because of losses not covered under existing
deductible clauses for insurance coverage provided in
keeping, with sound management practice as well as minor
losses not covered by insurance, such as spoilage, breakage
and disappearance of small hand tools, which occur in the
ordinary course of operations, are allowable.
e.	Indemnification includes securing the
institution against liabilities to third persons and other
losses not compensated by insurance or otherwise. The
Government is obligated to indemnify the institution only to
the extent expressly provided for in the sponsored
agreement, except as provided in d above.
17. Interest, fund raising, and investment management
costs.
a.	Costs incurred for interest on borrowed capital
or temporary use of endowment funds, however represented,
are unallowable except as indicated in e. below.
b.	Costs of organized fund raising, including
financial campaigns, endowment drives, solicitation of gifts
and bequests, and similar expenses incurred solely to raise
capital or obtain contributions, are unallowable.
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c.	Costs of investment counsel and staff and
similar expenses incurred solely to enhance income from
investments are unallowable.
d.	Costs related to the physical custody and
control of monies and securities are allowable.
e.	The cost of Interest paid to an external party is
allowable where associated with the following assets, provided
the assets are used in support of sponsored agreements, and the
total, cost (Including depreciation or use allowance, operation and
maintenance costs, interest, etc.,) does not exceed the rental
cost of comparable assets in the same locality.
(1)	Buildings acquired or completed on or after
July 1, 1982.
(2)	Major reconstruction and remodeling of existing
buildings completed on or after July 1, 1982.
(3)	Acquisition or fabrication of	capital equipment
(as defined in paragraph J.13, "Equipment and	other capital expen-
ditures") completed on or after July 1, 198 2,	costing $10,000 or
more, if agreed to by the Government.
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18.	Labor relations costs. Costs incurred in
maintaining satisfactory relations between the institution
and its employees, including costs of labor management
committees, employees' publications, and other related
activities, are allowable.
19.	Losses on other sponsored agreements or contracts.
Any excess of costs over income under any otKer sponsored
agreement or contract of any nature is unallowable. This
includes, but is not limited to, the institution's
contributed portion by reason of cost-sharing agreements or
any under-recoveries through negotiation of flat amounts for
indirect costs.
20.	Maintenance and repair costs. Costs incurred for
necessary maintenance, repair or upkeep of property
(including Government property unless otherwise provided
for) which neither add to the permanent value^ of the
property nor appreciably prolong its intended life but keep
it in an efficient operating condition, are allowable.
21.	Material costs. Costs incurred for purchased
materials, supplies, and fabricated parts directly or
indirectly related to the sponsored agreement, are
allowable. Purchases made specifically for the sponsored
agreement should be charged thereto at their actual prices
after deducting all cash discounts, trade discounts,
rebates, and allowances received by the institution.
Withdrawals from general stores or stockrooms should be
charged at their cost under any recognized method of pricing
stores withdrawals conforming to sound accounting practices
consistently followed by the institution. Incoming
transportation charges are a proper part of material cost.
Direct material cost should include only the materials and
supplies actually used for the performance of the sponsored
agreement, and due credit should be given for any excess
materials retained, or returned to vendors. Due credit
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should be given for all proceeds or value received for any
scrap resulting from work under the sponsored agreement.
Where Government-donated or furnished material is used in
performing the sponsored agreement, such material will be
used without charge.
22.	Memberships, subscriptions and professional activity
costs.
a.	Costs of the institution's membership in civic,
business, technical, and professional organizations are
allowable.
b.	Costs of the institution's subscriptions to
civic, business, professional, and technical periodicals are
allowable.
c.	Costs of meetings and conferences, when the
primary purpose is the dissemination of technical
information, are allowable. This includes costs of meals,
transportation, rental of facilities, and other items
incidental to such meetings or conferences.
23.	Patent costs. Costs of preparing disclosures,
reports, and other documents required by the sponsored
agreement, and of searching the art to the extent necessary
to make such invention disclosures, are allowable. In
accordance with the clauses of the sponsored agreement
relating to patents, costs of preparing documents and any
other patent costs, in connection with the filing of a
patent application where title is conveyed to the
Government, are allowable. (See also Section J34.)
24.	Plant security costs. Necessary expenses incurred
to comply witK security requirements, including wages,
uniforms and equipment of personnel engaged m plant
protection, are allowable.
25.	Preagreement costs. Costs incurred prior to the
effectivi date oi~ the sponsored agreement, whether or not
they would have been allowable thereunder if incurred after
such date, are unallowable unless approved by the sponsoring
agency.
26.	Professional services costs.
a. Costs of professional services rendered by the
members of a particular profession who are not employees of
the institution are allowable, subject to b and c below,
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when reasonable in relation to the services rendered and
when not contingent upon recovery of the costs from the
Government. Retainer fees to be allowable must be
reasonably supported by evidence of services rendered.
b.	Factors to be considered in determining the
allowability of costs in a particular case include (1) the
past pattern of such costs, particularly in the years prior
to the award of sponsored agreements; (2) the impact of
sponsored agreements on the .institution's total activity;
(3) the nature and scope of managerial services expected of
the institution's own organizations; and (4) whether the
proportion of Government work to the institution's total
activity is such as to influence the institution in favor of
incurring the cost, particularly where the services rendered
are not of a continuing nature and have little relationship
to work under sponsored agreements.
c.	Costs of legal, accounting, and consulting
services, and related costs, incurred in connection with the
prosecution of claims against the Government, are
unallowable. Costs of legal, accounting and consulting
services, and related costs, incurred in connection with
patent infringement litigation, are unallowable unless
otherwise provided for in the sponsored agreements.
27.	Profits and losses on disposition of plant equipment
or other capital assets. Profits or losses arising from the
sale or exchange of plant, facilities, equipment or other
capital assets, including sale or exchange of either short-
term or long-term investments, shall not be considered in
computing the costs of sponsored agreements except for
pension plans as provided in Section J15c. When assets
acquired with Federal funds, in part or wholly, are disposed
of, the distribution of the proceeds shall be made m
accordance with Attachment N, 0MB Circular No. A-110.
28.	Proposal costs. Proposal costs are the costs of
preparing bias or proposals on potential Government and
nongovernment sponsored agreements or projects, including
the development of data necessary to support the
institution's bids or proposals. Proposal costs of the
current accounting period of box± successful and
unsuccessful bids and proposals normally should be treated
as indirect costs and allocated currently to all activities
of the institution, and no proposal costs of past accounting
periods will be allocable to the current period. However,
the institution's established practices may be to treat
proposal costs by some other recognized method. Regardless
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ASSISTANCE ADMINISTRATION
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of the method used, the results obtained may be accepted
only if found to be reasonable and equitable.
29.	Public information services costs.	Cost of news
releases pertaining to specific research	or scientific
accomplishment are allowable, when they	result from
performance of sponsored agreements.
30.	Rearrangement and alteration costs. Cost incurred
for ordinary or normal rearrangement and alteration of
facilities are allowable. Special arrangement and
alteration costs incurred specifically for the project are
allowable when such work has been approved in advance by the
sponsoring agency.
31.	Reconversion costs. Costs incurred in the
restoration or rehabilitation of the institution's
facilities to approximately the same condition existing
immediately prior to commencement of a sponsored agreement,
fair wear and tear excepted, are allowable.
32.	Recruiting costs.
a.	Subject to b, c, and d below, and provided that
the size of the staff recruited and maintained is in keeping
with workload requirements, costs of "help wanted"
advertising, operating costs of an employment office
necessary to secure and maintain an adequate staff, costs of
operating an aptitude and educational testing program,
travel costs of employees while engaged in recruiting
personnel, travel costs of applicants for interviews for
prospective employment, and relocation costs incurred
incident to recruitment of new employees, are allowable to
the extent that such costs are incurred pursuant to a well
managed recruitment program. Where the institution uses
employment agencies, costs not in excess of standard
commercial rates for such services are allowable.
b.	In publications, costs of help wanted
advertising that includes color, includes advertising
material for other than recruitment purposes, or is
excessive in size (taking into consideration recruitment
purposes for which intended and normal institutional
practices in this respect), are unallowable.
c.	Costs of help wanted advertising, special
emoluments, fringe benefits, and salary allowances incurred
to attract professional personnel from other institutions
that do not meet the test of reasonableness or do not
Appendix 13-A-51
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ASSISTANCE ADMINISTRATION
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conform with the established practices of the institution,
are unallowable.
d. Where relocation costs incurred incident to
recruitment of a new employee have been allowed either as an
allocable direct or indirect cost, and the newly hired
employee resigns for reasons within his control within
twelve months after hire, the institution will be required
to refund or credit such relocation costs to the Government.
33. Rental cost of buildings and equipment.
a.	Rental costs of buildings or eguipment are
allowable to the extent that the decision to rent or lease
is m accord with Section C-3. Rental arrangements should
be reviewed periodically to determine if circumstances have
changed and other options are available.
b.	Rental costs under "sale and lease back"
arrangements are allowable only up to the amount that would
be allowed if the institution continued to own the property.
c.	Rental costs under "less-than-arms-length"
leases are allowable only up to the amount that would be
allowed if the institution owned the property. For this
purpose, a less-than-arms-length lease is one under which
one party to the lease agreement is able to control or
substantially influence the actions of the other.
d.	Where significant rental costs are incurred
under leases which create a material, equity in the leased
property, they are allowable only up to the amount that
would be allowed if the institution purchased the property
on the date the lease agreement was executed. For this
purpose, a material equity in the property exists when the
lease:
(1) is noncancelable or is cancelable only upon
the occurrence of some remote contingency, and
(?) has one or more of the following
characteristics:
(a)	Title to the property passes to the
institution at some time during or after the lease period.
(b)	The term of the lease corresponds
substantially to the estimated useful life of the property
Appendix 13-A-52
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ASSISTANCE ADMINISTRATION
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(i.e., the period of economic usefulness to the legal owner
of the property).
(c)	The initial term is less than the
useful life of the property and the institution has the
option to renew the lease for the remaining useful life at
substantially less than fair rental value.
(d)	The property was acquired by the
leasor to meet the special needs of the institution and will
probably be usable only for that purpose and only by the
institution.
(e)	The institution has the right, during
or at the expiration of the lease, to purchase the property
at a price which at the inception of the lease appears to be
substantially less than the probable fair market value at
the time it is permitted to purchase the property (commonly
called a lease with a bargain purchase option), except for
any discount normally given to educational institutions.
34.	Royalties and other costs for use of patents.
Royalties on a patent or amortization of tKe cost of
acquiring a patent or invention or rights thereto, necessary
for the proper performance of the sponsored agreement and
applicable to .tasks or processes thereunder, are allowable
unless the Government has a license or the right to free use
of the patent, the patent has been adjudicated to be invalid
or has been administratively determined to be invalid, the
patent is considered to be unenforceable, or the patent has
expired.
35.	Sabbatical leave costs. Costs of leave of absence
by employees forperformance of graduate work or sabbatical
study, travel, or research are allowable provided the
institution has a uniform policy on sabbatical leave for
persons engaged in instruction and persons engaged in
research. Such costs will be allocated on an equitable
basis among all related activities of the institution.
Where sabbatical leave is included in fringe benefits for
which a cost is determined for assessment as a direct
charge, the aggregate amount of such assessments applicable
to all work of the institution during the base period must
be reasonable in relation to the institution's actual
experience under its sabbatical leave policy.
36.	Scholarships and student aid costs.
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ASSISTANCE ADMINISTRATION
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a.	Costs of scholarships, fellowships, and other
programs of student aid are allowable only when the purpose
of the sponsored agreement is to provide training to
selected participants and the charge is approved by the
sponsoring agency. However, tuition remission and other
forms of compensation paid as, or in lieu of, wages to
students performing necessary work are allowable provided
that (1) there is a bonafide employer-employee relationship
between the student and the institution for the work
performed, (2) the tuition or other payments are reasonable
compensation for the work performed and are conditioned
explicitly upon the performance of necessary work, and (3)
it is the institution's practice to similarly compensate
students in nonsponsored as well as sponsored activities.
b.	Charges for tuition remission and other forms of
compensation paid to students as, or in lieu of, salaries
and wages shall be subject to the reporting requirements
stipulated in Section J6, and shall be treated as direct or
indirect cost in accordance with the actual work being
performed. Tuition remission may be charged on an average
rate basis.
37. Severance pay.
a.	Severance pay is compensation in addition to
regular salary and wages which is paid by an institution to
employees whose services are being terminated. Costs of
severance pay are allowable only to the extent that such
payments are required by law, by employer-employee
agreement, by established policy that constitutes m effect
an implied agreement on the institution's part, or by
circumstances of the particular employment.
b.	Severance payments that are due to normal
recurring turnover and which otherwise meet the conditions
of a above may be allowed provided the actual costs of such
severance payments are regarded as expenses applicable to
the current fiscal year and are equitably distributed among
the institution's activities during that period.
c.	Severance payments that are due to abnormal or
mass terminations are of such conjectural nature that
allowability must be determined on a case-by-case basis.
However, the Government recognizes its obligation to
participate, to the extent of its fair share, in any
specific payment.
Appendix 13-A-54
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ASSISTANCE ADMINISTRATION
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38.	Specialized service facilities.
a.	The costs of institutional services involving
the use of highly complex or specialized facilities such as
electronic computers, wind tunnels, and reactors are
allowable, provided the charge for the service meets the
conditions of b through d below.
b.	The cost of each service normally shall consist
of both its direct costs and its allocable share of indirect
costs with deductions for appropriate income or Federal
financing as described in Section C5.
c.	The cost of such institutional services when
material in amount will be charged directly to users,
including sponsored agreements based on actual use of the
services and a schedule of rates that does not discriminate
between federally and nonfederally supported activities of
the institution, including use by the institution for
internal purposes. Charges for the use of specialized
facilities should be designed to recover not more than the
aggregate cost of the services over a long-term period
agreed to by the institution and the congnizant Federal
agency. Accordingly, it is not necessary that the rates
charged for services be equal to the cost of providing these
services during any one fiscal year as long as rates are
reviewed periodically for consistency with the long-term
plan and ad]usted if necessary.
d.	where the costs incurred for such institutional
services are not material, they may be allocated as indirect
costs. Such arrangements must be agreed to by the
institution and the cognizant Federal agency.
e.	Where it is in the best interest of the
Government and the institution to establish alternative
costing arrangements, such arrangements may be worked out
with the cognizant Federal agency.
39.	Special services costs. Costs incurred for general
public relations activities, alumni activities, and similar
services, are unallowable.
40.	Student activity costs. Costs incurred for
intramural activities, student publications, student clubs,
and other student activities, are unallowable, unless
specifically provided for in the sponsored agreements.
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ASSISTANCE ADMINISTRATION
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41.	Taxes.
a.	In general, taxes which the institution is
required to pay and which are paid or accrued in accordance
with generally accepted accounting principles are allowable.
Payments made to local governments in lieu of taxes which
are commensurate with the local government services received
are allowable, except for (1) taxes from which exemptions
are available to the institution directly or which are
available to the institution based on an exemption afforded
the Government, and in the latter case when the sponsoring
agency makes available the necessary exemption certificates;
and (2) special assessments on land which represent capital
improvements.
b.	Any refund of taxes, interest, or penalties, and
any payment to the institution of interest thereon,
attributable to taxes, interest, or penalties which were
allowed as sponsored agreement costs, will be credited or
paid to the Government in the manner directed by the
Government. However, any interest actually paid or credited
to an institution incident to a refund of tax, interest, and
penalty will be paid or credited to the Government only to
the extent that such interest accrued over the period during
which the institution had been reimbursed by the Government
for the taxes, interest, and penalties.
42.	Transportation costs. Costs incurred for freight,
express, cartage, postage, and other transportation services
reiatmg either to goods purchased,* in process, or
delivered, are allowable. When such costs can readily be
identified with the items involved, they may be charged
directly as transportation costs or added to the cost of
such items. Where identification with the materials
received cannot readily be made, inbound transportation
costs may be charged to the appropriate indirect cost
accounts if the institution follows a consistent, equitable
procedure in this respect. Outbound freight, if
reimbursable under the terms of the sponsored agreement,
should be treated as a direct cost.
43.	Travel costs.
a. Travel costs are the expenses for
transportation, lodging, subsistence, and related items
incurred by employees who are in travel status on official
business of the institution. Such costs may be charged on
an actual basis, on a per diem or mileage basis in lieu of
actual costs incurred, or on a combination o: the two,
Appendix 13-A-56
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ASSISTANCE ADMINISTRATION	12/3/84
provided the method used is applied to an	entire trip and
not to selected days of the trip, and	results in charges
consistent with those normally allowed by	the institution in
its regular operations.
b.	Travel costs are allowable subject to c, d, e,
and f below, when they are directly attributable to specific
work under a sponsored agreement or are incurred in the
normal course of administration of the institution or a
department or program thereof.
c.	The difference in cost between first-class air
accommodations and less than first-class air accommodations
is unallowable except when less than first-class air
accommodations are not reasonably available to meet
necessary mission requirements, such as where less than
first-class accommodations would (1) require circuitous
routing, (2) require travel during unreasonable hours, (3)
greatly increase the duration of the flight, (4) result in
additional costs which would offset the transportation
savings, or (5) offer accommodations which are not
reasonably adequate for the medical needs of the traveler.
d.	Costs of personnel movements of a special or
mass nature are allowable only when authorized or approved
in writing by the sponsoring agency or its authorized
representative.
e.	Foreign travel costs are allowable only when the
travel has received specific prior approval. Each separate
foreign trip must be specifically approved. For purposes of
this provision, foreign travel is defined as any travel
outside of Canada and the United States and its territories
and possessions. However, for an organization located
outside Canada and the United States and its territories and
possessions, foreign travel means travel outside that
country.
f.	Domestic travel costs are allowable when
permitted by the sponsored agreement. Expenditures for such
travel will not be allowed if they exceed the amount
specified by more than 25% or $500, whichever is greater,
except with an advanced approval of the sponsoring agency.
44. Termination costs applicable to sponsored
agreements.
a. Termination of sponsored agreements generally
gives rise to the incurrence of costs or to the need for
Appendix 13-A-57
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ASSISTANCE ADMINISTRATION
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special treatment of costs, which would not have arisen had
the agreement not been terminated Items peculiar to
termination are set forth below. They are to be used in
conjunction with all other provisions of this Circular in
the case of termination.
b.	The cost of common items of material reasonably
usable on the institution's other work will not be allowable
unless the institution submits evidence that it could r.ot
retain such items at co^t without sustaining a loss. In
deciding whether such' items are reasonably usable on other
work of the institution, consideration should be given to
the institution's plans and orders for current and scheduled
work. Contemporaneous purchases of common items by the
institution will be regarded as evidence that such items are
reasonably usable on the institution's other work. Any
acceptance of common items as allowable to the terminated
portion of the agreement should be limited to the extent
that the quantities of such items on hand, in transit, and
on order are in excess of the reasonable quantitative
requirements of other work.
c.	If m a particular case, despite all reasonable
efforts by the institution, certain costs cannot be
discontinued immediately after the effective date of
termination, such costs are generally allowable within the
limitations set forth in this Circular, except that any such
costs continuing after termination due to the negligent or
willful failure of the institution to discontinue such costs
will be considered unacceptable.
d.	Loss of useful value of special tooling, and
special machinery and equipment is generally allowable,
provided (1) such special tooling, machinery, or equipment
is not reasonably capable of use in the other work of the
institution; (2) the interest of the Government is protected
by transfer of title or by other means deemed appropriate by
the contracting officer or equivalent; and (3) tne loss of
useful value as to any one terminated agreement is limited
to that portion of the acquisition cost which bears the same
ratio to the total acquisition cost as the terminated
portion of the agreement bears to the entire terminated
agreement and other Government agreements for which the
special tooling, special machinery, or equipment was
acquired.
e.	Rental costs under unexpired leases are
generally allowable where clearly shown to have beer,
reasonably necessary for the performance of the terminated
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ASSISTANCE ADMINISTRATION
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agreement, less the residual value of such leases, if (1)
the amount of such rental claimed does nbt exceed the
reasonable use value of the property leased for the period
of the agreement and such further period as may be
reasonable; and (2) the institution makes all reasonable
efforts to terminate, assign, settle, or otherwsie reduce
the cost of such lease. There also may be included the cost
of alterations of such leased property, provided such
alterations were necessary for the performance of the
agreement, and of reasonable restoration required by the
provisions of the lease.
f.	Settlement expenses including the following are
generally allowable: (1) accounting, legal, clerical, and
similar costs reasonably necessary for the preparation and
presentation to contracting officers or equivalent of
settlement claims and supporting data with respect to the
terminated portion of the agreement, and the termination and
settlement of subagreements; and (2) reasonable costs for
the storage, transportation, protection, and disposition of
property provided by the Government or acquired or produced
by the institution for the agreement, except when the
institution is reimbursed for disposals at a predetermined
amount in accorandance with the provisions of Circular No.
A-110.
g.	Claims under subagreements, including the
allocable portion of claims which are common to the
agreement and to other work of the institution, are
generally allowable.
K. Certification of charges. To assure that expenditures
for sponsored agreements are proper and in accordance with
the agreement documents and approved project budgets, the
annual and/or final fiscal reports or vouchers requesting
payment under the agreements will include a certification,
signed by an authorized official of the university, which
reads essentially as follows: "I certify that all
expenditures reported (or payment requested) are for
appropriate purposes and in accordance with the provisions
of the application and award documents."
Appendix 13-A-59
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w- Ji ¦ aHaii
weanoiaiY
January 28, 1981
5700
12/3/84
Part X
Office of
Management and
Budget	
Cost Principles for State and Local
Governments
Appendix 13-B
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ASSISTANCE AEMDOSTRATION
Federal Bagbtar / Vol 40, No. IS / Wednesday, January 28.1981 / Notices
5700
12/3/W
OFFICS OF MANAGEMENT AND
Coal PrtndptM for Stat* and Local
Budget
Office of Management and
Final policy.
V! Thie no tic* advU«s that
Federal Management Circular 74-4
[Revised), dated )oly IS, 1974, is
reissued under its original designation of
Office of Management and Budget
Clrcnlar No. A-SJ. No substantive
rkungif are in Circular. Tbe
areolar U let forth below In Its entirety,
¦mcnvi bats The revision was
effective January 15.1S8L
pom pumrna mpommtion com act
Palmer Marcantonio. Deputy Chief,
Financial Management Branch. Budget
Review Division. 6002 New Executive
Office Building, Washington. D.C 20503.
202/389-4773.
to obtain tmau coptn or thi
cmcuum, contact: Document
Distribution Center. Office of
Administration, G-238 New Executive
Office Building, Washington, D.C 20503.
TO OBTAIN HULTWU COMU, CONTACT:
Superintendent of Documents, U.S.
Government Printing Office,
Washington, D.C. 20402.
Dental P. Una
Budget and Maaagvmtnt Oflhtr.
January IS. lsu.
To: The Heads of Executive Departments and
Establishments.
Subject; Cost principles for State and local
governments.
1. Purpose. This Circular establishes
principles sod standards for determining
costs applicable to grants, contracts. and
other agreements with Stats and local
governments and federally-recogmxeti Indian
mbal governments.
1. Superwuian. This Circular supersedes
Federal Management Circular 74-4 as
revised. The Circular ia reissued under its
original designation of OMB Circular A-87.
t. Summary of changn. No substantive
-*"T* are made Is the Circular.
4. Poilcy intanL This Circular provides
principles fee determining the allowable eoets
of programs administered by Stats, local, sad
Cedsrally-isi agnized Indian tribal
governments mdcf puts from contracts
with the Federal Government They are
designed to provide the basis for a usl/ann
approach to the problem of determining costs
and to promote efficiency and better
relationships between grantees snd the
Federal Govemmsnt. The principles are for
determining costs only and are not intended
to identify the drcnmstsnces nor to dictate
the extent of Federal and State or local
|g t^| Qgiggjgg gf | pflftiCllitf
protect. They an designed to provide that
federally sssliteri programs bear their fair
share of oosis rscogntesd coder these
principles except where restricted or
prohibited by lew. No p»o»UUo for profit ar
other Increment above cost Is intended.
5. Applicability sod scope,
a The pruriskis of this Circular apply to
all Federal agencies responsible for
administering programs that involve grants
and contracts with State, local and fsderally-
temgnliad Indian tribal umsinrnanti
b. Its provisions do not sppiy to grants and
contrasts wide
(11 Pubtidy-finaneed srtucstinnal
institutions subject to Office of Menagemant
and Budget Orcular A-2t and
(2) Publldy owned hospitals and other
providers of medical can subject to
requirements pnamlgated by the «f ""^"g
Federal sgendes.
Any other exception will be approved by
the OfBos of Management and Budget ha
parttmlsr cssss whins adequate justifleatioa
Is presented
ft. Attachment*. The ptindples and related
policy guides are set forth. In the attachments,
which are:
Attachment A—Principles for determining
costs applicable to grants and contracts
with State. local, and federally^ecognixed
Indian tribal govenunenta.
Attachment B—Standards for selected Items
of cost
?. Inquiries. Further Information concerning
this Circular nay be obtained by contacting
the Financial Management Branch. Budget
Review Division. Office of Management and
Budget. Washington. D.C 20S03. telephone
202-395-4773.
James T. Mclntyre. Jr.
Dbwctar.
(Cireular Na A^87]
Attachment A—Principles for
Determining Costs Applicable to Grants
and Contracts With State. Local, and
Federally Recognized Indian Tribal
Governments
TABLE OF CONTENTS
K Purpose and scope
1.	Objectives
2.	Policy guides
3.	Application
B. Definitions
1. Approval or authorisation of the grantor
Federal agency
1 Coal allocation plan	-¦
t. Cost
4.	Coet objective
5.	Federal egeacy
0. Federally-recognised Indian tribal
7. Grant
I	Gtcnt program
S. Grantee
10. Local unit
U. Other State or local agenrlas
12. Services
II	Supporting sendees
C Basic guidelines
1.	Factors affecting allowability of coats
2.	Ailooebls cosu
X Applicable credits
D. Composition of catt
1. Total coet
& QmHUitto ot cnrt»
KJUwfaati
1.	General
2.	AppUcsttoo
V. bdinct costs
1. General
& Grant** dtptftmntsl	cottf
X UmitaHwi 0B hnjhart GOStl
G. Con iacuired by agencies othtr than tie
f^ iwiag»innt
Appendix 13-B-l
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ASSISTANCE fiJOKDUSTRXTIOH
	Pad—1	/ VoL 48. No. 16 f Wedn—day, fnoary a. 1981 / Nottcw
techniques may be necessary to um
proper and efficient administration.
3. Application. These principle* will
ba applied by all Federal agencies la
determining cost* Incurred by Stats,
local and federally recognised Indian
tribal governments under Federal grants
and cost reimbursement type contracts
(btftadlng subgranta and subcontracts)
except those with (a) publicly-financed
educational institution* subject to Office
of Manigement and Budget Circular A-
2L and (b) pnblicly-owned hospitals and
other provider* of medical can ssbfect
to requirement! promulgated by the
sponsoring Federal agendo*.
B. Definition*.
1. Approval or authorization of the
grantor Federal agency means
documentation evidencing content priof
to incurring specific cotL
2 Cost allocation plan meani the
documentation identifying,
accumulating. and distributing
allowable coiti under grant* and
contract* together with the allocation
method* used.
3.	CotL a* used herein, mean* coit a*
determined on a cash, accrual, or other
b«*t* acceptable to the Federal grantor
agency aa a discharge of the grantee'*
accountability for Federal fund*.
4.	Cast objective meant a pool center,
or area established for the accumulation
of coat Such area* include
(ggantiahwialmrit*. fonction*,objects	
or Item* of expense. il well a* ultimate
cost objective* including specific grant*,
protects, contract*, and other activities.
5.	Federal agency mean* any
department agency, commission, or
instrumentality m the executive branch
of the Federal Government which makes
grant* to or contracts with State, local,
or lederally-recogmxed Indian tnbal
governments.
8. Fedarally-nccgruied Indian tribal
governments means the governing body
or a governmental agency of any Indian
tribe, hand, nation or other organised
group or community (including any
native village u defined in Section a of
the Alaska Native	Settlement
Act 8S Stat. 888) certified by the
Secretary of the Interior as eligible far
the special program* and service*
provided by him through the Bureau of
Indian Affairs.
7. Grant meana an agreement between
the Federal Government and a State,
local or federally-recognized Indian
tribal government whereby the Federal
Government provides funds or aid In
kind to carry out specified programs,
services, or activities. The principle*
and policies stated In this Circular as
applicable U> grants in general also
apply to any federal! y-eponsored cost
reimbursement-type of agreement
performed by a State, local or federally-
recognized Indian tribal government
8.	Grant program mean* thoae
activities and operation* of the grantee
which an necessary to cany out the
purposes of the grant. Including any
portion of the program financed by the
grantee.
9.	Grantee means the department or
agency of State, locaL or federally
recognized Indian tribal government
which is responsible for administration
of the grant
10.	Local unit means any political
subdivision of government below the
State leveL
11.	Other State or local agenda*
means department or agencies of the
State or local unit which provide goods,
facilities, and services to a grantee.
12.	Service*, as used herein, mean*
goods and facilities, as well a* services.
13.	Supporting lerrice* meana
auxiliary function* necessary to sustain
the direct effort involved in
administering a grant program or an
activity providing service to the grant
program. These services may be
centralized m the grantee department or
tn some other agency, and inlcude
procurement payroll personnel
functions, maintenance and operation of
space, data processing, accounting,
budgeting, auditing, snail and messenger
service, and the lika.
C. Basic guideline*.
"1.Factors affecting allowability of
costs. To allowable under a grant
program, costs must meet the following
general criteria:
a.	Be necessary and reasonable for
proper and efficient administration of
the grant programs, be allocable thereto
under these principles, and except as
specifically provided herein, uot be a
general expense required to cany out
the overall responsibilities of Slate,
local or federally-recognized Indian
tribal governments.
b.	fie authorized or not prohibited
under State or local laws or regulation*.
c.	Conform to any limitations or
exclusions set forth In these principles.
Federal laws, or other governing
limitations as to types or amounts of
cost items.
d.	Be consistent with policies,
regulations, and procedures that apply
uniformly to both federally aasirted and
other activities of the unit of government
of which the grantee is a part.
e.	Be accorded consistent treatment
through application of generally
accepted accounting principles
appropriate to the circumstance*.
t Not be allocable to or Included a* a
cost of any other federally financed
program In either the current or a prior
period.
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954t
g. Be net of ail applicable credit*.
2.	Allocable ant*.
a.	A cost 1* allocable to a particular
cost objective to the extent of benefit*
received by such objective.
b.	Any coet allocable to a particular
grant or cost objective under tha
prindplas provided for in this Circular
may not be shifted to other Federal
mat programs to overman fund
deficiencies, avoid restrictions Imposed
by law or grant agreements, or for other
reasons.
c.	Where an allocation of joint cost
will ultimately result In charges to a
grant program, an allocation plan will be
required as prescribed in Section ].
3.	Applicable credit*.
a.	Applicable credits refer to those
receipts or reduction erf expenditure-
type transactions which offset or reduce
expense items allocable to grants as
direct or indirect costs. Examples of
such transactions are: purchase
discounts; rebates or allowances,
recoveries or indeminties on losses; sale
of publications, equipment and scrap;
income from personal or Incidental
services; and adjustments of
overpayments or erroneous charges.
b.	Applicable credits may also anse
when Federal funds are received or are
available from sources other than the
grant program involved to finance
opera Hons or capital items of the
grantee. This includes costs arising from
the use or depreciation of items donated
or financed by the Federal Government
to fulfill	requiimenta nVw
another grant program. These types of
credits should likewise be used to
reduce related expenditures in
determining the rates or amounts
applicable to a given grant
D. Composition of Coat
t. Total co*t The total cost of a grant
program is comprised of the allowable
direct cost incident to its performance,
plus its allocable portion of allowable
Indirect costs, leu applicable credits.
2. Ciaaification of cost*. There is no
universal rale for classifying
costs as either direct or Indirect under
every accounting system. A cost may be
direct with respect to same specific
Service or function, bat indirect with
respect to the grant or other ultimate
cost objective. It is essential therefore,
that each ltem-of cost be treated
consistently either as a direct or an
indirect cost Specific guides for
determining direct and indirect costs
allocable under grant programs an
provided in tha sections which follow;
£ Dlnct Co*t»
1. General. Direct costs are those that
can be identified specifically with a
Appendix 13-B-2
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ASSISTANCE AEPCNISTRATICN
Ftd—1 Reglatet / VoL 40. Na IB / Wednesday, ) angary 28. 1881 / Notiqes
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particular oast objective Hum costs
may be charged directly to grants,
contracts, or to other programs against
which costs an finally lodged Direct
costs may also be charged to cost
objective* used for the accumulation of
coats	distribution In due course
to grants and other ultimate cost
objectives.
2. Application. Typical direct costs
chargeable to giant programs are:
a.	Compensation of employee* for the
time and efforts devoted specifically to
tfab execution of grant program.
b.	Cost of materials acquired,
consumed, or expended specifically for
the purpose of the grant
c.	Equipment and other approved
capital expenditures.
a Other items of expense Incurred >
specifically to carry out the grant
agreement
e. Services famished specifically for
the grant program by other agencies.
provided such charges are consistent
with criteria outlined in Section G of
these principles.
F. Indirect Costs
1. General. Indirect costs are those (a)
incurred for a common or joint purpose
benefiting more than one cost objective,
and (b) not readily assignable to the cost
objectives specifically benefited,
without effort disproportionate to the
available an deemed snfficiwnt to
enable the contracting parties to reach
an informed judgment (1) as to tha
probable level of indirect costs in the
grantee department during the period to
be covered by the negotiated rate, and
(2) that the amount allowable under tha
predetermined rate would not exceed
actual indirect cost
b. Negotiated Jump sum for overhead.
A negotiated fixed amount in lien of
indirect costs may be appropriate under
circumstances where the benefit*
derived from a grantee department's
Indirect services cannot be readily
determined as in the case of small, self-
contained or Isolated activity. When this
method Is used, a determination should
be made that the amount negotiated will
be approximately the same as the actual
indirect cost that may be incurred. Such
amounts negotiated in lieu of indirect
costs will be treated as an offset to total
indirect expenses of the grantee
department before allocation to
remaining activities. The base on which
such remaining expenses are allocated
should be appropriately adjusted
3. Limitation on indirect costs.
a. Federal grants may be subject to
laws that limit the amount of indirect
costs that may be allowed Agencies
that sponsor grants of this type will
establish procedures which will assure
that tha amount actually allowed for
results achieved. Hie teiiu "indirect	indirect coats-undsr ^irh gpw*
costs," as used herein, appllerto costs	...
of this type originating in the grantee
department as well as those incurred by
other departments in supplying goods,
services, and facilities, to the grantee
department To facilitate equitable
distribution of indirect expenses to the
cost objectives served, it may be
necessary to establish a number of pools
of indirect cost within a grantee
department or in other agencies
providing services to a grantee
department Indirect cost pool* should
be distributed to benefiting cost
objective* on base* which will produce
an equitable result In consideration of
relative benefits derived.
2. Grantee departmental indirect
costs. All grantee departmental indirect
costs. Including the various levels of
supervision, am eligible for allocation to
grant programs provided they meet the
renditions set forth in this Circular. In
lieu of determining the actual amount of
grantee departmental indirect cost
allocable to a grant program, the
following methods may be used.
a. Predetermined fixed rates for
indirect costs. A predetermined fixed
rate for computing indirect costs
applicable to a grant may be negotiated
annually in situations where the cost
experience and other pertinent facts
does not exceed the mjuHmmw
allowable under the statutory limitation
or the amount otherwise allowable
under this Circular, whichever is the
smaller.
b. When the amount allowable under
a statutory limitation is lets than the
amount otherwise allocable bb indirect
costs under this Circular, the amount not
recoverable as indirect costs under a
grant not be shifted to another federally-
sponsored grant program or contract
G. Cost Incurred by Agencies Other
Than the Grantee
l. General The cost of service
provided by other agencies may only
tndnrie allowable direct costs of the
service plus a pro rata share of
allowable supporting costs (Section
B.12.) and supervision directly required
in performing the service, but not
supervision of a general nature such as
that provided by the head of a
department and his staff nasistants not
directly involved In operations.
However, supervision by the bead of a
department or agency whose sole
function is providing the service
furnished would be an eligible cost
Supporting costs include those furnished
by other units of the supplying
department or by other agencies.
2. Alternative method* of determining
indirect cost. In lieu of determining
actual indirect cost related to a
partfcnlsr service famished by another
agency, elthar of the following
alternative methods may be used
provided only one method is used for a
specific service during the fiscal year
Involved.
a.	Standard indirect rate. An amount
equal to ten percent of direct labor coat
in providing the service performed by
another State agency (excluding
overtime, shift or holiday premiums ""i
fringe benefits) may be allowed in lien
of actual allowable indirect coat for that
service.
b.	Predetermined fixed rate. A
predetermined fixed rate for indirect
cost of the unit or activity providing
service may be negotiated as set forth In
Section Fia.
H. Cost Incurred by Grantee
Department for Others
1. General The principles provided in
Section G will also be used in
determining the coat of services
provided by the grantee department to
another agency.
f. Cost Allocation Plan
1.	General. A plan for allocation of
costs will be required to support the
distribution of any joint coats related to
the grant program. All costs Included in
the plan will be supported by formal
accounting records which will
substantiate the propriety of eventual
charge*.
2.	Requirements. The allocation plan
of the grantee department should cover
all joint costs of the department as well
as costs to be allocated under plans of
other agencies or organizational units
which are to be included in the costs of
federally-sponsored programs. The cost
allocation plana of all the agencies
rendering services to the grantee
department to the extent feasible,
should be presented in a single
document'The allocation plan should
am tain, but not necessarily be limited
to. the following;
a.	Tha nature and extent of services
provided and their relevance to the
federally-sponsored programs.
b.	The items of expense to be
included.
c.	The methods to be used in
distributing cost
3.	Instructions for preparation of cost
allocation plant. The Department of
Health and Human Services in
consultation with the other Federal
agencies concerned, will be responsible
for developing and issuing the
instructions for use by grantees in
preparation of cost allocation plana.
Appendix 13-B-3
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Wednesday
January 28, 1981
Part X
Office of
Management and
Budget
Cost Principles for State and Local
Governments
Aooendix 13-B
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ASSISTANCE ADMINISTRATION
Federal Register / Vol. 46, No. 18 / Wednesday, January 28.1981 / Notices
5700
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OFFICE OF MANAGEMENT AND
BUDGET
Cost Principles for State and Local
Governments
AGENCY: Office of Management and
Budget
ACTION: Final policy.
SUMMARY; This notice advises that
Federal Management Circular 74-4
(Revised), dated July 18,1974, is
reissued under its onginal designation of
Office of Management and Budget
Circular No. A-87 No substantive
changes are made in the Circular. The
Circular is set forth below in its entirety
EFFECTIVE DATE: The revision was
effective January 15,1981.
FOR FURTHER INFORMATION CONTACT:
Palmer Marcantonio, Deputy Chief,
Financial Management Branch, Budget
Review Division, 6002 New Executive
Office Building, Washington, D C 20503,
202/395-4773.
TO OBTAIN SINGLE COPIES OF THE
circular, contact: Document
Distribution Center, Office of
Administration, G-236 New Executive
Office Building, Washington, D.C 20503
TO OBTAIN MULTIPLE COPIES, CONTACT:
Superintendent of Documents, U S
Government Printing Office,
Washington, D C 20402
Daniel F Mann,
Budget and Management Officer
January 15.1981
To The Heads of Executive Departments and
Establishments
Subject Cost principles for State and local
governments
1	Purpose This Circular establishes
principles and standards for determining
costs applicable to grants, contracts, and
other agreements with State and local
governments and federally-recognized Indian
tribal governments
2	Supersession This Circular supersedes
Federal Management Circular 74-4 as
revised The Circular is reissued under its
onginal designation of OMB Circular A-87
3	Summary of changes No substantive
changes are made in the Circular
4	Policy intent This Circular provides
principles for determining the allowable costs
of programs administered by State, local, and
federally-recognized Indian tribal
governments under grants from and contracts
with the Federal Government They are
designed to provide the basis for a uniform
approach to the problem of determining costs
and to promote efficiency and better
relationships between grantees and the
Federal Government The principles are for
determining costs only and are not intended
to identify the circumstances nor to dictate
the extent of Federal and State or local
participation in the financing of a particular
protect They are designed to provide that
federally-assisted programs bear their fair
share of costs recognized under these
principles except where restricted or
prohibited by law No provision for profit or
other increment above cost is intended
5	Applicability and scope
a.	The provisions of this Circular apply to
all Federal agencies responsible for
administering programs that involve grants
and contracts with State, local, and federally-
recognized Indian tribal governments
b.	Its provisions do not apply to grants and
contracts with
(1)	Publicly-financed educational
institutions subject to Office of Management
and Budget Circular A-21, and
(2)	Publicly owned hospitals and other
providers of medical care subject to
requirements promulgated by the sponsoring
Federal agencies
Any other exceptions will be approved by
the Office of Management and Budget in
particular cases where adequate justification
is presented
6	Attachments The principles and related
policy guides are set forth m the attachments,
which are
Attachment A—Principles for determining
costs applicable to grants and contracts
with State, local, and federally-recognized
Indian tribal governments
Attachment B—Standards for selected items
of cost
7	Inquiries Further information concerning
this Circular may be obtained by contacting
the Financial Management Branch, Budget
Review Division, Office of Management and
Budget, Washington. D C. 20503, telephone
202-395-4773
James T Mclntyre, Jr
Director
[Circular No A-87]
Attachment A—Principles for
Determining Costs Applicable to Grants
and Contracts With State, Local, and
Federally Recognized Indian Tribal
Governments
TABLE OF CONTENTS
A Purpose and scope
1	Objectives
2	Policy guides
3	Application
B Definitions
1	Approval or authorization of the grantor
Federal agency
2	Cost allocation plan
3	Cost
4	Cost objective
5	Federal agency
6	Federally-recognized Indian tribal
governments
7	Grant
8	Grant program
9	Grantee
10	Local unit
11	Other State or local agencies
12	Services
13	Supporting services
C Basic guidelines
1	Factors affecting allowability of costs
2	Allocable costs
3	Applicable credits
D Composition of cost
1 Total cost
2 Classification of costs
E Direct costs
1	General
2	Application
F Indirect costs
1	General
2	Grantee departmental indirect costs
3	Limitation on indirect costs
G.	Cost incurred by agencies other than the
grantee
1	General
2	Alternative methods of determining
indirect cost
H.	Cost incurred by grantee department for
others
1 General
J Cost allocation plan
1	General
2	Requirements
3	Instructions for preparation of cost
allocation plans
4. Negotiation and approval of indirect cost
proposals for States
5	Negotiation and approval of indirect cost
proposals for local governments
6	Negotiation and approval of indirect cost
proposals for federally-recognized Indian
tribal governments
7	Resolution of problems
A Purpose and scope
1 Objectives This Attachment sets
forth principles for determining the
allowable costs of programs
administered by State, local, and
federally-recognized Indian tribal
governments under grants from and
contracts with the Federal Government
The principles are for the purpose of
cost determination and are not intended
to identify the circumstances or dictate
the extent of Federal and State or local
participation in the financing of a
particular grant They are designed to
provide that federally-assisted programs
bear their fair share of costs recognized
under these principles, except where
restricted or prohibited by law. No
provision for profit or other increment
above cost is intended
2. Policy guides The application of
these principles is based on the
fundamental premises that
a State, local, and federally
recognized Indian tribal governments
are responsible for the efficient and
effective administration of grant and
contract programs through the
application of sound management
practices
b The grantee or contractor assumes
the responsibility for seeing that
federally-assisted program funds have
been expended and accounted for
consistent with underlying agreements
and program objectives
c Each grantee or contractor
organization, in recognition of its own
unique combination of staff facilities
and experience, will have the primary
responsibility for employing whatever
form of organization and management
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5700
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particular cost objective These costs
may be charged directly to grants,
contracts, or to other programs against
which costs are finally lodged Direct
costs may also be charged to cost
objectives used for the accumulation of
costs pending distribution in due course
to grants and other ultimate cost
objectives
2 Application Typical direct costs
chargeable to grant programs are
a Compensation of employees for the
time and efforts devoted specifically to
the execution of grant programs
b Cost of materials acquired,
consumed, or expended specifically for
the purpose of the grant
c Equipment and other approved
capital expenditures
d Other items of expense incurred
specifically to carry out the grant
agreement
e Services furnished specifically for
the grant program by other agencies,
provided such charges are consistent
with criteria outlined in Section G of
these principles
F Indirect Costs
1	General Indirect costs are those (a)
incurred for a common or joint purpose
benefiting more than one cost objective,
and (b) not readily assignable to the cost
objectives specifically benefited,
without effort disproportionate to the
results achieved The term "indirect
costs," as used herein, applies to costs
of this type originating in the grantee
department, as well as those incurred by
other departments in supplying goods,
services, and facilities, to the grantee
department To facilitate equitable
distribution of indirect expenses to the
cost objectives served, it may be
necessary to establish a number of pools
of indirect cost within a grantee
department or in other agencies
providing services to a grantee
department Indirect cost pools should
be distributed to benefiting cost
objectives on bases which will produce
an equitable result in consideration of
relative benefits derived
2	Grantee departmental indirect
costs All grantee departmental indirect
costs, including the various levels of
supervision, are eligible for allocation to
grant programs provided they meet the
conditions set forth in this Circular In
lieu of determining the actual amount of
grantee departmental indirect cost
allocable to a grant program, the
following methods may be used
a Predetermined fixed rates for
indirect costs A predetermined fixed
rate for computing indirect costs
applicable to a grant may be negotiated
annually in situations where the cost
experience and other pertinent facts
available are deemed sufficient to
enable the contracting parties to reach
an informed judgment (1) as to the
probable level of indirect costs in the
grantee department during the period to
be covered by the negotiated rate, and
(2) that the amount allowable under the
predetermined rate would not exceed
actual indirect cost
b Negotiated lump sum for overhead
A negotiated fixed amount in lieu of
indirect costs may be appropriate under
circumstances where the benefits
derived from a grantee department's
indirect services cannot be readily
determined as in the case of small, self-
contained or isolated activity. When this
method is used, a determination should
be made that the amount negotiated will
be approximately the same as the actual
indirect cost that may be incurred Such
amounts negotiated in lieu of indirect
costs will be treated as an offset to total
indirect expenses of the grantee
department before allocation to
remaining activities The base on which
such remaining expenses are allocated
should be appropriately adjusted
3 Limitation on indirect costs
a Federal grants may be subject to
laws that limit the amount of indirect
costs that may be allowed Agencies
that sponsor grants of this type will
establish procedures which will assure
that the amount actually allowed for
indirect costs under each such grant
does not exceed the maximum
allowable under the statutory limitation
or the amount otherwise allowable
under this Circular, whichever is the
smaller
b When the amount allowable under
a statutory limitation is less than the
amount otherwise allocable as indirect
costs under this Circular, the amount not
recoverable as indirect costs under a
grant not be shifted to another federally-
sponsored grant program or contract
G Cost Incurred by Agencies Other
Than the Grantee
1 General The cost of service
provided by other agencies may only
include allowable direct costs of the
service plus a pro rata share of
allowable supporting costs (Section
B12 ) and supervision directly required
in performing the service, but not
supervision of a general nature such as
that provided by the head of a
department and his staff assistants not
directly involved in operations
However, supervision by the head of a
department or agency whose sole
function is providing the service
furnished would be an eligible cost
Supporting costs include those furnished
by other units of the supplying
department or by other agencies
2 Alternative methods of determining
indirect cost In lieu of determining
actual indirect cost related to a
particular service furnished by another
agency, either of the following
alternative methods may be used
provided only one method is used for a
specific service during the fiscal year
involved
a Standard indirect rate An amount
equal to ten percent of direct labor cost
in providing the service performed by
another State agency (excluding
overtime, shift, or holiday premiums and
fringe benefits) may be allowed in lieu
of actual allowable indirect cost for that
service
b Predetermined fixed rate A
predetermined fixed rate for indirect
cost of the unit or activity providing
service may be negotiated as set forth in
Section F 2 a
H Cost Incurred by Grantee
Department for Others
1 General The principles provided in
Section G will also be used in
determining the cost of services
provided by the grantee department to
another agency
] Cost Allocation Plan
1	General A plan for allocation of
costs will be required to support the
distribution of any joint costs related to
the grant program. All costs included in
the plan will be supported by formal
accounting records which will
substantiate the propriety of eventual
charges
2	Requirements The allocation plan
of the grantee department should cover
all joint costs of the department as well
as costs to be allocated under plans of
other agencies or organizational units
which are to be included in the costs of
federally-sponsored programs The cost
allocation plans of all the agencies
rendering services to the grantee
department, to the extent feasible,
should be presented in a single
document The allocation plan should
contain, but not necessarily be limited
to. the following
a The nature and extent of services
provided and their relevance to the
federally-sponsored programs
b The items of expense to be
included
c The methods to be used in
distributing cost
3	Instructions for preparation of cost
allocation plans The Department of
Health and Human Services in
consultation with the other Federal
agencies concerned, will be responsible
for developing and issuing the
instructions for use by grantees in
preparation of cost allocation plans
Appendix 13-B-3
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Federal Register / Vol. 46, No. IB / Wednesday. January 28, 1981 / Notices	9549
techniques may be necessary to assure
proper and efficient administration.
3. Application. These principles will
be applied by all Federal agencies in
determining costs incurred by State,
local, and federally recognized Indian
tribal governments under Federal grants
and cost reimbursement type contracts
(including subgrants and subcontracts)
except those with (a) publicly-financed
educational institutions subject to Office
of Management and Budget Circular A-
21, and (b) publicly-owned hospitals and
other providers of medical care subject
to requirements promulgated by the
sponsoring Federal agencies
B Definitions
1	Approval or authorization of the
grantor Federal agency means
documentation evidencing consent prior
to incurring specific cost
2	Cost allocation plan means the
documentation identifying,
accumulating, and distributing
allowable costs under grants and
contracts together with the allocation
methods used
3	Cost, as used herein, means cost as
determined on a cash, accrual, or other
basis acceptable to the Federal grantor
agency as a discharge of the grantee's
accountability for Federal funds
4	Cost objective means a pool, center,
or area established for the accumulation
of cost Such areas include
organizational units, functions, objects
or items of expense, as well as ultimate
cost objectives including specific grants,
projects, contracts, and other activities
5	Federal agency mean9 any
department, agency, commission, or
instrumentality in the executive branch
of the Federal Government which makes
grants to or contracts with State, local,
or federally-recognized Indian tribal
governments
6	Federally-recognized Indian tribal
governments means the governing body
or a governmental agency of any Indian
tribe, band, nation, or other organized
group or community (including any
native village as defined in Section 3 of
the Alaska Native Claims Settlement
Act, 85 Stat 688) certified by the
Secretary of the Interior as eligible for
the special programs and services
provided by him through the Bureau of
Indian Affairs
7	Grant means an agreement between
the Federal Government and a State,
local, or federally-recognized Indian
tribal government whereby the Federal
Government provides funds or aid in
kind to carry out specified programs,
services, or activities The principles
and policies stated in this Circular as
applicable to grants in general also
apply to any federally-sponsored cost
reimbursement-type of agreement
performed by a State, local, or federally-
recognized Indian tribal government.
8 Grant program means those
activities and operations of the grantee
which are necessary to carry out the
purposes of the grant, including any
portion of the program financed by the
grantee
9. Grantee means the department or
agency of State, local, or federally
recognized Indian tribal government
which is responsible for administration
of the grant.
10	Local unit means any political
subdivision of government below the
State level
11	Other Slate or local agencies
means department or agencies of the
State or local unit which provide goods,
facilities, and services to a grantee.
12	Services, as used herein, means
goods and facilities, as well as services.
13	Supporting services means
auxiliary functions necessary to sustain
the direct effort involved in
administering a grant program or an
activity providing service to the grant
program These services may be
centralized in the grantee department or
in some other agency, and mlcude
procurement, payroll, personnel
functions, maintenance and operation of
space, data processing, accounting,
budgeting, auditing, mail and messenger
service, and the like
C Basic guidelines
1 Factors affecting allowability of
costs To allowable under a grant
program, costs must meet the following
general criteria
a Be necessary and reasonable for
proper and efficient administration of
the grant programs, be allocable thereto
under these principles, and except as
specifically provided herein, not be a
general expense required to carry out
the overall responsibilities of State,
local or federally-recognized Indian
tribal governments
b Be authorized or not prohibited
under State or local laws or regulations
c Conform to any limitations or
exclusions set forth in these principles.
Federal laws, or other governing
limitations as to types or amounts of
cost items.
d Be consistent with policies,
regulations, and procedures that apply
uniformly to both federally assisted and
other activities of the unit of government
of which the grantee is a part
e Be accorded consistent treatment
through application of generally
accepted accounting principles
appropriate to the circumstances
f Not be allocable to or included as a
cost of any other federally financed
program in either the current or a prior
period
g Be net of all applicable credits.
2 Allocable costs.
a.	A cost is allocable to a particular
cost objective to the extent of benefits
received by such objective
b.	Any cost allocable to a particular
grant or cost objective under the
principles provided for in this Circular
may not be shifted to other Federal
grant programs to overcome fund
deficiencies, avoid restrictions imposed
by law or grant agreements, or for other
reasons
c Where an allocation of joint cost
will ultimately result in charges to a
grant program, an allocation plan will be
required as prescribed in Section ).
3. Applicable credits
a Applicable credits refer to those
receipts or reduction of expenditure-
type transactions which offset or reduce
expense items allocable to grants as
direct or indirect costs Examples of
such transactions are. purchase
discounts, rebates or allowances,
recoveries or indeminties on losses: sale
of publications, equipment, and scrap,
income from personal or incidental
services, and adjustments of
overpayments or erroneous charges
b Applicable credits may also arise
when Federal funds are received or are
available from sources other than the
grant program involved to finance
operations or capital items of the
grantee. This includes costs arising from
the use or depreciation of items donated
or financed by the Federal Government
to fulfill matching requirments under
another grant program. These types of
credits should likewise be used to
reduce related expenditures in
determining the rates or amounts
applicable to a given grant.
D Composition of Cost
1	Total cost The total cost of a grant
program is comprised of the allowable
direct cost incident to its performance,
plus its allocable portion of allowable
indirect costs, less applicable credits
2	Classification of costs. There is no
universal rule for classifying certain
costs as either direct or indirect under
every accounting system A cost may be
direct with respect to some specific
service or function, but indirect with
respect to the grant or other ultimate
cost objective It is essential, therefore,
that each item of cost be treated
consistently either as a direct or an
indirect cost Specific guides for
determining direct and indirect costs
allocable under grant programs are
provided in the sections which follow
E Direct Costs
1 General. Direct costs are those that
can be identified specifically with a
Appendix 13-B-2
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Federal Register / Vol. 46, No. 18 / Wednesday, January 28, 1981 / Notices	9551
This responsibility applies to both
central support services at the State,
local, and Indian tribal level and
indirect cost proposals of individual
grantee departments
4	Negotiation and approval of
indirect cost proposals for States
a The Department of Health and
Human Services, in collaboration with
the other Federal agencies concerned,
will be responsible for negotiation,
approval, and audit of cost allocation
plans, which will be submitted to it by
the States These plans will cover
central support service costs of the
State
b At the grantee department level in a
State, a single cognizant Federal agency
will have responsibility similar to that
set forth in a above, for the negotiation,
approval, and audit of the indirect cost
proposal A current list of agency
assignments is maintained by the Office
of Management and Budget
c Questions concerning the cost
allocation plans approved under a and
b above, should be directed to the
agency responsible for such approvals
5	Negotiation and approval of
indirect cost proposals for local
governments
a Cost allocation plans will be
retained at the local government level
for audit by a designated Federal agency
except in those cases where that agency
requests that cost allocation plans be
submitted to it for negotiation and
approval
b A list of cognizant Federal agencies
assigned responsibility for negotiation,
approval and audit of central support
service cost allocation plans at the local
government level is maintained by the
the Office of Management and Budget
c At the grantee department level of
local governments, the Federal agency
with the predominant interest in the
work of the grantee department will be
responsible for necessary negotiation,
approval and audit of the indirect cost
proposal
6	Negotiation and approval of
indirect cost proposals for federally
recognized Indian tribal governments
The Federal agency with the
predominant interest in the work of the
grantee department will be responsible
for necessary negotiation, approval and
audit of the indirect cost proposal
7	Resolution of problems To the
extent that problems are encountered
among the Federal agencies in
connection with 4 and 5 above, the
Office of Management and Budget will
lend assistance as required
[Circular No. A-87]
Attachment B—Standards for Selected
Items of Costs
Table of Contents
A Purpose and applicability
1	Objective
2	Application
B Allowable costs
1	Accounting
2	Advertising
3	Advisory councils
4	Audit service
5	Bonding
6	Budgeting
7	Building lease management
B Central stores
9	Communications
10	Compensation for personal services
11	Depreciation and use allowances
12	Disbursing service
13	Employee fringe benefits
14	Employee morale, health and welfare
costs
15	Exhibits
16	Legal expenses
17	Maintenance and repair
18	Materials and supplies
19	Memberships, subscriptions and
professional activites
20	Motor pools
21	Payroll preparation
22	Personnel administration
23	Printing and reproduction
24	Procurement service
25	Taxes
26	Training and education
27	Transportation
28	Travel
C Costs allowable with approval of grantor
agency
1	Automatic data processing
2	Building space and related facilities
3	Capital expenditures
4	Insurance and indemnification
5	Management studies
6	Preagreement costs
7	Professional services
8	Proposal costs
D Unallowable costs
1	Bad debts
2	Contingencies
3	Contributions and donations
4	Entertainment
5	Fines and penalties
6	Governor s expenses
7	Interest and other financial costs
8	Legislative expenses
9	Underrecovery of costs under grant
agreements
A Purpose and applicability
1	Objective This Attachment
provides standards for determining the
allowability of selected items of cost
2	Application These standards will
apply irrespective of whether a
particular item of cost is treated as
direct or indirect cost Failure to
mention a particular item of cost in the
standards is not intended to imply that it
is either allowable or unallowable,
rather determination of allowability in
each case should be based on the
treatment of standards provided for
similar or related items of cost. The
allowability of the selected items of cost
is subject to the general policies and
principles stated in Attachment A of this
Circular.
B Allowable costs
1	Accounting. The cost of establishing
and maintaining accounting and other
information systems required for the
management of grant programs is
allowable. This includes costs incurred
by central service agencies for these
purposes The cost of maintaining
central accounting records required for
overall State or Indian tnbal
government purposes, such as
appropriation and fund accounts by the
Treasurer, Comptroller, or similar
officials, is considered to be a general
expense of government and is not
allowable
2	Advertising Advertising media
includes newspapers, magazines, radio
and television programs, direct mail,
trade papers, and the like The
advertising costs allowable are those
which are solely for
a Recruitment of personnel required
for the grant program
b solicitation of bids for the
procurement of goods and services
required
c disposal of scrap or surplus
materials acquired in the performance of
the grant agreement
d Other purposes specifically
provided for in the grant agreement
3	Advisory councils Costs incurred
by State advisory councils or
committees established pursuant to
Federal requirements to carry out grant
programs are allowable The cost of like
organizations is allowable when
provided for in the grant agreement
4	Audit service The cost of audits
necessary for the administration and
management of functions related to
grant programs is allowable
5	Bonding Costs of premiums on
bonds covering employees who handle
grantee agency funds are allowable
6	Budgeting Costs incurred for the
development, preparation, presentation,
and execution of budgets are allowable
Costs for services of a central budget
office are generally not allowable since
these are costs of general government
However, where employees of the
central budget office actively participate
in the grantee agency's budget process,
the cost of identifiable services is
allowable
7	Building lease management The
administrative cost for lease
management which includes review of
lease proposals, maintenance of a list of
available property for lease, and related
activities is allowable
Appendix 13-6-4
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8.	Central stores. The cost of
maintaining and operating a central
stores organization for supplies,
equipment, and materials used either
directly or indirectly for grant programs
is allowable
9.	Communications Communication
costs incurred for telephone calls or
service, teletype service, wide area
telephone service (WATS), centrex,
telpak (tie lines), postage, messenger
service and similar expenses are
allowable
10.	Compensation for personal
services
a General Compensation for
personal services includes all
remuneration, paid currently or accured,
for services rendered during the period
of performance under the grant
agreement, including but not necessarily
limited to wages, salaries, and
supplementary compensation and
benefits (Section B 13 ) The costs of
such compensation are allowable to the
extent that total compensation for
individual employees (1) i? reasonable
for the services rendered, (2) follows an
appointment made in accordance with
State, local, or Indian tribal government
laws and rules and which meets Federal
merit system or other requirements,
where applicable, and (3) is determined
and supported as provided in b below
Compensation for employees engaged in
federally-assisted activities will be
considered reasonable to the extent that
it 19 consistent with that paid for similar
work in other activities of the State,
local, or Indian tribal government In
cases where the kinds of employees
required for the federally-assisted
activities are not found in the other
activities of the State, local, or Indian
tribal government, compensation will be
considered reasonable to the extent that
it is comparable to that paid for similar
work in the labor market in which the
employing government competes for the
kind of employees involved
Compensation surveys providing data
representative of the labor market
involved will be an acceptable basis for
evaluating reasonableness
b Payroll and distribution of time
Amounts charged to grant programs for
personal services, regardless of whether
treated as direct or indirect costs, will
be based on payrolls documented and
provided in accordance with generally
accepted practice of the State, local or
Indian tribal government Payrolls must
be supported by time and attendance or
equivalent records for individual
employees Salaries and wages of
employees chargeable to more than one
grant program or other cost objective
will be supported by appropriate time
distribution records The method used
should produce an equitable distribution
of time and effort.
11 Depreciation and use allowances
a. Grantees may be compensated for
the use of buildings, capital
improvements, and equipment through
use allowances or depreciation Use
allowances are the means of providing
compensation in lieu of depreciation or
other equivalent costs However, a
combination of the two methods may
not be used in connection with a single
class of fixed assets
b The computation of depreciation or
use allowance will be based on
acquisition cost Where actual cost
records have not been maintained, a
reasonable estimate of the original
acquisition cost may be used in the
computation The computation will
exclude the cost or any portion of the
cost of buildings and equipment donated
or borne directly or indirectly by the
Federal Government through charges to
Federal grant propgrams or otherwise,
irrespective of where title was originally
vested or where it presently resides In
addition, the computation will also
exclude the cost of land Depreciation or
a use allowance on idle or excess
facilities is not allowable, except when
specifically authorized by the grantor
Federal agency
c Where the depreciation method is
followed, adequate property records
must be maintained, and any generally-
accepted method of computing
depreciation may be used However, the
method of computing depreciation must
be consistently applied for any specific
asset or class of assets for all affected
federally-sponsored programs and must
result in equitable charges considering
the extent of the use of the assets for the
benefit of such programs
d In lieu of depreciation, a use
allowance for buildings and
improvements may be computed at an
annual rate not exceeding two percent
of acquisition cost The use allowance
for equipment (excluding items properly
capitalized as building cost) will be
computed at an annual rate not
exceeding six and two-thirds percent of
acquisition cost of usuable equipment
e No depreciation or use charge may
be allowed on any assets that would be
considered as fully depreciated,
provided, however, that reasonable use
charges may be negotiated for any such
assets if warranted after taking into
consideration the cost of the facility or
item involved, the estimated useful life
remaining at time of negotiation, the
effect of any increased maintenance
charges or decreased efficiency due to
age, and any other factors pertinent to
the utilization of the facility or item for
the purpose contemplated
12	Disbursing service The cost of
disbursing grant program funds by the
Treasurer or other designated officer is
allowable Disbursing services cover the
processing of checks or warrants, from
preparation to redemption, including the
necessary records of accountability and
reconciliation of such records with
related cash accounts
13	Employee fringe benefits Costs
identified under a and b below are
allowable to the extent that total
compensation for employees is
reasonable as defined in Section B 10
a Employee benefits in the form of
regular compensation paid to employees
during periods of authorized absences
from the )ob, such as for annual leave,
sick leave, court leave, military leave,
and the like, if they are (1) provided
prusuant to an approved leave system,
and (2) the cost thereof is equitably
allocated to all related activities,
including grant programs
b Employee benefits in the form of
employers' contribution or expenses for
social security, employees' life and
health insurance plans, unemployment
insurance coverage, workmen's
compensation insurance, pension plans,
severance pay, and the like, provided
such benefits are granted under
approved plans and are distributed
equitably to grant programs and to other
activities
14	Employee morale, health and
welfare costs The costs of health or
first-aid clinics and/or infirmaries,
recreational facilities, employees'
counseling services, employee
information publications, and any
related expenses incurred in accordance
with general State, local or Indian tribal
policy, are allowable Income generated
from any of these activities will be
offset against expenses
15	Exhibits Costs of exhibits relating
specifically to the grant programs are
allowable
16	Legal expenses The cost of legal
expenses required in the administration
of grant programs is allowable Legal
services furnished by the chief legal
officer of a State, local or Indian tribal
government or his staff solely for the
purpose of discharging his general
responsibilities as legal officer are
unallowable Legal expenses for the
prosecution of claims against the
Federal Government are unallowable
17	Maintenance and repair Costs
incurred for necessary maintenance,
repair, or upkeep of property which
neither add to the permanent value of
the property nor appreciably prolong its
intended life, but keep it in an efficient
operating condition, are allowable
18	Materials and supplies The cost of
materials and supplies necessary to
Appendix 13-B-5
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5700
12/3/84
8.	Central store*. The coat of
maintaining and operating a central
¦tores organization for supplies,
equipment, and material! used either
directly or indirectly for grant program*
is allowable.
9.	Communication*. Communication
costs incnrred for telephone calls or
service, teletype service, wide area
telephone service (WATS), centrex.
telpak (tie lines), postage, messenger
service and similar expenses are
allowable.
10.	Compensation for personal
sarsrices.
a.	General Compensation for
personal services includes all
remuneration, paid currently or secured,
for services rendered during the period
of performance under the grant
agreement, including bat not necessarily
limited to wages, salaries, and
supplementary compensation and
benefits (Section B.13.). The costs of
such compensation are allowable to the
extent that total compensation for
individual employees: (1) Is reasonable
for the services rendered: (2) follows an
appointment made in accordance with
State, local, or Indian tribal government
laws and rules and which meets Federal
ment system or other requirements,
where applicable; and (3) is determined
and aupported as provided in b. below.
Compensation for employees engaged in
federally-assisted activities will be
considered reasonable to the extern ihai
it is consistent with that paid for similar
work in other activities of the State,
local, or Indian tribal government In
cases where the kinds of employees
required for the federally-assisted
activities are not found in the other
activities of the State, local, or Indian
tnbal government, compensation will be
considered reasonable to the extent that
tt is comparable to that paid for similar
work in the labor market in which the
employing government competes for the
kind of employees involved.
Compensation surveys providing data
representative of the labor market
involved will be an acceptable basis for
evaluating reasonableness.
b.	Payroll and distribution of time.
Amounts charged to grant programs for
personal services, regardless of whether
treated as direct or indirect costs, will
be based on payrolls documented and
provided in accordance with generally
accepted practice of the State, local, or
Indian tribal government. Payrolls must
bo supported by time and attendance or
equivalent records for individual
employees. Salaries and wages of
employees chargeable to more than one
grant program or other cost objective
will be supported by appropriate time
distribution records. The method used
should produce an equitable distribution
of time and effort
11. Depredation and use allowance*.
a.	Grantees may be compensated for
the use of buildings, capital
improvements, and equipment through
use allowances or depredation. Use
allowances ore the means of providing
compensation fa lieu of depreciation or
other equivalent costs. However, a
combination of the two methods may
not be used In connection with a single
of flffld liiirti,
b.	The computation of depredation at
use allowance will be baaed on
acquisition cost Where actual cost
records have not bean mnlntninmi, a
reasonable estimate of the original
acquisition cost may be used in the
computation. The computation will
exclude the cost or any portion of the
cost of buildings equipment donated
or borne directly or indirectly by the
Federal Government through charges to
Federal grant propgrams or otherwise,
irrespective of where title was originally
vested or where it presently resides. In
addition, the computation will also
exdude the cost of land. Depreciation or
a use allowance on idle or excess
facilities is not allowable, except when
specifically authorized by the grantor
Federal agency.
c.	Where the depreciation method is
followed, adequate property records
tmut bft maintained,ony generally-
auapteil method of computing
depreciation may be used However, the
method of computing depreciation must
be consistently applied for any specific
aaset or dass of assets for all affected
federally-sponsored programs and must
result in equitable charges considering
the extent of the use of the assets for the
benefit of such programs.
d.	In lieu of depredation, a use
allowance for buildings and
improvements may be computed at an
rate not exceeding two percent
of acquisition cost The use allowance
for equipment (exdnding items properly
capitalised as building cost) will be
computed at an	rate not
exceeding six and twtMhirds percent of
acquisition cost at unable etraipment
a. No depredation or use ennrga may
be allowed on any assets that would be
considered aa fully depredated,
provided, however, that reasonable use
charges may be negotiated for any such
asaets if warranted after taking into
consideration the eost of the fadlity or
item involved, the estimated useful life
remaining at time of negotiation, the
effect of any increased mntntwiannw
charges or decreased effldency due to
age, and any other factors pertinent to
the utilisation of the facility or Item for
the purpose contemplated.
12. Disburaing aerrico. The cost of
disbarring grant program funds by the
Treasurer or other designated officer is
allowable. Disbursing services cover the
processing of checks or warrants, from
preparation to redemption, tnrJndftig the
necessary records of accountability and
reconduction of such records with
related cosh accounts.
Employee fringe benefit*. Costs
identified i, mnA ^ below are
allowable to the extent that total
compensation for employees is
reasonable as defined in Section B.10.
a.	Employee benefits in the form of
regular compensation paid to employees
dining periods of authorised absences
from the job, snch as for annual leave,
sick leave, court leave, military leave,
and the like, if they are: (1) provided
prusuant to an approved leave system:
and (2) tho cost thereof is equitably
allocated to all related activities,
indudlng grant programs.
b.	Employee benefits in the form of
employers' contribution or expenses for
sodal security, employees' life and
health insurance plans, unemployment
insurance coverage, workmen's
compensation insurance, pension plans,
severance pay. and the like, provided
such benefits are granted under
approved plans and are distributed
equitably to grant programs and to other
activities.
14.	Employee morale, health and
welfare costs. The coots of health or
first-aid clinics end/ or infirmaries,
recreational facilities, employees'
counseling services, employee
information publications, and any
related expenses incurred in accordance
with general State, local or Indian tribal
policy, are allowable. Income generated
from any of these activities will be
offset against expenses.
15.	Exhibit*. Costs of exhibits relating
specifically to the grant programs are
allowable.
IS. Lasal expense*. The cost of legal
firpfiriMi8 mjtilnd in tho Administration
of grant programs is allowable. Legal
services famished by the chief legal
officer of a State, local or Indian tribal
government or his staff solely for the
purpose of discharging his general
responsibilities as legal officer are
unallowable. Legal expenses for the
pFniiwflutinti of against tha
Federal Government are unallowable.
17.	Maintenance and repair. Costs
incurred for necessary maintenance,
repair, or upkeep of piupeity which
neither add to the permanent value of
the piupeity nor appreciably prolong its
intended life, but keep it in an efSdent
operating condition, are allowable.
18.	Material* and supplies. The cost of
materials and supplies necessary to
Appendix 13-B-5
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ASSISTANCE AEMNI5!I5«1CN
	Pad—1 Regiatar / VoL 48. No. 18 / Wednaaday, January 28. 1961 / Notices
cany oat the grant program* It
allowable. Purchases mad* specifically
for the grant program should be charged
tharato at their actual pricaa aftar
dadocttng ill	tftdg
discounts. rebatea, and allowances
racalvad by the grantee. Withdrawals
from general store* or stockrooms
should be charged at coat under any
recognised method of pricing
consistently applied. Incoming
transportation charges are a proper part
of matadal cost
IB. Memberships. iubscriptions and
professional activities.
a.	Memberships. The cost of
membership in dvic, business, technical
and professional organizations is
allowable provided: (1) the benefit from
the membership is related to die grant
program; (2) the expenditure is for
agency membership; (3) the coat of the
membership is reasonably related to the
value of the aervicea or benefits
received: and (4) the expenditure is not
for membership in an organization
which devotes a substantial part of its
activities to influencing legislation.
b.	Reference material. The cost of
books, and subscriptions to a vie.
business, professional, and technical
periodicals is allowable when related to
the grant program.
c.	Meetings and conferences. Costs
are allowable when th e primary purpose
of BMtlDg ll th0 dlSMBillftHoiL of
technical	mlating to tha
grant pruy am and they are consistent
with regular practices followed for other
activities of the grantee.
20.	Motor pools. The costs of a service
organization which provides
automobilea to user grantee agencies at
a mileage or fixed rate and/or provides
vehicle maintenance, inspection and
repair services are allowable.
21.	Payroll preparation. The coat of
preparing payrolls and maintaining
necessary related wage records la
allowable.
22.	Personnel administration. Coats
for the recruitment, examination.
classification, training
establishment of pay standarda, and
related activities for grant programa, are
allowable.
23.	Printing and reproduction. Costs
for printing and reproduction service*
necessary for grant administration,
but not limited to forms,
reports, manuals. and informational
literature, are allowable. Publication
costs of reports or other media relating
to grant program accomplishments or
remits are allowable when provided for
in the grant agreement
24.	Procurement tervice. The cost of
procurement se*vice. including
solicitation of bids, preparation and
award of contracts, and all phases of
contract administration in providing
gooda. farillties and services for grant
programa. la allowable.
28. ran*. In general taxes or
paymants in lien of taxes which the
grantee agency la legally required to pay
are allowable.
28. Training and education. The cost
of in-service training, customarily
provided for employee development
which directly or indirectly benefits
grant programs Is allowable. Out-of-
soviet training involving
periods of time is allowable only whan
specifically authorized by the grantor
agency.
27.	Transportation. Costs incurred for
freight cartage, express, postage end
other transportation costs relating either
to goods purchased, delivered, or moved
from one location to another aro
allowable.
28.	TtxmL Travel costs are allowable
for expense* for transportation, lodging,
subsistence, and related items Incurred
by employees who are in travel status
on official business incident to a grant
program. Such costs may be charged on
an actual basis, on a per diem or
mileage basis in lieu of actual costs
incurred or on a combination of the
two, provided the method used is
applied to an entire trip, and results In
chiuges consistent with those normally
allowed in	in qqh.
federally sponsored activities. The
difference in cost between first-class air
accommodations and less-than-firet-
class air accommodations are not is
unallowable except when less-than-
first-class air accommodations
reasonably available. Notwithstanding
the provisions of paragraphs DA and
travel costs of officials covered by those
paragraphs, when specifically related to
grant programs, are allowable with the
prior approval of a grantor agency.
C. Costs Allowable With Approval of
Grantor Agency
1.	Automatic data processing. The
oost of data processing services to grant
programs is allowable. This cost may
Include rental of equipment or
depredation on grantee owned
equipment The acquisition of
equipment whether by outright
purchaae. rental-purchase agreement or
other method of purchaae, is allowable
only upon specific prior approval of the
grantor Federal agency aa provided
under the selected item for capital
expenditures.
2.	Building space and related
facilities. The cost of space In privately
or publicly owned buildings used for the
benefit of the grant program is allowable
subject to the conditions stated below.
Appendix 13-B-6
5700
12/3/84
on
The total cost of space, whether in a
privately or pubiidy owned building,
may not exceed the rental cost of
comparable apace and *»hhh— in a
privately-owned hnlldtng in the same
locality. Dm cost of space procured for
grant program usage may not be charged
to the program for periods of
nonoccupancy, without authorisation of
the grantor Federal agency.
a.	Rental cost Tha rental coat of
space In a privately-owned building la
allowable. Similar costs for publicly
owned buildings newly occupied on or
after October 1,1900. are allowable
where "rental rate" systems, or
equivalent systems that adequately
reflect actual costs, are employed. Such
charges must be determined an the basis
of actual cost [including depreciation
based on the useful life of the building,
interest paid or accrued, operation and
wiinfwimm, md other allowable
costs). Where these costs are Induded
in rental charges, they may not be
charged elsewhere. No costs will be
induded for purchases or construction
that were originally financed by the
Federal Government
b.	Maintenance and operation. The
cost of utilities, insurance, security,
janitorial services, elevator service,
upkeep of grounds, normal repairs and
alterations and the like, are allowable to
the extent they are not otherwise
Inrhirted in rental .or other charges for
apace.
c.	Rearrangements and alterations.
Costs incurred for rearrangement and
alteration of facilities required
specifically for the grant program or
those that materially increase the value
or useful life of the facilities (Section
C3.) are allowable when specifically
approved by the grantor agency.
d.	Depreciation and just allowances
on pubiicly^twned buildings. The costs
are allowable aa provided m Section
an.
e.	Occupancy of tpace under rental-
purchase or a lease with option-to-
purchase agreement Tha cost of space
procured under such arrangements ia
allowable when specifically approved
by the Federal grantor agency.
3. Captial expenditures. The cost of
facilities, equipment other capital
assets, and repair* which materially
increase the value or useful life of
capital assets is allowable when such
procurement is specifically approved by
the Federal grantor agency. Whan assetB
acquired with Federal grant fnndQ are
(a) sold: (b) no longer available for use
in a federally-sponsored program: or (c)
used for purposes not authorized by the
grantor agency, the Federal grantor
agency's equity in the asset will be
refunded in th« urn proportion aa
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Federal participation in its cost. In case
any assets are traded on new items,
only the net cost of the newly-acquired
assets is allowable.
4. Insurance and indemnification
a Costs of insurance required, or
approved and maintained pursuant to
the grant agreement, are allowable
b Costs of other insurance in
connection with the general conduct of
activities are allowable subject to the
following limitations
(1)	types and extent and cost of
coverage will be in accordance with
general State or local government policy
and sound business practice
(2)	Costs of insurance or of
contributions to any reserve covering
the nsk of loss of, or damage to, Federal
Government property are unallowable
except to the extent that the grantor
agency has specifically required or
approved such costs
c Contributions to a reserve for a self-
insurance program approved by the
Federal grantor agency are allowable to
the extent that the type of coverage,
extent of coverage, and the rates and
premiums would have been allowed had
insurance been purchased to cover the
risks
d Actual losses which could have
been covered by permissible insurance
(through an approved self-insurance
program or otherwise) are unallowable
unless expressly provided for in the
grant agreement However, costs
incurred because of losses not covered
under nominal deductible insurance
coverage provided in keeping with
sound management practice, and minor
losses not covered by insurance, such as
spoilage, breakage and disappearance of
small hand tools which occur in the
ordinary course of operations, are
allowable
e Indemnification Includes securing
the grantee against liabilities to third
persons and other losses not
compensated by insurance or otherwise
The Government is obligated to
indemnify the grantee only to the extent
expressly provided for in the grant
agreement, except as provided in d
above
5	Management studies The cost of
management studies to improve the
effectiveness and efficiency of grant
management for ongoing programs is
allowable except that the cost of studies
performed by agencies other than the
grantee department or outside
consultants is allowable only when
authorized by the Federal grantor
agency
6	Preagreement costs Costs incurred
prior to the effective date of the grant or
contract, whether or not they would
have been allowable thereunder if
incurred after such date, are allowable
when specifically provided for in the
grant agreement
7. Professional services Costs of
professional services rendered by
individuals or organizations not a part
of the grantee department are allowable
subject to such prior authorization as
may be required by the Federal grantor
agency
8 Proposal costs Costs of prepanng
proposals on potential Federal
Government grant agreements are
allowable when specifically provided
for in the grant agreement
D Unallowable Costs
1	Bad debts Any losses arising from
uncollectible accounts and other claims,
and related costs, are unallowable
2	Contingencies Contributions to a
contingency reserve or any similar
provision for unforeseen events are
unallowable
3	Contributions and donations
Unallowable
4	Entertainment Costs of
amusements, social activities, and
incidental costs relating thereto, such as
meals, beverages, lodgings, rentals,
transportation, and gratuities, are
unallowable
5	Fines and penalties Costs resulting
from violations of. or failure to comply
with Federal, State and local laws and
regulations are unallowable
6	Governor's expenses The salaries
and expenses of the Office of the
Governor of a State, or the chief
executive of a political subdivision, are
considered a cost of general Slate or
local government and are unallowable
However, for a federally-recognized
Indian tribal government, only that
portion of the salaries and expenses of
the office of the chief executive that is a
cost of general government is
unallowable The portion of salaries and
expenses directly attributable to
managing and operating programs by
the chief executive and his staff is
allowable The allowable portion shall
be determined by the Federal cognizant
agency and the Indian government
representative on a reasonable basis
7	Interest and other financial costs
Interest on borrowings (however
represented), bond discounts, cost of
financing and refinancing operations,
and legal and professional fees paid in
connection therewith, are unallowable
except when authorized by Federal
legislation and except as provided for in
paragraph C 2 a of this Attachment
8	Legislative expenses Salaries and
other expenses of the State legislature or
similar local governmental bodies such
as county supervisors, city councils,
school boards, etc , whether incurred for
purposes of legislation or executive
direction, are unallowable.
9. Underrecovery of costs under grant
agreements. Any excess of cost over the
Federal contribution under one grant
agreement is unallowable under other
grant agreements
|FR Doc 01-3200 Filed 1-27-ffl 8 IS am]
BIUJMO CODE 3110-01-M
Appendix 13-B-7
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5700
ASSISTANCE AMNISTRATION	12/3/84
^^^^^JFede£a^egi8te^^^olM6^SJo^^^/edne8day^anuairy^8^98^^Jotic^^^^^^^^553
carry out the grant programs is
allowable. Purchases made specifically
for the grant program should be charged
thereto at their actual pnbes after
deducting all cash discounts, trade
discounts, rebates, and allowances
received by the grantee. Withdrawals
from general stores or stockrooms
should be charged at cost under any
recognized method of pricing
consistently applied. Incoming
transportation charges are a proper part
of matenal cost.
19. Memberships, subscriptions and
professional activities
a. Memberships The cost of
membership in civic, business, technical
and professional organizations is
allowable provided: (1) the benefit from
the membership is related to the grant
program; (2) the expenditure is for
agency membership, (3) the cost of the
membership is reasonably related to the
value of the services or benefits
received, and (4) the expenditure is not
for membership in an organization
which devotes a substantial part of its
activities to influencing legislation
b Reference materiaI The cost of
books, and subscriptions to civic,
business, professional, and technical
periodicals is allowable when related to
the grant program.
c. Meetings and conferences Costs
are allowable when the primary purpose
of the meeting is the dissemination of
technical information relating to the
grant program and they are consistent
with regular practices followed for other
activities of the grantee
20	Motor pools The costs of a service
organization which provides
automobiles to user grantee agencies at
a mileage or fixed rate and/or provides
vehicle maintenance, inspection and
repair services are allowable
21	Payroll preparation The cost of
preparing payrolls and maintaining
necessary related wage records is
allowable
22	Personnel administration Costs
for the recruitment, examination,
certification, classification, training,
establishment of pay standards, and
related activities for grant programs, are
allowable
23	Printing and reproduction Costs
for printing and reproduction services
necessary for grant administration,
including but not limited to forms,
reports, manuals, and informational
literature, are allowable Publication
costs of reports or other media relating
to grant program accomplishments or
results are allowable when provided for
in the grant agreement
24	Procurement service The cost of
procurement service, including
solicitation of bids, preparation and
award of contracts, and all phases of
contract administration in providing
goods, facilities and services for grant
programs, is allowable.
25.	Taxes In general, taxes or
payments in lieu of taxes which the
grantee agency is legally required to pay
are allowable.
26.	Training and education The cost
of in-service training, customarily
provided for employee development,
which directly or indirectly benefits
grant programs is allowable. Out-of-
service training involving extended
periods of time is allowable only when
specifically authorized by the grantor
agency
27	Transportation Costs incurred for
freight, cartage, express, postage and
other transportation costs relating either
to goods purchased, delivered, or moved
from one location to another are
allowable
28	Travel Travel costs are allowable
for expenses for transportation, lodging,
subsistence, and related items incurred
by employees who are in travel status
on official business incident to a grant
program Such costs may be charged on
an actual basis, on a per diem or
mileage basis in lieu of actual costs
incurred, or on a combination of the
two, provided the method used is
applied to an entire trip, and results in
charges consistent with those normally
allowed in like circumstances in non-
federally sponsored activities. The
difference in cost between first-class air
accommodations and less-than-first-
class air accommodations are not is
unallowable except when less-than-
first-class air accommodations
reasonably available Notwithstanding
the provisions of paragraphs D 6 and 8 ,
travel costs of officials covered by those
paragraphs, when specifically related to
grant programs, are allowable with the
prior approval of a grantor agency
C Costs Allowable With Approval of
Grantor Agency
1	Automatic data processing The
cost of data processing services to grant
programs is allowable This cost may
include rental of equipment or
depreciation on grantee-owned
equipment The acquisition of
equipment, whether by outright
purchase, rental-purchase agreement or
other method of purchase, is allowable
only upon specific prior approval of the
grantor Federal agency as provided
under the selected item for capital
expenditures
2	Building space and related
facilities The cost of space in privately
or publicly owned buildings used for the
benefit of the grant program is allowable
subject to the conditions stated below.
The total cost of space, whether in a
privately or publicly owned building,
may not exceed the rental cost of
comparable space and facilities in a
privately-owned building in the same
locality The cost of space procured for
grant program usage may not be charged
to the program for periods of
nonoccupancy, without authonzation of
the grantor Federal agency.
a. Rental cost. The rental cost of
space in a privately-owned building is
allowable. Similar costs for publicly
owned buildings newly occupied on or
after October 1,1980, are allowable
where "rental rate" systems, or
equivalent systems that adequately
reflect actual costs, are employed. Such
charges must be determined on the basis
of actual cost (including depreciation
based on the useful life of the building,
interest paid or accrued, operation and
maintenance, and other allowable
costs) Where these costs are included
in rental charges, they may not be
charged elsewhere No costs will be
included for purchases or construction
that were originally financed by the
Federal Government
b Maintenance and operation The
cost of utilities, insurance, security,
janitorial services, elevator service,
upkeep of grounds, normal repairs and
alterations and the like, are allowable to
the extent they are not otherwise
included in rental or other charges for
space
c Rearrangements and alterations
Costs incurred for rearrangement and
alteration of facilities required
specifically for the grant program or
those that materially increase the value
or useful life of the facilities (Section
C 3 ) are allowable when specifically
approved by the grantor agency
d. Depreciation and just allowances
on publicly-owned buildings. The costs
are allowable as provided in Section
B11
e Occupancy of space under rental-
purchase or a lease with option-to-
purchase agreement The cost of space
procured under such arrangements is
allowable when specifically approved
by the Federal grantor agency
3 Captial expenditures The cost of
facilities, equipment, other capital
assets, and repairs which materially
increase the value or useful life of
capital assets is allowable when such
procurement is specifically approved by
the Federal grantor agency When assets
acquired with Federal grant funds are
(a) sold, (b) no longer available for use
in a federally-sponsored program; or (c)
used for purposes not authorized by the
grantor agency, the Federal grantor
agency's equity in the asset will be
refunded in the same proportion as
Appendix 13-B-6
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ASSISTANCE ADMINISTRATION
5700
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Wednesday
December 5, 1979
A-88
Part V
Office of
Management and
Budget
Indirect Cost Rates, Audit, and Audit
Foilowup at Educational Institutions
Appendix
13-C
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ASSISTANCE ADMINISTRATION
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70094	Federal Register / Vol. 44. No. 235 / Wednesday, December 5,1979 / Notices
OFFICE OF MANAGEMENT AND
BUDGET
(Circular No. A-88, Revised]
Indirect Cost Rates, Audit, and Audit
Followup at Educational Institutions
November 27.1979
To the Heads of Executive
Departments and Establishments
1	Purpose This Circular provides
policies for (a) establishing indirect cost
rates, (b) auditing, (c) correcting systems
deficiencies, and (d) resolving
questioned costs It applies to Federal
grants, contracts, and other agreements
with educational institutions (referred to
here as "sponsored agreements") The
ob|ectives are to promote a coordinated
Federal approach, and to achieve a more
effective use of staff resources
2	Supersession This Circular
supersedes Federal Management
Circular 73-6, dated December 19,1973
FMC 73-6 is revised and reissued under
its original designation of Circular No.
A-80
3. Applicability This Circular applies
to all Federal agencies that adminster
sponsored agreements with educational
institutions subject to Circular No A-21,
"Cost principles for educational
institutions." and Circular A-110,
"Uniform requirements for grants to
universities, hospitals, and other
nonprofit organizations "
4 Policies
a Negotiating indirect cost rates One
Federal agency will negotiate the
indirect cost rate or rates at a single
institution This agency is referred to
here as the "cognizant agency "
Negotiations will be earned out in
accordance with relevant provisions of
law and other applicable regulations or
requirements
b Negotiating special rates
Institutional services involving the use
of highly complex and specialized
facilities may in some cases require the
negotiation of special rates In these
situations, the cognizant agency will
also do the negotiating for all Federal
agencies at a single institution
c Acceptance of rates The negotiated
rates will be accepted by all Federal
agencies
d Auditing The cognizant agency will
do all the necessary Federal auditing at
a single institution Agencies that have
special considerations affecting their
sponsored agreements will inform the
cognizant agency so that appropnate
attention may be given to them in
developing the audit program Results of
the audit will be furnished by the
cognizant agency to the other
organizations concerned
e. Correcting deficiencies The
cognizant agency will negotiate changes
needed to correct systems deficiencies
relating to accountability for sponsored
agreements The cognizant agency will
seek the views of other affected
agencies before entering into
negotiations and invite their
participation
f Resolving questioned costs. The
cognizant agency will conduct any
necessary negotiations with the
institution regarding amounts due the
government as a result of costs
questioned by audit Prior to reaching
final agreement with an institution, the
cognizant agency will seek the views of
other agencies concerned
g Agency assignments Federal
agency assignments for carrying out the
responsibilities in this section are set
forth in the Attachment Government-
owned facilities at educational
institutions are not included in the
cognizance assignments These will
remain the responsibility of the
contracting agencies The listed
assignments cover all of the functions in
this section unless otherwise indicated
The Office of Management and Budget
will coordinate changes in agency
assignments
h Reimbursement Reimbursement to
cognizant agencies for work performed
under this Circular may be made by
reimbursement billing under section 601.
Economy Act of 1932. 31 U S.C 688
5 Administering indirect cost
policies
a Procedure for establishing indirect
cost rates. The cognizant agency will
arrange with the institution to provide
copies of indirect cost proposals to all
interested agencies. Agencies wanting
such copies should notify the cognizant
agency Indirect cost rates will be
established by one of the following
methods.
(1)	Formal negotiation. The cognizant
agency will advise all interested
agencies of its intention to negotiate,
and schedule a prenegobation
conference, if necessary The cognizant
agency will then arrange a negotiation
conference with the institution If an
agency does not wish to be represented
in these meetings, the cognizant agency
will represent that agency
(2)	Other then formal negotiation
This will include cases where the
institution and cognizant agency
determine that agreement can be
reached without a formal negotiation
conference, for example, through
correspondence or use ot the simplified
method described in Circular No A-21
b Special considerations affecting
negotiation An agency which has
reason to believe that special operating
factors affecting its sponsored
agreements necessitate separate rates
will, pnor to the time an agreement is
negotiated, notify the cognizant agency
and the institution so that appropnate
attention may be devoted to those
factors Circular No. A-21 provides for
separate indirect cost rates when it is
determined that a separate rate differs
significantly from a single rate, and that
the volume of work to which such
separate rate would apply is material in
relation to other sponsored agreements
at the institution
c Formalizing determinations and
agreements. The cognizant agency will
formalize all determinations or
agreements reached with the institution
and provide copies to other agencies
having an interest
8 Disputes and disagreements Where
the cognizant agency is unable to reach
agreement with an institution with
regard to indirect cost rates or audit
resolution, the appeals system of the
cognizant agency will be followed for
resolution of the disagreement
7.	Effective date The provisions of
this Circular shall be effective January 1.
1980
8.	Inquiries Further information
concerning this Circular may be
obtained by contacting the Financial
Management Branch, Budget Review
Division, Office of Management and
Budget Washington. D C 20503.
telephone (202) 395-6823
James T Mclntyre, |r,
Director
OFFICE OF MANAGEMENT AND BUDGET
Circular A-68 (Revised), "Indirect Coat Rates,
Audit, and Audit Followup al Educational
Institutions"
AQKMCY: Office of Management and Budget
action: Final Policy
Summary: This nonce advises that Federal
Management Circular 73-8. dated December
19.1973. has been revised and reissued under
its original designation of Office of
Management and Budget Circular A-88
The revision continues the exisung policy
of relying oil a single agency to act for all
agencies in auditing educational institutions
and in negotiating their indirect cost rates It
adds to those dunes the responsibility to
follow up on audits by
—assuring correction of systems
deficiencies
—negotiating appropriate resolution on
quesnoned coso
Both these functions will be earned out in
close coordination with other affected
agencies
The revision is based in part on
recommendations made by an interagency
task force Its purpose is to enhance
accountability for Federal funds and to ease
the administrative burden on universities by
assuring that they will not have to negotiate
separately with several Federal agencies on
the same matter It strengthens the
' cognizant agency ' concept
Appendix 13-C-l
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ASSISTANCE ADMINISTRATION
Federal Register / Vol. 44, No. 235 / Wednesday. December S, 1979 / Notices
5700
12/3/84
70095
Upon request, all regulations and
instructions implementing this Circular
shall be furnished to the Office of
Management and Budget
iFPecuvi oate: This revision is effective
January 1.1980
FOR FURTHER INFORMATION CONTACT John J
Lordan Chief Financial Management Branch.
Office of Management and Budget
Washington DC 20503(202)395-3993
SUPPLEMENTARY INFORMATION: On July 18.
1979 a notice was published in the Federal
Register (44 FR 42114-24) to amend Circular
A-88 Interested persons were invited to
submit written comments About 30
comments were received from Federal
agencies col'eges and universities,
professional associations and others The
comments were considered in developing
these final regulations
Although almost all commenters
agreed with the cognizant agencv
concent for audit and rate
determinations some commenters
questioned extending the conceDt to
include resolution of audit findings or
made suggestions for clarifying changes
The more significant comments
received and OMB's responses to them
are discussed below
Changes in Final Regulation
Set forth below are changes that have been
adopted in the final regulations The
oaraaraphs are keyed to the oroposed
regulations published on July 18 1979
1	Paragraph 3 A reference to Circular A-
110 Uniform requirements for grants to
universities hospitals and nonprofit
organizations was added for clarity
2	Paragraph 4d was amended to
differentiate between Federal audits under
this Circular and the institutions audits
required under Circular A-110
3	Paragraph 4e and 4f The phrase seek
the views of' was added to clarify the
cognizant agency s responsibility to other
Federal agencies
4	Paragraph 5a(l) Changes were made to
clarify the responsibility of the cognizant
agency
5	Paragraph 5d was renumbered paragraph
3 and revised to cover all disputes and
disagreements with institutions arising from
the cognizant agency s determinations on
inairect cast rates and audit resolution It
was also changed to provide for the
cognizant agency s appeals system to be used
for resolving disputes and disagreements
6	Paragraph 6 was renumbered paragraph
7 and January 1.1980 .vas inserted as the
effective date
Suggested Changes Not Considered
Necessary
comment. One commenter sought
changes to the Circular defining special
situations which might arise when the
cognizant agency would not be able to
accommodate special requests from
other Federal agencies Such situations
usually involve requests for special
rates or an audit of one grant or contract
at an institution.
response. It is an established practice
that when a cognizant agency is unable
to provide a special service to another
Federal agency, the cognizant agency
permits the other Federal agency to
undertake the task This delegation
action may also be used by the
cognizant agency in the audit resolution
process where only one Federal agency
or one grant or contract is involved in an
audit finding
COMMENT. Some commenters questioned
whether the cognizant agency would
impinge on the authority of contracting
officers in carrying out its
responsibilities, especially in the audit
resolution process
response. We do not believe there is an
inconsistency between the role of the
contracting officer and the Circular s
provisions The cognizant agency will
seek the views of the affected agencies
before attempting to negotiate on their
behalf Contracting officers will be free
to participate to the extent deemed
appropriate We believe it is imperative
that the Government develop a uniform
position with regard to audit findings
that are common to awards made by
more than one agency
COMMENT Commenters raised some
procedural issues dealing with
disposition of collections, applicability
of the Circular to prior awards, etc
response. OMB will work with the
affected agencies to establish
procedures for implementing the
Circular
John I Lordan
Chief. Financial Management Branch
Attachment—Cognizance Assignments
Alabama
Ala Agr and Mech Col—HEW
Ala Christian Col—HEW
Ala Col—HEW
Ala St Col—HEW
Alexander City St [r Col—HEW
Auburn Univ—HEW
Birmingham-Southern Col—HEW
Calhoun St Tech |r Col—HEW
Daniel Payne Col—HEW
Enterprise |r Col—HEW
Florence St Col—HEW
Gadsden Tech |r Col—HEW
George C Wallace Jr Col—HEW
Huntington Col—HJEW
Jacksonville St Col—HEW
Jefferson Davis Col—HEW
Jefferson St Jr Col—HEW
Livingston St Col—HEW
Miles Col—HEW
Mobile St |r Col—HEW
Northeast St |r Col—HEW
Northwest Ala St |r Col—HEW
Oakwood Col—HEW
Patrick Henry Jr Col—HEW
Sacred Heart Col—HEW
Southern Union St Jr Col—HEW
Spring Hill Col—HEW
St Bernard Col—HEW
Stillman Col—HEW
Talladega Col—HEW
Troy St Col—HEW
Tuskegee Inst—HEW
Univ of Ala—HEW
Univ of South Ala—HEW
Wenonah Jr Col—HEW
William Yancey St Jr Col—HEW
Alaska
Alaska Methodist Univ—HEW
Sheldon |ackson Jr Col—HEW
Univ of Alaska—DOD
Arizona
Amer Inst Foreign Trade—HEW
Ariz St Unn—HEW
Ariz Western Col—HEW
Cochise Col—HEW
Easterr \nz Jr Col—HEW
Glendale Comm Col—HEW
Grand Can;on Col—HEW
Mesa Comm Col—HEW
Northern Ariz Linn—HEW
Phoenix Col—HEW
Pima Comm Col—HEW
Prescott Col—HEW
Univ of Ariz—HEW
Arkansas
Ark Agr and Mech Col—HEW
Ark Agr Mech 4 Normal Col—HEW
Ark Baptist Col—HEW
Ark Col—HEW
Ark Polvtechnic Col—HEW
Ark St Col—HEW
Ark Ait Center—HEW
Col of the Ozarks—HEW
Crowley's Ridge Col—HEW
Haroing Col—HEW
Henderson St Tchrs Col—HEW
Hendrix Col—HEW
John Brown Univ—HEW
Little Rock Univ—HEW
Ouachita Baptist Univ—HEW
Philander Smith Col—HEW
Phillips Cntv Comm Jr Col—HEW
Shorter Jr Col—HEW
Southern Baptist Col—HEW
Southern St Col—HEW
State College of Ark—HEW
Univ of Ark—HEW
Westark Jr Col—HEW
California
Allan Hancock Col—HEW
Amer River |r Col—HEW
Antelope Valley Col—HEW
Azusa Pacific Col—HEW
Bakersfield Col—HEW
Barstow Col—HEW
Bethany Bible Col—HEW
Biola Col—HEW
Cabnllo Col—HEW
Cat Col of \rts & Crafts—HEW
Cal Col of Medicine—HEW
Cal Inst of Tech—DOD
Cal Inst of the Arts—HEW
Cal Lutheran Col—HEW
Cal Podiatry Col—HEW
Cal St Colleges & Universities (all
campuses)—HEW
Cemtos Col—HEW
Chabot Col—HEW
Appendix 13-C-2
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ASSISTANCE ADMINISTRATION
5700
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70096
Federal Register / Vol. 44, No. 235 / Wednesday. December 5. 1979 / Notices
Chaffey Col—HEW
Chapman Col—HEW
Chico State Col—HEW
City Col of San Franciso Col—HEW
Claremont Graduate School—HEW
Claremont Mens Col—HEW
Coalinga Col—HEW
Col of Mann—HEW
Col of Nortre Dame—HEW
Col of San Mateo—HEW
Col of the Desert—HEW
Col of the Holy Names—HEW
Col of the Redwoods—HEW
Col of the Sequoias—HEW
Col of the Siskivous—HEW
Compton Col—HEW
Contra Costs Col—HEW
Ctr for Early Education—HEW
Cuesta Col—HEW
Cypress |r Col—HEW
De Anza Col—HEW
Deep Springs Col—HEW
Diablo Vallev Col—HEW
Dominican Col San Rafael—HEW
East Los Angeles Col—HEW
El Camino Col—HEW
Foothill Col—HEW
Fullerton Jr Col—HEW
Gavilan Col—HEW
Clendale Col—HEW
Colden Gate Col—HEW
Golden West Col—HEW
Crossmont Col—HEW
Hartnell Col—HEW
Harvey Mudd Col—HEW
Humphreys Col—HEW
Immaculate Heart Col—HEW
Imperial Valley Col—HEW
La Sierra Col—HEW
La Veme Col—HEW
Laney Col—HEW
Lassen Col—HEW
Loma Linda Univ—HEW
Long Beach City Col—HEW
Los Angeles City Col—HEW
Los Angeles Col of Optom—HEW
Los Angeles Harbor Col—HEW
Los Angeles Pierce Col—HEW
Los Angeles Tr-Tech Col—HEW
Los Angeles Valley Col—HEW
Loyola Univ Los Angeles—HEW
Marymount Col—HEW
Menlo Col—HEW
Merced Col—HEW
Memtt Col—HEW
Mills Col—HEW
Mira Costa Col—HEW
Modesto |r Col—HEW
Monterey Inst of For Study—HEW
Monterey Peninsula Col—HEW
Mount San Antonio |r Col—HEW
Mount San Jacinto Col—HEW
Ml St Marys Col—HEW
Napa |r Col—HEW
Northrop Inst of Tech—HEW
Occidental Col—HEW
Orange Coast Col—HEW
Otis Art Inst LA Cnty—HEW
Pacific Col—HEW
Pacific Oaks Col—HEW
Pacific Union Col—HEW
Palo Verde Col—HEW
Palomar |r Col—HEW
Pasedena Citv Col—HEW
Point Loma Col—HEW
Pepperdine Col—HEW
Peralta |r Col Dist—HEW
Pi tier Col—HEW
Pomona Col—HEW
Porterville Col—HEW
Reedley Col—HEW
Rio Hondo ]r Col—HEW
Riverside City Col—HEW
S Cnty Joint Jr Col Dist—HEW
Sacramento City Col—HEW
Salk Inst for Biol Study—HEW
San Bernardino Vly Jr Col—HEW
San Diego City Col—HEW
San Diego Jr Col—HEW
San Diego Mesa Col—HEW
Sao Francisco Art Inst—HEW
San Francisco Col Women—HEW
San Francisco Consv Music—HEW
San Joaquin Delta Col—HEW
San Jose City Col—HEW
Santa Barbara City Col—HEW
Santa Monica City Col—HEW
Santa Rosa Jr Col—HEW
Scnpps Col—HEW
Shasta Col—HEW
SierTa Col—HEW
Simpson Bible Col—HEW
Solano Col—HEW
Southern Cal Col—HEW
Southwestern Col—HEW
St Josephs Col of Orange—HEW
St Marys Col Cal—HEW
Stanford Univ—DOD
St Ctr Jr Col Dist—HEW
Taft Col—HEW
U S International Univ—HEW
Univ of California—HEW
Univ of Redlands—HEW
Univ of San Diego—HEW
Univ of San Francisco—HEW
Univ of Santa Clara—HEW
Univ of Southern Cal—HEW
Univ of the Pacific—HEW
Ventura Col—HEW
Victor Valley Col—HEW
West Valley Col—HEW
West Valley Col—HEW
Westmont Col—HEW
Whitder Col—HEW
Yuba Col—HEW
Colorado
Adams State Col—HEW
Arapahoe Jr Col—HEW
Colorado Col—HEW
Colorado Sch of Mines—DOD
Colorado St Col—HEW
Colorado St Univ—HEW
Fort lewis Col—HEW
Illff Sch of Theology—HEW
lamar Jr Col—HEW
Loretto heights Col—HEW
Mesa Col—HEW
Metropolitan St Col—HEW
Northeastern Jr Col—HEW
Otero Jr Col—HEW
Rangely Col—HEW
Regis Col—HEW
Southern Colorado St Col—HEW
Temple Buell Col—HEW
Trinidad State Jr Col—HEW
U S Air Force Academv—HEW
Univ of Colorado—HEW
Univ of Denver—DOD
Western St Col Colorado—HEW
Yampa Valley Col—HEW
Connecticut
Albertus Magnus Col—HEW
Annhurst Col—HEW
Bridgeport Eng Inst—HEW
Central Conn St Col—HEW
Connecticut Col—HEW
Diocesan Sisters Col—HEW
Eastern Conn State Cot—HEW
Fairfield Umv—HEW
Hartford Col for Women—HEW
Hartford Sen Found—HEW
Manchester Comm Col—HEW
Mitchell Col—HEW
New Haven Col—HEW
Northwestn Conn Comm Col—HEW
Norwalk Comm Col—HEW
Post Jr Col—HEW
Quinmpiac Col—HEW
Sacred Heart Umv—HEW
Southern Conn St Col—HEW
St Joseph Col—HEW
Trinity Col—HEW
Univ of Bridgeport—HEW
Univ of Connecticut—HEW
Univ of Hartford—HEW
Waterbury St Tech Inst—HEW
Wesleyan Univ—HEW
Western Conn St Col—HEW
Yale Umv—HEW
Delaware
Delaware St Cot—HEW
Univ of Delaware—HEW
Wesley Col—HEW
District of Columbia
American Umv—HEW
Capitol Inst of Tech—HEW
Catholic Univ of Amer—HEW
Dist of Col Tchrs Col—HEW
Dumbarton Col Holy Cros»—HEW
Gallaudet Col—HEW
George Washington Univ—HEW
Georgetown Umv—HEW
Howard Univ—HEW
Immaculata Col of Wash—HEW
Mt Vernon Jr Col—HEW
Southeastern Univ—HEW
Trinity Col—HEW
Wash Sch of Psychiatry—HEW
Nat'l Academy of Sciences—DOD
Florida
Alachua County Jr Col—HEW
Barry Col—HEW
Bethune-Cookman Col—HEW
Biscayne Col—HEW
Brevard Jr Col—HEW
Central Florida Jr Col—HEW
Chipola Jr Col—HEW
Daytona Beach Jr Col—HEW
Edison Jr Col—HEW
Edwards Waters Col—HEW
Embry-Riddle Aero Inst—HEW •
Florida Agr It Mech Univ—HEW
Florida Atlantic Univ—HEW
Florida Inst of Tech—HEW
Florida |r Col—HEW
Florida Keys Jr Col—HEW
Florida Memorial Col—HEW
Florida Presbyterian Col—HEW
Florida Southern Col—HEW
Florida State Univ—HEW
Florida Technological Univ—HEW
Gulf Coast Jr Col—HEW
Indian River Jr Col—HEW
Appendix 13-C-3
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Federal Register / Vol. 44. No. 235 / Wednesday, December 5, 1979 / Notices
70097
Jacksonville Uruv—HEW
Jones Col—HEW
jr Col of Broward County—HEW
Lake City Jr Col—HEW
Lake-Sumter |r Col—HEW
Manatee Jr Col—HEW
Marymount Col—HEW
Miami-Dade Jr Col—HEW
New Col—HEW
North Florida |r Col—HEW
Nova Uruv of Adv Tech—HEW
Okaloosa-Walton [r Col—HEW
Orlando Jr Col—HEW
Palm Beach Jr Col—HEW
Pensacola Jr Col—HEW
Polk Jr Col—HEW
Rolins Col—HEW
Santa Fe Jr Col—HEW
Seminole Jr Col—HEW
South Flonda Jr Col—HEW
South-Eastern Bible Col—HEW
St Johns River Jr Col—HEW
St Joseph Col of Florida—HEW
St Leo Col—HEW
St Petersburg Jr Col—HEW
Stetson Univ—HEW
Tallahassee Jr Col—HEW
Univ of Flonda—HEW
Univ of Miami—HEW
Univ of South Flonda—HEW
Univ of Tampa—HEW
Univ of West Flonda—HEW
Georgia
Abraham Baldwin Agr Col—HEW
Agnes Scott Col—HEW
Albany Jr Col—HEW
Albany State Col—HEW
Andrew Col—HEW
Armstrong St Col—HEW
Atlanta Sch of Art—HEW
Atlanta Univ—HEW
Augusta Col—HEW
Berry Col—HEW
Brewton-Parker Col—HEW
Brunswick Jr Col—HEW
Clark Col—HEW
Columbus Col—HEW
Dalton Jr Col—HEW
DeKalb Col—HEW
Emmanuel Col—HEW
Emory Univ—HEW
Fort Valley St Col-HEW
Gainesville Jr Col—HEW
Georgia Inst of Tech—DOD
Georgia Military Col—HEW
Georgia Southern Col—HEW
Georgia Southwestern Col—HEW
Georgia State Col—HEW
John Marshall Univ—HEW
Kennesaw Jr Col—HEW
LaCranae Col—HEW
Medical Col of Georgia—HEW
Mercer Univ—HEW
Middle Georgia Col—HEW
Morehouse Col—HEW
Moms Brown Col—HEW
Norman Col—HEW
\ortn Georgia Col—HEW
Oglethorpe Col—HEW
Paine Col—HEW
Piedmont Col—HEW
Bernhardt Col—HEW
Savannah St Col—HEW
Shorter Col—HEW
South Georgia Col—HEW
Southern Col of Pharmacy—HEW
Spelman Col—HEW
Tift Col—HEW
Univ of Georgia—HEW
Valdosta St Col—HEW
Wesleyan Col—HEW
West Georgia Col—HEW
Womens Col of Georgia—HEW
Young Hams Col—HEW
Hawaii
Chaminade Col of Honolulu—HEW
Hawaii Loa College—HEW
Univ of Hawaii—DOD
Idaho
Boise Col—HEW
Col of Idaho—HEW
Col of Southern Idaho—HEW
Idaho St Univ—HEW
Lewis Clark Normal School—HEW
Magic Vly Christian Col—HEW
Northwest Nazarene Col—HEW
Univ of Idaho—HEW
Illinois
Augustana Col—HEW
Aurora Col—HEW
Barat Col of Sacred Heart—HEW
Belleville Jr Col—HEW
Black Hawk Col—HEW
Blackburn Col—HEW
Bloom Comm Col—HEW
Bradley Univ—HEW
Canton Comm Col—HEW
Central YMCA Comm Col—HEW
Chicago City Jr Col—HEW
Chicago Col of Osteopathy—HEW
Chicago Medical School—HEW
Chicago-Kent Col of Law—HEW
Col of Dupage—HEW
Col of St Francis—HEW
Columbia Col—HEW
Concordia Tchrs Col—HEW
Danville Jr Col—HEW
DePaul Univ—HEW
Eastern Illinois Univ—HEW
Elgin Comm Col—HEW
Elmhurst Col—HEW
Eureka Col—HEW
Freeport Comm Col—HEW
George Williams Col—HEW
Creenville Col—HEW
Hebrew Theol Col—HEW
Illinois Col—HEW
Illinois Col of Optometry—HEW
Illinois Col of Podiatry—HEW
Illinois Inst of Tech—HEW
Illinois St Col—HEW
Illinois St Univ—HEW
Illinois Weslevan Univ—HEW
Joliet Jr Col—HEW
Judson Col—HEW
Kaskaskia Col—HEW
Kendall Col—HEW
Knox Col—HEW
LaSalle-Peru-Oglesby |r Col—HEW
Lake Forest Col—HEW
Lewis Col—HEW
Lincoln Col—HEW
Loyoia Univ—HEW
MacCormac Coi—HEW
MacMurray Col—HEW
McKenaree Col—HEW
Millikin Univ—HEW
Monmouth Col—HEW
Monticello Col—HEW
Mount Vernon Comm Col—HEW
Mundelein Col—HEW
Nat Col of Education—HEW
North Central Col—HEW
North Park Col—HEW
Northern Illinois Univ—HEW
Northwestern Univ—HEW
Olivet Nazarene Col—HEW
Olney Comm Col—HEW
Pnncipia Col—HEW
Quincy Col—HEW
Rock Valley Col—HEW
Rockford Col—HEW
Roosevelt Univ—HEW
Rosarv Col—HEW
Sauk Valley Col—HEW
Schools of the Art Inst—HEW
Shimer Col—HEW
Southern Illinois Univ—HEW
Spnngfield Jr Col—HEW
St Dominic Col—HEW
St Procopius Col—HEW
St Xavier Col—HEW
Thorn'on Jr Col—HEW
Tnnity Chnstian Col—HEW
Trinity Col—HEW
Triton Col—HEW
Univ of Chicago—HEW
Univ of Illinois—DOD
Wabash Valley Col—HEW
Western Illinois Univ—HEW
Wheaton Col—HEW
William Rainey Harper Col—HEW
Indiana
Anderson Col—HEW
Ball State Univ—HEW
Bethel Col—HEW
Butler Univ—HEW
Concordia Senior Col—HEW
Depauw Univ—HEW
Earlham Col—HEW
Fort Wayne Art School—HEW
Franklin Col of Indiana—HEW
Goshen Col—HEW
Grace Theol Sem—HEW
Hanover Col—HEW
Herron School of Art—HEW
Huntington Col—HEW
Indiana Central Col—HEW
Indiana Inst of Tech—HEW
Indiana Northern Univ—HEW
Indiana St Univ—HEW
Indiana Univ—HEW
Manchester Col—HEW
Manan Col—HEW
Manon Col—HEW
Oakland City Col—HEW
Purdue Univ—HEW
Rose Polytechnic Inst—HEW
St Benedict Col—HEW
St Francis Col—HEW
St Joseph's Col—HEW
St Mary-of-the-Woods Col—HEW
St Marys Col—HEW
St Meinrad Sem—HEW
Taylor Univ—HEW
Tri-Sl Col—HEW
Univ of Evansville—HEW
Univ of Notre Dame—DOD
Valparaiso Univ—HEW
Vincennes Univ—HEW
Wabash Col—HEW
Iowa
Area X Comm Col—HEW
Aooendix 13-C-4
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Briar Cliff Col—HEW
Buena Vnta Col—HEW
Burlington Comm Col—HEW
Central Col—HEW
Clannda Comm Col—HEW
Clarke Col—HEW
Clinton |r Col—HEW
Coe Col—HEW
Col of Osteopath Med Surg—HEW
Cornell Col—HEW
Creaton Comm Col—HEW
Ctrville Comm Col—HEW
Divine Word Col—HEW
Dordt Col—HEW
Drake Umv—HEW
Eagle Grove |r Col—HEW
Ellsworth Jr Col—HEW
Emmethsburg Comm Col—HEW
Eatherville )r Col—HEW
Craceland Col—HEW
Grand View Col—HEW
Cnnneil Col—HEW
Iowa Central Comm Col—HEW
Iowa State Umv—HEW
Iowa Wesleyan Col—HEW
Keokuk Comm Col—HEW
Loras Col—HEW
Luther Col—HEW
Marshalltown Comm Col—HEW
Marycrest Col—HEW
Midwestern Col—HEW
Morningside Col—HEW
Mount Mercy Col—HEW
Muscatine comm Col—HEW
North Iowa Area Comm Col—HEW
Northwestern Col—HEW
Ottumwa Heights Col—HEW
Palmer Jr Col—HEW
Parsons Col—HEW
Simpson Col—HEW
Sioux Empire Col—HEW
St Ambrose Col—HEW
Umv of Dubuque—HEW
Umv of Iowa—HEW
Umv of Northern Iowa—HEW
Upper Iowa Univ—HEW
Vennard Col—HEW
Waldorf Col—HEW
Wartburg Col—HEW
Webster City )r Col—HEW
Westmar Col—HEW
William Penn Col—HEW
Kansas
Allen County Comm |r Col—HEW
Baker Umv—HEW
Barton County Comm Jr Col—HEW
Bethanv Col—HEW
Bethal Col—HEW
Central Col—HEW
Cloud County Comm Jr Col—HEW
Coffeyville Comm Jr Col—HEW
Col of Emporia—HEW
Colby Comm Jr Col—HEW
Cowiey County Comm Jr Col—HEW
Dodge City Comm Jr Col—HEW
Donnelly Col—HEW
Fort Hays Kansas Si Col—HEW
Fort Scott Co"nm |r Col—HEW
Friends Bible Col—HEW
Friends L'niv—HEW
Garden City Comm |r Col—HEW
Hesston Col—HEW
Highland Comm Jr Col—HEW
Hutchinson Comm |r Col—HEW
Independence Comm |r Col—HEW
Kansas City Comm Jr Col—HEW
Kansas Si Col—HEW
Kansas St Tchrs Col—HEW
Kansas State Umv—HEW
Kansas Wesleyan Umv—HEW
Labette Comm Jr Col—HEW
Marymount Col—HEW
McPherson Col—HEW
Miltonvale Wesleyan Col—HEW
Mount St Scholastica Col—HEW
Neosho County Comm Jr Col—HEW
Ottawa Umv—HEW
Pratt Comm Jr Col—HEW
Sacred Heart Col—HEW
Schilling Institute—HEW
Southwestern Col—HEW
St Benedicts Col—HEW
St Johns Col—HEW
St Mary Col—HEW
St Mary of the Plains Col—HEW
Sterling Col—HEW
Tabor Col—HEW
Umv of Kansas—HEW
Wasburn Umv of Topeka—HEW
Wichita St Umv—HEW
Kentucky
Alice Lloyd Col—HEW
Asbury Col—HEW
Asbury Theol Sem—HEW
Bellarmine Col—HEW
Berea Col—HEW
Brescia Col—HEW
CampbellsvilJe Col—HEW
Catherine Spalding Col—HEW
Centre Col of Kentucky—HEW
Cumberland Col—HEW
Eastern Kentucxy Umv—HEW
Georgetown Col—HEW
Kentucky Southern Col—HEW
Kentucky State Col—HEW
Kentucky Wesleyan Col—HEW
Lees Jr Col—HEW
Midway Jr Col—HEW
Morehead State Umv—HEW
Murray St Uruv—HEW
Nazareth Col of Kentucky—HEW
Paducah Jr Col—HEW
PikeviUe Col—HEW
Southeastn Christian Col—HEW
St Catharine Jr Col—HEW
Transylvania Col—HEW
Union Col—HEW
Umv of Kentucky—HEW
Uruv of Louisville—HEW
Ursuline Col—HEW
Villa Madonna Col—HEW
Western Kentucky Umv—HEW
Louisiana
Centenary Col—HEW
Delgado Col—HEW
Dillard Umv—HEW
Francis T Nicholls St Col—HEW
Grambling Col—HEW
Louisiana St Umv—HEW
Louisiana Col—HEW
Louisiana Poly Inst—HEW
Loyola Umv—HEW
McNeese St Col—HEW
Northeast Louisiana St Col—HEW
Northwestern St Col of La—HEW
Southeastern Louisiana Col—HEW
Southern Umv—HEW
St Marys Dominican Col—HEW
Tulane Umv—HEW
Umv of Southwestern La—HEW
Xavier Univ—HEW
Maine
Aroostoock St Col—HEW
Bates Col—HEW
Bowdoin Col—HEW
Colby Col—HEW
Fanmngton St Col—HEW
Fort Kent St Col—HEW
Gorham St Col—HEW
Husson Col—HEW
Maine Mantune Academy—HEW
Nasson Col—HEW
Northern Conserv of Mustc—HEW
Ricker Col—HEW
St Francis Col—HEW
St Josephs Col—HEW
Thomas Col—HEW
Umv of Maine—HEW
Washington St Col—HEW
Westbrook Jr Col—HEW
Maryland
Allegany Comm Col—HEW
Anne Arundel Comm Col—HEW
Baltimore Jr Col—HEW
Bowie St Col—HEW
Catonsville Comm Col—HEW
Charles County Comm Col—HEW
Col of Notre Dame of Md—HEW
Columbia Union Col—HEW
Coppin St Col—HEW
Essex Comm Col—HEW
Frederick Comm Col—HEW
Frostbury St Col—HEW
Goucher Col—HEW
Hagerstown Jr Col—HEW
Harford Jr Col—HEW
Hood Col—HEW
Johns Hopkins Univ—HEW
Loyola Col—HEW
Maryland Inst Col of Art—HEW
Montgomery Jr Col—HEW
Morgan St Col—HEW
Mt St Agnes Col—HEW
Mt St Marys Col—HEW
Ner Israel Rabbinical Col—HEW
Peabody Inst of Baltimore—HEW
Pnnce Georges Com Col—HEW
Salisbury St Col—HEW
St Johns Col—HEW
St Joseph Col—HEW
St Marys Col of Maryland—HEW
Towson St Col—HEW
Univ of Maryland—HEW
Villa Julie Col—HEW
Washington Col—HEW
Western Maryland Col—HEW
Woodstock Col—HEW
Xavenan Col—HEW
Massachusetts
American Intl Col—HEW
Amherst Col—HEW
Anna Mana Col for Women—HEW
Aquinas School—HEW
Assumption Col—HEW
Atlantic Union Col—HEW
Augusbman Col Merrimack—HEW
Babson Inst of Bus Admin—HEW
Bay Path |r Col—HEW
Becker Jr Col—HEW
Bentiey Col of Acct & Fin—HEW
Berkshire Chnsuan Col—HEW
Bersaire Comm Col—HEW
Boston \rchitectural Ctr—HEW
Appendix 13—C—5
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Federal Register / Vol. 44, No. 235 / Wednesday, December 5. 1979 / Notices	70099
Boston Col—HEW
Boston Conserv of Music—HEW
Boston Univ—HEW
Bradford |r Col—HEW
Brandeis Univ—HEW
Cambridge School of Bus—HEW
Cape Cod Comm Col—HEW
Cardinal Cushing Col—HEW
Clark Univ—HEW
Col of Our Lady of Elms—HEW
Col of the Holy Cross—HEW
Curry Col—HEW
Dean Jr Col—HEW
Eastern Nazarene Col—HEW
Emerson Col—HEW
Emmanuel Col—DOD
Charles Stark Draper Lab—DOD
Endicott Jr Col—HEW
Fisher Jr Col—HEW
Forsyih Sch Dent Hygnsts—HEW
Carland Jr Col—HEW
Cordon Col—HEW
Greenfield Comm Col—HEW
Hampshire Col—HEW
Harvard Univ—HEW
Hebrew Tchrs Col—HEW
Holyoke Comm Col—HEW
Lasell Jr Col—HEW
Leicester Jr Col—HEW
Lesley Col—HEW
Lowell Technological Inst—HEW
Mass Bay Comm Col—HEW
Mass Col of Art—HEW
Mass Col of Optometry—HEW
Mass Col of Pharmacy—HEW
Mass Inst of Tech—DOD
Mt Holyoke Col—HEW
Mount Ida Jr Col—HEW
Mt Wachusett Comm Col—HEW
New Engl Conserv of Music—HEW
Newton Col Sacred Heart—HEW
Newton Jr Col—HEW
Nichols Col of Bus Admin—HEW
North Shore Comm Col—HEW
Northampton Commencal Col—HEW
Northeastern Univ—HEW
Northern Essex Comm Col—HEW
Pine Manor Jr Col—HEW
Quincy Jr Col—HEW
Quinsigamond Comm Col—HEW
Regis Col—DOD
Simmons Col—HEW
Smith Col—HEW
Southeastern Com/n Col—HEW
South Shore Comm Col—HEW
Southeastn Mass Tech Inst—HEW
Springfield Col—HEW
Slate Col at Boston—HEW
State Col at Bndgewater—HEW
State Col at Fitchburg—HEW
State Col at Framtngham—HEW
State Col at Lowell—HEW
State Col at North Adams—HEW
State Col at Salem—HEW
Slate Col at Westfield—HEW
State Col at Worchester—HEW
Stevens Business Col—HEW
Stonehill Col—HEW
Suffork Univ—HEW
Tufts Univ—HEW
Univ of Massachusetts—HEW
Welleslev Col—HEW
Wentworth Inst—DOD
Western New England Col—HEW
Wheaton Col—HEW
Wheelock Col—HEW
Williams Col—HEW
Woods Hole Ocean Inst—HEW
Worcester Jr Col—HEW
Worcester Polytech lust—HEW
Michigan
Adrian Col—HEW
Albion Col—HEW
Alma Col—HEW
Alpena Com Co I—HEW
Andrews Univ—HEW
Aquiras Col—HEW
Bav de Noc Comm Col—HEW
Calvin Col—HEW
Central Mich Univ—HEW
Corcordia Lutheran Jr Col—HEW
Davenport Col of Bus—HEW
De Lima Jr Col—HEW
Delta Col—HEW
Detroit Inst of Tech—HEW
Eastern Michigan Univ—HEW
Ferns St Col—HEW
Flint Comm Jr Col—HEW
Glen Oaks Comm Col—HEW
Gogebic Comm Col—HEW
Grand Rapids Bapt Col—HEW
Grand Rapids Jr Col—HEW
Grand Valley St Col—HEW
Henry Ford Com Col—HEW
Highland Park Comm Col—HEW
Hope Col—HEW
Jackson Comm Col—HEW
Kalamazoo Col—HEW
Kellogg Comm Col—HEW
Lake Michigan Col—HEW
Lansing Comm Col—HEW
Lawrence Inst of Tech—HEW
Lewis Business Col—HEW
Mackinac Col—HEW
Macomb County Comm Col—HEW
Madonna Col—HEW
Marygrove Col—HEW
Mercy Col of Detroit—HEW
Merrill-Palmer Inst—HEW
Mich Tech Univ—HEW
Michigan Chnstain Jr Col—HEW
Michigan Lutheran Col—HEW
Michigan State Univ—HEW
Monroe County Comm Col—HEW
Montcalm County Comm Col—HEW
Muskegon County Comm Col—HEW
Nazareth Col—HEW
North Central Mich Col—HEW
Northern Michigan Univ—HEW
Northwestern Mich Col—HEW
Oakland Comm Col—HEW
Oakland Univ—HEW
Olivet Col—HEW
Owosso Col—HEW
Port Huron Jr Col—HEW
Reformed Bible Inst—HEW
Sacred Heart Sem—HEW
Saginaw Valley Col—HEW
Schoolcraft Col—HEW
Siena Heights Col—HEW
Southwestern Mich Col—HEW
Spnng Arbor Col—HEW
Suomi Col—HEW
Univ of Detroit—HEW
Univ of Michigan—HEW
Washtenaw Comm Col—HEW
Wayne State Univ—HEW
Western Mich Univ—HEW
Minnesota
Anoka-Ramsey St Jr Col—HEW
Augsburg Col—HEW
Austin Jr Col—HEW
Bemidfi St Col—HEW
Bethany Lutheran Col—HEW
Bethel Col and Sem—HEW
Bralnerd Jr Col—HEW
Carleton Col—HEW
Col of St Benedict—HEW
Col of St Catherine—HEW
Col of St Scholastic*—HEW
Col of St Teresa-HEW
Col of St Thomas—HEW
Concordia Col—HEW
Concordia Col—HEW
Corbett Col—HEW
Crosier Sem—HEW
Ely Jr Col—HEW
Fergus Falls St Jr Col—HEW
Gustavus Adolphus Col—HEW
Hamline Univ—HEW
Hibbing Jr Col—HEW
Itasca Jr Col—HEW
Lea College—HEW
Macalester Col—HEW
Mankato St Col—HEW
Mesabi St Jr Col—HEW
Metropolitan St Jr Col—HEW
Minneapolis Sch of Art—HEW
Moorhead St Col—HEW
North Hennepin St Jr Col—HEW
Rochester Jr Col—HEW
Southwest St Col—HEW
St Cloud St Col—HEW
St |ohns Univ—HEW
St Marys Col—HEW
St Marys Jr Col—HEW
St OlafCol—HEW
Univ of Minnesota—HEW
WiUmar Comm Col—HEW
Winona St Col—HEW
Worthington Jr Col—HEW
Mississippi
Alcorn Agr and Mech Col—HEW
Belhaven Col—HEW
Blue Mountain Col—HEW
Coahoma Jr Col—HEW
Copiah-Lincoln Jr Col—HEW
Delta St Col—HEW
East Central Jr Col—HEW
East Miss Jr Col—HEW
Hinds Jr Col—HEW
Holmes Jr Col—HEW
Itawamba Jr Col—HEW
Jackson County Jr Col—HEW
Jackson St Col—HEW
Jefferson Davis Jr Col—HEW
Jones County Jr Col—HEW
Mary Holmes Jr Col—HEW
Meridian Jr Col—HEW
MiUsaps Col—HEW
Miss Delta |r Col-HEW
Miss Indus Col—HEW
Miss St Col for Women—HEW
Miss St Univ—HEW
Miss Valley St Col—HEW
Northeast Miss Jr Col—HEW
Northwest Miss Jr Col—HEW
Pearl River Jr Col—HEW
Perkinston |r Col—HEW
Prentiss Norm 4 lnd Inst—HEW
Rust Col—HEW
Saints Jr Col—HEW
Southwest Miss Jr Col—HEW
T J Harris |r Col—HEW
Tougaloo Col—HEW
Appendix 13-C-6
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70100	Federal Register / Vol. 44, No. 235 / Wednesday. December 5. 1979 / Notices
5700
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Uwv of Mi«8—HEW
Uruv of Southern Miss—HEW
Utica Jr Col—HEW
William Carey Col—HEW
Wood Jr Col—HEW
Missouri
Avil Col—HEW
Central Bible Inst—HEW
Central Methodist Col—HEW
Central Missouri St Col—HEW
Chnsnan Col—HEW
Concordia Seminary—HEW
Cottey Col—HEW
Crowder Col—HEW
Culver-Stockton Col—HEW
Dmry Col—HEW
Evangel Col—HEW
Fontbonne Col—HEW
Hannibal-La Grange Col—HEW
Harris Tchrs Col—HEW
Immaculate Conception Sem—HEW
Jefferson County Col Disl—HEW
junior Col Dist St Louis—HEW
Kjnsas City Art Inst—HEW
Kansas C.ty Col of Osteop—HEW
Kemper Military Sch & Col—HEW
Kirksvilie Col of Osteop—HEW
Lincoln Uruv—HEW
Lindenwood Col for Women—HEW
Maryville Col Sac Heart—HEW
Mercy |r Col—HEW
Metropolitan |r Col—HEW
Mineral Area Jr Col Dtst—HEW
Missouri Southern Col—HEW
Missouri Valley Col—HEW
Missouri Western |r Col—HEW
Northeast Mo St Tchrs Col—HEW
Northwest Missouri St Col—HEW
Notre Dame Col—HEW
Park Col—HEW
Rockhurst Col—HEW
School of the Ozarks—HEW
Southeast Missouri St Col—HEW
Southwest Baptist Col—HEW
Southwest Missouri St Col—HEW
St Louis Col of Pharmacy—HEW
St Louis Univ—HEW
St Marys Col of O'Fallon—HEW
St Pauls Col—HEW
Stephens Col—HEW
Tarkio Col—HEW
Three Rivers |r Col—HEW
Trenton |r Col—HEW
Univ of Missouri Columbia—HEW
Univ of Missouri Ctrl Sys—HEW
Univ of Missouri Kansas City—HEW
Univ of Missouri Rolla—HEW
Univ of Missouri St Louis—HEW
Washington Univ—HEW
Webster Col—HEW
Westminister Col—HEW
William Jewell Col—HEW
William Woods Col—HEW
Montana
Carroll Col—HEW
Col of Creat Falls—HEW
Custer Countv |r Col—HEW
Dawson County |r Col—HEW
Eastern Montana Col—HEW
Montana Col Mineral Sci—HEW
Montana St Univ—HEW
Northern Montana Col—HEW
Rocky Mountain Col—HEW
Univ of Montana—HEW
Western Montana Col—HEW
Nebraska
Chadxon St Col—HEW
Col of St Mary—HEW
Concordia Tchrs Col—HEW
Creighton Univ—HEW
Dana Col—HEW
Doane Col—HEW
Duchesne Col Sacred Heart—HEW
Fairbury Jr Col—HEW
Hastings Col—HEW
John F Kennedy Col—HEW
Kearney Si Col—HEW
McCook Jr Col—HEW
Midland Luthem Col—HEW
Municipal Univ of Omaha—HEW
Nebr Brd Educ St Norml Col—HEW
Nebraska Wesleyan Univ—HEW
North Platte Jr Col—HEW
Pershing Col—HEW
Peru St Col—HEW
Scottsbluff Col—HEW
Union Col—HEW
Univ of Nebraska—HEW
Wavne St Col—HEW
York Col—HEW
Nevada
Univ of Nevada—HEW
New Hampshire
BeLknap Col—HEW
Colby Jr Col—HEW
Dartmouth Col—HEW
Franconia Col—HEW
Franklin Pierce Col—HEW
Cunstock |r Col—HEW
Mt St Mary Col—HEW
Nathaniel Hawthorne Col—HEW
New England Col—HEW
New Hampshire Tech Inst—HEW
Notre Dame Col—HEW
Rivier Col—HEW
St Anselm's Col—HEW
Univ of New Hampshire—HEW
New Jersey
Alphonsus Col—HEW
Archangel Col—HEW
Assumption Col Sisters—HEW
Atlantic Comm Col—HEW
Beth Medrash Cevoha Amer—HEW
Bloomfield Col—HEW
Caldwell Col for Women—HEW
Camden Cnty Col—HEW
Centenary Col for Women—HEW
Col of St Elizabeth—HEW
Cumberland Cnty Col—HEW
Drew Univ—HEW
Fairleigh Dickinson Univ—HEW
Georgian Court Col—HEW
Glassboro St Col—HEW
Immac Conception |r Col—HEW
Inst for Advanced Study—DOD
Jersey City St Col—HEW
Mercer County Comm Col—HEW
Middlesex County Col—HEW
Monmouth Col—HEW
Montclair St Col—HEW
Mt St Mary Col—HEW
N | Col of Med and Dent—HEW
New Brunswick Theol Sem—HEW
Newark Col of Eng—HEW
Newark St Col—HEW
Northeastern Col Bible Inst—HEW
Ocean County Col—HEW
Paterson Si Col—HEW
Princeton Theol Sem—HEW
Princeton Univ—DOD
Rider Col—HEW
Rutgers St Univ—HEW
Seton Hall Uruv—HEW
St Peters Col—HEW
Stevens Inst of Tech—DOE
Tombrock Col—HEW
Trenton Jr Col—HEW
Trenton St Col—HEW
Union Jr Col—HEW
Upssala Col—HEW
Westminster Choir Col—HEW
New Mexico
Col of Santa Fe—HEW
Eastern New Mexico Univ—HEW
New Mexico Inst Mining & Tech—DOD
New Mexico Highlands Univ—HEW
New Mexico Jr Col—HEW
New Mexico St Univ—DOE
Roswell Comm Col—HEW
Univ of Albuquerque—HEW
Univ of New Mexico—DOD
Western New Mexico Univ—HEW
New York
Adelphi Univ—HEW
Adirondack Comm Col—HEW
Agr & Tech Col Alfred—HEW
Agr & Tech Col Canton—HEW
Agr & Tech Col Cobleskill—HEW
Agr & Tech Col Delhi—HEW
Agr & Tech Col Farmingdale—HEW
Agr 4 Tech Col Mornsville—HEW
Albanv Col of Pharmacv—HEW
Albany Medical Col—HEW
Alfred Univ—HEW
Auburn Comm Col—HEW
Bank Street Col of Educ—HEW
Bard Col—HEW
Barnard Col—HEW
Bennett Col—HEW
Brentwood Col—HEW
Bnarcliff Col—HEW
Brooklyn Law School—HEW
Broome Tech Comm Col—HEW
Canisius Col—HEW
Cazenovia Col—HEW
Clarkson Col of Teen—HEW
Col at Brockport—HEW
Col at Buffalo—HEW
Col at Cortland—HEW
Col at Fredonia—HEW
Col at Geneseo—HEW
Col at New Paltz—HEW
Col at Oneonta—HEW
Col at Oswego—HEW
Col at Pittsburgh—HEW
Col at Potsdam—HEW
Col Cntr of Finger Lakes—HEW
Col of Forestry Syracuse—HEW
Col of Insurance—HEW
Col of Mt St Vincent—HEW
Col of New Rochelle—HEW
Col of Pharmaceutical Sci—HEW
Col or St Rose—HEW
Colgate Univ—HEW
Columbia Univ—DOD
Concordia Jr Col—HEW
Coope' Union—HEW
Cornell Univ—DOD
Coming Comm Col—HEW
CUNY Manhattan Comm Col—HEW
CUNY Bronx Comm Col—HEW
Appendix 13-C-7
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12/3/8H
70101
CUNY Brooklyn Col—HEW
CUNY Central System—HEW
CUNY City Col—HEW
CUNY Hunter Col—HEW
CUNY John Jay Col—HEW
CUNY Klngsboro Co mm col—HEW
CUNY N Y City Coram Col—HEW
CUNY Queens Col—HEW
CUNY Queensboro Comm col—HEW
CUNY Richmond col—HEW
CUNY Staten Is Comm Col—HEW
D'youville Col—HEW
Dominican Col of Blauvelt—HEW
Downstate Medical Ctr—HEW
Dutchess Comm Col—HEW
Elizabeth Seton Col—HEW
Elmita Col—HEW
Epiphany Apostolic Col—HEW
Erie County Tech Inst—HEW
Fashion Inst of Tech—HEW
Finch Col—HEW
Fordham Uni\—HEW
Fulton-Montgomery Comm Col—HEW
Good Counsel Col—HEW
Hamilton Col—HEW
Hartwich Col—HEW
Hobart and Wm Smith Cols—HEW
Hofstra Univ—HEW
Houghton Col—HEW
Hudson Valley Comm Col—HEW
Immaculata Col—HEW
lona Col—HEW
Ithaca Col—HEW
Jamestown Comm Col—HEW
Jefferson Comm Col—HEW
Jewish Theil Sem of Amer—HEW
juilliard School of Music—HEW
Keuka Col—HEW
Kings Col—HEW
Kirkland Col—HEW
Ladyeliff Col—HEW
LeMoyne Col—HEW
Lewis Col of Podiatry—HEW
Long Island Univ—HEW
Manhattan Col—HEW
Manhattan Sch of Music—HEW
Manhattanville Col Sac Ht—HEW
Mannes Col of Music—HEW
Maria Col of Albany—HEW
Maria Regina Col—HEW
Manst Col—HEW
Maritime Col—HEW
Marymount Col—HEW
Marymount Manhattan Col—HEW
Mater Dei Col—HEW
Mercy Col—HEW
Mills Col of Educ—HEW
Mohawk Valley Comm Col—HEW
Molloy Catholic Col women—HEW
Monroe Comm Col—HEW
Mt St Joseph Col—HEW
Mt St Mary Col—HEW
Nassau Comm Col—HEW
Nazareth Col of Rochester—HEW
New School for Social Res—HEW
New York Col of Music—HEW
New York Inst of Tech—HEW
NeW York Law School—HEW
New York Medical Col—HEW
New York Unu—HEW
Niagara County Comm Col—HEW
Niagara Univ—HEW
Notre Dame Col of Staien Is—HEW
Onondaga Comm Col—HEW
Orange Counrv Comm Col—HEW
Pace Col—HEW
Parson* School of Design—HEW
Paul Smiths Col Arts Sd—HEW
Polytechnic Inst of Bklyn—DOD
Pratt Inst—HEW
Queen of the Apostles Col—HEW
Rabbi Joseph Rabbind Col—HEW
Rabbinical Sem of America—HEW
Rabbuucl Acad M R Berlin—HEW
Rabbuucl Col Chsan Sofer—HEW
RCA Inst—HEW
Rensselaer Ploytech Inst—HEW
Roberts Wesleyan Col—HEW
Rochester Inst of Tech—HEW
Rockefeller Univ—HEW
Rockland Comm Col—HEW
Rosary Hill Col—HEW
Russell Sage Col—HEW
Sancta Mana Jr Col—HEW
Sarah Lawrence Col—HEW
Skidmore Col—HEW
St Bemardine Siena Col—HEW
St Bonaventure Univ—HEW
St Clare Col—HEW
St Francis Col—HEW
St John Fisher Col—HEW
St Johns Univ—HEW
St Josephs Col for women—HEW
St Lawrence Univ—HEW
St Thomas Aquinas Col—HEW
St Vladimirs Tlieol Sem—HEW
State Univ at Albany—HEW
State Univ at Binghamton—HEW
State Univ at Buffalo—HEW
State Univ at Stony Brook—HEW
Suffolk county Comm col—HEW
Sulilivan County Comm Col—HEW
Syracuse Univ—DOD
Teachers Col—HEW
Ulster County Comm Col—HEW
Umon Col—HEW
Union Col 4 Univ Ctrl Sys—HEW
Univ of Rochester—DOD
Upstate Medical Ctr—HEW
Vassar Col—HEW
Villa Mana Col Buffalo—HEW
Voorhees Tech Inst—HEW
Wadhams Hall —HEW
Wagner Col—HEW
Webb Inst of Naval Arch—HEW
Wells Col—HEW
Westchester Comm Col—HEW
Yeshiva Univ—HEW
North Carolina
A & T St Univ of NC—HEW
Appalachian St Univ—HEW
Asheville-Biltmore Col—HEW
Atlantic Christian Col—HEW
Barber-Scotia Col—HEW
Belmont Abbey Col—HEW
Bennett Col—HEW
Brevard Col—HEW
Campbell Col—HEW
Catawba Col—HEW
Central Piedmont Comm Col—HEW
Chowan Col—HEW
Col of The Albemarle—HEW
Davidson Col—HEW
Davidson County Comm Col—HEW
Duke Univ—HEW
East Carolina Univ—HEW
Elizabeth Citv St Col—HEW
Elon Col—HEW
Fayetteville St Col—HEW
Fayetteville Tech Inst—HEW
Greensboro Col—HEW
Guilford Col—HEW
High Point Col—HEW
Isothermal Comm Col—HEW
Johnson C Smith Univ—HEW
KittreU Col—HEW
Lees-McRae Col—HEW
Lenoir County Comm Col—HEW
Lenoir-Rhyne Col—HEW
Livingston Col—HEW
Louisburg Col—HEW
Mars Hill Col—HEW
Meredith Col—HEW
Methodist Col—HEW
Mitchell Col—HEW
Montreat-Anderson Col—HEW
Mt Olive Jr Col—HEW
NC Col Durham—HEW
NC School of Arts—HEW
NC St Univ at Raleigh—HEW
NC Wesleyan Col—HEW
Pembroke St Col—HEW
Pfeiffer Col—HEW
Pitt Technical Inst—HEW
Queens Col—HEW
Rockingham Comm Col—HEW
Sacred Heart Jr Col—HEW
Salem Col—HEW
Sandhills Comm Col—HEW
Shaw Univ—HEW
Southeastern Comm Col—HEW
Southern Pilgnm Col—HEW
St Andrews Presby Col—HEW
St Augustines Col—HEW
St Marys Jr Col—HEW
Surry Comm Col—HEW
Univ of NC at Charlotte—HEW
Univ of NC at Greensboro—HEW
Univ of NC Central Sys—HEW
Univ of NC Chapel Hill—HEW
Wake Forest Univ—HEW
Warren Wilson Col—HEW
Western Carolina Col—HEW
Western Piedmont Comm Col—HEW
Wilkes Comm Col—HEW
Wilmington Col—HEW
Wingate Col—HEW
Winston-Salem St Col—HEW
North Dakota
Assumption Col—HEW
Bismarck Jr Col—HEW
Dickinson St Col—HEW
Jamestown Col—HEW
Lake Region Jr Col—HEW
Mary Col—HEW
Mayville St Col—HEW
Mrnot St Col—HEW
North Dakota Sch Forestry—HEW
North Dakota St Sch Sci—HEW
North Dakota St Univ—HEW
Univ of North Dakota—HEW
Valley City St Col—HEW
Ohio
Antioch Col—HEW
Ashland Col—HEW
Baldwin-Wallace Col—HEW
Bluffton Col—HEW
Bowling Green St Univ—HEW
Capital UNiv—HEW
Case-Western Reserve Univ—HEW
Central St Univ—HEW
Cleveland Inst of Music—HEW
Cleveland St Univ—HEW
Col Mt St Joseph-on-Ohio—HEW
Col of Steubenville—HEW
Appendix 13-C-8
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Col of Wooster—HEW
Col Si Mary of Springs—HEW
Columbus Col Art & Design—HEW
Cuyahoga Comm Col—HEW
Defiance Col—HEW
Demson Univ—HEW
Dyke Col—HEW
Findlay Col—HEW
Franklin Univ—HEW
Heidelberg Col—HEW
Hiram Col—HEW
|ohn Carroll Univ—HEW
Kent St Univ—HEW
Kenyon Col—HEW
Lake Erie Col—HEW
Lorain County Comm Col—HEW
Malone Col—HEW
Marietta Col—HEW
Mary Manse Col—HEW
Miami Univ—HEW
Mt Union Col—HEW
Muskingum Col—HEW
Voire Dame Col—HEW
Obe-lin Coi—HEW Ohio Col of Aoplied Sci—
HEW
Ohio Col of Podiatrv—HEW
Ohio Nor'hem Univ—HEW
Ohio St Univ—rlEW
Ohio Teen inst—HEW
Ohio Lniv—HEW
Oh.o W»slevan Univ—HEW
Otlerbein Col—HEW
Our Lady Cincinnati Col—HEW
Rabbinical Coi ofTelshe—HEW
Rio Grande Col—HEW
Salmon P Chase Col of Law—HEW
Sell of Dayton Art Inst—HEW
Sinclair Col—HEW
St |ohn Col of Cleveland—HEW
Tiffin Univ—HEW
Univ of Akron—HEW
Lniv of Cincinnati—HEW
Lniv of Davton—DOD
Univ of Toledo—HEW
'Jrbana Univ—HEW
Ursuline Col for Women—HEW
Walsh Col—HEW
Western Col for Women—HEW
Wilberforce Univ—HEW
Wilmington Coi—HEW
Wittenberg Univ—HEW
Xavier Univ—HEW
Youngstown St Univ—HEW
Oklahoma
Alius |r Col—HEW
Bacone Col—HEW
Bethany-Nazarene Col—HEW
Cameron St Agr Col—HEW
Central Pilgnm Col—HEW
Central St Col—HEW
Connor St Agr Col—HEW
East Central St Col—HEW
Eastn Okla Agr a Mech Col—HEW
El Reno Col—HEW
Langston Univ—HEW
Murray St Agr Col—HEW
Northeastern Okla ASM Col—HEW
Northeastern St Col—HEW
Northern Oklahoma Col—HEW
Northwestern St Col—HEW
Okla Col of Liberal Arts—HEW
Oklahoma Baptist Univ—HEW
Oklahoma Christian Col—HEW
Oklahoma City Univ—HEW
Oklahoma Military Academy—HEW
Oklahoma St Univ—HEW
Oral Roberts Univ—HEW
Panhandle Agr & Mech Col—HEW
Phdlips Univ—HEW
Poteau Comm Col—HEW
Sayre Jr Col—HEW
Southeastern St Col—HEW
Southwestern Col—HEW
Southwestern St Col—HEW
St Gregorys Col—HEW
Univ of Oklahoma—HEW
Univ of Tulsa—HEW
Oregon
Blue Mountain Comm Col—HEW
Cascade Col—HEW
Central Oregon Comm Col—HEW
Clackamus Comm Col—HEW
Clatsop Comm Col—HEW
Columbia Christian Col—HEW
Concordia Col—HEW
Eastern Oregon Col—HEW
George Fox Col—HEW
Lane Comm Col—HEW
Lewis and Clark Col—HEW
Lmfield Col—HEW
Linn-Benton Comm Col—HEW
MBrylhurst Col—HEW
Ml Angel Col—HEW
Ml Hood Comm Col—HEW
Multnomah Col—HEW
Museum Art School—HEW
Oregon Col of Education—HEW
Oregon Si Univ—HEW
Oregon Tech Inst—HEW
Pacific Univ—HEW
Portland Comm Col—HEW
Portland State Col—HEW
Reed Col—HEW
Southern Oregon Col—HEW
Southwestn Oregon Comm Col—HEW
Treasure Valley Comm Col—HEW
Umpqua Comm Col—HEW
Umv of Oregon—HEW
Univ of Portland—HEW
Warner Pacific Col—HEW
Willamette Univ—HEW
Pennsylvania
Albright Col—HEW
Allegheny Col—HEW
Allegheny County Comm Col—HEW
Allentown Col St Francis—HEW
Alliance Col—HEW
Alvernia Col—HEW
Beaver Col—HEW
Bloomsburg St Col—HEW
Bryn Mawr Col—HEW
Bucknell Univ—HEW
Bucks County Comm Col—HEW
Cabnm Col—HEW
California St Col—HEW
Carnegie-Mellon Univ—DOD
Cedar Crest Col—HEW
Chatham Col—HEW
Chestnut Hill Col—HEW
Chevney Si Col—HEW
Christ Saviour Seminary—HEW
Clarion St Col—HEW
Col Misencordia—HEW
Comm Col of Philadelphia—HEW
CrozerTheol Seminary—HEW
Del Valley Col Sci & Arg—HEW
Dickinson Col—HEW
Dickinson School of Law—HEW
Drexel Inst of Tech—HEW
Dropsie Col Hebr Cog Lmg—HEW
Duquesne Univ—HEW
East Stroudsbrg St Col—HEW
Eastern Baptist Col—HEW
Eastern Pilgrim Col—HEW
Edinboro St Col—HEW
Elizabethtown Col—HEW
Ellen Cushing Jr Col—HEW
Franklin and Marshall Col—HEW
Cannon Col—HEW
Geneva Col—HEW
Gettysburg Col—HEW
Gwynedd-Mercy Col—HEW
Hahnemann Med Col 4 Hosp—HEW
Harcum |r Col—HEW
Harnsburg Area Comm Col—HEW
Haverford Col—HEW
Holy Family Col—HEW
lmmaculata Col—HEW
Indiana Univ of Pa—HEW
leffersom Med Col Phila—HEW
Juniata Col—HEW
Keystone Jr Col—HEW
Kings Col—HEW
Kutztown St Col—HEW
La Roche Col—HEW
Lafavette Col—HEW
La Salle Col—HEW
Lebanon Vallev Col—HEW
Lehigh Univ—HEW
Lincoln Univ—HEW
Lock Haven St Coi—HEW
Lvcoming Col—HEW
Manor Jr Col—HEW
Mansfield St Col—HEW
Marvwood Col—HEW
Mercyhurst Col—HEW
Messiah Col—HEW
Millersville Si Col—HEW
Montgomery Cnty Comm Col—HEW
Moore Col of Art—HEW
Moravian Col—HEW
Mt Alovsius Jr Col—HEW
Mt Mercy Col—HEW
Muhlenburg Col—HEW
Northeastn Chnstn Jr Col—HEW
Our Lady of Angels Col—HEW
Peirce Jr Col—HEW
Pennsylvania Col Optometry—HEW
Pennsylvania Co! Podiatry—HEW
Pennsylvania St Univ—DOD
Phila Col of Osteopathy—HEW
Phila Col of Pharm & Sci—HEW
Phila Col of Text & Sci—HEW
Philadelphia Col of Art—HEW
Philadelphia Col of Bible—HEW
Philadelphia Musical Acad—HEW
PMC Colleges—HEW
Point Park Col—HEW
Robert Moms Jr Col—HEW
Rosemont Col—HEW
Sacred Heart Jr Col—HEW
Seton Hill Col—HEW
Shippensburg St Col—HEW
Slmperv Rock St Col—HEW
Spring Garden Inst—HEW
St Fidelis Col 4 Sem—HEW
St Francis Col—HEW
St Josephs Col—HEW
St Vincent Col—HEW
Susquehanna Univ—HEW
Swarthmore Col—HEW
TemDle Univ—HEW
Thiel Col—HEW
Univ of Pennsylvania—HEW
Univ of Pittsburgh—HEW
Appendix 13-C-9
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Federal Register / Vol. 44. No 235 / Wednesday, December 5, 1979 / Notices	70103
Univ of Scranton—HEW
Urainus Col—HEW
Valley Forge Militarv [r Col—HEW
Villa Mana Col—HEW
Villanova Univ—HEW
Washington 4 Jefferson Col—HEW
Watson Sch of Physiatrics—HEW
Waynesburg Col—HEW
West Chester St Col—HEW
Westminster Col—HEW
Wilkes Col—HEW
Wiliamsport Comn Col—HEW
Wilson Col—HEW
Womans Med Col of Pa—HEW
York Jr Col—HEW
Rhode Island
Bamngton Col—HEW
Brown Lmv—DOO
Bryant Col—HEW
Johnson & Wales Jr Col Bus—HEW
Mt St Joseph Col—HEW
Providence Col—HEW
Rhode Island Col—HEW
Rhode Island Jr Col—HEW
Rhode Island Sch Design—HEW
Roger Williams Jr Col—HEW
Sahe Regina Col—HEW
Seminarv Our Lady of Prov—HEW
Univ of Rhode Island—DOD
South Carolina
Allen Univ—HEW
Anderson Col—HEW
Benedict Col—HEW
Central Wesleyan Col—HEW
Citadel Military Col SC—HEW
Claflin Col—HEW
Clemson Unn—HEW
Coker Col—HEW
Col of Charleston—HEW
Columbia Col—HEW
Converse Col—HEW
Erskine Col—HEW
Friendship Jr Col—HEW
Furman L'niv—HEW
Greenville Tech Educ Ctr—HEW
Lander Col—HEW
Medical Col of SC—HEW
Morns Col—HEW
Newbeny Col—HEW
North Greenville Jr Col—HEW
Omgbrg-Calhn Tech Educ Ctr—HEW
Palmer Col—HEW
Piedmont Tech Educ Ctr—HEW
Presbyterian Col—HEW
Rench-Darlington Tech Sch—HEW
Richland Tech Educ Ctr—HEW
South Carolina St Col—HEW
Spartanburg Jr Col—HEW
Sprtnbrg Cnty Tech Educ Ctr—HEW
Sumter Area Tech Educ Ctr—HEW
Univ of South Carolina—HEW
Voorhees Col—HEW
Winthrop Col—HEW
Wofford Col—HEW
York County Tech Educ Ctr—HEW
South Dakota
Augustana Col—HEW
Black Hills St Col—HEW
Dakota Wesleyan Univ—HEW
Ceneral Beadle St Col—HEW
Huron Col—HEW
Mt Marty Col—HEW
Northern St Col—HEW
Presentation Cot—HEW
Sioux Falls Col—HEW
South Dakota Sch Mines & Tech—HEW
South Dakota St Univ—HEW
Southern St Col—HEW
Univ of South Dakota—HEW
Yankton Col—HEW
Tennessee
Austin Peay St Col—HEW
Bethel Col—HEW
Carson-Newman Col—HEW
Chattanooga City Col—HEW
Chattanooga St Tech Inst—HEW
Christian Brothers Col—HEW
Cleveland St Comm Col—HEW
Columbia St Comm Col—HEW
Covenant Col—HEW
Cumberland Col ofTenn—HEW
David Lipscomb Col—HEW
East Tennessee St Univ—HEW
Fisk Univ—HEW
Freed-Hardeman Col—HEW
George Peabody Col Tchrs—HEW
Hiwassee Col—HEW
Jackson St Comm College—HEW
King Col—HEW
Knoxville Col—HEW
Lambulh Col—HEW
Lane Col—HEW
Lee Col—HEW
Le Movne Col—HEW
Lincoln Memorial Univ—HEW
Martin Col—HEW
MaryviUe Col—HEW
McKenzie Col—HEW
Meharry Medical Col—HEW
Memphis Academy of Arts—HEW
Memphis St Univ—HEW
Middle Tenn St Univ—HEW
Milligan Col—HEW
Momstown Col—HEW
Owen Col—HEW
Siena Col—HEW
Southern Col of Optometry—HEW
Southern Missionary Col—HEW
Southwestern at Memphis—HEW
Tenn Agr 4 Indust St Univ—HEW
Tenn Technologl Univ—HEW
Tenn Temple Col—HEW
Tenn Wesleyan Col—HEW
Trevecca Nazarene Col—HEW
Tusculum Col—HEW
Union Univ—HEW
Univ of Chattanooga—HEW
Umv oPTenn—HEW
Univ of the South—HEW
Vanderbilt Univ—HEW
Wm Jennings Bryan Col—HEW
Texas
Abilene Christian Col—HEW
Allen Academy—HEW
Alvin Jr Col—HEW
Amanllo Col—HEW
Angelina Col—HEW
Angelo St Col—HEW
Austin Col—HEW
Baylor Univ—HEW
Bee County Col—HEW
Bishop Col—HEW
Blinn Col—HEW
Central Tex Union Jr Col—HEW
Christian Col Southwest—HEW
Christopher Col—HEW
Cisco Jr Col—HEW
Clarendon Col—HEW
Appendix 13-C-10
Concordia Lutheran Col—HEW
Cooke County Jr Col—HEW
Dallas Baptist Col—HEW
Dallas County Jr Col Dist—HEW
Del Mar Col—HEW
East Texas Baptist Col—HEW
East Texas St Univ—HEW
El Centra College—HEW
Fort Worth Christian Col—HEW
Frank Phillips Col—HEW
Grayson Countv Jr Col—HEW
Hardin-Simmons Univ—HEW
Henderson Countv |r Col—HEW
Hill Jr Col—HEW
Houston Baptist Col—HEW
Howard County Jr Col—HEW
Howard Payne Col—HEW
Huston-Tillotson Col—HEW
Incarnate Word Col—HEW
Kilgore Col—HEW
Lamar St Col of Tech—HEW
Laredo Jr Col—HEW
Lee Col—HEW
LeToumeau Col—HEW
Lon Moms Col—HEW
Lubbock Christian Col—HEW
M D Anderson Hospital—HEW
Mary Hardin-Baylor Col—HEW
McLennan Comm Col—HEW
McMurry Col—HEW
Midwestern Univ—HEW
Navarro Jr Col—HEW
North Texas St Univ—HEW
Odessa Col—HEW
Our Lady of the Lake Col—HEW
Pan American Col—HEW
Panola Col—HEW
Pans Jr Col—HEW
Paul Quinn Col—HEW
Prairie View AftM Col—HEW
Ranger Jr Col—HEW
Rice Umv (audit only-DOD)—HEW
Sacred Heart Dominican Col—HEW
Sam Houston St Col—HEW
San Antonio Col—HEW
San Jacinto Col—HEW
Schreiner Inst—HEW
South Plains Col—HEW
South Texas Jr Col—HEW
Southern Methodist Umv—HEW
Southwest Texas Jr Col—HEW
Southwest Texas St Col—HEW
Southwestern Medical Sch—HEW
Southwestern Union Col—HEW
Southwestern Assemb God Col—HEW
Southwestern Christian Col—HEW
St Edwards Umv—HEW
St Marys Univ San Antonio—HEW
Stephen F Austin St Col—HEW
Sul Ross St Col—HEW
Tarleton St Col—HEW
Tarrant County Jr Col—HEW
Temple Jr Col—HEW
Texarkana Col—HEW
Texas A 4 M Univ Col Station—HEW
Texas A 4 M Univ Ctrl Sys—HEW
Texas Arts ft Indust Univ—HEW
Texas Christian Univ—HEW
Texas Col—HEW
Texas Lutheran Col—HEW
Texas Southern Univ—HEW
Texas Southraost Col—HEW
Texas Technological Col—HEW
Texas Wesleyan Col—HEW
Texas Womans Univ—HEW
Tnruty Univ—HEW
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Tyler |r Col—HEW
Univ of Corpus Christ!—HEW
Univ of Dallas—HEW
Univ of Houston—HEW
Univ of Si Thomas—HEW
Univ of Texas Arlington—HEW
Univ ofTexas at Austin—HEW
Univ ofTexas at El Paso—HEW
Univ of Texas Ctrl Sya—HEW
Univ ofTexas Medical Sch—HEW
Wayland Baptist Col—HEW
Weatherford Col—HEW
West Texas St Univ—HEW
Wharton County Jr Col—HEW
Wiley Col—HEW
Utah
Bnghatn Young Univ—HEW
Dixie Col—HEW
Umv of Utah—HEW
Utah St Univ—HEW
Weber Si Col—HEW
Westminster Col—HEW
Vermont
Bennington Col—HEW
CastJeton St Col—HEW
Champlam Col—HEW
Col of St |oseph the Prov—HEW
Coddard Col—HEW
Green Mountain Col—HEW
Johnson St Col—HEW
Lyndon St Col—HEW
Marlboro Col—HEW
Middlebury Col—HEW
Norwich Univ—HEW
St Michaels Col—HEW
Trinity Col—HEW
Univ of Vermont—HEW
Vermont Col—HEW
Vermont Tech Col—HEW
Windham Col—HEW
Virginia
Blue Ridge Co mm Col—HEW
Bndgewater Col—HEW
Central Va Comm Col—HEW
Col of William and Mary—DOD
Eastern Mennonite Col—HEW
Emory k Henry Col—HEW
Ferrum |r Col—HEW
Hampden-Sydney Col—HEW
Hampton Inst—HEW
Hollins Col—HEW
John Tyler Tech Col—HEW
Longwood Col—HEW
Lynchburg Col—HEW
Madison Col—HEW
Mary Baldwin Col—HEW
Marymount Col of Virginia—HEW
Northern Virginia Comm Col—HEW
Old Dominion Col—HEW
Radford Col—HEW
Randolph-Macon Col—HEW
Randolph-Macon Womas Col—HEW
Roanoke Col—HEW
Shenandoah Col—HEW
Southwest Virginia Jr Col—HEW
St Pauls Col—HEW
Sullins Col—HEW
Univ of Richmond—HEW
Univ of Virginia—HEW
Virginia Commonwealth Univ—HEW
Virginia Military Inst—HEW
Virginia Polytechnic Inst—HEW
Virginia St Col—HEW
Virginia Union Univ—HEW
Virginia Wesleyan Col—HEW
Virginia Western Comm Col—HEW
Washington A Lee Univ—HEW
Va Institute of Marine Sciences—DOD
Washington
Bellevue Comm Col—HEW
Big Bend Comm Col—HEW
Central Wash St Col—HEW
Centralia Col—HEW
Clark Col—HEW
Clover Park Comm Col—HEW
Columbia Basin Col—HEW
Eastern Wash St Col—HEW
Everett Jr Col—HEW
Fort Wnght Col Holy Names—HEW
Gonzaga Univ—HEW
Grays Harbor Col—HEW
Green River Comm Col—HEW
Highline Col—HEW
Lower Columbia Col—HEW
Northwest Col—HEW
Olympic Col—HEW
Pacific Lutheran Univ—HEW
Peninsula Col—HEW
Seattle Comm Col—HEW
Seattle Pacific Col—HEW
Seattle Univ—HEW
Shoreline Comm Col—HEW
Skagit Valley Col—HEW
Spokane Comm Col—HEW
St Martins Col—HEW
Tacoma Comm Col—HEW
Univ of Puget Sound—HEW
Univ of Washington—HEW
Walla Walla Col—HEW
Walla Walla Comm Col—HEW
Washington St Univ—HEW
Wenatchee Valley Col—HEW
Western Wash St Col—HEW
Whitman Col—HEW
Whitworth Col—HEW
Yakima Valley Col—HEW
West Virginia
Alderson-Broaddus Col—HEW
Beckley Col—HEW
Bethany Col—HEW
Bluefield St Col—HEW
Concord Col—HEW
Davis & Elkins Col—HEW
Fairmont St Col—HEW
Glenville St Col—HEW
Marshall Umv—HEW
Moms Harvey Col—HEW
Ohio Valley Col—HEW
Salem Col—HEW
Shepherd Col—HEW
St Marys Hosp Sch of Nursing—HEW
West Liberty St Col—HEW
West Virginia Inst Tech—HEW
West Virginia St Col—HEW
West Virginia Univ—HEW
West Virginia Wesieyan Col—HEW
Wheeling Col—HEW
Wisconsin
Alvemo Col—HEW
Barron County Tchrs Col—HEW
Beloit Col—HEW
Cardinal Stritch Col—HEW
Carroll Col—HEW
Carthage Col—HEW
Columbia Countv Tchrs Col—HEW
Concordia Col—HEW
Dodge County Tchrs Col—HEW
Dominican Col—HEW
Edgewood Col Sacred Heart—HEW
Holy Fa&ily Col—HEW
Juneau County Tchrs Col—HEW
Lakeland Col—HEW
Lawrence Univ—HEW
Layton Sch of Art—HEW
Madison Voc Tech Sch—HEW
Manan Col of Fond du Lac—HEW
Marquette Univ—HEW
Milton Col—HEW
Milwaukee Inst of Tech—HEW
Milwaukee Sch of Eng—HEW
Mt Mary Col—HEW
Mt Senano Col—HEW
Mt St Paul Col—HEW
Northland Col—HEW
Racine-Kenosha Tchrs Col—HEW
Richland County Tchrs Col—HEW
Ripon Col—HEW
Sauk County Tchrs Col—HEW
St Laurence Sem—HEW
St Norbert Col—HEW
Stout St Univ—HEW
Taylor County Tchrs Col—HEW
Univ of Wise Madison—HEW
Univ of Wise Milwaukee—HEW
Univ of Wise Central Sys—HEW
Univ of Wise Ctr—HEW
Vemon County Tchrs Col—HEW
Viterbo Col—HEW
Waushara County Tchrs Col—HEW
Wise Conservatory—HEW
Wise St Univ Central Sys—HEW
Wise St Univ Stevens Pnt—HEW
Wise St Univ Eau Claire—HEW
Wise St Univ La Crosse—HEW
Wise St Umv Oshkosh—HEW
Wise St Univ Platteville—HEW
Wise St Univ River Falls—HEW
Wise St Umv Superior—HEW
Wise St Univ Whitewater—HEW
Wyoming
Casper Col—HEW
Goshen County Comm Col—HEW
Northern Wyoming Comm Col—HEW
Northwest Comm Col—HEW
Univ of Wyoming—HEW
Western Wyoming Coirm Col—HEW
Guam
Univ of Guamint
Puerto Rico
Catholic Univ of PR—HEW
Col of the Sacred Heart—HEW
Inter Amer Univ of PR—HEW
Puerto Rico Jr Col—HEW
Univ of PR Mayaguez—HEW
Univ of PR Rio Piedras—HEW
Univ of PR San Juan—HEW
Virgin Islands
Col of Virgin Islands Int
|FR Doc. 7W7J71 Filad 12-4-79 8 <3 irni
BILLING COOC 1110-01-M
Appendix 13-C-ll
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ASSISTANCE ADMINISTRATION
5700
12/3/81
Friday
April 27, 1984
Part VII
Office of
Management and
Budget 	
Circular A-122: Cost Principles for
Nonprofit Organizations; "Lobbying"
Revision
Department of Defense
General Services Administration
National Aeronautics and Space
Administration
48 CFR Part 31
Federal Acquisition Regulation; Final Rule
Appendix 13-D
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' 18260 ASSISTANCE! AjfrriEEEkfolgftft/ Vo1- 49- No- 83 / Friday- AP"1 27•1984 I Notices
5700
12&8H
OFFICE OF MANAGEMENT AND
BUDGET
Circular A-122; Cost Principles (or
Nonprofit Organizations—"Lobbying"
Revision
[NOTE: This reprint Incorporates correction*
that are published in the Federal Register of
Tuesday. May 8.1984.]
aoency: Office of Management and
Budget Executive Office of the
President
action: Publication of Revision to the
Circular.
Summary: This notice sets forth the final
version of the Office of Management
and Budget's (OMB) "Lobbying"
revision to Circular A-122. "Cost
Principles for Nonprofit Organizations."
The revison makes unallowable for
Federal reimbursement the costs
associated with most kinds of lobbying
and political activities, but does not
restrict lobbying or political activities
paid for with non-Federal funds.
A parallel revision is being made to
the Federal Acquisition Regulation
(FAR) to cover all defense and civilian
contractors The FAR revision appears
on the pages immediately following the
Circular A-122 revision
effective date: This revision will
become effective May 29.1984 The
revision will affect only grants,
contracts, and ether agreements entered
into after the effective date. Existing
grants, contracts, and other agreements
will not be affected Agency contracts
and regulations will incorporate these
provisions to the same extent and in the
same manner as they do other
provisions of Circular A-122.
FOR FURTHER INFORMATION CONTACT:
John } Lordan, Financial Management
Branch. Office of Management and
Budget, Washington, D C. 20503 (202)
395-6823.
SUPPLEMENTARY INFORMATION: The
attached text sets forth the final
language for the revision to Circular A-
122 that was proposed on November 3,
1983 48 FR 50880-50874 Significant
modifications have been made to the
proposed language after a thorough
review of the approximately 93.800
public comments received and extensive
discussions with the General
Accounting Office and cognizant
Congrpssional committees.
Table of Content*
1 Background of Circular A-122
n History of the Revision
in Summary of the Revision
IV	Significant Changes from November
Proposal
V	Purpose of the Revision
V] Principal Ob)ecUons to the Proposal
A. Legal Authority
B. First Amendment
C Internal Revenue Code
D Restricting the Flow of Information
E.	Evidence of Confusion Regarding
Current Lobbying Restrictions
F.	The Proposed Revision Was Not
Sufficiently Restrictive
VII	Analysis of Comments and Resulting
Changes to Proposal
A.	Unallowable Lobbying—subparagraph a
B.	Electioneering—sections a(l) and a(2)
C Attempts To Influence Legislation—
sections a(3) and a(4)
D.	Legislative Libisod—section a(5)
E.	Exceptions to Unallowable Lobbying—
subparagraph b
F.	Legislative Requests for Technical and
Factual Information—section b(l)
C State Level Lobbying Related to
Performance of Grant or Contract—
secUon b(2]
H Lobbying Authorized by Statute-
section b(3)
L Exceptions Deleted from November
Proposal
) Accounting Treatment of Unallowable
Costs—subparagraph c
K. Indirect Cost Rate Proposal—section
e(l)
L Certification Requirement—section c(2)
M Recordkeeping—sections c(3) and c(4)
N Administrative Restrictions on
Agencies—section c(5]
0 Paragraph Renumbering Provision
VIII	Paperwork Reduction Act
Considerations.
DC Enforcement
X. Designation as a "Non-Major" Rule
1. Background of Circular A-122
Circular A-122. "Cost Principles for
Nonprofit Organizations," establishes
uniform rules for determining the costs
of grants, contracts, and other
agreements. Like other OMB cost
principle circulars for state end local
governments and educational
institutions. Circular A-122 is a
management directive addressed to the
heads of Federal departments and
agencies and constitutes the legal basis
by which they define allowable and
unallowable costs and how such costs
are calculated.
Circular A-122 was first issued in June
1990 It was developed by an
interagency team chosen from the major
grant-making agencies and led by OMB.
Before issuance, public comments were
sought and received, and consultations
were held with the General Accounting
Office. The cost principles built upon
accounting rules previously in use by
Federal agencies in their dealings with
nonprofit organizations The Circular
standardized and simplified those rules.
In general, the Circular provides that to
be recovered from the Federal
government, costs incurred by grantees
and contractors must be necessary,
reasonable, and related to the federally-
sponsored activity. In addition, costs
must be legal, proper, and consistent
with the policies that govern the
organization's other expenditures.
The disallowance of lobbying costs in
thia revision is comparable to the
disallowance by Circular A-122 of other
costs which are not reimbursed on
grounds of public policy, such as
advertising, fundraising expenses and
entertainment In each of these
instances, a determination has been
made that it would not be appropriate or
coBt-efficient to permit Federal tax
dollars to be used for these purposes. In
any event it should be noted that
lobbying costs are currently
unallowable; as indicated throughout
this revision is intended to clarify and
make more uniform the meaning and
application of that bar.
~. History of the Revision
On January 24,1983, OMB published a
proposal to revise Circular A-122's
treatment of the costs of lobbying
activities by defining as unallowable the
costs of advocacy activities performed
by Federal nonprofit grantees and
contractors with appropriated funds 48
FR 3348-3351. Following publication,
OMB received approximately 48,300
comments from the public, from
nonprofit and commercial organizations
and from government agencies.
Approximately 18,500 comments
opposed the proposed revision, and
approximately 31,800 supported it Many
of the comments opposing the revision
expressed support for the general
principle that Federal tax dollars should
not be used for lobbying and related
purposes, but objected that the
proposals contained in the January 1983
notice would disrupt the legitimate
activities of Federal nonprofit grantees
and contractors On the other hand,
many of the supporting comments
suggested a need for controls
significantly more restrictive than those
proposed
In order to permit further study of the
issues raised by these comments. OMB
withdrew the January 1983 proposal at
the end of the 45-day public comment
penod. In the intervening months. OMB
conducted numerous discussions with
nonprofit organizations, business
groups, trade associations, the General
Accounting Office, and interested
Committees of the Congress and their
staffs After further consideration of the
comments and discussions, OMB
published a second proposal on
November 3.1983, to revise the
Circular's cost standards The
November proposal represented a
fundamental revision of the original
January proposal as a result of the
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18261
lengthy dialogue between OMB hnd
effected groups.
The most important changes from the
January proposal were:
•	Adoption of an allocation method of
accounting for the costs of lobbying and
related activities;
•	A more limited definition of
unallowable costs; and
•	Clarifications and limits on
reporting and recordkeeping
requirements in the spirit of the
Paperwork Reduction Act
The November 1983 proposal initially
provided for a 45-day public comment
period. 48 FR 50880-50874. A9 a result of
the interest shown by the public and
Congress and the large volume of
comments received by OMB. the
comment period was extended for thirty
days until January 18,1984 48 FR 56463-
56484
By the end of the public comment
period, OMB had received some 93,600
separate comments. Of these, some
87,500 (93.5%) favored the proposed
revision without further changes; some
4.175 (4 5%) opposed the revision or
sought further modifications; and some
1,925 (2.0%) did not clearly express
either support or criticism. These totals
include only individually mailed
comments; bulk packages of letters,
including form letters and petitions,
were counted as single comments.
In finalizing the revision, OMB has
carefully reviewed each of the
comments received. The November
proposal has been further amended in
several significant respects, and the
final version addresses many of the
concerns raised by the critical
comments. OMB also has conducted
extensive discussions with interested
members of Congress and their staffs,
particularly members of the House
Government Operations Committee and
the Senate Subcommittee on
Intergovernmental Relations. Prior to
publication of the November proposal,
OMB had met extensively with
Committee staff to review their
concerns, and several major
modifications were made to the
proposal to accommodate their
suggestions OMB has continued to meet
with the Committee staffs during the
public comment period and. following
development of the final language of the
revision, OMB has reviewed this
language with the Committees on
several occasions In addition, OMB has
met with the General Accounting Office
at various stages of the process and is
authorized to state that the Comptroller
General believes that OMB has the clear
legal authonty to issue the Circular
amendment published today, and that
he supports it
IH. Summary of the Revision
The revision amends Circular A-122
to define certain lobbying activities by
nonprofit Federal grantees and
contractors as unallowable costs which
cannot be paid for with Federal funds.
The most significant provisions make
costs of the following activities
unallowable;
•	Federal, state or local electioneering
and support of such entities as campaign
organizations and political action
committees;
•	Most direct lobbying of Congress
and, with the exceptions noted below,
state legislatures, to influence
legislation;
•	Lobbying of the Executive Branch in
connection with decisions to sign or
veto enrolled legislation;
•	Efforts to utihzie state or local
officials to lobby Congress or state
legislatures;
•	Grassroots lobbying concerning
either Federal or state legislation; and
•	Legislative liaison activities in
support of unallowable lobbying
activities.
The revision is considerably less
encompassing than the earlier proposals
and the current regulations of other
agencies governing for-profit
contractors, in that it does not cover
•	Lobbying at the local level
(unallowable under both the Federal
Acquisition Regulation (FAR) and the
Defense Acquisition Regulation (DAR)
supplement to the FAR);
•	Lobbying to influence state
legislation, in order to directly reduce
the cost of performing the grant or
contract or to avoid impairing the
organization's authonty to do so
(covered under the current FAR, DAR
supplement and the January 1983
proposal),
•	Lobbying in the form of a technical
and factual presentation to Congress or
state legislatures, at their request
(unallowable under the current DAR
supplement to the FAR);
•	Contacts with Executive Branch
officials other than lobbying for the veto
or signing of enrolled bills (covered
under the January 1983 proposal), and
•	Lobbying on regulatory actions
(covered under the January 1983
proposal).
In particular, the revision will make
unallowable only the portion of costs
attributable to lobbying (the
"allocation" approach)—not, as in the
January 1983 proposal, entire cost items
used in part for political advocacy (the
so-called "tainting" approach).
The revision will provide relief from
paperwork and audit burdens for
nonprofit organizations (and, onder a
simultaneous change being made in the
FAR, for government contractors). For
example, indirect cost employees (such
as executive directors) will not be
required to maintain time logs or
calendars (for the portion of their time
treated as an indirect cost) if they certify
in good faith that they spend less than
25% of their work time in defined
lobbying activities. Moreover, the clear
standards provided by the revision will
prove of substantial benefit to nonprofit
grantees in audit situations by reducing
the resources necessary to resolve
whether Federal funds were spent on
unallowable activities.
The penalties for violating the
revision will be the same as for any
other cost principle in OMB Circular A-
122. The standard remedy is recovery of
the misspent money In cases of serious
abuse, however, the grant or contract
may be suspended or terminated, or the
recipient may be debarred from
receiving further Federal grants or
contracts for a certain period.
IV. Significant Changes From the
November Proposal
After review of the comments
submitted during the comment period,
OMB has made further significant
changes to the revision. Among the most
noteworthy amendments are the
following.
1 The definitional term "lobbying and
related activities" has been changed to
"lobbying."
Numerous commenters expressed
concern that the term "related
activities" could be used in the future to
expand the scope of unallowable
acivibqs beyond what is explicitly
defined as unallowable. This was not
OMB's intent, which was merely to use
the most appropriate term for describing
the unallowable activities, which
include electioneering and activities
supporting unallowable lobbying, as
well as what is normally thought of as
"lobbying."
The original term for the activities
defined as unallowable (in the January
1983 proposal] was "political advocacy."
That term was changed to "lobbying and
related activities" in the November
proposal and has now been revised to
"lobbying " Deletion of the term "related
activities" does not affect the continuing
disallowance of "costs associated with"
unallowable lobbying—including those
Activities undertaken to facilitate that
lobbying.
2. The restrictions on direct
legislative lobbying and grass/vox
lobbying have been clarified to cover
attempts to influence "the introduction
of legislation" and "the enactment or
Appendix 13-D-2
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ASSISTANCE ^AEMTNISTRATION 12/3/84
18262	Federal Register / Vol. 49, No. 83 / Friday, April 27, 1984 / Notices		
modification of ' ' pending
legislation." Sections a(3) and a(4).
This change makes more precise the
scope of the activities disallowed, and
conforms to the IRS definition of
lobbying.
3.	The legislative liaison"provision
has been made less restrictive, and
clarified. Section a(5).
In the November proposal, all
legislative liaison was deemed to be
unallowable unless it did not relate to
otherwise unallowable activities.
Commenters complained that this
section was both too confusing, because
it employed a double negative, and too
restrictive. Section a(5) has been revised
to clarify that legislative liaison is
unallowable only "when such activities
are earned on in support of or in
knowing preparation for an effort to
engage in unallowable lobbying," as
defined in the revision.
4.	The exception for providing
assistance in response to a "specific
written request" has been broadened to
facilitate easier usage and has been
narrowed in other respects Section b(l).
The final version has been broadened
by deleting the "specific written
request" requirement and permitting
oral requests, if properly documented;
allowing "cognizant staff members" (in
addition to Congressmen} to make such
requests; and making Congressional
Record notices sufficient to invoke the
exception.
The exception also has been
narrowed in certain respects by limiting
it to information derived from grant or
contract performance that is conveyed
in "hearing testimony, statements or
letters" and requested by legislative
sources; requiring presentations to be
"technical and factual," and further
requiring that the information is "readily
obtainable and can be readily put in
deliverable form " Further, the use of the
term "technical and factual
presentation" avoids use of the
exception whenever technical and
factual information is provided in any
manner of lobbying presentation and
likewise avoids the requirement that
brief advocacy conclusions following
technical and factual presentations
require separate accountings and
disallowances.
The costs of travel, lodging or meals
involved in lobbying activities which
would otherwise be unallowable under
the terms of section a(3) are nonetheless
made allowable if expended for the
purpose of offenng Congressional
hearing testimony pursuant to written
request of the Committee's Chairman or
Ranking Minority Member for a
technical and factual presentation
5. The state waiver clause in the state
lobbying exception has been deleted
and the scope of the exception clarified.
Section b(2).
The state waiver clause was added to
the November 1993 notice in response to
concerns raised by some nonprofit
organizations It would have permitted
states to make allowable all state
lobbying by their subgrantees. Upon
further review, however, the clause was
determined to be confusing and
superfluous Further, under none of
Circular A-122's other 50 cost categories
do states have the right to override
Federal cost standards.
Two significant clarifying changes
have been made In new section b(2)
First, the "lobbying" covered by the
exception has been explicitly limited to
lobbying made unallowable by section
a(3); thus, for example, grassroots
lobbying (covered under section a(4))
does not come within the exception.
Second, the exception has been
reworded to apply to efforts to influence
state legislation affecting an
organization's authority to perform a
grant, contract, or other agreement, and
efforts to reduce the costs to the
organization of such performance. The
original language, applying to an
organization's "ability" to perform the
grant, contract, or other agreement, was
deemed too broad
6	The exception for "activity in
connection with an employee's service
as an elected or appointed official or
member of a governmental advisory
board" wes deleted Section c(3] in
November proposal
This provision was put in the January
„ 1983 proposal to prevent part-time
government officials from being subject
to complete non-reimbursement as a
result of the "tainting" principle Since
the allocation method is now used, the
exception is irrelevant and would open
major loopholes
7	The "disclosure"requirement
relating to the indirect cost rate
proposal has been clarified and
explicitly tied to existing accounting
guidelines Section c(l).
The November proposal had required
a statement "identifying by category,
costs attributable in whole or in part to
lobbying" and "stating how they are
accounted for."
Section c(l) now simply requires that
total lobbying costs "be separately
identified" in the indirect cost rate
proposal and treated consistently with
other unallowable activity costs, as
required by the operative Circular A-122
accounting provision
8	The Circular A-122 certification
requiremert has been changed to
conform to the Defense and GSA
November 1983 proposal. Section c(2}.
The November proposal's certification
requirement pertains to the "Financial
Status Report," which is prepared on an
individual grant basis. However, most
lobbying activities are accounted for in
an entity's indirect costs, which are
calculated on an organization-wide
basis. Thus, the appropriate place to
certify such costs is in the Indirect Cost
Rate Proposal, as required under the
Defense and GSA (FAR) approach The
final version has been changed to reflect
this fact.
9 The language explaining the "25%
Rule" exception for recordkeeping has
been clarified Section c(4]
Some commenters said that the
annual period the 25% rule covered
created retroactivity problems, in that
intensive late-year lobbying could
remove the rule's paperwork protections
for persons who had previously
estimated that the 25% trigger would not
be exceeded. Other commenters said it
was unclear whether the rule was to be
based on 40-hour weeks or the actual
hours worked. In response, the phrase
"25% of the time" has been revised to
"25% of his compensated hours of
employment during that calendar
month "
V. Purpose of the Revision
As set forth at greater length in the
preambles to the January and November
notices, the purpose of this revision is to
establish comprehensive, government-
wide cost principles to ensure that
nonprofit Federal grantees and
contractors do not use appropnated
funds for lobbying activities. This
principle is achieved by disallowing the
recovery of lobbying costs in a manner
consistent with the treatment under
Circular A-122 of other costs which are
disallowed on grounds of public policy
In adopting this revision, OMB does not
intend to discourage or penalize
nonprofit organizations from conducting
lobbying efforts with their own non-
Federal funds The sole purpose of this
revision is to require that those efforts
be paid for with funds raised from other
sources and to ensure that the Federal
government does not subsidize such
lobbying acUvities with appropriated
funds In addition, this revision 3eeks,
for the sake of auditors and auditees
both, to clarify definitions and thereby
to make the current provisions against
use of funds for lobbying purposes both
easier to comply with and to enforce
In recent years, Congress and the
Comptroller General have recognized
that the use of Federal monies by
grantees and contractors to engage in
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lobbying is inappropriate. Hie
voluminous comments OMB received on
the revision demonstrate that there is
little disagreement on this score. Use of
appropriated funds for lobbying diverts
scarce resources from the purpose for
which the grant or contract was
awarded. By permitting such a use of its
funds, the government subsidizes the
lobbying efforts of its contractors and
grantees. This improperly distorts the
political process, by favoring the
political expression of some—
organizations with contracts or grants—
relative to others, who must conduct
their political expression at their own
expense.
Government subsidization of certain
participants the debate over legislative
outcomes may contradict important
principles of government neutrality in
political debate, and use of Federal
funds for pnvate lobbying can give the
appearance of Federal support of one
political position over another. As the
comments indicate, subsidizing such
lobbying can create misunderstanding
and interfere with the neutral,
nonpartisan administration of Federally-
funded programs. The revision seeks to
avoid the appearance that, by awarding
Federal grants, contracts, or other
agreements to organizations engaged in
pohtical advocacy on particular sides of
public issues, the government has
endorsed, fostered, or "prescnbe[d] [as]
orthodox" a particular view on such
issues West Virginia State Board of
Education v Barnette, 319 U S 624. 645
(1943).
Requiring grantees and contractors to
bear the costs of their own lobbying
efforts does not infringe upon their
constitutional nghts. No person or group
has a First Amendment right to receive
government funding for political
expression As the Supreme Court has
recently emphasized m a unanimous
opinion, free speech does not mean
subsidized speech The Federal
government "is not required by the First
Amendment to subsidize lobbying. * " *
We again reject the 'notion that the First
Amendment nghts are somehow not
fully realized unless they are subsidized
by the State.'" Regan v. Taxation with
Representation of Washington, 103 S.Ct.
1997, 2001 (1983)
In recent years, the problem of the use
of taxpayer funds for lobbying purposes
has become of increasing concern, and
steps have been taken in a variety of
different contexts to address the
problem There has been increasing
public concern that limited grant and
contract resources should not be used in
projects that involve political
organizing.
Congress haa responded to this
problem by adopting numerous
appropriations restrictions to address
some of the more flagrant abuses and
problems raised by lobbying activities
with Federal funds. Indeed, over the
past ten years, some 40-50 riders have
been attached to appropriations bills to
address different aspects of the problem.
These appropriations riders use many
different formulations, but have as a
common element prohibiting the use of
appropriated funds for publicity or
propaganda purposes designed to
support or defeat legislation. The
agencies affected by specific
appropriations riders include Defense,
the District of Columbia, the Legal
Services Corporation, and agencies
'covered by the State-Justice-Commerce
Appropriations Acts. For example, the
current Labor-HHS-Education-Related
Agencies Appropriations Act, dealing
with agencies that dispense the large
proportion of grant funds, reads as
follows:
No part of any appropriation contained m
this Act shall be used to pay the salary or
expenses of any grant or contract recipient or
agency acting for such recipient to engage in
any acUvity designed to influence legislation
or appropriations pending b^fofe the
Congress (Section 509. Pub L 98-139 )
This provision has been construed by
the Justice Department to extend the
ban on grantee activities significantly
beyond the conduct of "grassroots"
campaigns Moreover, as to many of the
appropriations nders which prohibit
agencies from using public funds for
their own lobying activities, clear
policies regarding grantee and
contractor expenditures for lobbying
may be needed in order for the agencies
not to be in violation, albeit indirect, of
their statutory restrictions Enforcement
of these appropriations provisions, and
of the consensus principle that Federal
funds should not be used to support
lobbying activities, has proved to be
very difficult, because of the absence of
any clear definitions or standards for
determining which activities by grantees
and contractors violate the lobbying
restrictions.
Furthermore, when audits are
undertaken, the lack of clear standards
imposes substantial burdens on the
grantees Auditors can have great
discretion and significant leverage over
the grantees in negotiations to determine
which factors should be included in
allowable costs. If auditors decide to
inquire into lobbying activities,
nonprofit entities can be compelled to
provide elaborate factual backup from
their records to refute any claims that
may be raised In light of the enormous
expansion of Inspector General staffs
and the sensitivity of this issue,
significantly more auditing activity can
reasonably be expected in this area in
the future. Accordingly, the current
practices do not serve the current need
to assure that Federal funds are not
used for lobbying purposes and, as well,
impose potentially heavy burdens on
agencies, their auditors and the
nonprofit entities themselves.
As the Investigations Subcommittee of
the House Armed Services Committee
recently concluded:
[T]here is a deficiency in the
appropriations acts' prohibition of lobbying
with appropriated funds. A review of the
legislative history of the publicity-
propaganda appropriations acts restrictions
provides no definition of the critical terms
'publicity' and 'propaganda ' Thus, there
appears to be no firm distinction between the
conduct which is permissible and that which
is prohibited. Thus the clear signal from
Congress through the appropriations laws
and other actions has not been translated
into effective management controls
In the commercial field, several steps
recently have been taken to facilitate
the need to be sure that Federal funds
are not used for lobbying For example.
•	On December 18,1981. the
Department of Defense issued revisions
to its Defense Acquisition Regulation
(DAR), addressing for the first time the
issue of lobbying activities, and making
certain such costs unallowable under
Defense contracts
•	On April 27,1982 and October 22.
1982. Defense further toughened its rules
disallowing lobbying costs by
eliminating certain exceptions from
coverage
•	On May 28,1982, NASA issued a
new cost principle in the NASA
Procurement Regulation (NASAPR)
making certain lobbying costs
unallowable for NASA contractors.
•	On November 2,1982, the General
Services Administration issued a new
cost principle in the Federal
Procurement Regulation (FPR) making
certain lobbying costs unallowable for
civilian agency contracts with
commercial organizations.
•	On April 1,1984, the three sets of
cost principles that had governed
Federal contracts—the DAR, FPR and
NASAPR—were replaced by the new
Federal Acquisition Regulation (FAR).
The FAR is the product of several years
of inter-agency negotiations to create a
uniform set of guidelines for all Federal
contractors. The procurement agencies
are required to use the new FAR
regulation except in those cases where
they issue a formal devianon to a
specified FAR section. The FAR adopted
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the former FPR lobbying cost principle.
The Defense Acquisition kegulatibn
Council, however, issued a deviation so
that the former OAR lobbying cost
principle continues to be operative for
Defense contractors.
These initiatives, however, affect only
defense and civilian contracts with
commercial entities. No generally
applicable cost principle has been
issued to cover the Federal funding of
lobbying under contracts and grants to
nonprofit organizations. These entities,
however, are in the same position with
respect to most Federal government cost
guidelines as profit-making grantees and
contractors, and the comments received
by OMB clearly and overwhelmingly
support the view that the same lobbying
cost principles should likewise apply to
them. Therefore, in keeping with sound
management practices, it is important
that the lobbying cost principles be
extended to these nonprofit entities and
harmonized, to the maximum extent
practicable, with the principles already
applicable to commercial concerns.
Given the vagueness of the existing
A-122 standards, the need for a clear
cost principle on lobbying for nonprofit
grantees was addressed explicitly by the
Comptroller General in September 1982,
after a GAO investigation of whether
funds under Title X of the Public Health
Services Act were used to finance
lobbying activities or abortion-related
activities
Clear Federal guidance is needed both to
ensure that Title X program funds are not
used for lobbying and to preclude
unnecessary controversy over whether
grantees are violating Federal restrictions
The move to revise and make more specific
the cost principles applicable to all Federal
grantees is the appropriate mechanism to
achieve these ends GAO/HRD-82-106 (Sept.
24,1982) at 27 (emphasis added).
This revision thus addresses the major
area in which Federal cost principles
have not yet been adopted to ensure
that appropriated funds are not used to
subsidize lobbying by Federal grantees
and contractors Tlus revision is
intended to provide lines of demarcation
so that nonprofit entities can know in
advance what is aUowable The revision
protects their First Amendment rights
and in significant respects strongly
advances their interests By giving
nonprofit entities clear guidance and
limiting the bookkeeping work that can
be required to refute an auditor's claim
of unallowable costs, the revision
removes a potentially severe burden
from these entities, especially the
smaller and less well financed groups In
addition, although the revision cannot
resolve in advance every problem which
may anse in this complex field, a
mechanism has been provided by which
nonprofits may obtain advance rulings
whether certain costs are unallowable.
The revision is similar in critical
respects to the current Defense and FAR
procurement regulations, although—as
noted elsewhere in this premble—
provisions added in the past two years
to the cost principles governing aU
Federal contractors are far more
restrictive than the revision adoped
here. Since parallel revisions are being
issued for Circular A-122 and FAR sets
of cost principles, the present initiative
guarantees uniformity of lobbying cost
rules for both nonprofit and profit-
making recipients of Federal funds. This
principle of uniformity has been urged
by Congressional commenters and by
the GAO.
VI. Principal Objections to the Proposal
A. Legal Authority
Numerous commenters suggested that
OMB lacks authority to issue this
revision to Circular A-122. Most of these
comments appear to have been based
upon a report of the Congressional
Research Service, which suggested that
this might be a potential legal issue but
ultimately reached no conclusion on the
matter. OMB. supported by the
Comptroller General, believes that its
legal authority to issue the amendment
is clear.
The responsibility for implementing
grant programs, including the power of
administration, has been delegated by
Congress to the vanous grant- and
contract-making agencies It has long
been settled that the Federal
government may impose terms and
conditions upon grants and contracts it
awards, including those given to State or
local government instrumentalities. See.
e.g.. King v Smith. 392 U S. 309 (1968]
Accordingly, those agencies have the
direct legal authority to establish cost
principles and, pnor to the late 1970s,
did so in a piecemeal fashion without
coordinated government-wide
standards
OMB's legal authority for establishing
cost principles derives from the
President's constitutional authority to
"take care that the laws be faithfully
executed." U.S. Constitution. Article ~,
Section 3, his authority under section
205(a) of the Federal Property and
Administrative Services Act, 40 U S C
486(a), and from the general supervisory
responsibilities over the Executive
Branch vested by Congress in the
President and in OMB In particular, in
its capacity as the President's managing
agent for the Executive Branch, OMB is
authorized by 31 U S C. 1111(2) to assist
the President in improving economy and
efficiency throughout the government by
developing plans for the improved
organization, coordination, and
management of the Executive Branch
This revision constitutes an effort to
develop government-wide cost
principles that are uniform, to the
maximum extent practicable, and treat
similarly situated organizations alike
The President assigned responsibility
for grants management to OMB by
Executive Order No. 11541 (July 1,1970),
pursuant to Reorganization Plan No. 2 of
1970, 5 U.S.C. App. Subsequently, grants
management authority was transferred
to GSA by Executive Order No. 11717
(May 9.1973) and transferred back to
OMB by Executive Order No. 11893
(December 31.1975). Relevant statutory
authorities include section 209 of the
Budget and Accounting Act of 1921. 31
U.S.C. 1111(1); and section 104 of the
Budget and Accounting Procedures Act
of 1950,31 U.S.C. 1111(2) Under these
and other general management
authorities, OMB may develop plans for
implementing better management with
"a view to efficient and economical
service" and may issue supplementary
interpretative guidelines "to promote
consistent and efficient use of
procurement contracts, grant
agreements, and cooperative
agreements."
In its capacity of exercising the
President's general management
functions over the Executive Branch.
OMB has the power to supervise and
direct the management activities of
Federal agencies OMB has issued a
series of Circulars over the years in
discharging these delegated
responsibilities, and these Circulars
serve as one of the primary means of
informing the agencies how to exercise
their authority in administrative and
managerial matters The co9t principles
set forth in Circular A-122 exemplify
OMB's traditional budget and
management policy authority
OMB Circulars are binding upon the
Executive agencies as a matter of
Presidential policy Agencies, in turn,
incorporate the provisions and
requirements of applicable OMB
Circulars into grant and contract
agreements through regulations, grant or
contract terms, or other means In this
manner, the Circular provisions become
legally binding upon contractors and
grantees Indeed, provisions of OMB
Circulars have been held legally
applicable to grantees even when the
grant-making agency has not explicitly
implemented the Circular. Qonaar
Corporations Metropolitan Atlanta
Rapid Transit Authority, 441 F Supp.
1168.1172 (N D Ga 1977)
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This revision, like the cost principles
disallowing advertising, fundraising,
entertainment, and investment
management costs, is directly related to
the efficient and economical
administration of grants, contracts, and
other agreements. By prohibiting the use
of grant and contract monies for
lobbying (unless specifically authored
by statute), funds can be directed
toward their proper uses, thereby
achieving greater public benefit. As the
Comptroller General has noted, "The
cost principles applicable to all Federal
grantees is the appropnate mechanism
to achieve these ends [of ensuring that
program funds are not used for
lobbying]" GAO/HRD-82-106
(September 24,1982), at 27.
As noted, the Comptroller General
believes that OMB has the clear legal
authority to issue the Circular
amendment published today, and
supports it.
B First Amendment Considerations
Some commenters suggested that the
revision might, under certain
circumstances, be construed aB imposing
unconstitutional burdens on First
Amendment freedoms of speech,
association, and the nght to petition
Congress Most of these objections
appear to follow, in large measure, an
analysis of the proposed revision
prepared by the Congressional Research
Service (CRS) which, as indicated, noted
that constitutional questions might be
raised but ultimately did not conclude
that the proposal was unconstitutional
in any respect. Constitutional objections
to the revised November proposal were
sharply reduced, apparently in response
to the May 1983 decision of the Supreme
Court in Regan v Taxation With
Representation of Washington, 103 S.
Ct. 1997 That case reemphasiied that
nonprofit entities do not have a First
Amendment nght to have their political
advocacy activities subsidized by the
Federal government and essentially
satisfies the principal constitutional
concerns raised during the comment
penod. OMB, however, has carefully
reviewed the comments and, where
improvements in phrasing could be
made to eliminate ambiguity or provide
clarity, ap~prop'nate changes have been
made
Intent Underlying the Circular. Some
commenters suggested that the revision
was the product of an unconstitutional
discriminatory purpose, an alleged
intent to "defund the left" Assuming.
arguendo, that the allegation is relevant
as a matter of law in overriding the
actual effect of the revision, this concern
is without foundation. As more fully
explained in the November 1983 notice,
the intent behind the revision is
nondiscriminatory, and its effects are
politically neutral. It is designed, as a
matter of sound management practice,
to extend to nonprofit grantees and
contractors a cost reimbursement policy
already applicable to similarly situated
profit-making entities. The revision Is
intended only to ensure that Federal
funds are not used to subsidize lobbying
efforts The revision is content neutral
and is not intended "to discourage or in
any way penalize organizations for
lobbying efforts conducted with their
own funds." 48 FR at 50860.
Furthermore, nothing in these neutral
accounting principles provides any basis
for concern that they will be applied in
anything but an impartial, objective
fashion. Accordingly, the revision
passes constitutional muster. Regan v.
Taxation With Representation of
Washington, 103 S. Ct. 1997, 2002-2003.
Overbreadth. Some commenters
claimed that the revision violates the
First Amendment because its provisions
are overbroad and not drafted
"precisely" and "narrowly" enough. For
example, the League of Women Voters
expressed concern that the language of
the revision somehow might require
"disclosures concerning the source of
funds for private lobbying a'nd certain
other political activities," in*violation of
its freedom of association and nght of
privacy
Upon review of the comments, OMB
believes that the "overbreadth" claims
are defective. This is particularly so m
light of the elimination of the so-called
"tainting" theory, under which Federal
reimbursement would have been
disallowed for the entire coBt of any
supplies, equipment, or services of a
nonprofit organization used even
partially for lobbying or advocacy
activities The November proposal and
this final version have dropped the
"tainting" approach in favor of a much
more narrowly crafted ' allocation"
approach, in which only the actual
amounts expended are deemed
unallowable—an amendment that more
than satisfies all overbreadth concerns.
Moreover, this allegation applies with
greater force to the current, vague bar in
the Circular and to the statutory bars
earlier noted.
Vagueness Other commenters
suggested that the proposed revision
was impermissibly vague For example,
the National Education Association
contended that "the revised proposal is
so ambiguous and vague that
organizations would not know how to
comply with them and OMB could
interpret them arbitrarily and apply
them unequally," and the American
Friends Service Committee alleged that
"(tjhis [proposal] will tend to chill
advocacy efforts of organizations for
fear of jeopardizing Federal grants and
contracts." Some commenters, including
the League of Women Voters, also
claimed that the proposal leaves
nonprofits with no better guidance on
unallowable costs than before.
Upon review of the comments, OMB
finds these claims wholly unpersuasive.
As noted above, the management
consideration driving this revision is the
desire to provide a clear, uniform
definition of unallowable activities, so
that grantees and contractors will know
what is expected of them and can
conform their conduct to the guidelines,
and so that agencies and auditors will
have more explicit standards to which
to refer than are now available. The
suggestions about vagueness are wholly
speculative and without any real basis.
However, in order to avoid any possible
ambiguity and provide explicit guidance
to nonprofit entities, the final revision
has been revised in several respects,
and a section-by-section explanation of
the operation of the revision provided.
In particular, as described m detail
below, the proposed definitional phrase
"lobbying and related activities" has
been changed to "lobbying," and the
standard "costs associated with" term
has been used to clarify application of
subparagraphs a and b Finally, section
(c)(5) of the proposal provides for
advance clarification procedures
between agencies and grantees, which
should further assist m the development
of a fair evolutionary process of
implementing the final revision and its
objective of limiting Federal
subsidization of lobbying.
Recordkeeping Finally, some
commenters suggested that the
revision's reporting and recordkeeping
requirements somehow would burden or
chill the First Amendment rights of
nonprofit entities These recordkeeping
requirements comply fully, however,
with the Supreme Court's decision in
Regan, see 103 S. Ct. at 2000 n 6, and are
consistent with accepted accounting
principles In fact, they constitute one of
the major factors which eliminates any
alleged potential for "unfettered
administrative discretion" about which
other commenters, notably CRS,
objected. These requirements have been
intentionally made less onerous and far
more explici'. than those provided by
OMB management circulars in other
circumstances for other types of costs.
See the current Circular A-122, and
Circular A-110: "Uniform
Administrative Requirements" for
nonprofit organizations, and compare
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with section c(4) of the revision. As
noted above, one of OMB'a primary
goals has been to reduce the burden on
nonprofit entities during the audit
process and to reduce the amount of
bookkeeping material auditors may
demand in challenging the allowability
of their lobbying costs.
The revision simply requires nonprofit
entities to "maintain adequate records
to demonstrate that the determination of
costs as being allowable or unallowable
pursuant to paragraph B21 complies
with the requirements of this Circular."
The paragraph does not call for separate
establishment of the lobbying and non-
lobbying activities of an entity. Indeed,
in the case of indirect-cost employees
who spend 25% or less of their time
engaging in lobbying, there is no .
requirement that they maintain time
logs, calendars, or similar records. The
grantee or contractor, in such instances,
exercises full discretion over its
recordkeeping activities.
In sum, the recordkeeping
requirements are lawful, reasonable,
and by no means burdensome relative to
other unallowable cost activities.
C. Relationship With Internal Revenue
Code Provisions
Some commenters suggested that the
Circular A-122 revision was not
necessary because the Internal Revenue
Code's restrictions regarding
"influencing legislation" by 501(c)(3)
organizations already provide sufficient
protection against lobbying abuse
Others claimed that the revision could
create confusion or needlessly increase
the paperwork burden on grantees and
contractors already regulated by the
Code provisions. Neither of these
arguments is valid
The lobbying restrictions of the
Internal Revenue Code and Circular A-
122 serve entirely different functions.
The Code has no direct bearing on
preventing the use of grantee funds for
iobbying purposes, because it governs
only the use of pnvate funds and does
not concern the use of Federal monies
The sole purpose of the Code provisions
is to define the character and status of
organizations that will be entitled to
favorable tax treatment. As long as
lobbying expenditures do not exceed a
certain portion of its revenues, an
organization is eligible for tax-exempt
status under the Code (assuming it also
meets the qualifying tests in other
areas). The Code's lobbying provisions
determine only whether an organization
is sufficiently devoted to a public
purpose to justify preferential tax
treatment
The Code does not address the
distinct question of whether Federal
grant monies should be used to
reimburse lobbying costs—the sole
problem addressed by the Circular A-
122 cost standards. The Code's lobbying
provisions thus do not preempt or
otherwise make unnecessary the
promulgation of cost standards in this
area. Indeed, the fact that the Code's
lobbying provisions do not address the
use of grant monies for lobbying has
been implicitly recognized by Congress
on numerous occasions through
appropriation bill riders prohibiting such
expenditures See. e.g., Pub. L 97-377,
section 509, Pub. L 96-74, section 007.
The fact that certain expenditures by
nonprofit organizations are lawful under
the Code does not mean that Federal
grant monies should be spent for those
purposes. For example, the Code does
not prohibit tax-exempt organizations
from spending their revenues on
advertising or entertainment. Circular
A-122, however, allows only certain
advertising costs, and disallows all
entertainment costs, from
reimbursement from Federal awards.
Moreover, the Code does not preclude
additional conditions from being
imposed on tax-exempt organizations.
For example. Section 503 of the Code
denies tax-exempt status in certain
instances to organisations using their
revenues for the pnvate gain of
controlling individuals That provision
does not prevent disallowance of the
use of Federal grant monies for the
advancement of pnvate partisan or
financial interests This point is perhaps
best highlighted by the fact that nothing
in the Code would prevent some
grantees from spending all of their grant
funds for lobbying purposes
Similarly, the fact that the Code and
other provisions of law regulate
lobbying activities of business firms
(eg., 26 U.S.C. 182(e), Federal Election
Campaign Act, 2 U S C 431-458) does
not mean that there should be no
provisions in the FAR regarding such
activities Some members of the
business community suggested that any
provisions in Circular A-122 regarding
the unallowability of lobbying
expenditures should be superseded by
definitions of lobbying set forth in the
Federal Regulation of Lobbying Act 2
U S.C. 261-270. The commenters have
cited no authonty, however, to support
the view that the Code, lobbyist
registration laws, or any other statutes
obviate the propriety of the
government's assuring that Federal
grant and contract funds are spent only
for authonzed purposes and, to the
degree feasible, that they be used to
provide direct goods and services to
intended beneficianes
Although the Code and Circular A-^122
lobbying provisions serve different
purposes, in practice the information
and accounting practices necessary to
satisfy these two authonties largely
overlap so that it will generally be
possible for both provisions to operate
harmoniously. The Code provides a set
of operational pnnciples with which
nonprofit organizations are already
familiar. Thus, wherever possible, the
final revision brings Circular A-122 into
greater conformity with those sections
of the Code dealing with nonprofit
entities. Where differences remain.
Circular A-122 is generally narrower in
its application than the Code—and often
far narrower. Thus, nonprofit entities
should be able to adhere to the lobbying
cost standard using existing accounting
and bookkeeping systems.
While some commenters argued that
Circular A-122 as revised would require
all nonprofits to maintain multiple sets
of books, no commenter was able to
specify why simultaneous compliance
with the Code and A-122 required such
double recordkeeping As discussed in
the section concerning Paperwork
Reduction Act considerations, a
nonprofit organization maintaining
adequate financial records should be
able to comply fully with information
requests from the Internal Revenue
Service or its granting Federal agency.
Further, section c(4) of the revision
effectively exempts almost all
employees (those that spend less than
25% of their time on unallowable
lobbying activities) from any
requirements to keep time logs,
calendars, or similar records relating to
indirect cost time
D. Restricting the Flow of Information
Many of the cnUcal nonprofit
commenters asserted that it is crucial
for them to be allowed to "educate"
policymakers on pending legislation,
and that the revision will impede their
testimony and other assistance to
legislators, by restricting the use of
Federal grant and contract funds for
lobbying activities. The National
Education Association, for example,
alleged that "the proposed revisions
would have an adverse effect on the
government and on nonprofit
organizations through discouraging
communication with Congress and
disallowing activities that are vitally
important to nonprofit organizations."
Most such commenters 3eemed to
premise their comments on the ground
that the proposal would prevent them
from even attending legislative hearings
or analyzing legislation Others claimed
that, should Federal funds not be
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18267
available, there would be no other
manner in which legislators could
receive their valuable information.
OMB has repeatedly stated that the
only effect of the revision is intended to
prevent Federal funds being expended
for lobbying purposes, and that nothing
in the revision limits the ability of
nonprofit entities to lobby with their
own funds. OMB has made every effort
to clarify the terms of the revision so as
to eliminate such misconceptions about
the scope of what is unallowable.
Hence, various language changes have
been made in the revision, especially in
sections a(5) and b(l) It was never
intended, for example, that funding for
all attendance at legislative hearings
would be proscribed, but only that that
funding for attendance connected with
or in knowing preparation for a lobbying
effort would be precluded. The final
version removes any doubt on this
score.
The revision will not restrict the
legitimate flow of factual information
requested by the legislators, who are in
the best position to know what they
need to discharge their functions in our
system of government. Even in the
context of contractor and grsntee
lobbying, section b(l) has been designed
to avoid such interference with formal
congressional hearing and normal
informational interchange processes.
E. Evidence of Confusion Regarding
Current Lobbying Restrictions
Several commenters argued that too
few instances of the use of Federal
funds for lobbying activities had been
cited to justify the revision However, as
noted in the November proposal, the
number of adjudicated violations was
limited by enforcement difficulties, not
necessarily an absence of abuses.
Before the revision, it has been very
difficult for auditors to obtain evidence
of outright violations or fraud that could
be prosecuted, or of mistakes in
application, so they could be corrected.
Such items were typically earned on the
books as part of an organization's
indirect costs, and not broken out by
category
While various statutes mandate that
taxpayer funds not be used for lobbying
on legislation and electioneenng. and
while there is clear policy consensus
that no Federal funds should be spent
for these purposes, the Inspectors
General have reported that effective
auditing of the use of Federal funds for
lobbying is not possible under the
existing Circular For example, Charles
Dempsey, HUD's Inspector General and
Chairman of the Prevention Comm.ttee
of the President's Council on Integrity
and Efficiency, has stated that:
We do not believe that effective auditing of
the use of Federal funds for lobbying
purposes is possible under the current OMB
Circular A-122. Moreover, we do not believe
that, given the current Circular, it is possible
to know or otherwise assess the extent to
which Federal funds are used for lobbying
purposes.
However, even with the current
auditing difficulties, a number of
instances have been uncovered in which
there is, at a minimum, confusion on the
part of agencies and grantees as to
allowable and unallowable costs in the
area of lobbying Examples include:
•	A Department of Education grantee
under the Women's Educational Equity
Act Program recently conducted a two-
day conference in Washington, D C.
According to the conference program,
one afternoon was largely devoted to a
discussion of "political action and
participation." The other afternoon was
devoted in its entirety to "a visit to
Capitol Hill and meeting with
legislators." The program itself noted
that the conference had been funded by
the Department of Education
•	A September 1982 GAO study of
grantees under Title X of the-Public
Health Service Act audited>
representative grantees, and found that
some incurred "expenses that, in our
opinion, raised questions as to
adherence with Federal lobbying
restrictions." GAO/HRD-82-1O0.
•	GAO found that a mass
transportation grantee prepared and
distnbured a newsletter, a portion of
which urged its readers to wnte to the
Congress to support continued funding
of a "People Mover Project." The agency
was deemed responsible for not
informing its grantees that expenditures
of grant funds for this purpose were not
permissible (B-202 975, November 3,
1981)
As noted, the GAO in September 1982,
recommended a cost circular revision on
lobbying. And, as further noted, the
current revison has been prepared in
active consultation with the GAO,
which supports it The revision will now
make it possible for the Federal
government to better ensure that
appropriated monies reach their proper
objective, while limiting the amount of
documentation auditors may demand
from nonprofit entities in auditing and
negotiating situations Similarly, for the
first time, organizations will have
clarified responsibilities and incentives
for proper documentation, which will
benefit both the private sector and the
government
F. The Proposed Revision Was Not
Sufficiently Restrictive
Many commenters argued that the
proposed revision was not sufficiently
restrictive to curb abuses in this area.
For example, the American Legislative
Exchange Council, the largest individual
membership organization of state
legislators, argued that the revised
proposal would not achieve the
necessary fundamental reforms. "There
is a tremendous concern across the
country that some groups are using
Federal dollars to advance their own
narrow political interests before
Congress and State legislatures ' * *
we beheve these regulations should be
stronger in requiring a strict accounting
of Federal grant money."
Similarly, Taxpayers for Less
Government recommended broadening
the definition of unallowable lobbying to
include the lobbying of several types of
government entities not-covered under
the November proposal, such as school
boards and independent regulatory
commissions It also recommended that
all forms of legislation be explicitly
covered, including bills, appropriations,
declarations, ratifications and calls for
conventions. It also contended that,
"[cjourt cases on any of these areas
should also be prohibited with the use of
tax funds; if a group has a legal dispute,
the taxpayer should not have to
underwrite the extensive litigation
process."
The Stockholder Sovereignty Society
advocated several changes to tighten the
revision. (1) Assess double or treble
damages against violators; (2) debar
violators from participating for five
years m the particular program from
which funds were diverted for lobbying
or related activities, and (3) debar any
parent, subsidiary, or other controlled
organization of violators.
Many other commenters opposed the
omission of local level lobbying from the
revision, contending that there is no
rational basis for funding one level of
lobbying (local) when another (Federal)
is made unallowable. Many also argued
that the revised Circular should reflect
the principle of "preemption." For
example, the United States Business and
Industrial Council stated "(njonprofit
organizations should be required to
choose between political activism and
Federal subsidies Preemption would
allow nonprofits to lobby, but only on
condition that they disavow Federal
funds." Such an approach would be far
more restrictive than OMB's January
1983 proposal
Braddock Publications argued that,
with adoption of the allocation method.
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the 25% recordkeeping rule created an
unfortunate loophole. "A 10% rule'
would be more reasonable and would
still address the concerns of those
groups which lobby very little."
OMB has carefully considered but not
accepted these suggestions In OMB's
judgment, the November 1983 revision,
as modified in this final publication,
constitutes a major, workable
management initiative which represents
the best achievable compromise among
the interested parties, while fully
protecting their interests. OMB also
considered and rejected more extensive
"sunshine" provisions which would
have called for full disclosure by
recipient organizations of detailed
information concerning their personnel,
public policy positions, affiliations of
officers and directors, publications, and
other such information OMB believes
such reporting requirements would
exceed those necessary to achieve the
purpose of this revision to ensure that
Federally appropriated funds are not
used for lobbying activities by grantees
and contractors
VTI. Analysis of Comments and
Resulting Changes to Proposal
The revision creates a new paragraph
in Attachment B to Circular A-122, to be
called "B21 Lobbying " Paragraph B21
consists of three subparagraphs, which
in turn contain a total of thirteen
sections.
A. Unallowable Lobbying—
Subparagraph a
Enforcement of the current restrictions
on tax-funded lobbying has been
hampered by the lack of a clear
definition of what activities are
unallowable In constructing the
definitions and standards in this
revision, OMB has drawn where
appropriate upon experience with the
Internal Revenue Code, statutory
provisions. Defense, GSA, and NASA
procurement regulations, and similar
authorities. Great care has been taken to
avoid prohibiting reimbursement for
activities that are legitimately necessary
to fulfill the purposes of a grant or
contract.
Subparagraph a defines five
categones of lobbying activities that are
unallowable for reimbursement. It
should be read in conjunction with
subparagraph b, which establishes
exceptions to these provisions.
B Electioneering—Sections a (1) and
a(2).
Section a(l) makes unallowable
certain electioneering activities at the
Federal, state, or local levels. It applies
both to referenda, initiatives and similar
campaigns, as well as to elections of
candidates to office. The restrictions
should be familiar to nonprofit
organizations, since they are prohibited
by 26 U.S.C 501(c)(3). This section is
narrower than the Code in one respect,
however, because it is confined to
"contributions, endorsements, publicity,
or similar activity," while the Code
broadly prohibits "participat[ing] or
interven(ing), directly or
indirectly* *
Section a(2) makes unallowable the
financial or administrative support of
political entities—including political
parties, campaigns, political action
committees, or other organizations—for
the purpose of influencing elections.
Thus, it bars indirect support of
electioneering activities through
intermediaries This section also follows
the definition of disqualifying activities
under the Internal Revenue Code
Very few commenters disagreed with
the principle that use of Federal funds
for electioneering and political activities
should be disallowed. Some, however,
argued against the "disallowance of
costs associated with participation in
referenda, initiatives, and similar
procedures " For instance, the Catholic
Social Service of Santa Clara asserted
that lobbying expenditures should be
allowable if incurred for an educational
purpose OMB agrees that the cost of
educational activities should be
allowable if they are educational and
nothing more But if the activities go
further than helping persons accumulate
data or comprehend its meaning, and
involve partisan political activity or
steps designed to influence the outcome
of an election, they constitute activity
that should not receive Federal funding
The American Jewish Congress also
argued that section a(l) would severely
restrict political campaign involvement
by organizations classified under the
Internal Revenue Code as 501(c)(4)
groups, which face minimal restrictions
as to their political involvement As
noted above, the Code's restrictions
serve merely to classify organizations
for purposes of taxability By contrast,
the cost principles established through
Circular A-122—including this
revision—define permissable uses of
Federal grant or contract money,
without regard to the organization's tax
status The revision does not in any
respect limit an organization's nght to
engage in campaign activities with its
own funds
C Attempts To Influence Legislation—
Sections a(3) and a(4)
Section a(3) makes unallowable the
costs of attempts to influence Federal or
state legislation through contacts with
government officials This section
confines the reach of unallowable
lobbying to legislative decisionmaking,
and does not apply to Executive Branch
lobbying, with the exception of attempts
to influence a decision to sign or veto
legislation, and attempts to use state
and local officials as conduits for
grantee and contractor lobbying of
Congress or state legislatures. The
coverage of section a(3) is more limited
than the current prohibitions in the
Internal Revenue Code, and the FAR, in
that it does not apply to legislative
lobbying at the local level [eg. matters
such as obtaining zoning changes, police
protection, or permi(s). Since there is no
rigorous separation between legislative
and executive authority at the local
level, it would be difficult to construct or
enforce a rule regarding legislative
lobbying at that level.
Efforts to influence state and local
officials to accomplish the lobbying
activities defined m section a(3) are
likewise unallowable Thus, the Federal
government will not reimburse an
organization for the cost of meeting with
mayors or city council representatives if
the purpose is to convince them to lobby
the Congress for legislation that the
grantee or contractor favors.
The comments raised few objections
to the basic soundness of the
proscriptions in section a(3), although
some argued that the broad coverage of
the January 1983 proposal was more
appropriate than the more-limited scope
of the November proposal. The
Conservative Caucus suggested that the
costs of attempts to influence
rulemakings (as well as legislation) and
of local level lobbying should be added
to the list of unallowable activities.
Similarly, the Fairness Committee
argued that reimbursement should not
be allowed for any Executive Branch
lobbying, and not simply decisions to
sign or veto legislation After careful
consideration, OMB has decided not to
expand the Bcope of this section
Rulemakings frequently have direct
implications for a grantee's technical
performance of its award Furthermore,
recipient organizations are likely to
require regular contacts with Executive
oficials in the ordinary course of
managing and performing the terms of
the grant or contract As stated above,
this is even more certain to be the case
at the local level The granting or
witholding of Executive consent to a bill
is an integral part of the legislative
process, however, so that this limitation
on Executive lobbying is appropriate
One commenter, the Concho Valley
Center for Human Development,
objected that "prohibiting lobbying at
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the state level would interfere with
business that is more appropriately the
purview of the state legislature." Ample
allowance is made in section b(2) of this
revision for activities at the state ievel
affecting the authority of an entity or the
costs of performing Federal grants or
contracts. Likewise, as recognized in
section b(3), specific grant or contract
provisions may, pursuant to Federal
statutory law, make allowable certain
lobbying with grant or contract funds.
Apart from these exceptions, it is not the
business of the Federal Government to
subsidize lobbying of state legislatures.
Section a(4] deals with grass roots
lobbying, and is applicable only to grass
roots campaigns concerning legislation.
Similar provisions are found in many
appropriations riders and have been
interpreted and applied by CAO on
many occasions. The definition of grass
roots lobbying in section a(4), however,
is less inclusive than that of the Internal
Revenue Code. It is limited to efforts to
obtain concerted actions on the part of
the public and, unlike the Code, it does
ot include attempts "to affect the
opinions of the general public," if such
attempts are not intended or designed in
such fashion as to have the reasonably
foreseeable consequence of leading to
concerted action. 26 U.S C.
4911(d)(1)(A). The narrower reach of this
section is consistent with CAO's
interpretation of the prohibitions in
appropriations riders on the use of funds
for "publicity or propaganda " See. eg,
Comp. Gen. Op. B-20297S (Nov. 3,1981).
It was suggested that use of the term
"legislation pending," in sections a(3)
and a(4) of the proposal, was ambiguous
and questioned whether that phrase
applied only to bills formally introduced
before a deliberative assembly, or
included legislation in the process of
development In response to that
concern, these sections have been
amended to specify that they apply
when the activity in question constitutes
on attempt to influence either "the
introduction of Federal or state
legislation" or "the enactment or
modification of any pending Federal or
state legislation " This language,
especially when considered in
con)unction with the phrase "costs
associated with" which commences
subparagraph a. should clarify that the
costs of preparing, instigating or urging
legislation not yet formally introduced
are just as unallowable as lobbying with
regard to bills that have already been
introduced.
Several commenters, including CARE
and the National Association of
Manufacturers, expressed concern that
costs of an activity not originally
intended to promote legislative
advocacy might be disallowed, after the
fact if it were later discovered that the
activity or its proximate effects did in
fact lead to the development and
promulgation of legislation. The revision
addresses this problem. The limitation
on "costs associated with * * * any
attempt to influence * * * legislation,"
as used in sections a(3) and a(4).
includes costs which support or
facilitate pursuing or developing
legislation before its formal
introduction. However, the key phrase
in the final version of sections a(3) and
a(4) is "attempt to " This phrase requires
Intent or conduct with the reasonably
foreseeable consequence of initiating
legislative acton, or to support or
facilitate such ongoing action, in order
for its actions to be categorized as
"unallowable."
The language of sections a(3) and a(4)
has been amended in minor respects so
that it tracks more closely those
provisions of the Internal Revenue Code
which establish the activities that
constitute "influencing legislation."
Section a(3) tracks 20 U S.C.
4911(d)(1)(B), which prohibits "an
attempt to influence any [Federal, state
or local] legislation through
communication with any member or
employee of a legislative hody, or with
any government official or employee
who may participate in the formulation
of the legislation " Similarly, section a(4)
follows 26 U.S C 4911(d)(1)(A). which
defines "influencing legislation" to
include "any attempt to influence any
[Federal, state, or local] legislation
through any attempt to affect the
opinions of the general public or any
segment thereof." As previously noted,
sections a(3) and a(4) are narrower than
the comparable Code provisions in
several respects.
D Legislative Liaison—section a(5)
Section a(S) makes unallowable the
cost of legislative liaison activities when
they are in furtherance of unallowable
activities as defined in sections a(lH4)-
While a key purpose of an
organization's "legislative liaison"
activity may be to direct and prepare for
what has been defined in this revision
as unallowable lobbying, it may also
serve other functions that this revision
does not make unallowable. By contrast,
under the current Defense Department
Supplement to the FAR, all legislative
liaison activities are deemed
unallowable.
OMB received more technical
comments on this section than any other
part of the proposal Some commenters
argued that, since the Internal Revenue
Code does not disallow "legislative
liaison" for purposes of determining
organizations' tax-exempt status, neither
should Circular A-132. However, the IRS
does not exempt legislative liaison
activities from treatment as lobbying—it
merely does not recognize legislative
liaison as a separate category of
lobbying. Legislative liaison activities
which, in the language of section a (5),
were "in support of or in knowing
preparation for an effort to engage in
unallowable lobbying" would be
covered by the IRS bar In any event,
however, and as discussed above, the
revision Is concerned not with
determining the tax status of entities,
but with the proper use of Federal funds
by recipient organizations. Use of the
term "legislative liaison" in section
a(5)—pi its present narrow sense—can
now not excuse or mask lobbying
activities by grantees or contractors.
Many other commenters argued that
the proposed section a(5] was
ambiguous. In particular, they objected
that the compound effect of prohibiting
"legislative liaison" contributing to
support "lobbying and related activity"
was vague, and that the proposal was
difficult to construe because it employed
a double negative—that is. all
- "legislative liaison" costs were
unallowable unless the activity was
unrelated to lobbying. The final version
of section a(5) has been revised to
accommodate these concerns. The new
language provides that "legislative
liaison" is unallowable only "when such
activities are earned on in support of or
in knowing preparation for an effort to
engage in unallowable lobbying."
The "knowing preparation"
requirement in the final revison should
avoid unintended retroactivity problems
by not permitting auditors to
automatically disallow legislative
baison costs in every instance where
they are associated with later efforts at
lobbying. While responsibility for
establishing the allowability of costs
rests, here as in all aspects of cost
reimbursement, with the parties seeking
it the "knowing preparation" standard
of section a(5) is a particularly favorable
one for grantees and contractors Thus,
only those legislative liaison activities
which, from their timing and subject
matter, can reasonably be inferred to
have had a clearly forseeable link with
later lobbying fall within the "knowing
preparation" standard of section a(S).
Finally, it should be noted in
connection with section a(5) that the
term "costs associated with," which
commences subparagraph a, is fully
applicable. This means that the
proscnption in section a(5) extends not
only to costs directly attributable to
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performing a "legislative liaison"
activity, but also to costs that support or
facilitate its performance. Likewise, the
technical status of a piece of legislation
(; e„ whether it is formally introduced,
referred or enrolled) is not dispositive of
the issue whether the costs of
"legislative liaison activities" are
unallowable within the meaning of
section a{5)
E. Exceptions to Unallowable
Lobbying—Subparagraph b
Subparagraph b contains three
exceptions to activities disallowed
under subparagraph a The
subparagraph does not necessarily make
the co9ts of these activities allowable;
allowability or unallowabihty of such
costs will be determined by the terms of
the grant, contract or other agreement
involved. Circular A-122 does not
authorize costs or expenditures; it
merely limits the allowability of costs or
expenditures
Some commenters noted that the use
of the term "not unallowable" in the
introductory clause to this subparagraph
in the November proposal might indicate
a fine legal distinction which grassroots
volunteers would be unlikely to
comprehend or which would lead to
needless confusion. For clanty, the
introduction of subparagraph b has
accordingly been modified to provide
that "the following activities are
excepted from the coverage of
subparagraph a." For this reason,
activities which are not defined as
lobbying by subparagraph a, eg,
informational communications by
organizations with its members or the
distribution by organizations of
nonpartisan analyses, are not set forth
as separate sections of subparagraph b.
To the extent that those, or any other
activities, otherwise fall within the
definitional terms of any section of
subparagraph a, they are deemed
unallowable unless they fall within the
exceptions defined by subparagraph b.
F Legislative Requests for Technical
and Factual Information—Section b(lj
Section b(l) exempts from
subparagraph a technical and factual
presentations to a legislative audience
on a topic directly related to grant or
contract performance and offered upon
a documented request, even though the
presentation would otherwise constitute
unallowable lobbying Since contacts
with legislative sources are not made
unallowable in the first place unless
they are for purposes of influencing
legislation, this exception is relevant
only to those legislative contacts made
unallowable under section a(3) The
exception is meant to fulfill the specific
informational needs of legislatures, and
members and staffs thereof, and has
been revised extensively to reflect
concerns expressed in the comments
and by members of the interested
Congressional committees.
The term "technical advice or
assistance," used in the November 1983
proposal to define the Bcope of the
exception, has been changed to provide
that costs of rendering "technical and
factual presentation of information"
may be excepted. The term "factual"
was added after "technical" to clarify
that, to be reimbursable, the services
rendered ui a section b(l) situation must
be overndingly informational in purpose
and content and not advocatory
However, the fact that an advocatory
conclusion is reached does not m itself
make the presentation unallowable As
previously indicated, this exception will
avoid separate accountings and
disallowances for each kernel of
information provided in a lobbying
effort, and will restrict the exception to
"presentation^]" which are in fact and
which would be clearly seen as
"technical and factual" in character.
This change will allow and advocatory
conclusion to be communicated with no
disallowance for the time and effort
involved in preparing or communicating
the conclusion, provided of course that it
clearly and naturally flows from the
technical and factual data presented
and is a distinctly minor aspect of the
overall presentation In addition, the
lobbying effort excepted by section b(l)
is confined to information on a topic
directly related to the performance of a
grant contract or other agreement.
A requirement that the presentation of
such information is to be provided
through "hearing testimony, statements
or letters" also has been added to the
scope provision, in response to a
Congressional suggestion This change
helps clarify that, with the exception of
travel, meals and lodging costs in
connection with a(3) lobbying, such
information need not necessarily be
tendered in formal testimony to fall
within this exception.
Discussions with Congressional staffs
revealed concerns that legislators'
routine business of information
gathering in connection with hearings,
drafting bills and other legislative
functions might be hampered if the types
of requests sufficient to invoke the
section b(l) exception did not include
oral requests, especially by telephone
Accordingly, the condition that the
request be "written" has been changed
to a requirement that it be
"documented " The final version of
section b(l) de-emphasizes the necessity
for stringent request documentation
requirements. The section also now
states explicitly that the technical
information exception is invoked by
notices in the Congressional Record
requesting testimony or statements for
the record at regularly scheduled
hearings Some persons suggested that
some of the routine information-
gathering functions of the legislative
bodies might be disrupted if such
notices and responses to them were not
specifically included in section b(l). As
indicated below, for its costs to be
excepted, the presentation must not only
be of a "technical and factual" nature,
but must also be "readily obtainable
and can be readily put in deliverable
form."
Several commenters expressed
uncertainty about the requirement that,
to fall within the exception, technical
advice or assistance to legislative
bodies must be "in response to a
specific ' ' * request." The term
"specific" has therefore been deleted
from this final version of section b(l).
This change does not affect the
underlying intent that requests sufficient
to invoke this exception must be bona
fide, may not be open-ended or
indeterminate, and must not be made for
the purpose of circumventing the
subparagraph a restrictions.
Section b(l] now requires that the
request for information be "made by the
recipient member, legislative body or
subdivision, or a cognizant staff member
thereof" This language, articulating a
condition implicit in the November 1983
version, makes explicit that the person
or committee requesting the information
should be the recipient so that, for
example, a request by one employee of
the legislative branch could not be
advanced as justification for allowing
the costs of a lobbying mailing to each
Member of Congress.
The term "cognizant staff member"
has been inserted in response to
Congressional comments that the
November 1983 language might require
personal attention by legislators to each
request for factual or technical
information. Unking the request from a
staff member to that person's
"cognizance" of the matters for which
the information is sought is intended to
ensure that the request is a bona fide
request for information of a truly factual
and technical nature, not otherwise
readily available to the legislators.
When the above changes were made
to greatly ease the implementation of
the exception, it became necessary to
put some limit on the costs that grantees
and contractors could charge the
Federal government when undertaking
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such lobbying. With the elimination of
the requirement for a written request,
and the addition of the provision
allowing Congressional Record notices
to suffice for providing such information
at government expense, a corresponding
potential was created for unduly
substantial Federal financing of
lobbying.
In order to ensure that the information
and its preparation are the true bases of
the cost, section b(l) has been revised to
require that the response must be
information that "is readily obtainable
and can be put in readily deliverable
form." (This provision is intended to
restrict and relate to the costs of
acquisition and delivery of information,
not the time involved in responding to
requests ) Provision of such assistance
justifies invoking the exception only
when the information is known or
obtainable—and in such form—as to be
readily produced and delivered. The
section b(l) exception was included in
order that legislators could draw on the
expertise and data possessed by
nonprofit organizations—even while
offered as part of a lobbying effort. This
section, however, does not justify paying
for research projects or otherwise
incurring significant charges to grants or
contracts to develop information not
readily at hand
Likewise, m order to Limit Federal
payment for lobbying to technical and
factual presentations most likely to
produce expert information not readily
obtainable elsewhere, the further
requirement has been added that the
presentation be linked to information
"derived from the performance of a
grant, contract or other agreement " This
provision permits the exception to be
invoked for information not only derived
from grants or contracts presently in
effect but also information on topics
directly related to grant or contract
performance Nonetheless, a direct
nexus between the topic of a grant,
contract or other agreement and the
technical and factual presentation will
be required to be shown
While the revision seeks to maximize
the free flow of information from
Federal fund recipients to Congress, this
does not mean to allow grant hinds to
pay for lobbying trips to Washington
simply because part of that trip was
devoted to delivering information to a
staff member, or delivering essentially
unsolicited statements or testimony to a
Committee hearing
To deal with this problem, the
revision provides that Federally-
reimbursable coats under this exception
could not inciude travel, lodging or meal
costs, except when incurred for the
purpose of providing Committee hearing
testimony upon written request for a
technical and factual presentation. To
help ensure that the Federal financing of
lobbying trips to Washington is limited
to those which Congress deems
necessary to its decision-making, the
revision provides that these otherwise
restricted costs (travel, lodging and
meals) can only be "incurred to offer
testimony at a regularly scheduled
Congressional hearing pursuant to a
written request for such presentation
made by the Chairman or Ranking
Minority Member of the Committee or
Subcommittee conducting such hearing."
To the degree possible, the cost of
providing information requested by
legislators should be paid for out of the
legislative budget Both houses of the
Congress have rules providing for
payment of expenses relating to
Congressional testimony. (See. Senate
Resolution 538, 96-2; House Rule 35.}
The American Civil Liberties Union
challenged the entire section b(l]
exception on the grounds that linking
the exception to a special legislative
invitation constitutes an impermissible
regulation of free speech on the basis of
content The reimbursement provisions
set forth in section b(l) do not
discriminate against any person's
speech but turn instead on the type of
assistance rendered Under Regan, the
Supreme Court has ruled that no entity
has a right to have its speech subsidized
with Federal funds Thus, it is
constitutional to establish general cost
guidelines to clarify the types of
lobbying for which the government will
provide reimbursement. Indeed, this
section is based upon a similar
provision in the Internal Revenue Code
It bears repeating that nothing in this
revision prohibits grantees or
contractors from conducting any form of
lobbying or making any kind of
communication to Congress they wish,
as long as they do so with their own
funds
G. State Level Lobbying Related to
Performance of Grant or Contract—
Section b(2)
Section b(2) exempts lobbying
otherwise unallowable under section
a(3) to influence state legislation in
order to directly reduce the cost or to
avoid impairment of the organization's
authority to perform a grant, contract, or
other agreement Such lobbying is
permitted because it can directly benefit
the Federal government by helping
minimize the costs of award
performance The exception does not.
however, permit the uae of Federal
funds 10 lobby state legislatures to
promote an organization's ideological
objectives merely because those
objectives are consonant with the
purposes of the grant or contract
A primary concern for several
national organizations that commented
on this proposal was the problem of
determining how closely legislation
must directly affect the performance of a
grant or contract in order to fall within
the proposed exception. A related
concern was the possibility that an
activity could serve multiple purposes,
some of which would and some of which
would not "directly relate" to the
organization's grant mission.
In the final version, the term "directly
affecting" has been deleted, and other
changes made to the language to clarify
the precise scope of the exception Thus,
the lobbying affected by the exception is
specified to be only that made
unallowable by section a(3).
Additionally, the phrase "at the state
level" was deleted in favor of the
greater clarity provided by the phrase
"to Influence state legislation." Finally,
the phrase "or related activity"
after"lobbying" has been dropped, •
consistent with changes throughout the
revision.
The most significant substantive
change made to this section was
deletion of the phrase "ability of the
organization," which several
commenters argued was far too broad.
For example, the "ability of the
organization" to perform a grant,
contract, or other agreement could be
construed to include those secondary,
tangential, or speculative aspects of the
activity that the November 1983
preamble indicated did not fit properly
within the exception 48 FR at 50885
OMB has deleted this language and
replaced it with a reference to an
organization's basic "authority" to
perform the activity, thus eliminating the
potentially overbroad applications that
could be associated with the term
"ability " The potential for such abuse is
made evident by the incident described
below
ANNAPOLIS, March 7—Administrators of
two community-based programs for the
mentally retarded led several hundred clients
m a demonstration here today ui support of
biils that would raise employes' salaries and
exempt then organizations from stale
procurement laws " * *
[The demonstration organizer] said that ail
participants m today's demonstration had
been "educated intensively" about the reason
for the demonstration and had elected to
come, although some might have forgotten by
the ume the} arrived, he said * ' *
Demonstration organizers defended the
tactic saying the bills, if approved, will
directly affect the clients by improving the
quality of care they receive ' * '(See.
Washington Post, March 8,1984, pp CI. CS ]
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Under the November 1983 proposal, a
strained argument could be made under
the concept of "ability to perform" that
the lobbying on the bills described
above should fit within the exemption—
a wholly unintended and inappropriate
result. By focusing on an organization's
"authority" instead of its "ability" to
perform, the revised language should
eliminate any confusion as to what was
intended by the exception Moreover, by
modifying the reference to "cost" to
include only cost reductions, the revised
language precludes lobbying for higher
salaries and reflects the point made in
the November 1983 preamble, that the
exception is intended to allow lobbying
for lower costs or better performance of
grants or contracts These changes
guarantee that the only lobbying costs
reimbursable under the exception will
be those that relate to the organization's
direct performance of the grant or
contract in the most cost-efficient
manner possible, or its very authority to
perform the grant or contract
A state waiver clause was added to
the November 1983 notice in response to
concerns raised by some nonprofit
organizations That clause would have
permitted states to make Federally
reimbursable the costs of all state
lobbying by their Federally-funded
subgrantees. Upon further review,
however, the clause was determined to
be superfluous, and potentially
troublesome for several reasons Some
nonprofit commenters found the
exception confusingt subject to partisan
political pressures, and a needless cause
of complexity for grant rules Under
none of Circular A-122's other 50 cost
categories do states have the nght to
determine which costs will be eligible
for Federal reimbursement. Furthermore,
any lobbying "to influence State
legislation in order to directly reduce the
cost, or to avoid material impairment of
the organization's authority to perform
the grant, contract or other agreement,"
is already excepted by the remainder of
section b(2)
H. Lobbying Authorized by Statute—
Section b(3)
Section b(3) exempts any activity
specifically authorized by statute to be
undertaken with funds from Federal
grants, contracts, or other agreements
This technical section reflects that the
provisions of this Circular do not
override statutory law Only minor
wording changes—with no change of
substance—were made from the
wording of this provision in the
November proposal.
I. Exceptions Deleted from November
Proposal
Section c(2) in the November 1983
proposal specified that communications
with Executive Branch officials would
not be unallowable, with two exceptions
now set out in section a(3): (1) To
influence a decision to sign or veto
legislation, or (2) to influence state or
local officials to serve as conduits for
unallowable lobbying activities. This
section had been inserted solely for the
purpose of clarifying that the only
Executive Branch communications
regulated by the revision are those
relating to signing or vetoing legislation,
or serving as a lobbying conduit
On the other hand, it is not intended
that proscriptions should be created by
implication from the fact that a type of
activity is not specifically excepted in
subparagraph b Hence, section c(2) has
been omitted entirely, since the only
Executive Branch contacts unallowable
in the first place are those dealing with
a decision to sign or veto enrolled bills,
as specified in section a{3) As indicated
by the new language introducing
subparagraph b, the final version of the
subparagraph contains only exceptions
to activities which are otherwise
unallowable * -•
Section c(3) of the November proposal
also has been deleted, since other
provisions of the revision make it
superfluous This section concerned the
application of the "tainting" principle of
the Janury proposal which was
eliminated in the November proposal
and replaced by the current proportional
"allocation" principle The inclusion of
section c(3) in the November revision
was inadvertent and has been corrected.
/ Accounting Treatment of Unallowable
Costs—Subparagraph c
As with the Federal Acquisition
Regulation and as is already the case
under Circular A-122's general rules for
unallowable costs, the costs identified
as unallowable by this revision include
not only costs of the direct activity itself
but also the costs of other activities
supporting that activity For example, if a
lobbyist spends four hours lobbying the
Congress and an additional eight hours
in study, consultation, and preparation
for the lobymg. the full twelve hours,
with the cost of any support services
and any other costs attributable to the
lobbying activity, are disallowed
As emphasized in the comment
published with the text of the November
proposal, only the portion of those cost
items allocable to the lobbying activity
is unallowable Thus, if an employee
spends 60% of his time on lobbying
activities and 40% on Federal grant
activities, 40% of the salary may be
allocated to the grant This approach is
consistent with the FAR lobbying cost
treatment provision, as well as with the
traditional accounting method of
prorating costs between allowable and
unallowable activities.
OMB considered and rejected an
alternative method of allocating costs of
items used for both lobbying activities
and grant or contract purposes, namely,
the concept that no Federal money can
be used to pay for any portion of a cost
item used for lobbying activities' (1) In
any way, or (2) over 5% of the time. The
OMB proposal published in January 1983
followed this stricter approach.
Commenters argued that it would
increase the cost of performing Federal
grants and contracts by effectively
requiring them to separate their
lobbying activities from their grant or
contract activities and could also lead to
inefficient duplication of equipment and
facilities They also argued that it would
burden the First Amendment rights of
contractors and grantees because
engaging in lobbying activities could
result in otherwise legitimate costs
being disallowed As set forth in the
November notice, OMB has adopted a
different approach which alleviates
these concerns and serves the goal of
assuring government neutrality by
disallowing reimbursement of Federally
appropnated funds used for certain
tjT>es of lobbying.
K Indirect Cost Rate Proposal—section
c(l)
Subparagraph c establishes an
administrative framework for the overall
revision Section c(l) follows current
cost allocation principles familiar to
grantees and contractors and
establishes a genera! format similar to
that now applicable to comparable
unallowable activities
Indirect cost rate negotiations are
conducted between an organization and
a single cognizant agency on an
organization-by-orgamzation, rather
than on a grant-by-grant basis This
approach saves agencies and recipient
organizations considerable tune and
effort m cases where the organization
receives more than one grant or
contract. The revision has been modified
to reflect this approach Further, section
c(l) follows existing accounting practice
and emphasizes that lobbying costs
must be identified and dealt with
appropriately, in accordance with the
Circular's indirect cost rate provisions.
Although very few commenters
criticized section c(l), some—including
Congressional sources—expressed
concern that the November proposal's
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18273
language could be broadly interpreted
by agency auditors Further, they
suggested that lobbying costs, because
of their political nature, should be
subject to only very limited, if any,
disclosure
The purpose of section c(l) was
simply to require accounting information
necessary for the government to
calculate the reimbursement of indirect
(overhead) costs Such information is
already made available to auditors
through existing recordkeeping
requirements m Circulars A-122 and A-
110
However, to clarify OMB's intent to
request only the minimum amount of
accounting data to comply with existing
accounting guidelines. OMB has
rewritten section c(l) following
consultation with GAO and
Congressional staffs In essence, only
the minimal information that is needed
for the calculation of Federally-
reimbursed overhead costs is now
required, and organizations are
completely exempt from this section If
they do not seek such Federal
reimbursement
The new section c(l) says that only
the total lobbying costs must be
identified in the indirect cost rate
proposal This will allay concerns of
nonprofit groups that separate
accountings and disclosures were
mandated for each of the five
component definitions of lobbying set
forth in sections a(l}—a(5] Moreover,
since this information is made necessary
only for indirect cost calculations in
order to avoid Federal subsidization of
the lobbying process, this sentence also
explicitly makes clear that no such
disclosure is required by the revision
unless the grantee seeks reimbursement
for indirect costs (See also, Internal
Revenue Service Form 990, requiring
lobbying cost disclosure, which many
nonprofit organizations now submit)
In comparison with the November
proposal, the new section c(l) sharply
reduces the accounting data requested,
eliminates language that some thought
gave agencies too much discretion in
requesting information, and explicitly
ties the treatment of lobbying costs to
existing Circular A-122 requirements
The November proposal's requirement
of "a statement, identifying by category,
costs attributable in whole or in part" to
lobbying, as well as the requirement of a
statement of "how (lobbying costs) are
accounted for," have been deleted.
When the existing Circular A-122
accounting requirements are reviewed in
conjunction with the uniquely lenient
recordkeeping treatment provided for
lobbying in section c(4] of the revision, it
becomes clear that such information is
the minimum necessary to achieve an
acceptable level of accounting integrity,
and that the overall recordkeeping
required for lobbying costs is much less
than that required for any other type of
allowable or unallowable cost
It should of course be noted that the
stated requirement that organizations
must "separately identify" their total
lobbying costs cannot be construed to
limit auditors or indirect cost analysts
from requiring more detailed
breakdowns when such information
would normally be required under
existing indirect cost rate proposal
guidelines See, eg, the Department of
Health and Human Services' "Guide for
Nonprofit Organizations" (May 1983) at
73 (Sample Indirect Cost Proposal
Format—Direct Allocation Method)
Additionally, if auditors suspect that an
organization may have misstated its
unallowable lobbying costs, they are not
constrained from requesting any data
normally accessible under Circulars A-
122 and A-110, as long as such data
does not fall under the recordkeeping
exemption provided in section c(4)
Section c(l) follows existing Circular
A-122 requirements that provide for the
general disclosure of the coats spent on
unallowable activities This requirement
is necessarj so that when the
government calculates the amount of an
organization's indirect costs (v e.
overhead) that it will pay. it does not
include the costs of unallowable
activities that the organization happens
to account for as indirect costs
Paragraph B 3 of the existing
Attachment A to Circular A-122 now
requires this
The costs of certain activities are not
allowable as charges to Federal awards (see.
for example fund raiBing costs in paragiaph
19 of Attachment B) However, even though
these costs are unallowable for purposes of
computing charges to Federal awards, they
nonetheless mu9t be treated as direct costs
for purposes of determining indirect cost
rates and be allocated their share of the
organization's indirect costs if they represent
activities which (1) Include the salaries of
personnel. (2) occupy space, and (3) benefit
from the organization's indirect costs
Some persons argued that
unallowable costs need not be reported,
since they are not Federally reimbursed
However, it is impossible for the
government to properly determine the
extent to which it should pay for an
organization's indirect costs unless it
can determine what portion of the
organization's total indirect costs are
from allowable activities, and what
portion are unallowable Such treatment
is currently required under Circular A-
122's Attacnnient A. Section D
"Allocation of Indirect Costs and
Determination of Indirect Cost Rates "
Further, some persons argued that the
disclosure requirement should expressly
authorize that initial submissions in
indirect cost rate proposals set forth an
aggregated figure representing both
lobbying and other unallowable costs.
Such an approach would codify the
current practices of most (but, it should
be pointed out, not all) grantees, a not
unsurprising fact in light of the
vagueness of the current standard and
the relative lack of audit resources
applied to determining whether lobbying
activities are supported by Federal
grants and contracts There is agreement
that auditors would be able to obtain
and would indeed require disaggregated
information on lobbying costs if they
engage in specific auditing of lobbying
disallowances
In weighing this proposal against
agency auditors' concerns that detailed
breakdowns of lobbying costs are
critical to proper cost analyses. OMB
has resolved to require that only the
total amount of lobbying costs be
initially disclosed m the indirect cost
rate proposal OMB has determined that
it would make no sense to rely on
varying and what would almost
certainly be inconsistent initiatives of
uidividual auditors, regional offices and
agencies to inquire, as a matter of
standard practice, into whether lobbying
activities are being improperly
subsidized through indirect cost
allocations—or to rely on random audits
to accomplish this purpose Thus, the
final revision requires, consistent with
paragraph B 3 of Attachment A and at a
level of specificity less than that
generally provided for fundraising
activities, i e, disclosure only of a total,
lump sum lobbying cost figure
Disclosure of such a figure will give
auditors a basis for further inquiry into
lobbying cost estimates set forth in
particular indirect cost rate proposals,
and will provide a level of detail that
actually would be minimally required in
every instance m which an auditor
seeks to determine whether Federal
subsidization of lobbying is taking place
through the overhead mechanism Given
the 25% rule which makes more difficult
auditor disallowances of lobbying
estimates, th's balanced compromise—
and reduction in the level of detad
called for 'n the November 1983
proposal—is in OMB's judgment a
minimal requirement consistent with the
Circular's accounting guidelines
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For two significant reasons, the laat
sentence of this section, as proposed in
the November 1983 version, has been
deleted. It stated:
Ajency guidance regarding the extent and
nature of documentation required pursuant to
subparagraph [c|(3) shall be reviewed under
the criteria of the Paperwork Reduction Act.
to ensure that requirements are the least
burdensome necessary to satisfy the
objectives of this subparagraph
L Certification Requirement-^Section
c(2)
The requirement in section a(2) of the
November 1983 proposal, that
certification accompany the Financial
Status Report, has been changed In the
final version to a requirement that
certification accompany an
organization's annual indirect cost rate
proposal. Since a Financial Status
Report is required for each grant that an
organization has, while an organization
must file only one indirect cost rate
proposal per year to cover all of its
grants, this change reduces paperwork
and administrative effort
Further, lobbying expenses are
usually included in indirect costs, which
are calculated on an organization-wide
basis Consequently, the appropriate
place to certify such costs is in the
annual indirect cost rate proposal, as
required under the Defense and GSA
proposed revisions In addition, most
future audits will be "single audits" of
all Federal funds received by the
grantee, so there will be less emphasis
on the Financial Status Report and more
on the indirect cost rate proposal.
M Recordkeeping—Sections c(3) and
c(4)
Documentation of the amounts of
allowable and unallowable costs
became a necessity when the method of
cost treatment was changed from total
disallowance of cost items partially
involved in lobbying (the January 1983
proposal) to the typical "allocation" cost
treatment The principal alternative
considered by OMB was to adopt the
documentation philosophy of the
restrictions on lobbying in the prior
Defense, GSA, and NASA procurement
regulations, i.e, to place the burden on
the grantee or the contractor to prove in
all instances the appropriateness of a
cost. This approach, while consistent
with the cost principles in general,
would entail an implied burden on some
indirect cost employees to maintain
records (time logs, calendars, or the like)
to establish the proportion of their time
spent on lobbying This would be of
particular concern for high level officials
of grantees and contractors who, in the
ordinary course of business, may engage
in only a small amount of lobbying
OMB (along with Defense, GSA, and
NASA) will therefore allow grantees
and contractors to certify in good faith
the amount of their employee's time
attributable to lobbying activities
No detailed recordkeeping
requirements have been included in this
revision, as these requirements are
generally set forth for all nonprofit
organizations in OMB Circular A-110*
"Grants and Agreements with
Institutions of Higher Education,
Hospitals, and Other Nonprofit
Organizations: Uniform Administrative
Requirements" (See, e.g.. Circular A-
110. Attachments C and F.) That Circular
generally requires grantees, inter alia, to
keep for a penod of three years,
"[flinancial records, supporting
documents, statistical records, and all
other records pertinent to [grants]," and
to access for audit purposes "pertinent
books, documents, papers and records
of * * * recipient organizations."
Section c(3) restates the general rule
for cost documentation, but is modified
by section c(4), which provides that for
the purposes of complying with this
revision, employees are not required to
prepare or maintain time logs,
calendars, or similar records to
document the portion of their time
treated as an indirect cost This means
that the agency and auditor must rely on
the employee's good-faith estimates of
time spent ui lobbying, or upon other
evidence not otherwise precluded. As
noted earlier, the absence of time logs or
comparable records foT indirect cost
tune not kept pursuant to the discretion
of the grantee or oontractor will not
serve as a basis for government auditors
disallowing claims of allowable costs by
contesting unallowable lobbying time
estimates except in two distinct
situations: first, where the employee
spends more than 25% of his
compensated hours of employment
during a month lobbying, and, second,
where a material misstatement of costs
has been found within the preceding five
years This avoids the necessity of
employees who engage in only
incidental lobbying hawng to account
for all of their time to Federal agencies
Morever, by making each calendar
month an independent, operative period
under section c(4), problems of
retroactivity are avoided by persons
unexpectedly required to engage in
intensive lobbying during the latter
portions of a larger operative penod
such as a calendar year Alternatively,
persons engaged in intensive lobbying
activities during the earlier portions of
such a longer operative penod will not
lose the protection of section c[4) during
latter months of the longer period when
lobbying activities fall below the 25%
trigger. However, it should be stressed
that in the exemption from "records
which are not kept." the primary sense
of the word "kept" was "created " Thus,
records that would otherwise be kept in
the ordinary course of business cannot
be destroyed 9imply to avoid audit
inspection merely because they are not
required under this exemption.
Commenters questioned why. if such a
provision was necessary in the first
place, other laws, such as the
Regulatory Flexibility Act, were not
included. Such a reference to
compliance with existing laws is not
necessary, and the reference to the
Paperwork Reduction Act was included
to emphasize OMB's commitment that
the sprit of this law be followed in the
revision's implementation
Morever, the Department of Health
and Human Services noted that the
sentence could have been read to give
agencies the mandate to develop their
own regulations. As there is no reason
for agencies to deviate from or add to
the Circular A-122 guidelines end as
agency deviations could result in
multiple rules for nonprofit entities—an
outcome not intended by OMB and one
which would create the potential for
inconsistent enforcement and excessive
paperwork—this sentence was
eliminated from the final version
N Administrative Restrictions on
Agencies—Section c(5J
Section c(5) requires agencies to
establish procedures for advance
resolution of definitional issues arising
under this revision This will alleviate
the inevitable problems of interpretation
at the margin and will avoid
discouraging organizations from
engaging in borderline activities merely
because the application of the
provisions may be uncertain
Section c(5) is not intended to impose
or authorize OMB micromanagement of
agencies which award grants or
contracts Agencies typically have
methods of resolving disagreements or
differences with their grantees and
contractors, and such methods shall be
deemed adequate to meet the
requirements of section c(5), unless
OMB review of such procedures
determines that changes are necessary
to comply with the intent of this section.
O Paragraph Renumbering Provision
Paragraph 2 renumbers paragraphs
B21 through B50 of Circular A-122's
Attachment B Since the cost items
covered under Attachment B are
numbered m alphabetical order,
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"Lobbying" is appropriately designated
as paragraph B21. necessitating the
renumbering of former paragraphs B21
through B50 as B22 through B51.
Vm. Paperwork Reduction Act
Considerations
The November notice invited
"comments about the appropriateness of
collection of information requirements
in this proposal" to be submitted to
OMB's Office of Information and
Regulatory Affairs Forty-three such
comments were received Of these,
twenty expressed general concerns
similar to those of other commenters but
raised no specific paperwork burden
issues
The twenty-three other commenters
followed, almost verbatim, points raised
by the Center for Non-Profit
Corporations These alleged that a
"substantial increase" in paperwork
would result from the recordkeeping
mandated by Circular A-122 The
commenters asserted that the additional
paperwork burden would occur to: (1)
Meet requirements for the annual
indirect cost proposal, and (2) maintain
the records required to demonstrate that
costs are allowable or unallowable.
However, by establishing uniform and
well-defined guidelines for lobbying
costs, and by explicitly restricting the
paperwork that auditors can require for
documentation of such costs, this
revision may significantly reduce the net
paperwork burden to which grantees are
now legally subject Clearly, some
grantees may avoid the existing
paperwork requirements by ignoring the
multiple—and oftern vague—sets of
lobbying reimbursement restrictions that
have been issued by the various
agencies, and likewise ignore the
existing accounting rules in Circular A-
122 regarding treatment of such costs.
Such non-compliance may currently
exist in part because government
auditors have found it difficult to
efficiently enforce the myriad of vague
restrictions on lobbying costs With the
clear guidelines provided by this
revision, agency and audit enforcement
will increase TTiose grantees already in
compliance with the differing sets of
restrictions will enjoy a much-reduced
paperwork burden; those who have
previously ignored these restrictions will
find that non-compliance is more likely
to be questioned by government
auditors
Moreover, regardless of whether
grantees currently choose to adhere to
existing rules on lobbying, most
routinely maintain detailed books
regarding their expenditures Annual
financial planning by the nonprofit itself
and filing requirements of the Internal
Revenue Service already require
maintenance of detailed records.
In general, Circular A-122 will not
require employees to keep a second set
of books, eg, time logs, to record
lobbying. In fact, most employees who
engage in lobbying are explicitly
exempted from any requirements to
keep time logs or other similar
documents This is because most
lobbying is done by indirect cost (eg,
headquarters staff) employees, and
section c(4) states that employees who
certify that they spend less than 25% of
their compensated time lobbying do not
have to keep such records documenting
that portion of their time that is treated
as an indirect cost Since employees
whose time is charged directly to
contracts already must keep such
records, no special rule for direct cost
time is necessary
The 23 critics of the revision also
submitted identical comments to the
effect that "[tjpx dollars will be diverted
to unnecessary paperwork and
needlessly drawn away from the
purpose of the organizations by these
requirements " As discussed above, the
fact that the revision decreases, in
general, existing paperwork
requirements will reduce the current
recordkeeping costs incurred to comply
with existing restrictions-
Some commenters argued that
differing Internal Revenue Code and
Circular A-122 standards would require
maintenance of two sets of financial
books No commenters were able to
specify any situation in which a detailed
set of expenditure records for lobbying
would not provide sufficient information
to serve the filing or audit requirements
of the Internal Revenue Service as well
as those of the various grant or
contracting agencies implementing the
revision.
OMB will review all agency
information burden requests to
implement Circular A-122 according to
the standards of the Paperwork
Reduction Act. None of the comments
OMB received from agencies mentioned
any specific concern over a possible
increase in paperwork.
EX. Enforcement
Circular A-122 is a management
directive to Federal agencies
establishing co9t principles for use In
connection with grants and contracts
with nonprofit organizations It does not
contain its own enforcement
mechanism, though its terms are
incorporated in grants and contracts
through agency regulations or grant
instruments The degree and nature of
enforcement of these anti-lobbying
provisions will depend, therefore, on
operational experience and competing
demands on enforcement resources
1	Voluntary compliance The bedrock
for enforcing these provisions is
voluntary compliance by grantees and
contractors In the past, restrictions on
the uBe of Federal funds for lobbying
have been inadequately communicated
and defined Neither agencies nor
recipient organizations devoted much
attention to them. This revision is
expected to improve compliance
significantly by
•	Defining unallowable activities so
that organizations can comply in good
faith, and
•	Providing occasions (indirect cost
rate negotiations) in which responsible
officials of the grantee or contractor will
focus specifically on the issue of the
organization's compliance
To assist organizations in complying,
agencies are to be prepared to resolve
definitional questions concerning
potential expenditures in advance This
procedure should reduce the inevitable
difficulty of interpretations at the
margin
2	Sanctions OMB considered and
rejected as too stringent a penalty
provision which would require the
return to the Federal government of all
grant or contract funds received by a
nonprofit organization found to be using
Federal funds to engage in lobbying
Instead, penalties for violating this
revision are the same as for violations of
existing Circular A-122 provisions The
principal sanction in the event of minor
or unintentional violations is cost
recovery, i e, the Federal agency will
obtain reimbursement from the
contractor or grantee of misspent funds
In more serious cases, contracts and
grants can be suspended or terminated,
or contractors and grantees can be
debarred from further awards The
availability of these sanctions for
violating the anti-lobbying restrictions
of appropriations legislation has been
confirmed by the Office of Legal
Counsel of the Department of Justice
3	Audits Contractors and grantees
are currently subject to audit
requirements, and to the possibility of
audit by agency Inspectors General or
the Comptroller General, however, only
rarely have audits focused on
compliance with anti-lobbying
provisions due to the difficulty of
determining proper adherence to a
myriad of frequently vague restrictions.
After uniform cost principles are
promulga'ed. it will become possible for
uniform and effective audit enforcement
to take place Stratified audits and other
strategies can be used to create an
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Federal Register / Vol. 49. No. 83 / Friday, April 27, 1984 / Notices
incentive for greater compliance among
all grantees and contractors.
Alternatively, promulgating a defined
set of rules can and will serve as a
protection against audit harassment,
and will and should make for fairer and
simpler audits for grantees and
contractors This should be of particular
benefit to smaller grantees and
contractors who lack the means and
support staff to contend with audits
under the vague, ambiguous, and diverse
rules now m effect. With expanded
Inspector General and agency audit
staffs now in place, the protections
afforded by the proposal are manifest
X. Designation as "Non-Major" Rule
OMB Circulars are not "rules" within
the meaning of the Administrative
Procedures Act or Executive Order No.
12291. Instead, they are management
directives by which OMB, on behalf of
the President, instructs Executive
Branch entities how to exercise their
authority in matters subiect to agency
discretion Even if the Circular were
considered a "rule," however, OMB has
determined that the revision to Circular
A-122 would not qualify as a "major
rule" under the criteria as listed in
Executive Order No 12291, which
defines a "major rule" bb "any
regulation that is likely to result in:
(1)	An annual effect on the economy
of $100 million or more;
(2]	A major increase in costs or prices
for consumers, individual industries.
Federal, state, or local government
agencies, or geographic regions, or
(3J Significant adverse effects on
competition, employment, investment,
productivity, innovation, or on the
ability of United States-based
enterprises to compete with foreign-
based enterprises in domestic or export
markets.
The principal effect of the revision
will be to ensure that Federal grant
funds are used for the purposes for
which they were intended, and not to
facilitate lobbying activities As noted
above, current financial control
procedures do not permit an accurate
estimate of the amount of tax dollars
now diverted to lobbying efforts by
grantees and contractors Whether large
or small, correction of this problem will
produce a net gain to the intended
beneficiaries of Federal programs. The
costs to be considered are primarily
accounting and recordkeeping costs for
grantees and contractors, as well as
Federal agencies. These additional
costs, however, are minimal in both
absolute and relative terms Indeed, in
many instances, the revisions should
reduce audit and compliance costs.
Furthermore, much of the accounting
work that the revision requires is
already mandated by other sections of
Circular A-122, Circular A-110, or other
provisions of law.
Issued In Washington. ~ C, April 25.1084.
Candies C. Bryant,
Deputy Associate Director for
Administration.
1. Insert a new paragraph in
Attachment B, as follows' "B21
Lobbying"
a. Notwithstanding other provisions of
this Circular, costs associated with the
following activities are unallowable:
a.(l]	Attempts to influence the
outcomes of any Federal, State, or local
election, referendum, initiative, or
similar procedure, through in kind or
cash contributions, endorsements,
publicity, or similar activity;
a (2) Establishing, administering,
contributing to, or paying the expenses
of a political party, campaign, political
action committee, or other organization
established for the purpose of
influencing the outcomes of elections;
a (3) Any attempt to influence (i) The
introduction of Federal or state
legislation; or (u] the enactment or
modification of any pending Federal or
state legislation through communication
with any member or employee of the
Congress or state legislature (including
efforts to influence State or local
officials to engage in similar lobbying
activity), or with any government
official or employee in connection with
a decision to sign or veto enrolled
legislation,
a (4) Any attempt to influence (i) The
introduction of Federal or state
legislation, or (11) the enactment or
modification of any pending Federal or
state legislation by preparing,
distributing or using publicity or
propaganda, or by urging members of
the general public or any segment
thereof to contribute to or participate in
any mass demonstration, march, rally,
fundraising drive, lobbying campaign or
letter writing or telephone campaign, or
a (5) Legislative liaison activities,
including attendance at legislative
sessions or committee hearings,
gathering information regarding
legislation, and analyzing the effect of
legislation, when such activities are
earned on in support of or in knowing
preparation for an effort to engage in
unallowable lobbying
b.	The following activities are
excepted from the coverage of
subparagraph a:
b (1) Providing a technical and factual
presentation of information on a topic
directly related to the performance of a
grant, contract or other agreement
through heanng testimony, statements
or letters to the Congress or a state
legislature, or subdivision, member, or
cognizant staff member thereof, in
response to a documented request
(including a Congressional Record
notice requesting testimony or
statements for the record at a regularly
scheduled hearing) made by the
recipient member, legislative body or
subdivision, or a cognizant staff member
thereof; provided such information is
readily obtainable and can be readily
put in deliverable form; and further
provided that costs under this section
for travel, lodging or meals are
unallowable unless incurred to offer
testimony at a regularly scheduled
Congressional hearing pursuant to a
written request for such presentation
made by the Chairman or Ranking
Minority Member of the Committee or
Subcommittee conducting such hearing.
b.(2) Any lobbying made unallowable
by section a (3) to influence State
legislation in order to directly reduce the
cost, or to avoid material impairment of
the organization's authority to perform
the grant, contract, or other agreement.
b.(3)	Any activity specifically
authorized by statute to be undertaken
with funds from the grant, contract, or
other agreement.
c.(l)	When an organization seeks
reimbursement for indirect costs, total
lobbying costs shall be separately
identified in the indirect cost rate
proposal, and thereafter treated as other
unallowable activity costs in
accordance with the procedures of
paragraph B3 of Attachment A.
c.(2) Organizations shall submit as
part of their annual indirect cost rate
proposal a certification that the
requirements and standards of this
paragraph have been complied with.
c.{3) Organizations shall maintain
adequate records to demonstrate that
the determination of costs as being
allowable or unallowable pursuant to
paragraph B21 complies with the
requirements of this Circular
c (4) Time logs, calendars, or similar
records documenting the portion of an
employee's time that is treated as an
indirect cost shall not be required for the
purposes of complying with
subparagraph c, and the absence of such
records which are not kept pursuant to
the discretion of the grantee or
contractor, will not serve as a basis for
disallowing claims of allowable costs by
contesting estimates of unallowable
lobbying time spent by employees
during any calendar month unless (i)
The employee engages in lobbying, as
defined in subparagraphs a and b, more
than 25% of his compensated hours of
Appendix 13-D-17
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Federal Register / Vol. 49, No. 83 / Friday, April 27, 1984 / Notices	18277
employment during that calendar month,
or (u) the organization has materially
misstated allowable or unallowable
costs within the preceding Eve year
penod.
c.(5) Agencies shall establish
procedures for resolving in advance, in
consultation with OMB, any significant
questions or disagreements concerning
the Interpretation or application of
paragraph B21. Any such advance
resolution shall be binding in any
subsequent settlements, audits or
investigations with respect to that grant
or contract for purposes of
interpretation of this Circular; provided,
however, that this shall not be construed
to prevent a contractor or grantee from
contesting the lawfulness of such a
determination.
2. Renumber subsequent paragraphs
of Attachment B.
PK Doc. M-113M FUsd 4-Jft-M. £49 ami
[NOTE: This reprint incorporates corrections
that are published in the Federal Register of
Tuesday, May 8.1984 ]
BILUMQ COOC 3110-01-y
Appendix 13-D-18
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ASSISTANCE ADMINISTRATION
5700
12/3/84
Tuesday
July 8, 1980
Note: This reprint incorporates
corrections published at 46 FR 17185,
Tuesday, March 17,1981.
Part

w w
Office of
Management and
Budget	
Circular A-122, "Cost Principles for
Nonprofit Organizations"
0 g- i rvJ A-121
Appendix 13-D-19
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ASSISTANCE ADMINISTRATION
46022	Federal Register / Vol. 45, No 132 / Tuesday, July 8, 1980 / Notices
. 5700
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OFFICE OF MANAGEMENT AND
BUDGET
Circular A-122, "Coat Prlnolplaa (or
Nonprofit Organizatlona"
|Nole- This reprml ini orpuiidcs coiiclIioiis
published ul 4U FR 17185, Tuesday. Miuch 17,
19B1 |
AGENCY: Office of Management and
Budget
ACTION: Final Policy
SUMMARY: This notice advises of a new
OMB Circular dealing with principles for
determining costs of grants, contracts,
and other agreements with nonprofit
organizations
The Circular is the product of an
interagency review conducted over a
two-year period Its purpose is to
provide a set of cost principles to
replace existing principles issued by
individual agencies These have often
contained varying and conflicting
requirements, and created confusion
among agency administrators, auditors,
and nonprofit officials. The new Circular
will provide a uniform approach to the
problem of determining costs, and
promote efficiency and better
understanding between recipients and
the Federal Government
EFFECTIVE DATE: The Circular becomes
effective on issuance
FOR FURTHER INFORMATION CONTACT:
Palmer A Marcantonio, Financial
Management Branch, Office of
Management and Budget, Washington,
D C 20503, (202) 395-4773
SUPPLEMENTARY INFORMATION: Before
the Circular became final there was
extensive coordination with the affected
nonprofit organizations, professional
associations. Federal agencies and
others All interested persons were
given an opportunity to comment on the
proposed Circular through informal
consultations and a notice in the Federal
Register In response m our requests for
comrpent. we received about 100 letters
from Federal agencies, nonprofit
organizations, associations, and other
interested members of the public These
comments were considered in thp final
version of the Circular There follows a
summary of the major comments and the
action taken on each
In addition to the changes described,
other changes have been made tn
improve the clarity and readability of
the Circular To the extent possible, we
have tried to make the langtiagr of this
Circular consistent with that of cost
principles for educational institutions
(Circular A-211, and State and local
governments (Circular 74-4)
Summary of Significant Change-
Set forth are rhanges that hdve been
made in the final Circular as a result of
public communis. The more nlgnlflcnnt
clmugiiN In I ho IiiihIi: Circuliir mid
Alliicliniitiil A Include:
1.	1'iinigrHpli 2 "SupeiwiHslon" wuu
lidded to the bnsic Circ ular to make It
clear that this Circular supersedes cost
principles issued by individual agencies.
2.	Paragraph 4 of the basic Circular
has been amended to make it clear that
the absence of an advance agreement on
any element of cost will not in itself
affect the reasonableness of allocability
of that element Also, this paragraph
was amended to make it clear that
where an item of cost requiring prior
approval is specified in the budget,
approval of the budget constitutes
approval of the cost
3.	Paragraph 5 of the basic Circular
has been changed to remove any doubt
as to wh'ch nonprofit organizations
would not be covered by the Circular.
Now, Appendix C to the Circular lists all
exclusions
4	Paragraph 8wat added to the basic
Circular to permit Federal agencies to
request exceptions from the
requirements of the Cirrular
5	Paragraph E 2 was added to
Attachment A to cover the negotiation
and approval of indirect cost rates, and
to provide for cognizance arrangements.
The mere significant changes to
Attachment B to the Circular include'
1	Paragraph 6. Compensation for
Personal Set vices, was modified to
a Permit Federal agencies to accept a
substitute system for documenting
personnel costs through means other
than personnel activity reports
b Clarify provisions revering the
allowabili'y of co.sts for unemployment
compensation or workers'
compensation, and costs of insurance
policies on the lives of trustees officers,
or othrr cmployeps
c Mike unallowable my increased
costs of ppnsion plan., ccused by
delayed funding
d Delete n p^ragidph dealing with
review ,ind approval of compensation of
individual employees
2	Paragrrf-jh 7, Contingencies, was
changed to make it clear thai the teim
"contingency reserves" excludes self-
insuram n reserves or pension funds
3	Paragr-iph 10 whs modified to
provide that the value of donated
services used in the performance of a
o'lpct ( ost actii >ty shall hp allocated a
Si wire ol indirect tosl onl> when (a) the
aggregate value of the service is
material, (b) the services  be
allowable
8 Paragraph 36, Public Information
Service Costs, was modified to make
public information costs allowable as
direct costs with awarding agency
approval
9.	Paragraph 42, Rental Costs, was
rewritten to'
a. Make it clear that rental costs
under leases which create a material
equity on the leased property ait.
allowable only up to the amount that the
organization would have been allowed
had it purchased the property e g
depreciation or use allowances,
maintenance, taxes, insurance etc
b Clarify the criteria for material
equity leases.
10.	Paragraph 50. Travel Costs, was
amended to delete the pnor .lpproval
requirement for domestic travel In
addition to the above, a number of
editorial changes were madp to tha
original document
Suggested Changes Not Considered
Necessary
Comment Several respondents
questioned the provision that, for "less
than arm's length" leases, rental costs
are allowable only up to the amount that
would be allowed had title to the
property been vested in the grantee
organization. In their opinion this rule
will result in unnecessary cost to the
Federal Government, since it would
encourage an organization to 'ease
space on the commercial market at a
higher rate.
Appendix 13-D-20
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5700
12/3/84
46023
Hryjoiihr The r.osl principles iitp
designed to cover must situations,
however. there are always exceptions
that must be considered on a case-by-
case bdsis The Circular contains a
provision for Federal agencies to request
exceptions
Comment Several respondents
questioned why interest is not an
allowable cost, since it is an ordinary
and necessary cost of doing business
Response It has been a longstanding
policy not to recognize interest as a cost
However, this policy has recently been
revised for State and local governments
in Circular 74-4, with respect to the cost
of office space The revision provides
that "rental" rates for publicly owned
buildings may be based on actual costs,
including depreciation, interest,
operation and maintenace costs, and
other allowable costs This revision was
under consideration for some time It
was studied extensively by OMB, the
General Accounting Office and others
and considerable analysis went into its
formulation Suggestions for extending it
to nonprofit organizations would have to
be examined with equal care This has
not yet been doner and we were
reluctant to further delay issuance of
this Circular
Comment Several respondents
questioned why public information costs
were not allowable as an indirect cost
Response Public information costs
are often direct services to an
organization's other programs They are
allowable, however, as a direct charge
when they are within the scope of work
of a particular agreement
Comment One respondent suggested
that smaller grantees be excluded from
complying with the Circular
Response Similar rules for the 50
selected items of cost would be needed
regardless of the size of the grantee To
the extent possible, the Circular
provides simplified methods for smaller
grantees
Comment One respondent said the
requirements of the Cost Accounting
Standards Board should be applied to
cover contracts with nonprofit
organizations
Response It is unlikely that the type
of grantees covered by this Circular
would have contracts large enough to be
covered by the CASB In the event that
they do. however, the regulations of the
CASB would apply
Comment One respondent said the
allocation of indirect cost to donated
services would pose a tremendous
difficulty to the organization The
organization relies on a corps of
approximately 8,000 committee members
to carry out obligations in response to
Government requests There is no
employer relationship in the
arrangements for this assistance, nor are
Ihere committee members normally
reimbursed for such services. Further, it
was pointed out the committee members
spend many thousands of hours outside
the organization's premises conducting
research
Response It would appear that this
type of committee arrangement would
not be considered in the determination
of the organization's indirect cost rate
provided that Federal agreements do not
bear an unreasonable share of indirect
cost However, the cognizant agency
will be responsible for evaluating the
allocation of indirect cost where there
are committee-type arrangements on a
case-by-case basis
Comment One respondent suggns^d
that wherever possible the language in
the Federal Procurement Regulations be
used for nonprofit organizations
Response The language in the Fade:a!
Procurement Regulations was
designated primarily for commercial
firms, and is not necessarily ivell suited
to nonprofit organizations At the
suggestion of the General Accounting
Office, the nonprofit cost principles
were written to conform as closely as
possible to those of educational
institutions (Circular A—21), and State
and local governments (Circular 74-4)
John | Lordan,
Chief, Financial Management Branch
[Circular No. A-122]
June 27, I960
To The Heads of Fxecutive
Departments and Establishments
Subject Cost principles for nonprofit
organizations
1	Purpose This Circular establishes
principles for determining costs of
grants, contracts and other agreements
with nonprofit organizations It does not
apply to colleges and universities which
are covered by Circular A-21, State,
local, and federally recognized Indian
tribal governments which are covered
by Circular 74-4, or hospitals The
principles are designed to provide that
the Federal Government bear its fair
share of costs except where restricted or
prohibited by law The principles do not
attempt to prescribe the extent of cost
sharing or matching on grants, contracts,
or other agreements However, such cost
sharing or matching shall not be
accomplished through arbitrary
limitations on individual cost elements
by Federal agencies Provision for profit
or other increment above cost is outside
the scope of this Circular
2	Supersession This Circular
supersedes cost principles issued by
individual agencies for nonprofit
organization
3	Applicability a These principles
shall be used by all Federal agencies in
determining the costs of work performed
by nonprofit organizations under grants,
cooperative agreements, cost
reimbursement contracts, and other
contracts in which costs are used in
pricing, administration or settlement
All of these instruments are hereafter
referred to .is awards The p:inciplt:.> do
not apply to awards under which an
organization is nut required to account
to the Government for actual costs
incurred
b All cost reimbursement suba\,?rds
(subgrants. subcontracts, etc ) are
subject to those Federal cost principles
applicable to thi parti ular organiza'ioi.
concerned Thus, if a subaword is to a
nonprof't or^an'zation, ;his Circula-
shall apply, if a suba^ard is to r
commercial organization, the t js;
principles applicable to commercial
cuncerns shall apply, if a subai/ard it> U,
a college or univers.ly. Circular A-21
shall apply, if a subaward li tu a STate,
local, or federally recognized Indian
tribal government. Circular 74-i shall
apply.
4	Definitions a. "Nonprofit
organization" means any corporation,
trust, association, cooperative, or other
organization which (1) is operated
primarily for scientific, educational,
service, charitable, or similar purposes
in the public interest. (2) is not
organized primarily for profit, and (3)
uses its net proceeds to maintain,
improve end/or expand its operations
For this purpose, the term "nonprofit
organization" excludes (i) colleges and
universities, (it) hospitals, (in) State,
local, and federally recognized Indian
tribal governments, and (iv) those
nonprofit organizations which are
excluded from coverage of this Circular
in accordance with paiagraph 5 below
b "Prior approval" means securing
the awarding agency's permiss'on in
advance to incur cost for those items
that are designated as requirng prior
approval by the Circular. Generally this
permission will be in writing Where an
item of cost requiring prior approval is
specified in the budget of an award,
approval of the budget constitutes
approval of that cost
5	Exclusion of some nonprofit
organizations Some nonprofit
organizations, because of their size and
nature of operations, can be considered
to be similar to commercial concerns for
purpose of applicability of cost
principles Such nonprofit organizations
shall operate under Federal cost
principles applicable to commercial
concerns A listing of these
Appendix 13-D-21
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ASSISTANCE ADMINISTRATION
46024	Federal Register / Vol. 45, No 132 / Tuesday, July 8. 1980 / Notices
5700
12/3/84
organizations is contained in
Attachment C Other organizations may
be added from time to time
6	Responsibilities Agencies
responsible for administering programs
that involve awards to nonprofit
organizations shall implement the
provisions of this Circular. Upon
request, implementing instruction shall
be furnished to the Office of
Management and Budget Agencies shall
designate a liaison official to serve as
the agency representative on matters
relating to the implementation of this
Circular The name and title of such
representative shall be furnished to the
Office of Management and Budget
within 30 days of the date of this
Circular.
7	Attachments The principles and
related policy guides are set forth in the
following Attachments
Attachment A—General Principles
Attachment B—Splected Items of Cost
Attachment C—Nonprofit
Organizations Not Sub]ect to This
Circular
B Requests for exceptions The Office
of Management and Budget may grant
exceptions to the requirements of this
Circular when permissible under
existing law However, in the interest of
ach-eving maximum uniformity,
•jvceptions will be permitted only in
highly unusual circumstances
9	Effective Date The provisions of
this Circular are effective immediately
Implementation shall be phased in by
incorporating the provisions into new
awards made after the start of the
organization's next fiscal year For
existing awards the new principles may
be applied if an organization and the
cognizant Federal agency agree Earlier
implementation, or a delay in
implementation of individual provisions
is also permitted by mutual agreement
between an organization and the
cognizant Federal agency
10	Inquires Fmther information
concerning this Circuljr may be
obtained by contacting thp Financial
Management Branch. Budget Review
Division, Office of Management and
Budget, Washington, D C 20503,
telephone (202) 395-4773
James T Mclnlyre, Jr ,
Dirrrtor
|Circular No A-122]
Altachment A
General Principles
rable of Conlfiits
r\ Basic Considerations
1	Compusilion of total costs
2	Factors affecting allowability of costs
Reasonable costs
4 Allot able rosts
5 Applicable credits
6. Advance understandings
B Direct Cost9
C Indirect Costs
D Allocation of Indirect Co9ts and
Determination of Indirect Cost Rates
1	General
2	Simplified allocution method
3	Multiple uliocauon base method
4	Direct allocation method
5	Special indirect coat rates
E Negotiation and Approval of Indirect Cost
Rates
1	Definitions
2	Negotiations and approval of rales
[Circular No A-122|
Attachment A
General Principles
A Basic Corsideiritions
1	Composition of total costs The total cost
of an award is the sum of the allowable
direct and allocable indirect costs less any
applicable credits
2	Factors affecting allowability of costs
To be allowable under an award, costs must
meet the following general criteria
a Be reasonable for the pei'ormance of the
award and be allocable thereto under these
principles
b Conform to any limitations or exclusions
set forth in these principles or in the award
as to types or amount of cost items
c Be consistent with policies and
procedures that apply uniformly to both
federally financed and other activities of the
organization
d Be accorded consistent treatment
e Be determined in accordance with
generally accepted accounting principles
f Not be included as a cost or used to niPet
cost sharing or matching requirements of any
other federally financed program in either the
current or a prior period
f> Be adequate!; documented
3	Reasonable costi A cost is reasonable
if. in its nature or amount, it dons not exceed
that which would be incurred by a prudent
person under the circumstances prevailing at
the time the decision was made to incur the
costs The question of the reasonableness of
specifir costs must be scrutinized with
particular care in connection .vith
organizations or separate divisions thereof
which receive the preponderance of their
support from awards made by Federal
agencies In determining the reasonableness
or a given cost, consideration shall be given
to
a Whether the cost is of a type generally
rei ogmzed as ordinarv and necessary for the
operation of the organization or the
performance of the award
b The restraints or rpqimements imposed
by such factors as generally accepted sound
business practices arms length bargaining,
I ederal and State latvs and regulations, and
terms and conditions nl Ihe award
c Whether the individuals concerned acted
with prudence in the circumstances
considering their respnosilnlilies to the
organization its members, employees, and
clients, the public at large, and the
Government
d Significant deviations from the
established practices of the organization
which may unjustifiably increase 'he award
costs
4	Allocable costs
a A cost is allocable to u particulai cost
objective, such as a grunt, project service, or
other activity, in accordance with 'he relative
benefits received A cost is allocable to a
Government award if It is treated
consistently with other cocls incurred for the
same purpose in like circumstances and it il
(1)	Is incurred specifically for Ihe av 
or allowances, recoveries or indemnities on
losses insurance refunds, and adjustments of
overpayments or erroneous charges To the
extent that such credits accruing or received
by Ihe organization relate to allowable cost
they shall be credited to thp Govprm cut
either as a cost reduction cm cush icfund as
appropriate
b In some instances the amounts 'eceived
from the Federal Government to finance
organizatioral activities or servicp operations
should be treated as applicable cirdils
Specifically, the concept of netting biicIi
credit items against related expend lures
should be applied by the oiganizat>un in
determining the rates 01 amounts to be
charged to Federal awards for services
rendered whenever the racilities or othei
resources used in providing such services
huvp been financed directly, 1.1 whelp or 1,1
part, by Federal funds
(c) For rules covering piogram income
(i e , gross income earned from federally
supported activities) see Attac'i.nent D of
OMB Circular A-110
6	Advance understandings Under anv
given award the reasonableness and
allocability of certain items of costs may be
difficult to determine Th.s is particularly true
in connpction with organizations that rece1 v e
a preponderance of their support from
Federal agencies In order to avoid
subsequent disallowance or dispute based on
unreasonableness or nonallocability it is
often desirable to seek a written agreement
with the cognizant or awarding agency in
advance of the incurrence rf snecial or
unusual costs The absence of an advancc
agreement on any element of cost will not. in
itself affect Ihe reasonableness or
allocability of that element
Appendix 13-D-22
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ASSISTANCE ADMINISTRATION
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5700
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46025
II Dun I I.Willi
1	IJiii't 11 iinlii it i it lliiimi Ilml i.mi I in
lilrnllllitil Npi'i illi nlly wllli ii |>iilll« iiIiir Tlnul
i oat iili|i'('hvr I c , ii |iurlli:iiliu iiwuid,
pru|i'Ll. Bcrvicu. or olhrr direct uclivity of an
organization However, a cost may not be
assigned to an award as a direct cost if any
other cost incurred for the same purpose, in
like circumstances, has been allocated to an
award as an indirect cost Costs identified
specifically with awards are direct costs of
the awards and are to be assigned directly
thereto Costs identified specifically with
other final cost ob|ectives of the organization
are direct costs of those cost objectives and
are not to be assigned to other awards
directly or indirectly
2	Any direct cost of a minor amount may
be treated as an indirect cost for reasons of
practicality where the accounting treatment
for such cost is consistently applied to all
final cost objectives
3	The cost of certain activities are not
allowable as charges to Federal awards (see,
for example, fund raising costs in paragraph
19 of Attachment B) However, even though
these costs are unallowable for purposes of
computing charges to Federal awards, they
nonetheless must be treated as direct cost for
purposes of determining indirect cost rates
and be allocated their share of the
organization's indirect costs if they represent
activities which [1 j include the salaries of
personnel. (2) occupy space, and [3) benefit
from the organization's indirect costs
4	The costs of activities performed
primarily as a service to members, clients, or
the general public when significant and
necessary to the organization's mission must
be treated as direct costs whether or not
allowable and be allocated an equitable
share of indirect costs Some examples of
these types of activities include
a Maintenance of membership rolls,
subscriptions, publications, and related
functions
b Providing services and information to
members, legislative or administrative
bodies, or the public
c Promotion, lobbying, and other forms of
public relations
d Meetings and conferences except those
held to conduct the general administration of
the organization
3 Maintenance, protection, and investment
of special funds not used in operation of the
organization
f Administration of group benefits on
behalf of members or clients including life
and hospital insurance, annuity or retirement
plans, financial aid. etc
C Indirect Cost
1 Indirect costs are those that have been
incurred for common or joint objectives and
cannot be readily identified with a particular
final cost obiective Direct cost of minor
amounts may be treated as indirect costs
under the conditions described in paragraph
B2 above After direct costs have been
determined and assigned directly to awards
or other work as appropriate, indirect costs
are those remaining to be allocated to
benefiting cost objectives A cost may not be
allocated to an award as an indirect cost if
any other cost incurred for the same purpose,
In llko i.lrr.iitnnliini:i!i). bun linen BMlftnnd to
mi nwiiril Jin ii dlnii.l cost.
it. Uiii'iiiihi1 of the diverse characteristics
und accounting practices of nonprofit
organizations, it is not possible to specify the
types of costs which may be classified as
indirect cost in all situations However,
typical examples of indirect cost for many
nonprofit organizations may include
depreciation or use allowances on buildings
and equipment, the costs of operating and
maintaining facilities, and general
administration and general expenses, such as
the salaries and expenses of executive
officers, personnel administration, and
accounting
D Allocation of Indirect Costs and
Determination of Indirect Cost Rates
1	GeneraI
a Where a nonprofit organization has only
one major function, or where all its major
functions benefit from its indirect costs to
approximately the same degree, the
allocation of indirect costs and the
computation of an indirect cost rate may be
accomplished through simplified allocation
procedures as desenbed in paragraph 2
below
b Where an organization has several major
functions which benefit from its indirect costs
in varying degrees, allocation of indirect
costs may require the accumulation of such
costs into separate cost groupings which then
are allocated individually to benefiting
functions by means of a base which best
measures the relative degree of benefit The
indirect costs allocated to each function are
then distributed to individual awards and
other activities included in that function by
means of an indirect cost rate(s)
c The determination of what constitutes an
organization s major functions will depend on
its purpose in being the types of services it
renders to the public, its clients, and its
members, and the amount of effort it devotes
to such activities as fund raising, public
information and membership activities
d Specific methods for allocating indirect
costs and computing indirect cost rates along
with the conditions under which each method
8h«ehs&arP ^e^cn ~er°In parasrap'is ^
e The base period for the allocation of
indirect costs is the period in which such
costs are incurred and accumulated for
allocation to work performed in that period
The base period normally should coincide
with the organization's fiscal year, but in any
event, shall be so selected as to avoid
inequities in the allocation of the co9ts
2	Simplified allocation method
a Where an organization's maior functions
benefit from its indirect costs to
approximately the same degree, the
allocation of indirect costs may be
accomplished by (ij separating the
organization's total costs for the base period
as either direct or indirect, and (n) dividing
the total allowable indirect costs (net of
applicable credits) by an equitable
distribution base The result of this process is
an indirect cost rate which is used to
distribute indirect costs to individual awards
The rate should be expressed as the
percentage which the total amount of
allowable Indirect costs bears to the base
¦elected. This method should also be used
where an organization has only one major
function encompassing a number of
individual projects or activities, and may be
used where the level of Federal awardB to an
organization is relatively small
b Both the direct costs and the indirect
costs shall exclude capital expenditures and
unallowable costs However, unallbwable
costs which represent activities must be
included in the direct costs under the
conditions described in paragraph B 3 above
c The distribution base may be total direct
costs (excluding capital expenditures and
other distorting items, such as major
subcontracts or subgrants), direct salaries
and wages, or other base which results in an
equitable distribution. The distribution base
shall generally exclude participant support
costs as defined in paragraph 29 of
Attachment B
d Except where a special rate(s) is
required in accordance with paragraph L) 5
below, the indirect cost rate developed under
the above principles is applicable to all
awards at the organization If a special
rate(s) is required, appropriate modifications
shall be made in order to develop the special
rate(s)
3 Multiple allocation base method.
a Where an organization's indirect costs
benefit its major functions in varying degrees,
such costs shall be accumulated into separate
cost groupings Each grouping shall then be
allocated individually to benefiting functions
by means of a base which best measures the
relative benefits
b. The groupings shall be established so as
to permit the allocation of each grouping on
the basis of benefits provided to the major
functions Each grouping should constitute a
pool of expenses that are of like character in
terms of the functions they benefit and in
terms of the allocation base which best
measures the relative benefits provided to
each function The number of separate
groupings should be held within practical
limits, taking into consideration ihe
materiality of the amounts involved and the
degree of precision desired
c Actual conditions must be taken into
account in selecting the base to be used in
allocating the expenses in each grouping to
benefiting functions When an allocation can
be made by assignment of a cost grouping
directly to the function benefited, the
allocation shall be made in that manner
When the expenses in a grouping are more
general in nature, the allocation should be
made through the use of a selected base
which produces results that are equitable to
both the Government and the organization In
general, any cost element or cost related
factor associated with the organization's
work is potentially adaptable for use as an
allocation base provided (i) it can readily be
expressed in terms of dollars or other
quantitative measures (total direct costs,
direct salaries and wages, staff hours applied,
square feet used, hours of usage, number of
documents processed, population served, and
the like) and (ii) it is common to the
benefiting functions during the base period
d Except where a special indirect cost
rate(s) is required in accordance with
Appendix 13-D-23
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ASSISTANCE ADMINISTRATION
46026	Kndnml KoniHlor / Vol 45, No 132 / Tuiinduy, July U, 1980 / Notices
5700
12/3/84
|iiirii|(lii|ili II lii'low tlin hi'|iiii ntf< Ki'iliplliMH
ill Inillini I i naln iiIliif ulitil In ittti )i iiiii|iii
litlM linn nil it 11 l#i» nxHI|iH'itl,|l mill llMilllill lin (I
< nrjimull pool Iih Iliul luiu Mini 'I'llii i uhlb In
' the common pool shall then be distributed lo
individudl awards included in thai funcllun
by use of d single indirect cost rate
e The distribution base used in computing
the indirect cost rate for each function may
be total dfrect costs (excluding capital
expenditures and other distorting items such
as ma)or subcontracts and subgrants) direct
salaries and wages, or other base which
results in an equitable distribution The
distribution base shall generally exclude
participant support costs as defined in
paragraph 29. Attachment B An indirect cost
rate should be developed for each separate
indirect cost pool developed I'he rate in each
case should be stated ds the percentage
which the amount of the particular indirect
cost pool is of the distribution base identified
with that pool
4	Direct allocation method
a Somp nonprofit organizations, treat all
costs us direct costs except general
administration and general expenses These
organizations generally separate their costs
into three basic categories (i) General
administration and general expenses, (u)
fund raising, and (in) other direct functions
(including projects performed under Federal
awards) Joint costs, such as depreciation
rental costs, operation and maintenance of
facilities telephone expenses, and the like
are prorated individually as direct costs to
each category and tn each award or other
activity using a base most appropriate to the
particular cost being prorated
b This method is acceptable provided Pdch
joint cost is prorated using a base which
accurately measures the benefits provided to
each award or other activity The bases must
be established in accordance with reasonable
criteria and be supported by current data
This method is compatible with the
Standards of Accounting and Financial
Reporting for Voluntary Health and Welfare
Organizations issued jomtlj bv tnp National
Health Council. Inc the National Assembly
of Voluntary Health and Social Welfare
Organizations, and the United Way of
America
c Under this method indirect costs consist
exclusive!) of general administration and
general expenses In all other respects, the
organization s indirect cost rates shall be
computed in 'he same manner as that
described in paragraph D 2 above
5	Special indirec. cost rates In some
instances, a single indirect cost rate for all
activities of an organization or for each major
function of the organization may not be
appropriate, since it would not take into
jeeount those different factors which may
substantially affeel the indirect c osts
applicable to a particular segment of work
Foi this purpose, a particular segment of
work may be that performed under a single
award or it may consist of work under a
group of awards performed in a common
environment The factors may include the
physical location of the work the level of
administrative support required, the nature of
the facilities or other resources employed, the
scientific disciplines or technical skills
Inviilvnil, llin oiK'iiii/iiliiinii] iirrniigiiiiinnlH
lirtml ill tmy I Dllll ill nit Ii in ihelltllf Wllllll II
l>ui llf iilm HHgmfliil of woik ib performed in mi
I'liviiunmenl which appears to generate a
significantly different level of indirect costs,
provisions should be made for a separate
indirect cost pool applicable to such work
The separate induect cost pool should be
developed during the course of the regular
allocation process and the separate indirect
cost rate rcs"lting therefrom should oe used
provided it is determined that (i) the rate
differs significantly from that which would
have been obtained under paragraph D 2. 3,
and 4 above, and (ill the volume of work to
which the rate would apply is material
E Npgotiotion and Approval of Indirect Cost
Rates
1	Definitions A3 ased "i tins section, the
following terms have the meanings set forth
below
a "Cognizant ugency ' means the Federal
agency responsible for negotiating i.nd
approving inoirect cost ra,ps for a nonprofit
organization on behalf of all Federal
agencies
b 'PredeVmined rate means an indirect
( ost rale, applicable to a specified current or
future period usually the organization's fiscal
year The rate is based on an estimate of the
costs lo be incurred during the period A
predetermined rate is not subject to
adjustment
c "Fixed rate means an indirect cost rate
which has the samp characteristics as a
predetermined rate, exrepl that the difference
between the estimated costs and the actual
costs of the period covered by the rate is
carried forward as an adjustment to the rate
rompulation of a subsequent period
d "Final rate" means an indirect cost rate
applicable to a specified past penod which is
based on the actual costs of tlip ppnorl A
final rate is not subject lo adjustment
e 'Provisional rate ' or billing rale means n
temporary indirect tost ratr applicable to a
specified period which is used for funding,
interim reimbursement, and reporting indirect
costs on awauls pendin;; the establishment of
a final ralp for the period
f ' Indirect cost proposal' means the
documentation prepare'1 by an organization
lo substantiate ill claim for the
reimbursement of indirect costs This
proposal provides the basis for the review
and negotiation loading to the establishment
of an organization s indirect cost rate
g "Cost objective' means a function,
organizational subdivision contract, grant, or
other work unit for which cost data are
desired and for which provision is made lo
accumulate and measure the cost of
processes, projects, jobs and capitalized
projects
2	,\pgntiutton and approval of rates
a Unless different arrangements are
agreed lu by the agennes concerned, the
Federal agpnev with the largest dollar value
of awards with an organisation will be
designated as the cognizant agency for the
negotiation and approval of indirect cost
rates and, where necpssary other rales such
as fringe benefit and computer charge-out
rates Once an agency is assigned cognizance
for a particular nonprofit organization the
nHHlgnnipiit will mil lie i litingml iiiiIphh then*
In a major lung-turai shift tn the dollar volume
of the Federal awards to the organization All
concerned Federal agencies shall be gi "n llie
oppoitunity to participate in the negotiation
process, but after a rate has been agreed
upon it will be accepted by all Fedeial
agencies When a Feoeral agency has reason
to believe that special operating fac'ors
affecting its awards necessitate special
indued rost rates in acxrdunce with
paragiaph D 5 above, it will, prior to the time
the rates are negotiated, notify the cognizant
agency
b A nonprofit organization 
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ASSISTANCE ADMINISTRATION
Federal Register / Vol. 45, No. 132 / Tuesday, July 8, i960 / Notices
5700
12/3/84
46027
4	HnniUfifl i.iihIh
5	CiimmiiiilMillon coal*
6	ComponHiillun fin |Hir»onal inrvicim
7	Contingency provisions
8. Contributions
9	Depreciation and use allowances
10	Donations
11	Employee morale, health and welfare
costs and credits
12	Entertainment costs
13	Equipment and other capital expenditures
14. Fines and penalties
15 Fringe benefits
IS Idle facilities and idle capacity
17 Independent research and development
(reserved)
IB Insurance and indemnification
19	Interest, fund raising, and investment
management costs
20	Labor relations costs
21	Losses on other awards
22	Maintenance and repair costs
23	Materials and supplies
24	Meetings, conferences
25	Memberships, subscriptions, anct
professional activity costs
26	Organization costs
27	Overtime, extra-pay shift, and multishift
premiums
28	Page charges in professional journals
29	Participant support costs
30	Patent costs
31	Pension plans
32	Plant security costs
33	Preaward costs
34	Professional service costs
35	Profits and losses on disposition of
depreciable property or other capital
assets
36	Public information service costs
37	Publication and printing costs
38	Rearrangement and alteration costs
39	Reconversion costs
40	Recruiting costs
41	Relocation costs
42	Rental costs
43	Royalties and other costs for use of
patents and copyrights
44	Severance pay
45	Specialized service facilities
46	Taxes
47	Termination costs
48	Training dnd education costs
49	Transportation costs
50	Travel costs
(Circular No A-122]
Attachment B
Selected Items of Cost
Paragraphs 1 through 50 provide principles
to be applied in establishing the allowability
of certain items of cost These principles
apply whether a cost is treated as direct or
indirect Failure to mention a particular item
of cost is not intended to imply that it is
unallowable, rather determination as to
allowability in each case should be based on
the treatment or principles provided for
similar or related items of cost
1 Advertising costs
a Advertising costs mean the costs of
media services and associated costs Media
advertising includes magazines, newspapers,
radio and television programs, direct mail,
exhibits, and the like
b. The only advertising tosls allowable are
thosu which uri1 solely for (I) Ihn rocrultment
of personnel when considered in conjunction
with all other recruitment costs, as set forth
in paragraph 40, (ti) the procurement of goods
and services, (in) the disposal of surplus
materials acquired in the performance of the
award except when organizations are
reimbursed for disposals at a predetermined
amount in accordance with Attachment N of
OMB Circular A-110, or (ivj specific
requirements of the award
2	Bad debts Bad debts, including losses
(whether actual or estimated) arising from
uncollectible accounts and other claims,
related collection costs, and related legal
costs, are unallowable
3	Bid and proposal costs (reserved)
4	Bonding costs
a Bonding costs arise when the
Government requires assurance against
financial loss to itself or others by reason of
the act or default of the organization They
arise also in instances where the organization
requires similar assurance Included are such
bonds as bid, performance, payment,
advance payment, infringement, and fidelity
bonds
b Costs of bonding required pursuant to
the terms of the award are allowable
c Costs of bonding required by the
organization in the general conduct of its
operations are allowable to the extent that
such bonding is in accordance with sound
business practice and the rates and premiums
are reasonable under the circumstances
5	Communication costs Costs incurred for
telephone services, local and long distance
telephone calls, telegrams, radiograms,
postage and the like, are allowable
6	Compensation for personal services
a Definition Compensation for personal
services includes all compensation paid
currently or accrued by the organization for
services of employees rendered during the
period of the award (except as otherwise
provided in paragraph g b.-low) It includes,
but is not limited to. salaries, wages,
director's and executive committee member's
fees, incentive awards, fringe benefits,
pension plan costs, allowances for off-site
pay, incentive pay, location allowances,
hardship pay. and cost of living differentials
b Allowability Except as otherwise
specifically provided in this paragraph, the
costs of such compensation are allowable to
the extent that
(1)	Total compensation to individual
employees is reasonable for the services
rendered and conforms to the established
policy of the organization consistently
applied to both Government and non-
Government activities, and
(2)	Charges to awards whether treated as
direct or indirect costs are determined and
supported as required in this paragraph
c Reasonableness
(1)	When the organization is predominantly
engaged in activities other than those
sponsored by the Government, compensation
for employees on Government-sponsored
work will be considered reasonable to the
extent that it is consistent with that paid for
similar work in the organization's other
activities
(2)	When the organization is predominantly
engaged in Covernment-sponsored activities
and In cases where the kind of employees
required for the Government activities are
not found In the organization's other
activities, compensation for employees on
Government-sponsored work will be
considered reasonable to the extent that it is
comparable to that paid for similar work in
the labor markets in which the organization
competes for the kind of employees involved
d. Special considerations in determining
allowability Certain conditions require
special consideration and possible limitations
in determining costs under Federal awards
where amounts or types of compensation
appear unreasonable. Among such conditions
are the following
(1)	Compensation to members of nonprofit
organizations, trustees, directors, associates,
officers, or the immediate families thereof.
Determination should be made that such
compensation is reasonable for the actual
personal services rendered rather than a
distribution of earnings in excess of cos's
(2)	Any change in an organization's
compensation policy resulting in a
substantial increase in the organization's
level of compensation, particularly when it
was concurrent with an increase in the ratio
of Government awards to other activities of
the organization or any change in the
treatment of allowability of specific types of
compensation due to changes in Government
policy
e Unallowable costs. Costs which are
unallowable under other paragraphs of this
Attachment shall not be allowable under this
paragraph solely on the basis that they
constitute personal compensation
f Fringe benefits.
(1)	Fringe benefits in the form of regular
compensation paid to employees during
periods of authorized absences from the job.
such as vacation leave, sick leave, military
leave, and the like, are allowable provided
sufch costs are absorbed by all organization
activities in proportion to the relative amount
of time or effort actually devoted to each
(2)	Fringe benefits in the form of employer
contributions or expenses for social security
employee insurance, workmen's
compensation insurance, pension plan costs
(tee paragraph g below), and the like, are
allowable provided such benefits are granted
in accordance with established written
organization policies Such benefits whether
treated as indirect costs or as direct costs,
shall be distributed to particular awards and
other activities in a manner consistent with
the pattern of benefits accruing to the
individuals or group of employees whose
salaries and wages are chargeable to 9uch
awards and other activities
(3)(a)	Provisions for a reserve under a self-
insurance program for unemployment
compensation or workers' compensation are
allowable to the extent that the provisions
represent reasonable estimates of the
liabilities for such compensation, and the
types of coverage, extent of coverage, and
rates and premiums would have been
allowable had insurance been purchased to
cover the risks However, provisions for self-
insured liabilities which do not become
payable for more than one year after the
provision is made shall not exceed the
present value of the liability
Appendix 13-D-25
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ASSISTANCE ADMINISTRATION
48028	Fodcral KegUtar / Vol. 46, No. 132 / Tueaduy, July B. 1980 / Notices
5700
12/3/84
(It) Wlintn mi ni-Mniil/iilliiii tnlluwn u
i.mmlataiit pulii.y iif ««|iniiolnjj uiilnul
liayilimilH In, iir mi liehalf of, unipluytiuii hi
furmnr employees for unemployment
compensation or workers' compensation,
such payments are allowable in the year of
payment with the prior approval of the
awarding agency provided they are allocated
to all activities of the organization
(4) Costs of insurance on the lives of
trustees, officers, or other employees holding
positions of similar responsibility are
allowable only to the extent that the
insurance represents additional
compensation The costs of such insurance
when the organization is named aB
beneficiary are unallowable
g Pension plan costs
(1)	Costs of the organization's pension plan
which are incurred in accordance with the
established policies of the organization are
allowable, provided
(a)	Such policies meet the test of
reasonableness.
(b)	The methods of cost allocation are not
discriminatory:
(c)	The cost assigned to each fiscal year is
determined in accordance with generally
accepted accounting principles as prescribed
in Accounting Principles Board Opinion No R
issued by the American Institute of Certified
Public Accountants, and
(d)	The costs assigned to a given fiscal year
are funded for all plan participants within six
months after the end of that year However,
increases to normal and past service pension
costs caused by a delay in funding the
actuarial liability beyond 30 days after each
quarter of the year to which such costs are
assignable are unallowable
(2)	Pension plan termination insurance
premiums paid pursuant to the Employee
Retirement Income Security Act of 1974 (Pub
L 93-406| are allowable Late payment
charges on such premiums are unallowable
(3)	Excise taxes on accumulated funding
deficiencies and other penalties imposed
under the Employee Retirement Income
Security Act are unallowable
h Incentive compensation Incentive
compensation to employees based on coit
reduction, or efficient performance,
suggestion awards, safety awards, etc, are
allowable to the extent that the overall
compensation is determined to be reasonable
and such costs are paid or accrued pursuant
to an agreement entered into in good faith
between the organization and the employees
before the services were rendered, or
pursuant to an established plan followed bv
the organization so consistently as to imply,
in effect, an agreement to make such
payment
i Overtime, extra pay shift, and multishift
premiums See paragraph 27
I Severance pay See paragraph 44
k Training and education costs See
paragraph 48
I Support of salaries and wages
(1) Charges to awards for salaries and
wages, whether treated as direct costs or
indirect costs, will be based on documented
payrolls approved by a responsible official(s)
of the organization The distribution of
salaries and wages to awards must be
supported by personnel activity reports as
lirnanrllinil In mili|inr
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ASSISTANCE ADMINISTRATION
5700
12/3/84
Federal Register / Vol. 45, No. 132 / Tuesday, July 8, 1980 / Notices
46029
imi'liil lift, lliiui III llii' luli'i |iiirllmiH, I hi'
•liuilflil liiw mi'lliiiil hIiiiII In* pii'Hunii'cJ to 1)1'
the ii|>|jrojj11ii 1 •' mrlhcid Drpri'i.iulion
mi'lhuds onm used ahull not bp changed
unless approved in advance by the cognizant
Federal agency When the depreciation
method is introduced for application to assets
previously sub)ect to a use allowance, the
combination of use allowances and
depreciation applicable to such assets must
not exceed the total acquisition cost of the
assets When the depreciation method is used
for buildings, a building's shell may be
segregated from each building component
(e g. plumbing system, heating, and air
conditioning system, etc ) and each item
depreciated over its estimated useful life, or
the entire building (i e , the shell and all
components) may be treated as a single asset
and depreciated over a single useful life
f When the depreciation method is used
for a particular class of assets, no
depreciation may be allowed on any such
assets that, under paragraph e above, would
be viewed as fully depreciated However, a
reasonable use allowance may be negotiated
for such assets if warranted after taking into
consideration the amount or depreciation
previously charged to the Government, the
estimated useful life remaining at time of
negotiation, the effect of any increased
maintenance charges or decreased efficiency
due to age. and any other factors pertinent to
the utilization of the asset for the purpose
contemplated
g Charges for use allowances or
depreciation must be supported by adequate
properly records and physical inventories
must be taken at least once every two years
(a statistical sampling basis is acceptable) to
ensure that assets exist and are usable and
needed When the depreciation method is
followed, adequate depreciation records
indicating the amount of depreciation taken
each period must also be maintained
10 Donations
a Services received
(1)	Donated or volunteer services may be
furnished to an organization by professional
and technical personnel, consultants, and
other skilled and unskilled labor The value
of these services is not reimbursable either as
a direct or indirect cost
(2)	The value of donated services utilized
in the performance of a direct cost activity
shall be considered in the determination of
the organization's indirect cost rate(s) and,
accordingly, shall be allocated a
proportionate share of applicable indirect
costs when the following circumstances exist
(a)	The aggregate value of the services is
material.
(b)	The services are supported by a
significant amount of the indirect costs
incurred by the organization,
(c)	The direct cost activity is not pursued
primarily for the benefit of the Federal
Government
(3)	In those instances where there is no
basis for determining the fair market value of
the services rendered, the recipient and the
cognizant agency shall negotiate an
appropriate allocation of indirect cost to the
services
(4)	Where donated services directly benefit
a project supported by an award, the indirect
i.iigts ullnc uted to the services will be
considered as a part of the total costs of the
projecl Such indirect costs may be
reimbursed under the award or used to meet
cost sharing or matching requirements
(5)	The value of the donated services may
be used to meet cost sharing or matching
requirements under conditions described in
Attachment E. OMB Circular No A-110
Where donated services are treated as
indirect costs, indirect cost rates will
separate the value of the donations so that
reimbursement will not be made
(6)	Fair market value of donated services
shall be computed as follows
(a)	Rates for volunteer services Rates for
volunteers shall be consistent with those
regular rates paid for similar work in other
activities of the organization In cases where
the kinds of skills involved are not found in
the other activities of the organization, the
rates used shall be consistent with those paid
for similar work in the labor market in which
the organization competes for such skills
(b)	Services donated by other
organizations When an employer donates
the services of an employee, these services
shall be valued at the employee's regular rate
of pay (exclusive of fringe benefits and
indirect costs) provided the services are in
the same skill for which the employee is
normally paid If the services are not in the
same skill for which the employee is normally
paid, fair market value shall be computed in
accordance with subparagraph (a) above
b Goods and space
(1)	Donated goods, i e , expendable
personal property/supplies, and donated use
of space may be furnished to an organization
The value of the goods and space is not
reimbursable either as a direct or indirect
cost
(2)	The value of the donations may be used
to meet cost sharing or matching share
requirements under the conditions described
in Attachment E, OMB Circular No A-110
The value of the donations shall be
determined in accordance with Attachment
E Where donations are treated as indirect
costs, indirect cost rates will separate the
value of the donations so that reimbursement
will not be made
11	Employee morale, health, and welfare,
costs and credits The costs of house
publications, health or first-aid clinics, and/
or infirmaries, recreational activities,
employees' counseling services, and other
expenses incurred in accordance with the
organization's established practice or custom
for the improvement of working conditions,
employer-employee relations, employee
morale, and employee performance are
allowable Such costs will be equitably
apportioned to all activities of the
organization Income generated from any of
these activities will be credited to the cost
thereof unless such income has been
irrevocably set over to employee welfare
organizations
12	Entertainment costs Costs of
amusement, diversion social activities,
ceremonials, and costs relating thereto, such
as meals, lodging, rentals, transportation, and
gratuities are unallowable (but see
paragraphs 11 and 25)
13	Equipment and other capital
expenditures
a As used in this paragraph, the following
terms have the meanings set forth below
(1)	"Equipment" means an article of
nonexpendable tangible personal property
having a useful life of more than two years
and an acquisition cost of $500 or more per
unit An organization may use its own
definition provided that it at least includes all
nonexpendable tangible personal property as
defined herein
(2)	"Acquisition cost" means the net
invoice unit pnee of an item of equipment,
including the cost of any modilications,
attachments, accessories, or auxiliary
apparatus necessary to make it usable for the
purpose for which it is acquired Ancillary
charges, such as taxes, duty, protective in-
transit insurance, freight, and installation
shall be included in or excluded from
acquisition cost in accordance with the
organization's regular written accounting
practices
(3)	"Special purpose equipment" means
equipment which is usable only for research,
medical scientific, or technical activities
Examples of special purpose equipment
include microscopes, x-ray machines, suigica'
instruments, and spectrome'ers
(4)	"General purpose equipment" means
equipment which is usable for other than
research, medical, scientific, or technical
activities, whether or not special
modifications are needed to make them
suitable for a particular purpose Examples of
general purpose equipment include office
equipment and furnishings, air conditioning
equipment, reproduction and printing
equipment, motor vehicles, and automatic
data processing equipment
b (1) Capital expenditures for general
purpose equipment are unallowable as a
direct cost except with the prior approval of
the awarding agency
(2) Capital expenditures for special purpose
equipment are allowable as direct costs
provided that items with a unit cost of $1000
or more have the prior approval of the
awarding agency
c Capital expenditures for land or
buildings are unallowable as a direct cost
except with the prior approval of the
awarding agency
d Capital expenditures for improvements
to laud, buildings, or equipment which
materially increase their value or useful life
are unallowable as a direct cost except with
the prior approval of the awarding agency
e Equipment and other capital
expenditures are unallowable as indirect
costs However, see paragraph 9 for
allowability of use allowances or
depreciation on buildings, capital
improvements und equipment Also, see
paragraph 42 for allowability of rental costs
for land, buildings, and equipment
14	Fines and penalties Costs of fines and
penalties resulting from violations of. or
failure of the organization to comply with
Federal. State, end local laws and regulations
arc unallowable except when incurred as a
result of compliance with specific provisions
of an award or instructions in writing from
the awarding agency
15	Fringe benefits See paragraph 8 f
16	Idle facilities and idle capacity
a As used in this paragraph the following
terms have the meanings set forth below
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|1) "Facilities" means lund and buildings or
any portion thereof, equipment individually
or collectively, or any other tangible capital
asset, wherever located, and whether owned
or leased by the organization
(2)	"Idle facilities" means completely
unused facilities that are excess to the
organization's current needs
(3)	"Idle capacity" means the unused
capacity of partially used facilities It is the
difference between that which a facility
could achieve under 100 per cent operating
time on a one-shift basis less operating
interruptions resulting from time lost for
repairs, setups, unsatisfactory materials, and
other normal delays, and the extent to which
the facility was actually used to meet
demands during the accounting period A
multishift basis may be used if it can be
shown that this amount of usage could
normally be expected for the type of facility
involved
(4)	"Costs of idle facilities or idle capacity"
means costs such as maintenance, repair,
housing, rent, and other related costs, e g ,
property taxes, insurance, and depreciation
or use allowances
b The costs of idle facilities are
unallowable except to the extent that
(1)	They are necessary to meet fluctuations
in workload or
(2)	Although not necessary to meet
fluctuations in workload, they were
necessary when acquired and are now idle
because of changes in program requirements,
efforts to achieve more economical
operations, reorganization, termination, or
other causes which could not have been
reasonably foreseen Under the excep'ion
slated in this subparagraph, costs of idle
facilities are allowable for a reasonable
penod of timp ordinarily not to exceed one
year depending upon the initiative taken to
use. lease or dispose of such facilities (but
see paragraphs 47 o and d )
c The costs of idle capacity are normal
costs of doing business and are a factor in the
normal fluctuations of usage or indirect cost
rates from period to period Such costs are
allowable provided the capacity is
reasonably anticipated to be necessary oi
was origuici'iy reasonable and is not subject
to redurtion or elimination by subletting,
renting or sale, in accordance with sound
business, economics, or security practices
Widespread idle capacity throughout an
entire facility or among a group of assets
having substantially the same function may
be idle facilities
17	Independent research and development
| Reserved]
18	Insurance and indemnification
a Insurance includes insurance which the
organization is required to carry, or which is
approved, under the terms of the award and
any other insurance which the organization
maintains in connection with the general
conduct of its operations This paragraph
does not apply to insurance which represents
fringe benefits for employees (see paragraph
6 f and 6 g (2))
(1)	Costs of insurance required or
approved, and maintained, pursuant to the
award are allowable
(2)	Costs of other insurance maintained by
the organization in connection with the
general conduct of its operations are
allowable sub|ect to the following limitations.
(a)	Types and extent of coverage shall be
in accordance with sound business practice
and the rates and premiums shall be
reasonable under the circumstances
(b)	Costs allowed for business interruption
or other similar insurance shall be limited to
exclude coverage of management fees.
(c)	Costs of insurance or of any provisions
for a reserve covering the risk of loss or
damage to Government property are
allowable only to the extent that the
organization is liable for such loss or darrage
(d)	Provisions for a reserve under a self-
insurance program are allowable to tne
extent that types of coverage, extent of
coverage, rates and premiums would have
been allowed had insurance been purchased
to cover the risks However, provision for
known or reasonably estimated self-insured
liabilities, which do not become payable for
more than one vear after the provision is
made shall not exceed the present value of
the liability
(e)	Costs of insurance on the lives of
trustees, officers, or other employees holding
positions of similar responsibilities are
allowable only to the extent that the
insurance represents additional
compensation (see paragraph ti] The cost of
such insurance whpn the organization is
identified as the beneficiary is unallowable
(3) Actual losses which could have be»n
covered by permissible insutance (through
the purchase of insuranre or a srlf-insurance
program) are unallowable unless expressly
provided for in the awaid, except
(a)	Costs incurred because of losses not
covered under nominal deductible insurance
coverage provided in keeping with sound
business practice are aPowable
(b)	Minor losses not covered by insurance
such ns spoilage, breakage, and
disappearance of supplies which occur in the
ordinary course of operations, are allowable
h Indemnification includes securing the
organization against liabilities to third
persons and any other loos or damagp, not
compensated b\ insurance or otherwise The
Government is obligated tu indemnify the
organization only to the e* tent expressly
provided in the award
19	Interest, fund raising, and investment
management costs
a Costs incuired for interest on borrowed
capital or temporary use of endowment
funds, however represented, are unallowable
b Costs of organized fund raising,
including financial campaigns, endowment
drives, solicitation of gifts and bequests, and
similar expenses incurred solely to r^ise
capital or obtain contributions are
unallowable
c Costs of investment counsel and staff
and similar expenses incurred solely 'o
enhance income from investments are
unallowable
d Fund raising and investment activities
shall be allocated an appropriate share of
indirect costs under the condi!,ons aescribed
in paragraph B of Attachment A
20	Labor relations costi, Costs n.curred in
maintaining satisfactory relations between
the organization and its employees including
costs of labor management committees
employee publications, and other related
activities are allowable
21	Losses on other awards Any excess of
costs over income on any award is
unallowable as a cost of any other award
This includes, but is not limited to, the
organization's contributed portion by reason
of cost sharing agreements or any
underrecoveries through negotiation of lump
sums for, or ceilings on, indirect costs
22	Maintenance and repair costs Costs
incurred for necessary maintenance, repair,
or upkeep of buildings and equipment
(including Government properly unless
otherwise provided for) which neitht-r add to
the permanent value of the property nor
appreciably prolong its intended life, but
keep it ir> an efficient operating cond'lior, are
allowable Costs incurred for improvements
which add to the permanent value of the
buildings and equipment or appreciably
prolong their intended life shall treated ns
capital expenditures I see paragraph 1JJ
23	Materials and supplies rh? cos's of
materials and supplies necessary to carrj out
an award ,'re allowable Such coste should be
charged at their actual prices after deducting
all cash discounts, trade discounts, rebate'!
and allowances received by thi organization
Withdrawals from general store3 or
stockrooms should be charged at cct under
any recognized method oi pricing
consistently applied Incoming transputiatiun
charges may be a proper part of material
cost Materials and supplies charged as a
direct cost should include omy the materials
and supplies actually used foi the
performance of the contract or gran:, and due
credit should be given for any excess
materials or supplies retained, or returned to
vendors
24	Meetings ronfprences
a Costs associated with the conduct of
meetings and corterences, include the cost of
renting facilities meals, speakers' fees, and
the like But see paragraph 12, Entertainment
. osti and paragraph 29. Participant support
co^ts
b To the extent that these costs are
identifiable with a particular cost objective,
the\ should be charged to that objective (See
paragraph B or Attachment A ) These costs
are allowable provided that thev meet the
general tests of allowability, shown in
Attachment A to this Circular
c Costs of meetings and conferences held
to conduct the general admimstiation of the
organization are allowable
25	Memberships, subscriptions, and
professional activity coits
a Costs of the organization's membership
in civic, business technical and piofpssional
organizations are allowable
b Costs of the organization's subscriptions
to civic, business, professional, und technical
periodicals are allowable
c Costs of attendance at meetings and
conferences sponsored by others when the
pnmary purpose is the dissemination of
technical information, are allowable This
includes costs of meals, transportation, and
other items incidental to such attendance
26	Organization costs Expenditures, such
as incorporation fees, brokers' fees, fees to
promoters, organizers oi management
consultants, attorneys, accountants, or
ADDendix 13-D-28
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46031
investment counselors, whether or not
employees of the organlzutlon. in connection
with establishment or reorganization of an
organization, are unallowable except with
prior approval of the awarding agency
27	Overtime, extra-pay shift, and
multishift premiums Premiums for overtime,
extra-pay shifts, and multishift work are
allowable only with the prior approval of the
awarding agency except
a When necessary to cope with
emergencies, such as those resulting from
accidents, natural disasters, breakdowns of
equipment, or occasional operational
bottlenecks of a sporadic nature
b When employees are performing indirect
functions such as administration,
maintenance, or accounting
c In the performance of tests, laboratory
procedures, or other similar operations which
are continuous in nature and cannot
reasonably be interrupted or otherwise
completed
d When lower overall cost to the -
Government will result
28	Page charges in professional journals
Page charges for professional journal
publications are allowable as a necessary
part of research costs, where
a The research papers report work
supported by the Government, and
b The charges are levied impartially on all
research papers published by the journal,
whether or not by Government-sponsored
authors
29	Participant support costs Participant
support costs are direct costs for items such
as stipends or subsistence allowances, travel
allowances, and registration fees paid to or
on behalf of participants or trainees (but not
employees) in connection with meetings,
conferences, symposia, or training proiects
These costs are allowable with the prior
approval of the awarding agency
30	Patent costs
a Costs of (i) preparing disclosures,
reports, dnd other documents required by the
award and of searching the art to the extend
necessary to make such disclosures, (n)
preparing documents and any other patent
costs in connection with the filing and
prosecution of a United states patent
application where title or royalty-free license
is required by the Government to be
conveyed to the Government, and (in) general
counseling services relating to patent and
copyright matters, such as advice on patent
and copyright laws, regulations, clauses, and
employee agreements are allowable (but see
paragraph 34)
b Cost of preparing disclosures, reports,
and other documents and of searching the art
to the extent necessary to make disclosures,
if not required by the award, are
unallowable Costs in connection with (i)
filing and prosecuting any foreign patent
application, or (n) any United States patent
application, where the award does not
require conveying title or a royalty-free
license to the Government, are unallowable
(dlso see paragraph 43)
31	Pension plans See paragraph 6 g
32	Plant secuuty costs Necessary
expenses incurred to comply with
Government security requirements or for
facilities protection, including wages,
uniforms, and equipment of personnel are
allowable
33. Preawardcosts Preaward costs are
those incurred prior to the effective date of
the award directly pursuant to the
negotiation and in anticipation of the award
where such costs is necessary to comply with
the proposed delivery schedule or period of
performance Such costs are allowable only
to the extent that they would have been
allowable if incurred after the date of the
award and only with the written approval of
the awarding agency
34 Professional service costs
a Costs of professional and consultant
services rendered by persons who are
members of a partic jlar profession or possess
a special skill, and who are not officers or
employees of the organization, are allowable,
subject to b, c, and d. of this paragraph when
reasonable in relation to the services
rendered and when not contingent upon
recovery of the costs from the Government
b In determing the allowability of costs in
a particular case, no single factor or any
special combination of factors is necessarily
determinative However, the following
factors are relevant
(1)	The nature and scope of the service
rendered in relation to the service required
(2)	The necessity of contracting for the
service, considering the organization's
capability in the particular area
(3)	The past pattern of such costs,
particularly in the years prior to Government
awards
(4)	The impact of Government awards on
the organization's business (i e, what new
problems have arisen)
(5)	Whether the proportion of Government
work to the organization's total business is
such as to influence the organization in favor
of incurring the cost, particularly where the
services rendered are not of a continuing
nature and have little relationship to work
under Government grants and contracts
(0) Whether the service can be performed
more economically by direct employment
rather than contracting
(7)	The qualifications of the individual or
concern rendering the service and the
customary fees charged, especially on non-
Government awards
(8)	Adequacy of the contractual agreement
for the service (e g , description of the service,
estimate of time required, rate of
compensation, and termination provisions)
c In addition to the factors in paragraph b
above, retainer fees to be allowable must be
supported by evidence of bona fide services
available or rendered
d Cost of legal, accounting, and consulting
services, and related costs incurred in
connection with defense of antitrust suits,
and the prosecution of claims against the
Government, are unallowable Costs of legal,
accounting and consulting services, and
related costs, incurred in connection with
patent infringement litigation, organization
and reorganization, are unallowable unless
otherwise provided for in the award (but see
paragraph 47e)
35 Profits and losses on disposition of
depreciable property or other capital assets
a (1) Gains and losses on sale, retirement,
or other disposition of depreciable property
shall be included in the year in which they
occur as credits or charges to cost grouping(s)
in which the depreciation applicable to such
property was included The amount of the
gain or loss to be included as a credit or
charge to the appropriate cost grouping(s)
shall be the difference between the amount
realized on the property and the
undepreciated basis of the property
(2) Gains and losses on the disposition of
depreciable property shall not be recognized
as a separate credit or charge under the
following conditions.
(a)	The gain or loss is processed through a
depreciation reserve account and is reflected
in the depreciation allowable under
paragraph 9.
(b)	The property is given in exchange as
part of the purchase price of a similar item
and the gain or loss is taken into account in
determining the depreciation cost bisis of the
new item
(c)	A loss results from the failure to
maintain permissible insurance, except as
otherwise provided in paragraph 18 n (3)
(d)	Compensation for the use of the
property was provided through use
allowances in lieu of depreciation in
accordance with paragraph 9
(e)	Gains and losses arising from mass t
extraordinary sales, retirements, or o'her
dispositions shall be considered on a cjse-
by-case basis
b Gains or losses of any nature arising
from the sale or exchange of property other
than the property covered in paragraph a
above shall be excluded 
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39	Reconversion costs Coals Incurred In
the restoration or rehabilitation of the
organization's facilities to approximately the
same condition existing immediately prior to
commencement of Government awards, fair
wear and tear excepted, are allowable.
40	Recruiting costs The following
recruiting costs are allowable, cost of "help
wanted" advertising, operating costs of an
employment office, costs of operating an
educational testing program, travel expenses
including food and lodging of employees
while engaged in recruiting personnel, travel
costs of applicants for interviews for
prospective employment, and relocation cost9
incurred incident to recruitment of new
employees (see paragraph 41c). Where the
organization uses employment agencies,
costs not in excess of standard commercial
rates for such services are allowable.
41	Relocation costs
a Relocation costs are costs incident to the
permanent change of duty assignment (for an
indefinite period or for a stated penod of not
less than 12 months) of an existing employee
or upon recruitment of a new employee
Relocation costs are allowable, subject to the
limitation described in paragraphs b, c, and d,
below, provided that
(1)	The move is for the benefit of the
employer
(2)	Reimbursement to the employee is in
accordance with an established written
policy consistently followed by the employer
(3)	The reimbursement does not exceed the
employee's actual (or reasonably estimated )
expenses
b Allowable relocation costs for current
employees are limited to the following
(1)The	costs of transportation of the
employee, members of his immediate family
and his household, and personal effects to the
new location
(2)	The costs of finding a new home, such
as advance trips by employees and spouses
to locate living quarters and temporary
lodging during the transit,on period, up to a
maximum period of 30 days, including
advance trip time
(3)	Closing costs, such as brokerage, legal,
and appraisal fees, incident to the disposition
of the employee's former home These costs,
together with those described in (4) below,
are limited to 8 per cent of the sales price of
the employee's former home
(4)	The continuing costs of ownership of
the vacant former home after the settlement
or lease date of the employee's new
permanent home, such as maintenance of
buildings und grounds (exclusive of fixing up
expenses), utilities, taxes, and property
insurance
(5)	Other necessary and reasonable
expenses normally incident to relocation,
such as the costs of cancelling an unexpired
lease, disconnecting and reinstalling
household appliances and purchasing
insurance against loss of or damages to
personal property The cost of cancelling an
unexpired lease is limited to three times the
monthly rental
c Allowable relocation costs for new
employees are limited to those described in
(1) and (2) of paragraph b above When
relocation costs incurred incident to the
recruitment of new employees have been
allowed either as a direct or indirect cost and
the employee resigns for reasons within his
control within 12 months after hire, the
organization shall refund or credit the
Government for its share of the cost.
However, the costs of travel to an overseas
location shall be considered travel costs in
accordance with paragraph 50 and not
relocation costs for the purpose of this
paragraph if dependents are not permitted at
the location for any reason and the costs do
not include costB of transporting household
goods
d The following costs related to relocation
are unallowable
(1)	Fees and other costs associated with
acquiring a new home
(2)	A loss on the sale of a former home
(3)	Continuing mortgage principal and
interest payments on a home being sold
(4)	Income taxes paid by an employee
related to reimbursed relocation costs
42 Rental costs
a Subject to the limitations described in
paragraphs b through d of this paragraph,
rental costs are allowable to the extent that
the rates are reasonable in light of such
factors as rental costs of comparable
property, if any, market conditions in the
area, alternatives available, and the type, life
expectancy, condition, and value of the
property leased
b Rental costs under sale and leaseback
arrangements a^e allowable only up to the
amount that would be allowed had the
organization continued to own the property
c Rental costs under less-than-length
leases are allowable onlv up to the amount
that would be allowed had title to the
property vested in the organization For this
purpose, a less-than-arms-length lease is one
under which one party to the lease agreement
is able to control or substantially influence
the actions of the other Such leases include,
but are not limited to those between [i)
divisions of an organization, (n) organizations
under common control through Lommon
officers, directors, or members and (in) an
organization and a director trustee, officer,
or key employee of the organization or his
immediate family either diret tly or 'hrough
corporations, trusts or s.milar errangements
in which they hold a controlling interest
d Rental cojts under leases which create a
material equity in the leased property are
allowable only up to the amount that would
be allowed had the organization purchased
the property on the date the lense agreement
was executed, e g , depreciation or use
allowances, maintenance, taxes, insurance
but excluding interest expense and other
unallowable costs For this purpose, a
material equity in the properly exists if the
lease in noncancelable or is cancelable onlv
upon the occurrence of some remote
contingency and has one or more of the
following characteristic
(1)	The organization has the right to
purchase the property for h prict which at the
beginning of the lease appears to be
substantially less than the probable fair
market value at the time it is permitted to
purchase the property (commonly called a
lease with a bargain purchase option).
(2)	Title to the property passes to the
organization at some time during or after the
lease period:
(3) The term of the lease (initial term plus
periods covered by bargain renewal options,
if any) is equal to 75 per cent or more of the
economic life of the leased property, i.e, the
period the property is expected to be
economically usable by one or more users
43. Royalties and other costs for use of
patents and copyrights
a. Royalties on a patent or copyright or
amortization of the cost of acquiring by
purchase a copyright, patent, or rights
thereto, necessary for the proper performance
of the award are allowable unless:
(1)	Thp Government has a license or the
right to free use of the patent or copyright.
(2)	The patent or copyright lias been
adjudicated to be invalid, or has been
administratively determined to be invalid
(3)	The patent or copyright is considered to
be unenforceable.
(4)	The patent or copyright is expired
b Special care should be exercised in
determining reasonableness where the
royalties may have beer arnved at as a remit
of less then arm's length bargaining, *> g
(1)	Royalties paid to persons, including
corporations, affiliated with the organisation
(2)	Royalties paid to unaffiliated parties,
including corporations, under an agreement
entered into in contemplation thai a
Government award wou'd be made
(3)	Royalties paid under ar. agreement
entered into after an award is made to an
organization
c In any case involving a patent or
copyright formerly owned by the
organization, the amount of royalty allowed
should not exceed the cost which would have
been allowed had the organization retained
title thereto
44	Severance pay
a Severance pay, also commonly referred
to as dismissal wages, is a payment in
addition to regular salaries and wxpes b>
organizations to workers whose employment
is being terminated Costs of severance pay
are allowable only to the extent that in each
case, it is required by (i) law, fn) employer-
employee agreement (in) established policy
that constitutes, in effect, an implied
agreement on the organization's part, or (iv)
circumstances of the particular employment
b Costs of severance payments are divided
into two categories as follows
(1)	Actual normal turnover severance
payments shall be allocated to all activities,
or, where the organization provides for a
reserve for normal severances such method
wiil be acceptable if the charge to current
operations is reasonable in light of payments
actually made for normal severances over a
representative past period, and if amounts
charged are allocated to all activities of the
organization
(2)	Abnormal or mass severance pay is or
such a conjectural nature that measurement
of costs by means of an accrual will not
achieve equity to both parties Thus, accruals
for this purpose are not allowable However,
the Government recognizes its obligation to
participate to the extent of its fair share, in
any specific payment Thus, allowability will
be considered on a ca9e-by-case basis in the
event of occurrence
45	Specialized service facilities
a The costs of services provided by highly
complex or specialized facilities operated by
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the organization, luch as electronic
computers and wind tunnels, are allowable
provided the charges for the services meet
the conditions of either b or c of this
paragraph and, in addition, take into account
any items of income or Federal financing that
qualify as applicable credits under paragraph
A 5 of Attachment A
b The costs of such services, when
material, must be charged directly to
applicable awards based on actual usage of
the services on the basis of a schedule of
rates or established methodology that (i) does
not discriminate against federally supported
activities of the organization, including usage
by the organization for internal purposes, and
(n) is designed to recover only the aggregate
costs of the services The costs of each
service shall consist normally of both its
direct costs and its allocable share of all
indirect costs Advance agreements pursuant
to paragraph A 8 of Attachment A are
particularly important in this situation
c Where the costs incurred for a service
are not material, they may be allocated as
indirect costs
40 Taxes
a In general, taxes which the organization
is required to pay and which are paid or
accrued in accordance with generally
accepted accounting principles, and
payments made to local governments in lieu
of taxes which are commensurate with the
local government services received are
allowable, except for (i) taxes from which
exemptions are available to the organization
directly or which are available to the
organization based on an exemption afforded
the Government and in the latter case when
the awarding agency makes available the
necessary exemption certificates, (n) special
assessments on land which represent capital
improvements, and (in) Federal income taxes
b Any refund of taxes, and any payment to
the organization of interest thereon, which
were allowed as award costs, will be
credited either as a cost reduction or cash
refund, as appropriate, to the Government
47 Termination costs Termination of
awards generally give rise lo the incurrence
of costs, or the need for special treatment of
costs, which would not have arisen had the
award not been terminated Cost principles
covering these items are set forth below
They are to be used in conjunction with the
other provisions of this Circular in
termination situations
a Common items The cost of items
reasonably usable on the organisation's other
work shall not be allowable unless the
organization submi's evidence that it would
not retain such items at cost without
sustaining a loss In deciding whether such
items are reasonably usable on other work of
the organization, the awarding agency should
consider the organization s plans and orders
for current and scheduled activity
Contemporaneous purchases of common
items by the organization shall be regarded
as evidence that such items are reasonably
usable on the organization's other work Any
acceptance of common items as allucable lo
the terminated portion of the award shall be
limited lo the extent that the quantities of
such items on hand, in transit, and on order
are in excess of the reasonable quantitative
requirements of other work
b. Costs continuing after termination. If in
a particular case, despite all reasonable
efforts by the organization, certain costs
cannot be discontinued immediately after the
effective date of termination, such costs are
generally allowable within the limitations set
forth in this Circular, except that any such
costs continuing after termination due to the
negligent or willful failure of the organization
to discontinue such costs shall be
unallowable
c Loss of useful value Loss of useful value
of special tooling, machinery and equipment
which was not charged to the award as a
capital expenditure is generally allowable if
(1)	Such special tooling, machinery, or
equipment is not reasonably capable of use in
the other work of the organization
(2)	The interest of the Government is
protected by transfer of title or by other
means deemed appropriate by the awarding
agency,
d Rental costs Rental costs under
unexpired leases are generally allowable
where clearly shown to have been
reasonably necessary for the performance of
the terminated award less the residual value
of such leases, if (l) the amount of such rental
claimed does not exceed the reasonable use
value of the property leased for the period of
the award and such further period as may be
reasonable, and (n) the organization makes
all reasonable efforts to terminate, assign,
settle, or otherwise reduce the cost of such
lease There also may be included the cost of
alterations of such leased property, provided
such alterations were necessary for the
performance of the award, and of reasonable
restoration required by the provisions of the
lease
e Settlement expenses Settlement
expenses including the following are
generally allowable
(1)	Accounting, legal, clerical, and similar
costs reasonably necessary for
(a)	The preparation and piesentation to
awarding agency of settlement claims and
supporting data with respect to the
terminated portion of the award, unless the
termination is for default (See paragraph 4 a
of Attachment L OMB Circular No A-110,
and
(b)	The termination and settlement of
subawards
(2)	Reasonable costs for the storage,
transportation, protection, and disposition of
property provided by the Government or
acquired or produced for the award, except
when grantees are reimbursed for disposals
at a predetermined amount in accordance
with Attachment N of OMB Circular A-110
(3)	Indirect costs related to salaries and
wages incurred as settlement expenses in
subparagraphs (1) and (2) of this paragraph
Normally, such indirect costs shall be limited
to fringe benefits, occupancy cost, and
immediate supervision
f Claims under subawards Claims under
subawards including the allocable portion of
claims which are common to the award, and
to other work of the organization are
generally allowable An appropriate share of
the organization's indirect expense may be
allocated to the amount of settlements with
subcontractor/subgrantees provided that the
amount allocated is otherwise consistent
with the basic guidelines contained in
Attachment A The indirect expense so
allocated shall exclude the same and similar
costs claimed directly or indirectly as
settlement expenses
48 Training and education costs.
a Costs of preparation and maintenance of
a program of instruction including but not
limited to on-the-job, classroom, and
apprenticeship training, designed to increase
the vocational effectiveness of employees,
including training materials, textbooks,
salaries or wages of trainees (excluding
overtime compensation which might arise
therefrom), and (i) salaries of the director of
training and staff when the training program
is conducted by the organization, or (n)
tuition and fees when the training is in an
institution not operated by the organization,
are allowable.
b CostB of part-time education, at an
undergraduate or postgraduate college leve!
including that provided at the organization's
own facilities, are allowable only when the
course or degree pursued is relative to the
field in which the employee is now working
or may reasonably be expected to work, and
are limited to
(1)	Training materials
(2)	Textbooks
(3)	Fees charges by the educational
institution
(4)	Tuition charged by the educational
institution, or in lieu of tuition, instructors'
salaries and the related share of indirect
costs of the educational institution to the
extent that the sum thereof is not in excess of
the tuition which would have ben paid to the
participating educational institution
(5)	Salaries and related costs of instructors
who are employees of the organization
(8) Straight-time compensation of each
employee for time spent attending classes
during working hours not in excess of 156
hours per year and only lo the extent that
circumstances do not permit the operation of
classes or attendance at classes after regular
working hours, otherwise such compensation
is unallowable
c Costs of tuition, fees, training materials,
and textbooks [but not subsistence, salary, or
any other emoluments) in connection with
full-time education, including that provided at
the organization's own facilities, at a
postgraduate (but not undergraduate) college
level, are allowable only when the course or
degree pursued is related to the field in which
the employee is now working or may
reasonably be expected to work, and only
where the costs receive the prior approval of
the awarding agency Such costs are limited
to the costs attributable to a total period not
to exceed one school year for each empljyee
so trained In unusual cases the period may
be extended
d Costs of attendance of up to 16 weeks
per employee per year at specialized
programs specifically designed to enhance
the effectiveness of executives or managers
or to prepare employees for such positions
are allowable Such costs include enrollment
fees, training materials, textbooks and
ielated charges employees' salaries,
subsistence and travel Costs allowable
under this paragraph do not include those for
courses that are part of a degree-oriented
Appendix 13-D-31
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46034 	Federal Register / VoL 48, No. 132 / Tuesday, July a. 1990 / Nottoee
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curriculum, which are allowable only to the
extent aet forth in b. and c. above
e. Maintenance expense, and normal
depreciation or fair rental, on facilities
owned or leased by the organization for
training purposes are allowable to the extent
set forth in paragraphs 9, 22, and 42.
f Contributions or donations to
educational or training institutions, including
the donation of facilities or other properties,
and scholarships or fellowships, are
unallowable.
g Training and education costs in excess of
those otherwise allowable under paragraphs
b and c. of this paragraph may be allowed
with prior approval of the awarding agency
To be considered for approval, the
organization must demonstrate that such
costs are consistently incurred pursuant to an
established training and education program,
and that the course or degree pursued is
relative to the field in which the employee is
now working or may reasonably be expected
to work
49. Transportation costs Transportation
costs include freight, express, cartage, and
postage charges relating either to goods
purchased, in process, or delivered These
costs are allowable When such costs can
readily be identified with the items involved,
they may be directly charged as
transportation costs or added to the cost of
such items (see paragraph 23). Where
identification with the matenals received
cannot readily be made, transportation costs
may be charged to the appropriate indirect
cost accounts if the organization follows a
consistent, equitable procedure in this
respeel
50 Travel costs
a Travel costs are the expenses for
transportation, lodging, subsistence, and
related items incurred by employees who are
in travel status on official business of the
organization Travel costs are allowable
subject to paragraphs b through e below,
when they are directly attributable to specific
work under an award or are incurred in the
normal course of administration of the
organization
b Such costs may be charged on an actual
basis, on a per diem or mileage basis in lieu
of actual costs incurred, or on a combination
of the two provided the method used results
in charges consistent with those normally
allowed by the organization in its regular
operations
c The difference in cost between first-class
air accommodations and less than first-class
air accommodations is unallowable except
when less than first-class air
accommodations are not reasonably
available to meet necessary mission
requirements, such as where less than first-
class accommodations would (0 require
circuitous routing, (nj require travel during
unreasonable hours, (m) greatly increase the
duration of the flight, (iv) result in additional
costs which would offset the transportation
savings, or (v) offer accommodations which
are not reasonably adequate for the medical
needs of the traveler
d Necessary and reasonable costs of
family movements and personnel movements
of a special or mass nature are allowable,
pursuant to paragraphs 40 and 41. subject to
allocation on the basis of work or time period
benefited when appropriate. Advance
agreements are particularly important.
e. Direct charges for foreign travel costs are
allowable only when the travel has received
prior approval of the awarding agency. Each
separate foreign trip must be approved. For
purposes of this provisidn, foreign travel is
defined as any travel outside of Canada and
the United States and its territories and
possessions However, for an organization
located in foreign countries, the term "foreign
travel" means travel outside that country.
[Circular No A-122]
Attachment C
Nonprofit Organizations not Subject to this
Circular
Aerospace Corporation. El Segundo.
California
Argonne Universities Association, Chicago,
Illinois
Associated Universities, Incorporated.
Washington, D C
Associated Universities for Research and
Astronomy, Tucson, Arizona
Atomic Casualty Commission, Washington,
DC
Battelle Memorial institute, Headquartered in
Columbus, Ohio
Brookhaven National Laboratory, Upton,
New York
Center for Energy and Environmental
Research (CEER), (University of Puerto
Rico) Commonwealth of Puerto Rico
Charles Stark Draper Laboratory,
Incorporated, Cambridge, Massachusetts
Comparative Animal Research Laboratory
(CARL)
(University of Tennessee), Oak Ridge,
Tennessee
Environmental Institute of Michigan, Ann
Arbor. Michigan
Hanford Environmental Health Foundation.
Richland. Washington
11T Research Institute. Chicago. Illinois
Institute for Defense Analysis, Arlington,
Virginia
Institute of Gas Technology. Chicago, Illinois
Midwest Research Institute, Headquartered
in Kansas City, Missouri
Mitre Corporation. Bedford. Massachusetts
Montana Energy Research and Development
Institute. Inc. (MERD1), Butte. Montana
National Radiological Astronomy
Observatory Green Bank, West Virginia
Oak Ridge Associated Universities. Oak
Ridge. Tennessee
Project Management Corporation, Oak Ridge,
Tennessee
Rand Corporation, Santa Monica, California
Research Triangle Institute, Research
Triangle Park, North Carolina
Riverside Research Institute, New York, New
York
Sandia Corporation. Albuquerque. New
Mexico
Southern Research Institute. Birmingham.
Alabama
Southwest Research Institute, San Antonio,
Texas
SRI International. Menlo Park. California
Syracuse Research Corporation, Syracuse.
New York
Universities Research Association,
Incorporated (National Acceleration Lab),
Argonne, Illinois
Universities Corporation for Atmospheric
Research, Boulder, Colorado
Nonprofit Insurance Companies such as Blue
Cross and Blue Shield Organizations
Other nonprofit organizations as negotiated
with awarding agencies.
|FR Doc 80-20270 Filed 7-7-80: MS ui|
BILL!HQ CODE 3110-01-41
[Note- This reprint incorporates corrections
published at 46 FR 17185, Tuesday, March 17,
1981.]
Appendix 13-D-32
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CHAPTER 14 ~ POST SHARING
Table of Contents
PARAGRAPH	PARAGRAPH
TITLES	NUMBERS
General	 1
Cost Sharing Requirements	 2
Sources of Cost Sharing Rjnds			 3
APPENDIX	APPENDIX
TITT.HS	NUMBERS
EPA Progran Cost Sharing Requirements	 14-A
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CHAPTER 14 - COST SHARING
1.	GENERAL. Each recipient must share in the costs of its assistance projects,
unless cost sharing is not required by the regulations applicable to the partic-
ular program. Recipients must meet the applicable cost sharing requirement in
each budget period.
a.	The cost sharing requirements for EPA's programs cure based on Federal
statutes and implemented by EPA regulations; the requirements for EPA's programs
are listed in Appendix 14-A of this Chapter.
b.	Recipients can claim only allowable costs (see Chapter 13, "Determination
of Costs") to meet cost sharing requirements.
c.	Recipients must maintain records to support their actual expenditures
(see Chapter 20, "Accounting and Internal Management"). Recipients must retain
these financial records in accordance with the requirements in Chapter 19,
"Recipient Records".
d.	EPA considers any allowable cost (including in-kind contributions) to
include the Federal share.
2.	CDST SHARING REQUIREMENTS.
a.	Cost Share Percentage.
(1)	The Federal cost share will be expressed both as a maximum percentage
of the approved allowable project costs for a budget period and as a maximim
dollar amount. The Federal cost share percentage (or cost share "rate") must
be set forth in each Assistance Agreement/Anendment (EPA Form 5700-20A) at the
time of award.
(2)	In sane cases, (e.g., when costs are disallowed or indirect cost
rates are lower than estimated) if a recipient provided more than its required
cost share and actual allowable project costs are less than originally estimated,
the Award Official may increase the EPA cost share percentage rather than
decrease the amount of the award. The Award Official should consider the
following before increasing the EPA cost share percentage:
(a)	The recipient's reduced cost share should reflect the mutuality
of interest in the project between EPA and the recipient (see subparagraph 2b of
this Chapter);
(b)	The recipient's reduced cost share must not be less than the
minimun cost share required in EPA's regulations and statutes; and
(c)	The recipient's actual expenditures must at least equal any
maintenance-of-effort requirement of the program.
b.	Establishing Cost Share Rates. Many EPA programs listed in Appendix 14-A
are subject to minimum recipient cost sharing requirements. (A maximum, or
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"up to", EPA cost share is the inverse of a minimum recipient cost share.) For
programs with minimum cost sharing requirements, the Award Official may require
higher than minimum recipient cost sharing rates when appropriate. In such cases
the Award Official must negotiate the actual cost sharing rate with the recipient.
Award officials should base their decision to require more than minimum cost
share on the following criteria:
(1)	The recipient is likely to receive significant benefits from the
project, sucdi as increased technical or scientific expertise, opportunity to
benefit frcm commercial or other application of project results, or Improved
technical capabilities or competitive position;
(2)	The recipient has significant resources available or has a significant
amount of in-kind contributions that it can provide for the project;
(3)	The recipient will derive significant benefits frcm residual use
of materials or equipment acquired for use in connection with the project; or
(4)	EPA budget limitations make it Impossible to provide the maximum
permitted EPA assistance.
c.	Deviation frcm Minimum Cost Share Rate. The Director, Grants Administration
Division (GAD), may approve a deviation from nonstatutory minimum cost sharing
requirements. The Director, GAD, will consider a deviation from regulatory
cost sharing requirements only if the recipient is not conducting research
resulting from unsolicited proposals and the recipient's project meets one or
more of the following criteria:
(1)	The recipient has little or no non-Federal sources of funds frcm
which to make a cost contribution;
(2)	The recipient is engaged predominantly in research and development
and neither engages in nor is likely to engage in commercial production or
service activities in which the results of research may be used or through
which shared costs may be recovered;
(3)	The project is of national interest;
(4)	The recipient has a record of excellent performance on prior EPA
projects; or
(5)	The recipient will bear a substantial financial risk.
d.	Cost Sharing on Unsolicited Research Projects. EPA's Appropriations
Act requires recipients of research awards which result frcm proposals not
specifically solicited by EPA to share in the cost of the project. In such
cases, the extent of cost sharing must reflect the recipient's and EPA's mutuality
of interest in the research and be based on the criteria in subparagraph 2b of
this Chapter.
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e. Organization-wide Cost Sharing Agreements. An organization-wide cost
sharing agreement establishes cost sharing terms for all of an agency's
awards to a particular recipient. Such agreements are not acceptable to EPA.
Cost sharing terms must be negotiated individually for each award.
g. EPA Cost Sharing as Cost Sharing for Other Federal Programs. Expenditures
claimed as recipient cost shares on EPA projects shall not be used as matching
contributions for other Federal assistance programs, unless specifically allowed
by the statute establishing the other program.
3. SOURCES OF COST SHARING FUNDS.
a.	General. EPA is not concerned about the source of funds that a recipient
uses for cost sharing purposes, unless the funds are from another EPA project or
another Federal agency.
b.	Use of Funds from Other Federal Programs as Cost Share for EPA Programs.
Funds awarded under assistance programs of other Federal agencies must not be
used to meet EPA cost sharing requirements unless EPA's or the other agency's
legislation explicitly authorizes such use. If a recipient proposes to use
funds frcm a program not listed below, EPA Regional or General Counsel (as
appropriate) should be consulted to assure such use is legal and to determine
the conditions which attach to the other program.
(1)	General Revenue Sharing. General Revenue Sharing funds may be
used to match EPA assistance awards.
(2)	Community Development Block Grants. The Community Development
Block Grant (CDBG) program (Title I of the Housing and Community Development
Act of 197^) contains specific statutory authorization to permit the use of
CDBG funds for cost sharing in programs undertaken as part of the Community
Development Program. Recipients that want to use CDBG funds for cost sharing
must provide the Award Official appropriate documentation (for example, a
letter signed by an appropriate HUD official) agreeing that the EPA funded
activity may receive funds under CDBG program.
c.	In-Kind Contributions. A recipient can use In-kind contributions
instead of cash for its share of EPA project costs, but in-kind contributions
in excess of a recipient's cost share are not allowable costs. (See Appendix
14-B for examples of how to include in-kind contributions in total allowable
project costs.) In-kind contributions must be costs that are verifiable from
the recipient's records and included in the approved budget. They must also
be types of costs that would be allowable under the appropriate cost principles
and EPA's allowable cost provisions (see Chapter 13 of this Manual, "Determination
of Costs").
(1) In-kind contributions must be necessary for the completion of the
project. Examples are:
(a) Facilities, such as office space, classrooms, warehouses,
laboratories, clinics, and land;
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(b)	Equipment, such as office machines, teaching aids, production
machinery, surgical, and x-ray equipment;
(c)	Materials, such as office, maintenance, workshop, and classroom
supplies;
(d)	Personal services furnished by professional and technical
personnel, consultants, and skilled and unskilled labor other than staff of the
recipient; or
(e)	Other contributions determined appropriate by the Award Official.
(2) Recipients can claim non-cash donations frcm public agencies, organ-
izations, and individuals as in-kind contributions. Recipients cannot claim
equipment and real property as donations if the property were originally donated
to the recipient by the Federal Goverrment or purchased with Federal funds.
(a)	Volunteered Services. Recipients can claim each hour of
volunteer service as an in-kind contribution if the service is an integral
and necessary part of the approved project. The volunteer must be qualified
in the skill or profession and roust actually perform that specific work.
Rates for volunteer services must be consistent with those paid for similar
work in other activities of the recipient or, if the recipient does not perform
such activites, in the labor market in which the recipient canpetes for services.
When an employer furnishes the services of an employee, the recipient may value
the services at the employee's regular rate of pay (excluding fringe benefits
and overhead cost), provided the services are in the same skill for which the
employee is normally paid.
(b)	Expendable Personal Property. Recipients can use the value
of donated expendable personal property, such as equipment, office supplies,
laboratory supplies, and workshop and classroom supplies, as in-kind contribu-
tions. Hie value of donated expendable personal property must not exceed its
fair market value at the time it is donated to the project.
(c)	Nonexpendable Personal Property, Buildings, Land, and Use
of Space. Recipients can use the value of donated nonexpendable personal pro-
perty, buildings, land, and use of space as in-kind contributions. The method
used to determine the value of such contributions differs depending on the
purpose of the assistance progran.
1_ If the purpose of the assistance program is to furnish
nonexpendable personal property, buildings, land, or space to the recipient,
the recipient may claim the total value of the donation.
2 If the purpose of the project is to support other
activities but requires the use of nonexpendable personal property, buildings,
land, or space on a tanporary or part-time basis, depreciation or use charges
may be determined as follows:
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k Nonexpendable Personal Property. The value of donated
nonexpendable personal property must be based on the donor's cost less deprecia-
tion or the fair markfet value of similar property, whichever is less. The value
of loaned nonexpendable personal property shall not exceed its fair rental value.
b Buildings, Land, and Use of Space. The value of donated
buildings, land, or use of space should be established by an independent appraiser
and certified by the recipient.
(d)	Other Charges. Other necessary costs incurred specifically
for and in direct benefit of the EPA program may be used to meet the recipient's
cost share requirement provided the costs are adequately supported, allowable
costs. Such charges must be reasonable and properly justified.
(e)	Federal Interest. When the fair market value of nonexpendable
personal property, or land is used as an in-kind contribution, EPA's interest
in such will be equivalent to the EPA share of the project costs. The recipient
must protect that interest (see Chapter 26 of this Manual, "Property Management").
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EPA PROGRAM COST SHARING REQUIREMENTS
Statutory/regulatory cost sharing requirements of current, funded EPA
programs are listed below.
1.	CLEAN AIR ACT, AS AMENDED.
a.	Air Pollution Control Program Support (Section 105).
(1)	EPA may award State, local, interstate, and intermuniclpal air
pollution control agencies up to 66 2/3% of the allowable cost of planning,
developing, establishing, or improving an air pollution program and up to 50%
of the allowable cost of maintaining that program.
(2)	EPA may award State, Interstate, or intemunicipal air pollution
control agencies with substantial responsibility for carrying out an approved
State Implementation plan under section 110 of the Clean Air Act up to 75% of
the allowable cost of planning, developing, establishing, or improving an air
pollution control program and up to 60% of the allowable cost of maintaining
that program.
(3)	In addition, each air pollution control agency must expend annually
for recurrent section 105 program expenditures an amount of non-Federal funds
at least equal to such expenditures during the previous fiscal year. The
Award Official may allow a recipient to reduce its annual expenditures if the
Award Official determines, after notice and opportunity for public hearing, that
a reduction in the required expenditure level is due to a nonselective reduction
in the programs of all executive branch agencies.
b.	Air Pollution Control Manpower Training Assistance (Clean Air Act,
Section 103). A recipient's cost sliare must be a minimum of five percent.
c.	Air Pollution Control Research (Clean Air Act, Sections 103 and 104).
A recipient's cost share must be a minimum of five percent.
d.	Air Pollution Control Fellowships (Clean Air Act, Section 104). No
cost sharing is required.
2.	CLEAN WATER ACT, AS AMENDED.
a. Construction Grants for Wastewater Treatment Works (Clean Water Act, Title
II).
(1) For grants awarded before October 1, 1984, EPA will pay 75% of
allowable project costs, unless:
(a) The project Involves innovative or alternative technologies
in which case EPA will pay 85% of allowable project costs, or
Appendix 14-A
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ASSISTANCE ADMINISTRATION
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(b) The Governor of the State has approved a reduced EPA share
under 40 CFR 35.2152(c). In this case, EPA will pay up to 20% more than the
State's lower Federal share of the innovative and alternative portions, not to
exceed 85%.
(2) For grants awarded after September 30, 1984, (except as provided
in 40 CFR 35.2152(a)(3)):
(a)	EPA will pay 55% of allowable project costs, unless the Governor
of the State has approved a lower EPA share under 40 CFR 35.2152(c); and
(b)	EPA will pay 20% more than the EPA share under subparagraph
2a(2) of this Appendix for portions of projects which involve innovative or
alternative technologies.
b.	State Advance of Allowance Grants (40 CFR 35.2025(b)). No recipient
cost sharing is required.
c.	Water Pollution Control-State and Interstate Program Support (Clean
Water Act, Section 106).
(1)	States and interstate water pollution control agencies must expend
annually for recurrent section 106 activities an amount of non-Federal funds
at least equal to their expenditures during the Fiscal Year ending June 30,
1971.
(2)	States that receive construction management assistance under
section 205(g) of the Clean Water Act must expend annually for recurrent section
106 activities an amount of non-Fededral funds at least equal to their expendi-
tures during Fiscal Year 1977.
d.	Water Pollution Control-State and Local Manpower Development (Section
104). A recipient's cost share must be a minimun of five percent.
e.	State Management Assistance (Clean Water Act, Section 205(g)). No re-
cipient cost sharing is required; however see subparagraph 2c(2) of this Appendix.
f.	Water Quality Management Planning (Clean Water Act, Section 205(j)).
No recipient cost sharing is required.
g.	Water Pollution Control Research, Development, and Demonstration
(Clean Water Act).
(1)	Sections 104, 105(b) and (e) and 107. A recipient's cost share
must be a minimum of five percent.
(2)	Sections 105(a), (c) and (d) and 108. A recipient's cost share
must be a minimun of 25%.
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3.	SOLID WASTE DISPOSAL ACT, AS AMENDED.
a.	Hazardous Waste Management Assistance Program (Section 3011)» EPA will
pay up to 75% of allowable project costs.
b.	Investigations, Research, Demonstration and Training (Section 8001).
A recipient's cost share must be a minimum of five percent of the allowable
project costs.
c.	Hazardous Waste Training (Section 7007). A recipient's cost share must
be a minimum of five percent of the allowable project costs.
4.	SAFE DRINKING WATER ACT, AS AMENDED.
a.	State Public Water System Supervision, (Section 1443(a)(1)). EPA will
pay up to 75% of allowable project costs.
b.	State Underground Water Source Protection (Section 1443(b)(1)). EPA
will pay up to 75% of allowable project costs.
c.	Research, Training, and Demonstration (Section 1442). A recipient's
cost share must be a minimum of five percent of allowable project costs.
d.	.Special Studies and Demonstration (Section 1444). EPA will pay up to
66 2/3% of construction costs of any facility and 75% of all other costs.
5.	FEDERAL INSECTICIDE, FUNGICIDE AND RODENTICIDE ACT, AS AMENDED.
a.	Pesticides Applicator Certification and Training (Section 23 (a)(2)).
EPA will pay up to 50% of the allowable project cost.
b.	Pesticides Enforcement Program (Section 23(a)(1)). EPA will pay up
to 100% of the allowable project cost.
c.	Pesticides Research (Section 20). The recipient's cost share must be
a minimum of five percent of the allowable project cost.
6.	TOXIC SUBSTANCES CONTROL ACT, AS AMENDED.
a. Research and Development Assistance (Section 10). The recipient's
cost share must be a minimum of five percent of the allowable project cost.
7.	COMPREHENSIVE ENVIRONMENTAL RESPONSE AND COMPENSATION LIABILITY ACT.
a. Removal Assistance (Section 104(d)(1)). If the site is privately owned,
no recipient cost sharing is required. If the site is owned by a State or
local government, the recipient must provide a minimum of 50% of the allowable
project costs when a remedial action is implemented at the site.
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ASSISTANCE ADMINISTRATION
b. Remedial Action Assistance (Section 104(d)(1)).
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(1)	No cost sharing Is required for remedial investigation, feasibility
studies, or design of remedial actions at privately-owned sites. If a site were
owned or operated by a State or local government at the time of disposal, the
cost-share for remedial investigations, feasibility studies or design must be
at least 50%. EPA has deferred the State cost-share for these activities until
the remedial action phase.
(2)	If the site is privately owned, EPA will pay 90% of the cost of
the approved remedial action. If the site were owned or operated by a State or
local government at the time of the disposal, EPA will pay up to 50% of the cost
of the approved remedial action.
(3)	If a State pays more than the required cost share for a remedial
project, it may use the excess for cost sharing for a subsequent project at the
same site. Such "advanced match" must be included in the project budget and
meet the requirements in EPA's "State Participation in the Superfund Program"
manual.
Appendix 14—A-3
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CHAPTER 15 ~ ASSISTANCE AGREEMENTS/AMENDMENTS AND CONDITIONS OF ACCEPTANCE
Table of Contents
PARAGRAPH	PARAGRAPH
TITLES	NUMBERS
General		1
Action on Applications		2
Preparation of the Agreanent/Amendment		3
Execution of the Agreement/Amendment		4
Conditions of the Agreement/Amendment		5
Incurrence of Cost		6
Changes to Assistance Anounts		7
FIGURE	FIGURE
TITT.F5!	NUMBERS
EPA Fbm 5700-14, "Assistance Funding Order"				15-1
EPA Form 2550-9, "Ccmnitment Notice"		15-2
"Decision Memorandum"		15—3
EPA Form 5700-20A, "EPA Assistance Agreanent/Amendment"		15-4
EPA Fom 5700-20B, "Assistance Amendment (Optional)"				15_5
"Instructions for use of Assistance Agreement and Anendments"		15-6
EPA Fom 5770-8, "Fellowship Agreement"		15-7
EPA Form 5770-7, "EPA Fellowship Activation Notice"				15-8
Sample Legal and Administrative Review Checklist		15—9
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CHAPTER 15 - ASSISTANCE AGREEMENTS/AMEMDMEMTS AND CONDITIONS OF ACCEPTANCE
1.	GENERAL. A decision to award or reject an application generally requires
less than 90 days after EPA receives a completed application. However, review
of sane proposals may require more than 90 days for a decision; (for example,
applications for research grants require peer panel review and depend on the
schedule for convening panels). The extent of review varies greatly from program
to program. Consequently, EPA may issue formal decisions after a few days or
take more than 90 days. The Agency goal is to issue decisions within 90 days.
a.	Individuals may contact the Assistance Administration unit (AAU) in the
appropriate Regional Office for a status report on applications which are reviewed
and funded by the regions (e.g., Continuing Environmental Support Programs).
Addresses and telephone numbers of points of contact in Regional Offices who
administer assistance agreements are contained in figure 3-1. For applications
for Construction Grant for Wastewater Treatment Works (WWT) in States where EPA
authority has been delegated, inquiries should be referred to the delegated
State agency.
b.	For information about the status of a project awarded frati Headquarters,
individuals may telephone or write to the Grants Operations Branch (GOB), FM-216,
Washington, D.C. 20460, (202) 382-5266. The appropriate EPA Assistance
Identification Number must be referenced on all inquiries.
2.	ACTION ON APPLICATIONS.
a.	General. Prior to execution (signature) of an assistance agreement,
the Award Official must assure that all technical, legal, and administrative
evaluations have been made and that the application is awardable. The Award
Official must assure that the proposed agreement meets the requirements specific
to the legislation, regulations, and program guidance of the assistance program.
b.	The AAU must provide the Award Official all documentation necessary to
support the decision to award. It is important to maintain a complete and
accurate record in the official file of all actions on each application throughout
the award or rejection process.
(1) Approval - Recormended for Award.
(a)	If the Approval Official approves the proposal for funding,
the Award Official will prepare and sign an assistance agreement and send it to
the applicant for signature. The authorized representative of the applicant
must either sign and return the agreement to EPA within three calendar wseks
after receipt or request EPA to extend the time for acceptance. If not, the
agreenent is null and void (see 40 CFR 30.305). If signed, the agreement is
binding on both EPA and the recipient.
(b)	Applicants WILL NOT be notified of award approval before
assistance agreement documents are sent for their execution. Circumstances
may develop that require the Award Official to hold up the issuance of an
agreement even though the Approval Official has approved the proposal for award.
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(2)	Disapproval. If the Approval Official disapproves an application,
the appropriate progran office must promptly notify the applicant in writing
and provide a ccpy of the rejection letter to the appropriate AAU. An applicant
may appeal EPA's disapproval under 40 CFR F&rt 30, Subpart L.
(3)	Deferral. Sometimes the Approval Official will defer the final
decision on an application. The appropriate program office must notify the
applicant in writing of this decision and provide a copy of the deferral letter
to the apropriate AAU.
3. PREPARATION OF THE AGREEMENT/AMENDMENT.
a.	Procedures for Program Personnel. The Approval Official makes a
decision to approve or reject a proposal. If the decision is to fund the
proposal, the following documents, along with other pertinent program documents,
must be included as part of the funding recommendation sent to the appropriate
AALI (see Chapter 12, "Technical Review of proposals" for guidance).
(1)	Assistance Funding Order (EPA Form 5700-14). Regional use of this
form is encouraged but optional (see figure 15-1). For Headquarters projects,
the Approval Official's office must prepare a funding order which indicates the
funds recommended as approved budget period costs and the EPA approved amount.
Any special technical conditions which the Approval Official wants the recipient
to comply with must be attached. The funding order must be signed by the
Approval Official and must identify the EPA Project Officer assigned to the
project.
(a)	The funding order must contain a breakout of the costs by
either the object class category or program element structure shown on page 2
of the EPA Assistance Agreement/Amendment (see figure 15-4A, EPA Form 5700-20A).
(b)	Special technical conditions appropriate for the agreenent
must be appended to the funding order. If the legal instrument chosen is a
cooperative agreement, EPA's "substantial involvement must be reflected in the
provisions." (See subparagraph 5b(l) of this Chapter.)
(2)	Oorrcnitment Notice, (EPA Form 2550-9). Regional use of this form
is encouraged but optional. For Headquarters projects, the funding program
prepares a Commitment Notice (see figure 15-2) that must be signed by the
Approval Official's commitment clerk to certify the availability of funds.
(3)	Decision Documentation. This docunentation summarizes the review
of the application, reconciles any adverse review and makes the final recommenda-
tion on the application. For research and demonstration awards, see figure 15-3,
Decision Memorandum. Each AAU must establish a clear and complete record of
each decision process and retain this documentation in each official file.
b.	Procedures for Assistance Administration Units. The AAU shall perform
the following upon receipt of the funding recommendation from the Approval
Official:
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(1)	Log in the funding recommendation;
(2)	Review the official file to be sure that all items requested from
the applicant were received;
(3)	For Headquarters projects, enter the funding recommendation (i.e.,
approve, disapprove, or defer) into the Grants Information and Control System
(GICS);
(4)	If a cost analysis was performed, review the funding recommendation
to see if the findings of the cost analysis were resolved. Normally all cost
analysis issues will have been resolved. If unresolved issues remain, however,
initiate actions to assure that the cost analysis findings are adequately ad-
dressed and prepare a decision letter for the Approval Official's consideration
(the Approval Official, by letter, establishes the final EPA position);
(5)	All recommendations by the Office of International Activities (OIA)
on foreign assistance applications must be satisfactorily resolved (see Chapter 7).
When necessary, the AALJ must coordinate the resolution of such recommendations
with OIA and the appropriate program office. All authorized international
travel must be specified in the assistance agreement;
(6)	Complete a final legal and administrative review of the recommended
budget costs. See figure 15-9 for a sample check list; and
(7)	Review any special technical conditions for compliance with
Agency regulations and statutory requirements. Special conditions must be
consistent with the provisions and intent of the EPA assistance regulations,
unless a deviation has been granted.
c. Agreement/Amendment Preparation.
(1)	The AAU will prepare the appropriate grant or cooperative agreement
document (see figures 15-4 and 15-5) for the Award Official's signature.
Instructions for completing the documents are in figure 15-6.
(2)	The AAU will prepare the fellowship agreement (see Figure 15-7).
4. EXECUTION OF TOE AGREEMENT/AMENDMENT.
a.	The Award Official will sign the award document on behalt of EPA when
satisfied that all legal, technical, and administrative requirements have been
met. Upon signature, the document becomes an offer from EPA to the applicant
and obligates ccmmited funds. This offer will not constitute an agreement
until it has been officially executed and returned by the applicant and accepted
by EPA (see subparagraph 4b).
b.	The AAU will forward a ccpy of the offer (award document) to the appropriate
Financial Management Office.
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c.	Issuance of the Agreement/Amendment.
(1)	The procedures outlined in Chapter 16, "Notification of
Assistance Award Actions," must be implemented and adhered to during this process.
Five working days after signature by the Award Official, the original and one
copy of the agreenent/amendment (only those with increase in funds) must be
transmitted by the AALJ to the recipient.
(2)	If the agreement/anendment is for a WWT construction project,
a copy of the agreement/amendment must be mailed to the appropriate State
agency.
(3)	If the agreement/anendment is for a fellowship, include a
blank EPA Form 5770-7, "EPA Fellowship Activation Notice" in the transmittal to
the recipient. A transmittal letter fran the Award Official to the recipient
must be included to explain how payments will be made. Payment for tuition
and fees are generally made directly to the educational institution and payment
for stipends, books, and supplies are normally paid directly to the recipient.
d.	Return of the Executed Agreement/Amenctnent.
(1)	The recipient must return the executed or the unexecuted agreement/
amendment within three calendar weeks fran date of receipt to the AAU. If the
recipient does not sign and return the document or obtain an extension from the
iWartl Official within three weeks, it is rendered null and void.
(2)	The executed agreement/amendment must be reviewed by the AAU for
alterations or modifications. If the recipient has altered the document in
any way, the Award Official takes one of the following actions:
(a)	Cancel the original issuance of the document;
(b)	Review alterations or modifications and if appropriate,
consult with the program office to determine acceptability of changes;
(c)	If the proposed changes are acceptable, issue a new agreement/
amendment reflecting the changes and send it to the prospective recipient (cer-
tified mail, return receipt requested). It is not necessary to reissue a new
agreement/anendment for minor changes. For exanple, an amendment is acceptable
for changing a proposed start date; and
(d)	If proposed changes are not acceptable to EPA, inform the
prospective recipient in writing of that fact and that the offer is being withdrawn.
5. CONDITIONS OF THE AGREEMENT/AMENDMENT.
a. General. All applicable statutory and regulatory provisions including
progran regulations and EPA's "General Regulations for Assistance Programs" are
incorporated into each agreement by reference and become effective upon accep-
tance of the agreenent/amendment by the recipient. The approved application
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and all special conditions cited in the agreanent are effective upon acceptance.
Any conditions that are deleted, altered, or conditioned by a prospective
recipient are considered to be a counter-offer; the document becanes invalid
and subject to the procedures in subparagraph 4b(2) of this Chapter.
b. Special Conditions for Cooperative Agreements. The Federal Grant and
Cooperative Agreement Act differentiates between financially assisted projects
on the basis of the level of Federal involvement expected duririg the project.
It prescribes the use of two legal assistance instruments — grant agreements and
cooperative agreements.
(1)	Cooperative agreorients must contain provisions that reflect the
substantial Federal Involvement required during the project. These provisions must
specify such details as: what the Federal involvement will be, when it will be
performed, how it will be accomplished, and who will be responsible for performing
EPA's portion of the work. These provisions are generally included as special
conditions on the assistance agreement. However, in negotiating the cooperative
agreonent the program office may arrange with the applicant to include in the
application sane, or all, of the "substantial EPA involvement" provisions desired by
the Approval Official. It is not necessary to repeat as special conditions those
acceptable measures of "substantial EPA involvanent" included in the application.
(2)	Grant agreements do not contemplate substantial Federal involvanent
during the project and therefore do not require these provisions.
6.	INCURRENCE OF COSTS.
a.	EPA funds are obligated on the date that the Award Official signs the
assistance agreement/amendment.
b.	Costs incurred PRIOR to the execution of new assistance or fellowship
agreements/amendments by both parties are not allowable as costs eligible for
reimbursement except:
(1)	Costs incurred between the date that the Award Official signs the
assistance agreement and the date the recipient signs the agreement when there
is explicit provision in the award document and the offer is accepted without
change by the recipient, or
(2)	When EPA executes a continuation agreement EPA may reimburse
allowable costs incurred between the end of a budget period and date of award
for the next budget period provided a continuation application Is submitted
before the prior budget period ended.
7.	CHANGES TO ASSISTANCE AMOUNTS.
a. Amending Agreements to Increase EPA Funding. Requests to amend agreements
are processed similarly to new and continuation awards.
(1) When changes in a project result in an increase of approved budget
or project costs, the recipient must promptly notify the EPA Project Officer.
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The recipient's request for increase in an approved budget or project cost must
be accompanied by an application or a detailed justification for the increase.
(2)	A Project Officer not approving a request for increase of the
approved budget or project costs must notify the recipient of the disapproval.
A copy of the response and the request must be forwarded to the appropriate
AAU for inclusion in the official assistance file.
(3)	If the Project Officer agrees with the recipient's request for an
increase in the approved budget, the Project Officer must prepare the following
documents for the Approval Official:
(a)	Reccmmendation memorandum providing program review and justi-
fication for approval;
(b)	Canmitment notice or other documentation committing the funds
for the increase request;
(c)	Funding Order or other documentation showing the cost category
or program element breakdown of the changed costs; and
(d)	Any special technical conditions deened necessary.
(4)	If the Approval Official approves the Project Officer's reccmmen-
dation, the documents must be forwarded to the AAU for award document preparation.
The AAU will:
(a)	Log in reccmmendation;
(b)	Enter the reccmmendation into the Grants Information and
Control System (Headquarters only) and the official project file;
(c)	Review request from recipient;
(d)	Review official file for copies of any earlier rebudgeting
approval by the Project Officer. Any previously approved rebudgeting requests
should be considered when preparing the amendment to ensure accurate approved
allowable budget or project costs;
(e)	Review Funding Order and perform a final legal and administrative
review;
(f)	Assure there are no unexecuted agreenents/amendments pending;
(g)	Prepare amendment form in accordance with instructions in
figure 15-6;
(h)	Obtain the Award Official's signature;
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(i) Forward a copy of the amendment to the appropriate EPA
Financial Management Office; and
(j) Initiate the issuance and acceptance procedures described
in subparagraph 4a of this Chapter.
b. Amending Agreements to Decrease Funding. When changes In a project
result in a decrease of the budget or project costs, the recipient must promptly
notify the EPA Project Officer. Ihe notification must explain the cause and
expected effect on the recipient's ability to accomplish the objectives of the
proj ect.
(1)	The EPA Project Officer will review the request and prepare a
Recommendation Memorandum for the Approval Official that summarizes the program
findings and recommendations and provides:
(a)	A revised budget; and
(b)	Revised special conditions, if appropriate.
(2)	If the Approval Official agrees with the Project Officer's
recommendation, the approved documents must be submitted to the AAU which will:
(a)	Evaluate the documents for consistency with other current and/or
pending actions with the recipient;
(b)	Prepare amendment form in accordance with instructions in
figure 15-6;
(c) Obtain Award Official's signature;
(d)	Forward a copy of the amendment to the appropriate Financial
Management Office; and
(e)	Initiate the issuance and acceptance procedures described
in subparagraph 4a of this Chapter.
(3) The AAU will obtain the executed amendment from the recipient and will
provide a copy to the Financial Management Office. The Financial Management Office
will record the deobligation in the financial management system.
c. Unobligated Balance Amendments. EPA's financial assistance programs,
except Construction Grants for Wastewater Treatment Works, require the submission
of a final Financial Status Report (FSR), SF 269, after completion of each bud-
get period (see Chapter 37, "Recipient Reporting"). In many cases, Block 10M
of the FSR (see figure 33~3)j will show that the recipient has an unobligated
balance of Federal funds. This balance represents the difference between the
award amount and the Federal share of the recipient's cumulative obligations.
(1) The Award Official ma^ authorize the recipient to use its unobligated
balance in one of two ways:
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(a)	As partial funding in the succeeding budget period on a
continuation award instead of a like amoint of current year appropriations for
that program; or
(b)	As additional obligation authority in the succeeding budget
period on a continuation award to supplement current year appropriations for
that program.
(2) The following procedures must be used to amend the agreanent to
reflect the use of an unobligated balance for awards administered by Headquarters
and Continuing Ehvironnental Program Support awards adminstered by Regional
Offices. (Special procedures for Superfund projects are explained in subparagraph
7c(2)(d».
(a)	Headquarters Administered Agreements. These assistance agree-
ments are usually awarded for a project extending over several fiscal years
(two or more) but are often funded on an annual budget period basis whereby funds
are obligated in successive year's appropriation. The unobligated balance of
EPA funds held by the recipient may be transferred forward to the succeeding budget
period within the same project period for use as partial funding of the contin-
uation award, or as additional authority on the continuation award so long as
the purpose of the Initial award remains the same.
1	Funds being transferred to a succeeding budget period need
not be deobllgated since the amendment will transfer forward the authority to
use the funds in the subsequent budget period to carry out the purpose of the
original agreement.
2	Unobligated funds remaining at the end of the project
period must be deobllgated and are available for reobligation only upon written
approval frcm the Budget Division, Office of the Comptroller.
(b)	Regionally Administered Continuing Environmental Support
Agreements.
1	These State and local government assistance programs are
identified in 40 CFR, Part 35> Subpart A, as Continuing Environmental Programs
which will not be completed within a definable time period. With some exceptions,
these programs normally have a budget period and project period of one year
that is consistent with the Federal fiscal year or the recipient's fiscal year
and are funded annually with successive year's appropriation.
2	State and local government recipients do not have to immedi-
ately return to EPA any of these funds that they have not obligated by the end of
the annual budget period. Rather, the Award Official may, by assistance agreement
or amendment, authorize a recipient to use an unobligated balance in a future
budget period(s). The Award Official may:
a Transfer the unobligated continuing environmental program support
funds remaining at the end of a budget period to the then current (or succeeding)
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budget period(s) to provide additional obllgational authority to that annual a
greement; or
b If there is no need for the unused funds during the then current
budget period, use the funds as partial fundirg of a succeeding budget period
Instead of a like amount of current year appropriations for that program.
This action would free that amount of funds from the State's allotment fbr
that year for reallocation as described in 40 CFR 35.155.
There is an exception to these procedures. Awards prior
to October 12, 1982, for the State Management Assistance Program under Section
205(g) of the Clean Water Act require that unobligated funds that are available
five years after the date of award be deobligated and returned to the State's
allotment for WWT construction awards; and
(c)	Other Regionally Administered Programs. Frequently, the
Regions administer programs that have finite project periods, e.g., Clean
Lakes, RCRA 3012, 104(g) Training, etc. Any unobligated balances at the end
of the project period should be handled in the same manner as Section 208
awards made prior to October 12, 1982, for Water Quality Management Planniirg,
i.e., any unexpended funds remaining after the end of the project must be
returned to EPA. Such funds must be deobligated and are available for reobliga-
tion only upon approval from the Budget Division, Office of the Comptroller.
(d)	Special Requirements for Recipients Under Superfund. (Also
see Chapter 12, Financial Management Manual and Chapter 33, subparagraph 4d(4)
of this Manual.) It is necessary for EPA to track awards and expenditures to
specific sites and activities. The cooperative agreement with the recipient
organization under Superfund identifies, by the use of a special account number,
the specific activities the recipient has agreed to perform and the site at
which they will be performed. The recipient must account for and draw funds
separately for each activity using the last four digits of the special account
number. There must be a total segregation of the funds authorized for recipients
under Superfund for each site and for each activity. If the recipient has
funds remaining on the project after an activity is completed, the unobligated
balance can be used in one of two ways:
1	The unobligated amount for the completed activity can be
withdrawn and EPA will amend the cooperative agreement to decrease the unobli-
gated amount; or
2	The amount can be transferred to another activity within
the same project. If the recipient requests that a transfer be made, and if
approved, EPA will amend the agreanent to transfer the unobligated amount to
another activity at the same site.
(3) When the final Financial Status Report shows an unobligated balance
remaining at the end of a budget period, the appropriate AAU staff should consult
with the EPA Project Officer on the actions to be taken to either decrease the
award on finite budget and project periods, use the balance as partial funding
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ASSISTANCE AEMINISTRATION	12/3/84
for the Immediately following budget period, or use it as additional authority
for the Immediately following budget period.
(a)	Decrease. The AAU staff must prepare an assistance amendment
in accordance with the instructions in figure 15-6, and forward a copy of the
executed amendment to the appropriate EPA Financial Management Office.
(b)	Partial Funding. If the EPA Project Officer does not want
to use the unobligated balance as additional authority in subsequent budget
periods, the assistance administration staff must amend the current agreement
to decrease the EPA current year appropriation obligation and offset that
amount by the amount of the unobligated balance (see figure 15-4). For example:
INITIAL AWARD
Former This	Amended
Award Action	Total
30. EPA Amount This Action	N/A	$50,000
32. Unobligated Prior Year Balance N/A	-0-
AMENDMENT AWARD
Former This	Anended
Award	Action	Total
30. EPA Amount This Action $50,000	<$10,000>	$40,000
32. Unobligated Prior Year Balance -0- $10,000	$10,000
The AAU must add a special condition to the Assistance Agreement/Amendment
document. The special condition should read substantially as follows:
"In accordance with the final Financial Status Report for the (appropriate)
budget period, the unobligated balance is being applied as partial
funding in the current budget period. This action does not affect
the total EPA approved/allowable budget period costs for the budget
period."
The AAU must forward a copy of the executed amendment to the appropriate EPA
Financial Management Office.
(c) Additional Authority. If the EPA Project Officer wants
to apply the unobligated balance as additional authority In subsequent budget
periods, the Project Officer must ask the recipient to submit a revised
application or justification to include the unobligated balance in a revised
approved budget (the recipient must also include the matching share for the
unobligated amount).
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1	Ihe Project Officer must prepare an amendment package to
include the following, and forward it to the AAU.
a A copy of the revised application with recipient's
justification;
b A funding order (Regional option) showing the revised
approved budget and the approving signatures plus any additional special technical
conditions; and
c Memorandum providing the Approval Official's recommended
approval of the revised budget and appropriate program justification.
2	For Regionally administered agreements, the EPA Project
Officer must forward the original signed revised application, along with any
techincal justifications, special technical conditions, and approval recommen-
dations to the AAU for action.
3	The AAU must prepare the agreement/amendment in accordance
with local policies and procedures upon receipt of recommendations from the
program. The dollar amounts on the assistance amendment (see figure 15-6)
should, for example, read as follows:
INITIAL AWARD
Former	This	Amended
Award	Action	Total
30. EPA Amount This Action N/A	$50,000	N/A
32. Unobligated Prior Year Balance N/A	N/A	N/A
AMENDMENT AWARD
Former	This	Amended
Award	Action	Total
30. EPA Amount This Action $50,000	N/A	$50,000
32. Unobligated Prior Year Balance N/A	$10,000	$10,000
^4 The AAU must forward a copy of the executal amendment to
the appropriate EPA Financial Management Office.
5 The AAU should add a special condition to the assistance
agre(nent/amendment document, or appropriate language in the transmittal
letter, authorizing the recipient to use the unobligated balance of the prior
year funds as additional expenditure authority in the subsequent budget period.
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ASSISTANCE FUNDING ORDER
PROJECT ID NUMBER
PROGRAM ELEMENT NO
FIELD OF SCIENCE CODE
APPLICANT
APPROVED DURATION PERIOD DATES
PROJECT PERIOD BUDGET PERIOD
PROJECT TITLE AND DESCRIPTION
APPROVED BUDGET (Use either Table A or Table B)
TABLE A
TABLE B
COST CATEGORY CLASSIFICATION
fNonconstruction)
APPROVED ALLOWABLE
BUDGET PERIOD COST
PROGRAM ELEMENT CLASSIFICATION
fNonconstruction
APPROVED ALLOWABLE
BUDGET PERIOD COST
1 PERSONNEL

1

2 FRINGE BENEFITS

2

3 TRAVEL

3

4 EQUIPMENT

4

5 SUPPLIES

5

6 CONTRACTUAL PERSONAL
SERVICES

6

7 CONSTRUCTION

7

8 OTHER

8

9 TOTAL DIRECT COSTS

9

10 INDIRECT COSTS
IDC RATE BASE

10

11 TOTAL

11

12 TOTAL APPROVED AMOUNT

12

PROGRAMMATIC SPECIAL CONDITIONS (Use additional sheets if necessary)
RECOMMENDING OFFICIAL
SIGNATURE
TYPED NAME AND TITLE
DATE
EPA PROJECT OFFICER
NAME AND TITLE
ADDRESS (Include ZIP Code}
TELEPHONE (FTS)
(Commercial)
DECISION OFFICIAL APPROVAL
SIGNATURE
TYPED NAME AND TITLE
DATE
EPA Form 5700-14 (Rev 4-84) Previous editions are obsolete
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ASSISTANCE ADMINISTRATION	12/3/84
COMMITMENT NOTICE
NOTE* Preparation and approval of this form does not constitute an obligation of money. The use of this form is intended to guarantee
availability of money by reserving it for certain types of specified transactions.
THIS COMMITMENT TRANSACTION IN THE AMOUNT OF S	 IS FOR
WHOL E DOLLARS
RANT (Number	| |a PURCHASE REQUISITION	CONTRACT
~ other (Specify)'
DESCRIPTION OF PROJECT, GOODS, OR SERVICES
NAME OF GRANTEE/CONTRACTOR/VENDOR
TASK, ROAP, OR OTHER LOCAL IDENTIFIER
EMPLOYER IDENT NO. (EIN)
SPECIAL COMMENTS OR INSTRUCTIONS
ALLOWANCE HOLDER APPROVALS (Optional, at discretion of Allowance Holder)
ALLOWANCE HOLOER TITLE
STAFF APPROVALS
SIGNATURE
DATE
PHONE









RESPONSIBILITY CENTER TITLE
FUNDS CERTIFICATION
PREPAREb BY
APPROVED BY
SIGNATURE
SIGN ATURE
4f
DATE
DATE
FOR RESPONSIBILITY CENTER USE ONLY
Contract negotiator is [ | is not [	| authorized to exceed amount shown above by up to 10% without securing further approval for funds.
THE AMOUNT OF MONEY SHOWN IS
~	|	IAN INCREASE TO A	|	|A OECREASE TO A
	AN ORIGINAL COMMITMENT	|	^PREVIOUS COMMITMENT		'	^PREVIOUS COMMITMENT
FINANCIAL DATA (See instructions on reverse be/ore filling out)
APPROPRIATION
FMO USE




DOCUMENT
CONTROL NO
ACCOUNT NUMBER
OBJECT
CL ASS
DOLLAR AMOUNT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
S3
54
55
56
2








0
4
0




















0
0










0
0
2








0
4
0




















0
0










0
0
2








0
4
0















*




0
0










0
0
2








0
4
0




















0
0










0
0
EPA Form 2550-9 (Rev. 4-74)	previous edition is obsolete
Figure 15~2
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ASSISTANCE ADMINISTRATION	to/o/2?
id/ i/w
INSTRUCTIONS
FINANCIAL DATA
RESPONSIBILITY CENTER-
1.	Enter the document control number in blocks 15 thru 20
2.	Enter the account number in blocks 31 thru 40
3 Enter the two-digit major object class in blocks 41 and 42 (If more than one major Object Class
is needed, you must Iill out more than one line of financial data)
4.	Enter the dollar amount in whole dollars (ignoring cents) in spaces 45 thru 54. (e.g. $98 ts
entered as 0000000098, not as 9800000000, $45,000 is entered as 0000045000, etc.)
5.	Enter the appropriation symbol in the blank space immediately above the account number
FINANCIAL MANAGEMENT OFFICE.
1.	Insert your finance office identifier in blocks 2 and 3
2.	Enter the date processed in blocks 4 thru 9
3.	Enter the proper reverse code in block 13
4.	Check blocks 15 thru 54 for completeness before keypunching
EPA Form 2550.9 (Rev. 4-74)
Figure 15-2A
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ASSISTANCE ADMINISTRATION
UNITED STATES ENVIRONMENTAL FROTECTION AGENCY
5700
12/3/84
SUBJECT: Decision Memorandum. Assistance Nd.
FROM: Assistance Recanmendirig Official
TO:	Assistance Approval Official
I.	Objectives - Give a brief description of the project objectives
II.	Relationship of Project to Program's Mission - Optional
III.	Specific Program Identification - Optional
IV.	Explanation of Any Apparent Duplicative or Excessive Effort - Optional
V.	Reviews - Summarize briefly all reviews received on the project
VI.	Reconcilation of Contrary Reviews
VII.	Justification if a "Non-Ccmpetitive" Award (Applies to CUD Projects)
VIII.	Recommendation
Figure 15-3
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ASSISTANCE ADMINISTRATION
5700
12/3/84
US ENVIRCiNMENTAL PROTECTION AGENCY
EPA ASSISTANCE AGREEMENT/AMENDMENT
PART I - ASSIStANCE NOTIFICATION INFORMATION
1 ASSISTANCE ID NO
3 DATE OF AWARD
2. LOG NUMBER
4. MAILING DATE
5 AGREEMENT TYPE
6 PAYMENT METHOD
Cooperative Agreement

Grant Agreement

Send Peyment Request To
7 TYPE OF ACTION
Assistance Amendment

8 RECIPIENT
EIN NO

CONGRl5sTW7^L"BI?fft7^T
9 PAYEE
10 RECIPIENT TYPE
11 PROJECT MANAGER AND TELEPHONE NO
12 CONSULTANT (WWT Construction Grants Only)
13 ISSUING OFFICE (City/State)
14 EPA PROJECT/STATE OFFICER AND TELEPHONE NO
15 EPA CONGRESSIONAL LIAISON & TEL NO
16 STATE APPL ID (Clearinghouse)
17 FIELD OF SCIENCE
18 PROJECT STEPfWWT CG
Only)
19 STATUTORY AUTHORITY
20 REGULATORY AUTHORITY
21 STEP 2 + 3 & STEP 3 (WWT Construction Only)
a Treatment Level
b Project Type
c Treatment Process
d Sludge Design
22 PROJECT TITLE AND DESCRIPTION
23 PROJECT LO CATION (Areas Impacted by Project)
City/Piece
County
State
Congressional Oistrlct
24 ASSISTANCE PROGRAMfCFDA Program No 4 Title}
25 PROJECT PERIOD
26 BUDGET PERIOD
27 COMMUNITY POPULATION (WWT CG
Only)
28 TOTAL BUDGET PERIOD COST
29 TOTAL PROJECT PERIOD COST
FUNDS
FORMER AWARD
THIS ACTION
AMENDED TOTAL
30 EPA Amount Thi$ Action
31 EPA In-Kind Amount
32 Unexpended Prior Year Balance
33 Other Federal Funds
34 Recipient Contribution
35 State Contribution
36 Local Contribution
37 Other Contribution
38 Allowable Proiect Cost
Program Element
Appropriation
Doc Control No
Account Number
Object Class
Obligatfon/Deobfig Amount
EPA Form 5700-20A (Rev 5-82) Replaces previous editions and EPA Forms 5700-1A 9. C, and O all of which are obsolete
Figure 15-4
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5700
ASSISTANCE ADMINISTRATION	12/3/81
PART ll-APPROVED BUDGET	assistance identification no
TABLE A - OBJECT CLASS CATEGORY
(Non—construction)
TOTAL APPROVED ALLOWABLE
, BUDGET PERIOD COST
i
1 PERSONNEL

2. FRINGE BENEFITS

3. TRAVEL

4. EQUIPMENT

5 SUPPLIES

6. CONTRACTUAL

7 CONSTRUCTION

6. OTHER

9 TOTAL DIRECT CHARGES

10 INDIRECT COSTS RATE % BASE

11 TflT A1 (Share Reir.ipipnt V* Ft>Ht>rn1 %)

12. TOTAL APPROVED ASSISTANCE AMOUNT
s
TABLE B - PROGRAM ELEMENT CLASSIFICATION
( Non—construction)

1.

2

3.

4

5.

6.

7

6

9.

10.

11

12. TOTAL (Share Recipient	_% Federal	%)

13. TOTAL APPROVED ASSISTANCE AMOUNT
s
TABLE C - PROGRAM ELEMENT CLASSIFICATION
(Construction)

1 ADMINISTRATION EXPENSE

2. PRELIMINARY EXPENSE

3. LAND STRUCTURES. RIGHT-OF-WAY

4 ARCHITECTURAL ENGINEERING BASIC FEES

5. OTHER ARCHITECTURAL ENGINEERING FEES

6. PROJECT INSPECTION FEES

7. LAND DEVELOPMENT

8. RELOCATION EXPENSES

9. RELOCATION PAYMENTS TO INDIVIDUALS AND BUSINESSES

10. DEMOLITION AND REMOVAL

M. CONSTRUCTION AND PROJECT IMPROVEMENT

12. EQUIPMENT

13 MISCELLANEOUS

14. TOTAL (Llnea t thru 13)

15. ESTIMATED INCOME (It applicable)

16 NET PROJECT AMOUNT (Line 14 mlnum 15)

17 LESS INELIGIBLE EXCLUSIONS

18 ADO CONTINGENCIES

19*T0TAL (Share Recipient	% Federal	7e)

20. TOTAL APPROVED ASSISTANCE AMOUNT
$
EPA Form S700-20A (Rev. 5-82)	PAGE 2 OF 4
Figure 15-^A
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ASSISTANCE ADMINISTRATION
5700
12/3/81
PART lll-AVARD CONDITIONS
a. GENERAL CONDITIONS
The recipient covenants and agrees that it will expeditiously initiate and timely Complete the project work for
which assistance has been awarded under this agreement, in accordance with all applicable provisions of 40 CFR
Chapter I, Subpart B. The recipient warrants, represents, and agrees that it, and its contractors, subcontractors,
employees and representatives, will comply with: (1) all applicable provisions of 40 CFR Chapter I, Subchapter B,
INCLUDING BUT NOT LIMITED TO the provisions of Appendix A to 40 CFP Part 30, and (2) any special
conditions set forth in this assistance agreement or any assistance amendment pursuant to 40 CFR 30.425.
b SPECIAL CONDITIONS
(For cooperative agreements include identification or summarization of EPA responsibilities that reflect or
contribute to substantial involvement.)
EPA Po™ J700-20A (Rot.542)
Figure 15-^B
PACE 3 OF 4
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ASSISTANCE ADMINISTRATION
5700
12/3/84
ASSISTANCE IDENTIFICATION NO..
b. SPECIAL CONDITIONS (Contihued)
PART IV
NOTE: The Agreement must be completed in duplicate and the Original returned to the Grants Administration
Division for Headquarters awards and to the appropriate Grants Administrations Office for State and local
awards within 3 calendar weeks after receipt or within any extension of time as may be granted by EPA.
Receipt of a written refusal or failure to return the properly executed document within the prescribed time, may
result in the withdrawal of the offer by the Agency. \ny change to the Agreement by the recipient subsequent
to the document being signed by the EPA Award Official which the Award Official determines to materially
alter the Agreement shall void the Agreement.
OFFER AND ACCEPTANCE
The United States of America, actine bv and through the U.S. Environmental Protection Agency (EPA), hereby offers
assistance/amendment to the .	
RECIPIENT ORGANIZATION
'for.
_% of all approved costs incurred up to and not exceeding $_
AaS'bT ANCfc AM OU K' T
* for the support of approved budget period effort described in application (including all application modifications)
included herein by reterence.
PATE ANb V Y L b.
ISSUING OFFICE (Grants Administration Office)
AWARD APPROVAL OFFICE
ORGANIZATION/ADDRESS
ORGANIZATION/ ADDRESS
THE UNITED STATES OF AMERICA BY THE U S. ENVIRONMENTAL PROTECTION AGENCY
SIGNATURE OF AWARD OFFICIAL
TYPED NAME AND TITLE
DATE
This Agreement is subject to applicable U.S. Environmental Protection Agency statutory provisions and assistance
regulations. In accepting this award or amendment and any payments made pursuant thereto, (1) the undersigned
represents that he is duly authorized to act on behalf of the recipient organization, and (2, the recipient agrees
(a) that the award is subject to the applicable provisions of 40 CFR Chapter I, Subchapter B and of the provisions
of this agreement (Parts I thru IV), and (b) that acceptance of any payments constitutes an agreement by the payee
that the amounts, if any found by EPA to have been overpaid will be refunded or credited in full to EPA.
BY AMD ON BEHALF OF THE DESIGNATED RECIPIENT ORGANIZATION
SIGNATURE
TYPED NAME AND TITLE
DATE
EPA Form 5700-2QA (Rw.5-82)
Figure 15-4C
PAGE 4 OP
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ASSISTANCE ADMINISTRATION
5700
12/3/84
U.S. ENVIRONMENTAL PROTECTION AGENCY
• ASSISTANCE AMENDMENT
(Optional)
(Please read instructions on reverse)
aNCE I.D. NO.
AMENDMENT NO.
NOTE The original Amendment with one copy must be executedand returned to the Grants Administration Division for Headquarters
assistance awards and to the Grants Administration Branches for State aad local! assistance awards within 3 weelfs after receipt
or within any extension of time as may be granted in writing by EPA. Except as may be otherwise provided, no costs as a result of
the Amendment may be incurred prior to the execution of the Assistance Amendment by the parties thereto.
Receipt of a written refusal, or failure to receive the properly executed document within the prescribed time will result in the ter-
mination of consideration of the Assistance Amendment by EPA.
GENERAL INFORMATION
APPROPRIATION AND ACCOUNTING DATA
APPROPRIATION NUMBER
ACCOUNT NUMBER
OBJECT CLASS COOE
DESCRIPTION OF AMENOMENT PURSUANT TO EPA ASSISTANCE REGULATION 40 CFR 30.900 "PROJECT CHANCES AND ASSISTANCE MODIF-
ICATIONS" ANO 40 CFR 30.900-1 "FORMAL ASSISTANCE AMENDMENTS." THE ABOVE NUMBERED ASSISTANCE AGREEMENT IS AMENDED AS
FOLLOWS
AWARD APPROVAL OFFICE
ISSUING OFFICE
ORGANIZATION
ORGANIZATION
AOORESS
ADDRESS
RECIPIENT ORGANIZATION
ADDRESS
Except as provided herein all terms and conditions of the basic aastatance agreement, including prior amendments, remain unchanged
and tn full force and effect and subject tQ aU applicable proWsfans of 49 CFR Chapter /, Subpart B.
THE UNITED STATES OF AMERICA BY THE U.S. ENVIRONMENTAL PROTECTIC
N AGENCY
SIGNATURE OF AWARD OFFICIAL
TYPED NAME AND TITLE
DATE
BY AND ON BEHALF OF THE DESIGNATED RECIPIENT ORGANIZATION
SIGNATURE
TYPED NAME ANO TITLE
DATE
EPA Form S70Q-20B (Rev tt-79)	PREVIOUS EDITION IS OBSOLETE.
Figure 15-5
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ASSISTANCE ADMINISTRATION
5700
12/3/84
GENERAL INSTRUCTIONS FOR EPA FORM 5700- 20B, ASSISTANCE AMENDMENT
(EPA Personnel Only£
1.	Use of this Assistance Amendment. Required for all Assistance Amendments entered into pursuant to 40 CFR30.900-1.
This form is not applicable to fellowships.
2.	Preparation of the Assistance Amendment.
a.	Tne Assistance Amendment will be prepared by Grants Administration Division for Headquarters Assistance Amend-
ments and by the Regional Grants Administration Office for regional awards.
b.	All approved amounts should be rounded downward to the nearest dollar.
c.	If an item is not applicable to the Assistance Agreement, plfece "N/A" in the corresponding block. DO NOT LEAVE
ITEMS BLANK.
d.	Amendments should be numbered consecutively under each award.
3.	Transmittal. Upon approval of an amendment award and 5 days after the Grants Information Branch, PM—216, is notified,
the amendment document will be transmitted by certified mail (return receipt requested) to the applicant for execution. An
additional copy of the Assistance Amendment will be transmitted to the State agency for Wastewater Treatment Works Con-
struction projects.
4.	Return Address. The recipient should be instructed in the transmittal letter to return Headquarters Assistance Amend-
ments to the Grants Operations Branch, Grants Administration Division, and regional Assistance Amendments to the Grants
Administration Office of the appropriate regional offi ce. It should be recommended that return transmittal be made by cert-
ified mail.
5.	Distribution. The final distribution of the executed Assistance Amendment copies shall be performed by the Grants Ad—
ministration Division for Headquarters awards and by the appropriate Grants Administration Office for regional awards.
PREPARATION INSTRUCTIONS BY ITEM
Appr opriater and Accounting Data Supply appropriation accounting and object class data as indicated.
Description ot Amendment. Supply concise description of amendment indicating all deletions and additions to the Assis—
tance Agreement. (Use and attach additional sheets if necessary.)
NOTE Any change m the approved project wotk, approved budget, or the approved commencement and completion dates
for the approved project or major phases thereof must be stated in the Assistance Amendment. Example: Assistance
Agreement, Page 1, Part 1, Item 5, entitled "PROJECT MANAGER" is deleted in its entirety. The following Item 5, entit-
led "PROJECT MANAGFR" is substituted in lieu thereof
PROJECT MANAGER
a.	Name (John Smith)
b.	Title (Project Manager)
c.	Phone Number 123—4567
d.	Address 100 Main St., Midtown, USA
Award Approval Office. Indicate, the EPA program organization title of the Award Approving Official and complete address.
Issuing Office. Indicate the Grants Administration Office (Headquarters or Regional) and complete address.
Recipient Organization. Indicate the llegal organization title and complete address of the Recipient.
EPA Form S700-20B (R«». 11-79) (R«v»r*«)
Figure 15~5A
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ASSISTANCE ADMINISTRATION
5700
12/3/84
Instructions for use of Assistance Agreement and Amendments
1.	Preparation of Assistance Agreements.
EPA Form 5700-20A, EPA Assistance Agreement/Amendment, must be used for
preparing all EPA assistance agreements and nay be used for amendments.
Amendments may also be prepared on an Assistance Amendment (EPA Form 5700-20B).
The first page of the Assistance Agreement/Amendment (EPA Form 5700-20A),
"Assistance Notification Information," must also be prepared with each
optional amendment form which changes the award amount. Page one of the
5700-20A is used for congressional notification (see Chapter 16 of this
Manual).
2.	General Preparation
a.	The Grants Operations Branch will prepare these forms for all financial
assistance awarded at Headquarters. The regional Assistance Administration
Units will prepare these forms for awards of assistance by regional
award officials.
b.	Round all amounts down to the nearest dollar.
c.	DO NOT IEAVE ANY ITEMS BLANK. If an item is not applicable, enter "N/A".
Figure 15-6
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ASSISTANCE ADMINISTRATION
5700
12/3/84
PREPARATION INSTRUCTIONS BY ITEM
Part I. Assistance Notification Information
1.	ASSISTANCE IDENTIFICATION NUMBER. Refer to the face page of the EPA
application form and enter the EPA assistance identification number.
2.	LOG NUMBER. Ehter the number your office assigned to identify the issuing
office, program code of the award action, and the numeric sequence of that
program award action in the current fiscal year (each fiscal year's numeric
sequence for program award action begins with "1"). (See Chapter 4 of
this Manual).
3.	DATE OF AWARD. Biter the date the EPA Award Official signs Part IV of the
EPA Form 5700-20A, or the EPA Form 5700-20B.
4.	MAILING DATE. Ehter the date EPA will mail this offer to the applicant
(5 working days AFTER date of Award Official's signature).
5.	AGREEMENT TYPE. Ehter "X" in appropriate block.
6.	PAYMENT METHOD. Ehter "X" in appropriate block. If "Letter of Credit",
enter number assigned by the Financial Management Division.
If Headquarters action, enter "Financial Management Center, Las Vegas" to
receive payment request; if regional action, enter organization name and
region number to receive payment request.
7.	TYPE OF ACTION. Insert type of assistance action: new, continuation,
augmentation, or revision (i.e., amendment). After "augmentation", or
"revision", include the word "increase" or "decrease", as appropriate.
8.	RECIPIENT. Ehter the ccmplete legal name and address of the recipient
organization and the Congressional District in which it is located. Refer
to assistance application and the current Congressional District Atlas.
Enter the EIN (Employer Identification Number) as provided on the assistance
application.
9.	PAYEE. Ehter the ccmplete legal title, address and telephone number of the
organization to which EPA will issue payments. Refer to assistance application.
10.	RECIPIENT TYPE. Ehter recipient type as indicated on assistance applicaton.
11.	PROJECT MANAGER AND TELEPHONE NUMBER. Ehter the name, title, address,
and telephone number of the recipient's principal contact. Refer to
assistance application.
12.	CONSULTANT. (WWT Construction Grants, only) Enter the name, address, and
telephone number of the recipient's consulting engineering firm. Refer to
Figure 15-6A
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ASSISTANCE ADMINISTRATION
5700
12/3/84
assistance application. For awards approved by the Office of Research
and Development (ORD)n, "...xxx..." through title in item 12 and enter the
name or acronym for the ORD Administering Office/Lab.
13.	ISSUING OFFICE. Enter "Washington, D.C." if Headquarters action; enter
your Regional Office's City and State if regional action.
14.	EPA PROJECT/STATE OFFICER AND TELEPHONE NUMBER. Enter the name, title,
address, and telephone number of the EPA Project Officer. (For a
construction grants program delegated to the State, enter the name, title,
address, and telephone number of the State Project Officer.)
15.	EPA CONGRESSIONAL LIAISON. Refer to list provided by the Office of
Congressional Liaison and enter name and telephone number of the person
designated as EPA's liaison for the Congressional District of the
recipient.
16.	STATE APPLICATION IDENTIFIER. Enter the State identification number from
item 3a. of the S.F. 424.
17.	FIELD OF SCIENCE. EPA program offices or Regional R&D representatives
assign a Field of Science Code for Research, Demonstration, Training,
Investigations, Surveys and Studies awards to: academic institutions,
Federally funded research and development centers (FFRDC's) administered
by academic institutions, and R&D awards to selected non profit research
institutes and associated FFRDC's.
18.	PROJECT STEP. (WWT Construction Grants, only) For all WWT Construction
grants authorized under the Clean Water Act, as amended, enter one of the
following codes:
"0" Projects for Construction Management Assistance;
"1" Projects for facilities plans and studies—augmentations and decreases,
only;
"2" Projects for preparation of construction drawings and specifications—
augmentations and decreases only;
"3" Projects for building and erection (Step 3) of a treatment works;
"4" Projects for a combination of design and building (Step 2 + 3) of a
treatment works;
"9" Projects for design and construction of a treatment works facility
for training operations and maintenance personnel.
19.	STATUTORY AUTHORITY. Enter the Public taw Number and the section number of
the law that authorizes this assistance program.
Figure 15-6B
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ASSISTANCE ADMINISTRATION
5700
12/3/84
20.	REGULATORY AUTHORITY. Enter the applicable EPA assistance regulation(s)
governing this award action.
EXAMPLES: 40 CFR Parts 30 and 40 (Research)
40 CFR Parts 30 and 35 (Air Pollution Control Program
Grant)
21.	STEP 2 + 3 & STEP 3 (WWT CONSTRUCTION GRANTS, only).
a.	Treatment Level. Enter one or two codes, as appropriate, frcm
the following list to identify the level of treatment to be obtained
upon conpletion of the treatment works.
1.	NO TREATMENT
2.	PRIMARY TREATMENT ONLY
3.	SECONDARY TREATMENT (BOD5=15, SS=30 PPM)
4.	SECONDARY TREATMENT PLUS (BOD5=15 TO 30 PPM)
5.	SECONDARY TREATMENT PLUS (BOD5C15 PPM)
6.	NITRIFICATION (AMMONIA NITROGEN OXIDATION (NH3-N) AND BOD5<30 PPM)
7 NITROGEN REMOVAL AND BOD5<30 PPM
8.	PHOSPHORUS REMOVAL
9.	LAND TREATMENT WITHOUT SURFACE DISCHARGE
(a)	TREATMENT AND REUSE WITHOUT SURFACE DISCHARGE
(b)	NO SUBSTANTIAL SURFACE DISCHARGE (INCLUDING NO DISCHARGE-
LAGOONS. DOES NOT INCLUDE LAND TREATMENT).
(C) OTHER
b.	Project Type. Enter one of the following codes to identify whether the
project is to construct a new wastewater treatment system or to modify
the capacity and treatment level of an existing system.
NEW - CONSTRUCTION OF A NEW WASTEWATER TREATMENT SYSTEM.
MOD - MODIFICATION OF AN EXISTING SYSTEM WITH NO INCREASE IN CAPACITY
OR TREATMENT LEVEL.
INC - MODIFICATION OF AN EXISTING SYSTEM WITH AN INCREASE IN CAPACITY
LEVEL ONLY.
INT - MODIFICATION OF AN EXISTING SYSTEM WITH AN INCREASE IN TREATMENT
LEVEL ONLY.
ICT - MODIFICATION OF AN EXISTING SYSTEM WITH AN INCREASE IN BOTH
CAPACITY AND TREATMENT LEVEL.
c.	Treatment Process. Enter one or two of the following codes to identify
the major process(es) in the treatment chain upon completion of the
treatment works.
Figure 15-6C
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ASSISTANCE ADMINISTRATION
5700
12/3/84
CODE	PROCESS
1.	PRIMARY ONLY
2.	ACTIVATED SLUDGE (INCLUDING NITRIFICATION)
3.	TRICKLING FILTER
4.	LAGOONS/PONDS
5.	CHEMICAL (WITH PRIMARY)
6.	BIOLOGICAL TREATMENT WITH CHEMICAL COAGULATION
7.	CHEMICAL FOR PHOSPHORUS REMOVAL (AWT)
8.	BIOLOGICAL-CHEMICAL NITROGEN REMOVAL (AWT)
9.	PH YSICAL-CHEMICAL NITROGEN REMOVAL (AWT)
(a)	CARBON ADSORPTION (AWT)
(b)	FILTRATION (AWT)
(c)	OTHER
(d)	BIO DISC
(e)	ARF
(f)	OXIDATION DITCH
(g)	EXISTING TREATMENT PROCESS NOT CHANGED
d. Sludge Design. Enter one of the following codes to identify the
principal sludge disposal technique to be used upon completion of the
treatment works. If more than one technique will be used, select and
enter one code to identify the technique to be used for the largest
percentage of sludge handled.
1.	BARGED OUT TO SEA
2.	USED FOR FERTILIZER MANUFACTURE
3.	BURNED FOR FUEL
4.	INCINERATED
5.	LAND FILL OF UNINCINERATED SLUDGE
6.	SOIL CONDITIONER
7.	OCEAN OUTFALL
8.	OTHER
22.	PROJECT TITLE AND DESCRIPTION. Enter the complete title of the project and
very briefly describe its objectives.
23.	PROJECT LOCATION. Enter geographic location (City/Place, County/State,
Congressional District) of the project site(s), or the area served.
Refer to assistance application. If the geographic location encompass
more than one Congressional District, list all the Districts. Refer to
the current Congressional District Atlas to locate specific political
jurisdictions and corresponding Congressional Districts.
Figure 15-6'D
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ASSISTANCE ADMINISTRATION
5700
12/3/84
24.	ASSISTANCE PROGRAM. Biter the Catalog of Federal Domestic Assistance
program lumber and title. Refer to assistance application, and the current
Catalog of Federal Danestic Assistance.
25.	PROJECT PERIOD. Enter the approved project period dates (see figure 34-1).
26.	BUDGET PERIOD. Enter the approved budget period dates (see figure 34-1).
27.	COMMMLJNITY POPULATION. (WWT Construction Grants, only) Enter the population
of the recipient municipality, city, county, or other political jurisdiction.
If the political jurisdiction receiving the award is a sewer district,
regional commission, etc., estimate the population for the area covered by
the boundaries of the district or commission. If the recipient is a State
office, enter the population of the actual project site.
28.	TOTAL BUDGET PERIOD COST. Enter the total allowable budget period cost of
the project frcm EPA Form 5700-14, Grant Funding Order, for Research,
Demonstration, Investigations, Surveys, Studies, and Training projects.
For all other assistance programs, insert "N/A".
29.	TOTAL PROJECT PERIOD COST. Enter the total estimated allowable cost of
the project.
30.	EPA AMOUNT THIS ACTION.
a.	For new or continuation awards, enter under "This Action" the dollar
amount EPA obligated or deobligated for this action. If not applicable,
enter "N/A".
b.	For amendments only, enter totals for "Former Award", "This Action" and
"Attended total". If not applicable, enter "N/A".
31.	EPA IN-KIND AM3UNT.
a.	For new or continuation awards, enter under "This Action" the anount an
EPA Progran Office approves for the cost of State assignees or other
goods or services in lieu of dollars. If not applicable, enter "N/A".
b.	For amendments only, enter totals for "Former Award", "This Action" and
"Amended Tbtal". If not applicable, enter "N/A".
32.	UNEXPENDED PRIOR YEAR BALANCE.
a.	For new or continuation awards, enter under "This Action" the amount of
EPA funds previously awarded to, but not obligated by, the recipient in
a previous budget period which are carried forward to the next budget
period. If not applicable, enter "N/A".
b.	For amendments only, enter totals for "Former Award," "This Action" and
"Amended Total". If not applicable, enter "N/A".
Figure 15-6 E
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ASSISTANCE ADMINISTRATION
5700
12/3/84
33.	qiMKK FEDERAL FUNK? (Administered by EPA).
a.	For new or continuation awards, enter under "This Action" the amount
of other Federal funds awarded to the project. If not applicable,
enter "N/A".
b.	For amendments only, enter totals for "Former Award", "This Action" and
"Amended Total". If not applicable, enter "N/A".
34.	RECIPIENT CONTRIBUTION.
a.	For new or continuation Headquarters awards, enter under "This Action"
the amount shown on EPA Form 5700-14, "Grant Funding Order" as the
recipient's contribution for this budget period. If not applicable,
enter "N/A". For new or continuation regional awards, refer to assistance
application and enter under "This Action" the amount shewn as recipient's
contribution for this budget period.
b.	For amendments only, enter totals for "Former Awards", "This Action" and
"Amended Total". If not applicable, enter "N/A".
35.	STATE CONTRIBUTION.
a.	For new or continuation awards, enter under "This Action" the amount of
the State's contribution for this budget period. Refer to assistance
application.
b.	For amendments only, enter totals for "Former Award", "This Action" and
"Amended Total". If not applicable, enter "N/A".
36.	LOCAL CONTRIBUTION.
a.	For new or continuation awards, enter under "This Action" the amount of
the Local's contribution for this budget period.
b.	For amendments only, enter totals for "Former Award", "This Action" and
"Amended Total". If not applicable, enter "N/A".
37.	OTHER CONTRIBUTION.
a.	For new or continuation awards, enter under "This Action" the amount of
any other contribution for this budget period.
b.	For amendments only, enter totals for "Former Award", "This Action" and
"Amended Total". If not applicable, enter "N/A".
38.	ALLOWABLE PROJECT POST.
a. For new or continuation awards, enter under "This Action" the total
estimated allowable cost of the project.
Figure 15-6F
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ASSISTANCE AMENI^TRATION
5700
12/3/84
b. Fbr amendments only, enter totals for "Former Award", "This Action" and
"Amended Ibtal". If not applicable, enter "N/A".
39. FISCAL DATA.
a.	EPA amount: Ehter the program element, fiscal year of funds, appropriation
number, document control number, account number, object class code, and
obligated/deobllgated amount.
b.	For other Federal funds (same as Item 33 "Other Federal Funds"): Ehter
the fiscal year of funds and obligated/deobllgated amount.
PART II. APPROVED BUDGET
Ehter the total approved allowable budget period cost by object class
category (Table A) or program element classification (Table B or C) as appropriate.
For regionally administered non-construction projects use either Table A or Table B.
The EPA Project Officer should consult the Project Manager to determine the
recipient's preference, based upon its accounting system format, for use of
Table A or Tables B/C.
(Note: The program element classification categories shall be determined frcm
the application).
PART III. AWARD CONDITIONS
Fbr all actions, include any additional award conditions required by EPA
which are NOT covered by Title 40, Chapter I, Subchapter B of the Code of
Federal Regulations. If this is a cooperative agreement, identify all EPA
responsibilities that reflect or contribute to substantial Federal involvement
during project performance.
PART IV. OFFER AND ACCEPTANCE
Ehter the complete legal name of the recipient organization, percentage of
approved Federal costs, dollar amount of approved Federal costs, and title and
date of the recipient's application. The EPA Award Official and the recipient
representative executing the assistance agreanent/amendment must have the
authority to bind the Government and the recipient.
Figure 15-6G
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5700
ASSISTANCE ADMINISTRATION	12/3/84
U.S. ENVIRONMENTAL PROTECTION AGENCY
WASHINGTON, D.C. 20400
FELLOWSHIP AGREEMENT
NOTE The Fellowship Agreement must be completed in original and three copies. The original and first two copies must be re-
turned to the Grants Administration Division within 3 weeks after receipt or within any extension of time as may be granted by
EPA Except as may be otherwise provided, no costs may be incurred prior to the execution of the Fellowship Agreement by
parties thereto.
Receipt of a written refusal, or failure to return the properly executed document within the prescribed time, will result in the
automatic termination of consideration of the fellowship offer by the Agency. Any amendment to the Fellowship Agreement by the
Ifellow subsequent to the document being signed by the Award Official shall void the Fellowship Agreement.
PART 1

GENERAL INFORMATION



1. FELLOWSHIP ADMINISTRATION DATA
2. APPROPRIATION ANO ACCOUNTING DATA
O STATUTEREFERENCE
b. REGULATION REFERENCE
a. APPROPRIATION
b.
ACCOUNT NUMBER
C FELLOWSHIP PROGRAM
C. OBJECT CLASS CODE
3. AWARD APPROVAL OFFICE
4.
ISSUING OFFICE
a. ORGANIZATION
a ORGANIZATION
b ADDRESS
b. ADDRESS
S.

PROJECT OFFICER (Federal Contact)



O NAME
d ADDRESS



b. TITL E




c TELEPHONE number (Include Area Code)




6.

FELLOW



0 NAME
b. ADDRESS
7.

SPONSOR



a NAME
d. ADDRESS



b TITLE




c TELEPHONE NUMBER (Include Area Code)


-


a TUITION AND FEES
PAID TO
INSTITUTION
>
8. AMOUNT
b. BOOKS ANO SUPPLIES (May not exceed $230.)
i
PAID DIREC T

*

c STIPEND


*



TOTAL AMOUNT OF FELLOWSHIP

S
9. DURATION (Approved dates of fellowship, 12 nwonthp ot lemm):
FROM:
TO-



10. PAYEE (Foe Institutional Allowances)
11. FELLOW'S NAME AND ADDRESS (For atlpanS check)
O. NAME
O NAME
b. TITLE
b. ADDRESS



C. AOORESS




EPA Form 3770-8 (7-73) replaces formfwpca -iso	which is obsolete and phs~_41o-4 whTch will not be used
Figure 15-7
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ASSISTANCE ADMINISTRATION
PART II
SPECIAL CONDITIONS atary)
5700
12/3/84
(Continue on bteih ahoet II more space im neede<0
PART III	'	OFFER AND ACCEPTANCE
The United States of America, acting by and through the U.S. Environmental Protection Agency (EPA), hereby of-
fers a Fellowship to	fellow	all approved costs up to and not exceeding
$	for the support of the effort described in application dated	(inducting alt ap-
FELLOWSHIP AMOUNT
plication modifications) included herein by reference.
This Fellowship Agreement is subject to applicable U.S. Environmental Protection Agency statuatory provisions,
fellowship regulations (40 CFR, Part 46) and of the provisions of this agreement (Parte I thru III). The Fellow also_
agrees that funds awarded will be used solely for the purposes of the program as approved.	
THE UNITED STATES OF AMERICA BY THE U.S. ENVIRONMENTAL. PROTECTION AGENCY	
AWARO OFFICIAL
SIGNATURE
TYPED NAME
TITLE
DATE
BY FELLOW
SIGNATURE
T YPED NAME
EPA Fom 5770-8 (7-73) (limn)
Figure 15"7 A
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ASSISTANCE ADMINISTRATION
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FORM APPROVED - OMB NO. 156-R0046
UNDERSTATES
ENVIRONMENTAL PROTECTION AGENCY
EPA FELLOWSHIP
ACTIVATION NOTICE
(Please complete by typewriter)
FELLOWSHIP NO.
WASHINGTON. O.C. 20460
DATE FELLOW WILL ENTER ON DUTY
NOTICE: All checks will be mailed to any address requested by fellow, except for tuition and fees which will be
mailed to the sponsoring institution.






NAME OF FELLOW
NAME OF SPONSORING INSTITUTION
MAILING ADDRESS FOR STIPEND CHECK (7ncfud« ZIP Code)
MAILING ADDRESS FOR INSTITUTION CHECKS 
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)>:CAI, A Nil MVUN) STRATI "P RFVIEW
Nuntoer
A
New
Revision
INITIAL APPLICATION '.xECElPT
1. Eligible Applicant (ACT
Profit	 Noflprof it_
2.	Original Signature
3.	SF 424 Form (State & Local Govt.)
4.	Required Cqples of Application
5.	Narrative Statenent for Assistance
6.	Quality Assurance Statonent
7.	Procurenent System Certification
8.	Debadent/Suspension Listing
B. ITEM CHECK
1.	applicant Name, Address, Project Location
2.	Project Manager	
3.	Intergovernmental Review: (E.O. 12372) Applicable_
Yes_
Yes_
Yes_
Yes_
Yes_
Yes_
Yes_
Yes_
Yes
No_
No_
No_
NO_
No_
No_
No_
No_
No
4.	EPA Intergovernmental Review:
5.	Relocation
6.	Flood Insurance
7.	Historical Preservation Sites
8.	Biographical Sketches
9.	Proprietary Information
10.	Devlation(s) Requested
11.	Hunan Subjects
ffs" 12.	An lira 1 Subjects
T
fD 13.	OIW
I—1
Project Period!	
Budget Period:	
Applicable_
Not Applicable_
Not Appllcable_
Yes	No_
Yes	No_
Yes	No
Yes	No_
Yes	No_
Yes	No	
Yes	No_
Yes	No_
Yes No
U1
C. HUDGET ATtftLYSIS
1.	Total Project Costs S_
2.	Total Buctgot Costs $
Ttotal ETA Onto $
3.	Unallowable Coots (Specify)
4.	Consultant Costs
5.	Printing Oost<»
Itatal EPA Budget Costs $
Yea
Yes
Yes
6. Itemized Oonts
personnel I of Time
Travel - 0 of tripe, I of people, where
7. Oast Analysis Required
0. Ffcjulpment Over $10,000
9. IDC Rate	i
yes
No
Mo_
No
No
co
M
W
•-3
o
w
z
5
i-3
w
O
Expiration Datei	
base Includes or excludest
10.	Cost Sharing! Statutory
11.	Other Federal Ma
b. REMARKS
Base Bstabllshed_
Oi can^uA
Yes	Ho	
Yes No	
To be established
Off Caofjus	
Regulatory
Instructional
	 Yes
Yes
No
No
S|>eclal conditions Applicable*
ro
uo vji
^—]
Oo O
-Cr O
GRANTS f5PpC|Al.IST_
Wvre
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ASSISTANCE ADMINISTRATION
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CHAPTER 16 ~ NOTIFICATION OF ASSISTANCE AWARD ACTIONS
Table of Contents
PARAGRAPH	PARAGRAPH
TITLES	NUMBERS
Policy		1
Exceptions to Policy		2
Responsibility		3
Procedures		4
Supploriental Assistance Awards				5
Reauthorization of Prior Year Funds		6
Submission of Corrections to &*ard Notifications		7
Other Distribution		8
Operational Problems		9
i
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ASSISTANCE AEMINISTRATION
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CHAPTER 16 ~ NOTIFICATION OF ASSISTANCE AWARD ACTIONS
1.	POLICY. It is EPA policy that:
a.	Award Officials;
(1)	Inform the Administrator, through the Office of External Affairs
(OEA), of each offer of financial assistance before delivery of the offer
and/or notification to any person outside the Agency;
(2)	Delay mailing avard offers (EPA Fbrm 5700-20A, "Assistance
Agreement/Mendments") to prospective recipients for five vrork days after
signature; and
(3)	Refrain from orally or otherwise informing prospective recipients
(or other non-EPA persons) of an assistance offer before the expiration of the
five work day period unless specifically authorized in advance by the Office of
Congressional Liaison (OCL).
b.	The Headquarters' Office of External Affairs(OEA). The OEA Office of
Congressional Liaison (OCL) will notify the appropriate congressional delegation
of each award of financial assistance prior to the recipient being notified.
2.	EXCEPTIONS TO POLICY. An Award Official who considers that an an overriding
circumstance justifies deviation from the Agency's policy for congressional
notification, must inform the Office of Congressional Liaison (FTS 382-5184)
of the circumstance in each instance and request that Office's concurrence
before initiating such notification.
3.	RESPONSIBILITY.
a.	Award Officials. Award Officials must notify the OCL, through the
Grants Administration Division, of all financial assistance award transactions
in accordance with the procedures below. After signing an agreement or
amendment, they must not notify prospective award recipients for five wark
days.
b.	Grants Operations Branch (Headquarters). The Grants Operations
Branch (GOB), Grants Administration Division, will coordinate the receipt of
all award notifications, including new awards, continuations, increases,
declinations, withdrawals, and decreases. GOB will also assure the timely
receipt of award notifications by the OCL (except decreases, declinations and
withdrawals). GOB will identify an Award Notification Control Station and
individuals) to be responsible for this coordination.
c.	Office of Congressional Liaison. The OCL will pick up award
notifications frcm GOB and route and deliver them to the appropriate
congressional delegation through the U.S. Capitol mailroam. The OCL will
provide any notification to the Office of Intergevermental Liaison (OIL) and
other OEA offices.
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ASSISTANCE AEMINISTRATION
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4. PROCEDURES.
a.	Preparation of Award Documents. The Assistance Administration unit
that processes the "Assistance Agreement/Amendment" (EPA Form 5700-20A) must
assign a "mail date" of five work days following the date of the Award
Official's signature.
b.	Submission of Notifications. The Assistance Administration Unit (AAIJ)
that processes the award must provide a copy of the award notification (Page 1
of the "Assistance Agreement/Amendment") to the Award Notification Control
Station in the GCB within 24 hours (one work day) following signature of the
award official.
(1)	Regional Programs. The responsible regional organization must
transnit Page 1 of each Ajreement/Amendment by electronic mail to GCB, at
Electronic Mail Box EPA 3331. Accompany each transmission with a request for
acknowledgement of its receipt. If the electronic mail system is inoperative
for more than a few hours, use facsimile communication via EPA Communications
Center, telephone numbers 8-382-7884; 7886; 7883; or 7869. Do not transmit
award notifications by facsimile without first notifying the Award Notification
Control Station, GOB (telephone 8-382-5266).
(2)	Headquarters Programs. The Award Official (Chief, Grants
Operations Branch) must have award notifications hand delivered to the Award
Notification Control Station (also in GOB) immediately following signature of
the agreement or amendment.
(3)	Exceptions. If an JWard Official determines that the recipient
(or another) must be notified of the offer of an award before the expiration
of the five work day period because of a unique circumstance, he or she must
preclear the proposed expedited action with the Office of Congressional Liaison.
Once cleared, the awarding office must inform the GDB's Award Notification
Control Station of the clearance. Regions must telephone GOB at FTS 382-5266,
and then immediately transmit the award notification by "E-mail".
c.	Document Control.
(1) Awarding Office. The regional or Headquarters awarding office
must maintain two separate logs, each of which will be subdivided by program.
One log will contain a record of all new, continuation, augmentation, and
revision awards. The second will contain a record of all decrease, declination
and withdrawal actions. Assign each "Assistance Agreorient/Merriment" action the
next sequential log number in the appropriate progtam series before forwarding
it to GOB's Award Notification Control Station. Accuracy in both the assignment
of log numbers (separate series for each program) and nraintenance of the two
logs (separate section for each program) is vital to controlling the flow of
documents between the issuing offices, GCB, and the Office of Congressional
Liaison. Ey referencing the log number, either office can easily verify
their issuance or receipt of a particular ^reement/Amendment notification.
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ASSISTANCE ADMINISTRATION
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Example of an Air Pollution Control Program Support Dag Number:
. ONE - A - 12 .
• • •
Region ONE .	.	. 12th AFC Agreement/Amendment
v this fiscal year
Air pollution Control (AFC)
(2) Grants Operations Branch.
(a)	Receipt of Notifications. The QOB (Award Notification
Gontrol Station) must check their electronic nailbox for regional award
notifications twice daily.
(b)	Logging. The QOB Award Notification Control Station must
maintain two sets of logs similar to those maintained by the awarding offices,
to separately record the actions of each of the ten regional Award Officials
and the Headquarters Award Official. These separate logs will record (1) new,
continuation, augmentation, and revision awards, and (2) decrease, declination,
and withdrawal actions. Each log will be subdivided to provide a separate
record of the notifications for each program and each Award Official. They
will post notifications as they receive them from the awarding offices. In
the event that an apparent error or amission is noted in a notification document,
including the assignment of an erroneous log number, the Award Notification
Control Station must contact the awarding office to request corrective action.
(c)	Verification. The GOB staff will observe the sequence
of log numbers being posted and follow up with the awarding office by phone
or E-mail on any missing numbers. They should report any failure to account
for a missing number within one work day to the GOB (Section "C") supervisor
for further action.
(d)	Retention. GOB will retain notifications on Lexitron
diskettes for 90 days after which they will be erased.
d.	Pick Up of Notifications. The Office of Congressional Liaison will
pick up the notifications of assistance awards from the Grants Operations Branch
at least twice each work day.
e.	Notification of Recipients. EPA will notify recipients of assistance
offers and/or decreases by mail. Award Officials must not mail "Assistance
Agreement/Amendment" forms (EPA Form 5700-20A) to recipients prior to the
fifth working day after the date of award (shown in Item 3 of the form). This
hold period provides sufficient time for advance congressional notification by
the Office of Congressional Liaison. The five day waiting period applies to
all actions affecting the award amount, except decrease, declination or withdrawal
actions and awards of non-EPA supplemental Federal funds to Construction Grants
for Wastewater Treatment Works (WWT) projects. Any deviation from this procedure
must receive prior approval of the Office of Congressional Liaison as noted in
paragraph 2 above.
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ASSISTANCE AEMINISTRATION
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5.	SUPPLEMENTAL ASSISTANCE AWARDS. EPA will show awards of non-EPA
supplemental Federal funds (for example: Appalachian Regional Council (ARC),
Economic Development Administration (EDA)) to a WWT project in item 33 of the
form and the source of funds in Item 22. Show the fiscal year and amount of
obligation in Item 39 (Fiscal Data). Do not enter or include non-EPA funds in
entries in Items 30 - 32 of the form. EPA does not notify Congress of these
awards so the five day delay for mailing notices to recipients is not required.
6.	REAUTHORIZATION OF PRIOR YEAR FTJNDS. Do not submit a copy of an award
notification (Page 1 of the Assistance Agreanent/ftnendment (EPA Form 5700-2OA))
to the Grants Operations Branch, Award Notification Control Station when only
the reauthorization for expenditure of unexpended prior year funds is occurring.
7.	SUBMISSION OF CORRECTIONS TO AWARD NOTIFICATIONS.
a.	Regional Awards. A regional Assistance Administration unit (AAU) that
discovers an error in an award notification which they have transmitted to GOB's
Award Nstification Control Station must immediately inform them (FTS 382-5266)
and correct the error by electronic mail. The correction message need only
advise the log number of the notification, the assistance ID number of the
agreement, the recipient name, and the nature of the error to be corrected.
Correction of dollar amounts should be expressed as "from $ XXX. to $ YYY."
b.	Headquarters Awards. The GCB will correct an error in a Headquarter's
notification by carrying a corrected document, with a request for appropriate
correcting action, to the Award Notification Control Station.
8.	CiniER DISTRIBUTION. Prog ran staffs may arrange with the Grants Administration
Division to receive copies of award notifications (Page 1 of EPA Form 5700-20A,
"Assistance Agreements/Amendment) of special interest to the program.
9.	OPERATIONAL PROBLEMS. Regional staffs should advise the Award Notification
Control Station (GOB, Section "C") by telephone (FTS 382-5266) of any operational
problems encountered.
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Recipient Requirements
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ASSISTANCE ADMINISTRATION
5700
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RECIPIENT REQUIREMENTS
CHAPTER	CHAPTER
TITLES	NUMBERS
RECIPIENT RECORD REQUIREMENTS		19
ACCOUNTING AND INTERNAL MANAGEMENT		20
PROCUREMENT UNDER ASSISTANCE AGREEMENTS		21
COST AND IRICE ANALYSIS		22
CIVIL RIGHTS AND LABOR STAN CARDS COMPLIANCE		23
SMALL, WOMEN'S, AND MINORITY BUSINESS UTILIZATION		24
UROGRAM INCOME		25
EKOPEKTY MANAGEMENT		26
REAL IROFERTY ACQUISITION		27
RELOCATION ASSISTANCE		28
PATENTS, INVENTIONS, DVTA AND COPYRIGHTS		29
PRINTING AND PUBLICATIONS 		30
(RESERVED)		31
(RESERVED)		32
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5700
ASSISTANCE ADMINISTRATION	12/3/84
CHAPTER 19 - RECIPIENT RECORD REQUIREMENTS
Table of Oontents
PARAGRAPH	PARAGRAPH
TITLES	NUMBERS
General		1
Requirements for Recipients to Retain Records of Assisted Projects		2
Accessibility of Recipient's Records		3
Disclosure of Information		4
Transfer of Recipient's Records to EPA		5
Microform Records		6
APPENDIX	APPENDIX
TITf.RS	NUMBERS
Survey of Grantee's Accounting, Procurement, and Property Management
Systems	 19-A
Survey of Grantee's Management Systems	 19-B
l
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ASSISTANCE ADMINISTRATION
5700
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CHAPTER 19 ~ RECIPIENT RECORD REQUIREMENTS
1.	GENERAL.
a.	Recipients. Recipients must establish an official file for each
EPA supported project and must maintain records, documents, accounting books, and
other evidence of the assisted activities (see 40 CFR §30.500). They must identify
such records with the EPA Assistance Identification Number and must assure that
the records reflect the following:
(1)	The amount, source, and disposition of all funds received for
the project including Federal and any cost sharing funds;
(2)	Program inccme, i.e., receipts and expenditures of income frcm
charges generated by the project (such as the sale of a solid waste by-product or
copies of reports or studies);
(3)	The total costs (including direct and indirect costs) incurred
for the performance of the project during each budget period;
(4)	Nonexpendable personal property purchased as a direct cost
under the assistance agreement or contributed as part of an in-kind contribution;
(5)	Justification for the use of "force account" work. The costs
must be supported by basic records such as time and effort records and other
data related to the project; and
(6)	Compliance with specific program and generally applicable
crosscutting Federal statutes and regulations.
Recipients of EPA supported Superfund cooperative agresnents must maintain records
on a site-specific basis and Identify the records with the appropriate Site Number
and Activity Code as well as with the relevant EPA Assistance Identification Number.
b.	Contractors to a Recipient. A recipient's contractor under a sub-
agreement in execution of an assistance agreanent must maintain financial and
other papers, records and documents, comparable to those outlined in this Chapter
that adequately reflect its participation in the project activities.
c.	Guidance. Appendix 19-A, "Survey of Grantee's Accounting, Procurement,
and Property Management Systems" (WV/T construction) and Appendix 19-B, "Survey
of Grantee's Management Systems" (nonconstruction), which were prepared for the
guidance of auditors, provide insight into EPA's expectations for recipient
management and record keeping systems.
2.	REQUIREMENTS FOR RECIPIENTS TO RETAIN RECORDS OF ASSISTED PROJECTS.
a. General. The recipient and its contractors under the assistance
agreement must retain all financial records, supporting documents, statistical
and other records pertinent to an agreement, or to any subagreement over $10,000
under an agreement, for at least three years beyond the end of the project.
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ASSISTANCE ADMINISTRATION
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b.	Automatic Extension of Required Retention Period. The required retention
period for records is extended if any litigation, claim, or audit is started
before the expiration of the retention period. In such event, the records of
the project(s) may not be destroyed as scheduled but must be retained until
all litigations, claims, or audit findings have been resolved or the expiration
of the retention period whichever is later. This applies to all EPA financial
assistance programs.
c.	Specific Program Requirements.
(1)	WWT Construction Grant Agreements.
(a)	Agreements Funded under Public Law 84-660. Retain records
for at least three years after the approval date of EPA's final payment for
the project.
(b)	Agreements funded under Public Law 92-500 before May 12, 1982.
(1)	Retain records of all projects with the same six digit
EPA Assistance Identification Number for at least three years after approval of
the final payment request for the last segment (two digit EPA project sequence
number) awarded before May 12, 1982; or, if earlier,
(2)	Retain records of any project for three years after EPA
advises the recipient in writing that EPA has officially closed out the agreement
for that project/segment;
(c)	Agreements funded under Public Law 92-500 after May 11, 1982.
Retain records for at least three years after the approval date of EPA's final
payment for the project.
(2)	Superfund Remedial Planning and Implementation Agreements. Retain
records for three years from the date of submission of the final Financial
Status Report or until after completion of all cost-recovery actions, whichever
is later. The three year retention period starts on the date of the submission
of the final FSR for the project. The recipient and its contractors must, in
addition to the general three year requirement, retain all records relating to
an agreement under which cost-recovery actions have been initiated until those
actions have been completed and until the completion and resolution of any
litigation, claim, appeal, or audit which may have been initiated prior to the
completion of those actions.
(3)	Continuing Environmental Program Support Agreements. Recipients
of assistance that is awarded annually (such as air and water program assistance
to States) must retain records for at least three years from the date the State
or local govermrent submits the final Financial Status Report (FSR) for the
annual agreement;
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ASSISTANCE ADMINISTRATION
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(4) Other Project-type Assistance. Recipients of EPA assistance in
support of other project-type activities (research, demonstration, surveys,
investigations, or studies, etc.) and their contractors mufet retain records of
the assisted project for three years after the recipient submits the final
Financial Status Report (FSR) for the project.
d. Exceptions to General Retention Requirements.
(1)	Ongoing Litigation, Claim, Appeal, or Audit. As noted in
paragraph 2b above, if any litigation, claim, appeal, or audit is begun
before the end of the retention period, the records must be kept until the
ligitation, claim, appeal, or audit is completed and resolved, or the end of
the prescribed retention period, whichever is later.
(2)	Property Records. Recipients must retain records pertaining
to the procurement and use of real and nonexpendable personal property acquired
with assistance funds for three years following final disposition of the property;
(3)	Terminated Agreements. If an award is terminated by EPA, the
recipient must retain all relevant records for three years from the termination
date except that records of property must be kept for three years after the
property is officially disposed of (see paragraph 2d(2) of this Chapter).
3.	ACCESSIBILITY OF RECIPIENT'S RECORDS. All records pertinent to an EPA
assistance agreement, or to a subagreement, are subject to audit and recipients
and their contractors must make them accessible to the Environmental Protection
Agency, the Comptroller General of the United States, the Department of Labor,
the cognizant single audit agency, or any authorized representative. Access to
these records is not limited to the mandatory retention period. Recipients and
contractors must make such records available at any reasonable time as long as
they exist.
4.	DISCLOSURE OF INFORMATION. Recipient's records related to assisted
activities are subject to disclosure in accordance with the provisions of the
Freedom of Information Act, as amended (5 USC 552), which are discussed elsewhere
in this Manual.
5.	TRANSFER OF RECIPIENT'S RECORDS TO EPA. In order to avoid unnecessary
retention of duplicate records, EPA may request transfer to its custody of records
that the recipient does not need but EPA determines to be of long-term retention
value to the Government.
6.	MICROFORM RECORDS. Recipients may substitute microform copies for original
EPA assistance related documents.
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ASSISTANCE ADMINISTRATION
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SURVEY OF GRANTEE'S ACCOUNTING,
PROCUREMENT, AND PROPERTY MANAGEMENT
SYSTEMS
INTRODUCTION
This survey should be considered as a starting point to gain a quick, preliminary
understanding of the auditee's operating system. It supplements but does not replace the
normal audit review. The normal audit review must still be performed using the detailed audit
guide, a core audit program, and the auditor's judgment.
This survey should be performed in all interim audits and all final audits except where a
final audit is performed on an auditee that has no active in-house grants. The survey is intended
to be used to analyze the grantee's accounting records and systems that pertain to the EPA
grant It should not be applied to those systems that are not affected by the grant.
Depending on the audit, some questions may be more relevant than others. The matter of
relevancy should be settled between the field auditor and his supervisor prior to completion of
this survey.
Questions that may pertain to both the grantee and the engineer are marked with a double
asterisk. Questions that are applicable to the grantee only are not coded. Questions that pertain
to the engineer only are marked by a single asterisk.
Negative responses generally will indicate a potential problem. The degree of seriousness of
each negative answer should be discussed between the field auditor and his supervisor before
further audit action is taken.
ft	^ V 1 Q — A
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ASSISTANCE ADMINISTRATION
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Survey of Grantee's Management System
Yes
No
N/A
W/P Ref.
ACCOUNTING SYSTEM
** l Is the accounting routine set forth in accounting manuals7
** 2 Do we have copies of such manuals in our files'
** 3 Does the auditee maintain
a. An accrual accounting system'
b A cash basis system' If so, are adjustments made to properly reflect the
auditee's overhead and G& A submissions on the accrual basis'
** 4 Does the auditee have an internal audit stafP If so,
a Do they render written reports on the results of their examinations'
b Have we reviewed their reports'
c Are they directly responsible (and do they report) to an executive officer
other than the chief accounting officer'
** 5 Are the auditee's accounting records subjected to an independent audit at least
every two years'
•• 6 Has the auditee established project accounting records to record the costs
applicable to EPA work'
*	* 7 Are all incurred costs of a project recorded on these records on a current basis'
** 8 Does the auditee propose and accumulate costs on all projects in a consistent and
compatible manner'
*	* 9 Is appropriate documentation maintained to support direct charges of
a Personnel'
b Consultants'
c Fringe benefits'
d Materials, supplies, and equipment'
e Travel'
f Other costs (subcontract charges, long-distance telephone calls, etc )'
** 10 Are costs contained in the project accounting records segregated as to their
eligibility, allowability, and allocabihty to the respective EPA projects'
** 11 Are controls established to ensure that
a Grantee costs incurred and recorded pnor to or subsequent to the
established Federal grant period are segregated and not claimed for reimbursement unless
approved7
b Engineer costs incurred and recorded pnor to or subsequent to the
established contract period are segregated and not claimed for reimbursement unless
approved'




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Survey of Grantee's Management System
Yes
No
N/A
W/P Ref.
*	* 12 Is change order work separately identified in the respective project cost records7
** 13 Are project costs summarized and reconciled with control accounts contained in
the auditee's general ledger7
** 14 Are the project cost records used as the basis for
a The grantee's financial status reports and "Request for Reimbursement"
vouchers?
b. The engineer's request for reimbursement?
** 15 Are frequent comparisons made between expended and budgeted costs to
provide timely indications of potential project overruns7
16 Are approvals requested for significant deviations from amounts contained in
the grant or contractual agreement?
** 17 Is there an established policy to maintain consistent treatment and control of
direct and indirect cost distributions to avoid duplicate recoveries of cost7
** 18 Are separate cost centers established to accumulate and distribute such itertis as-
a Computer usage7
b Reproduction charges7
** 19 Are administrative service charges or material handling rates based on uniform
policies and supported by the accounting records7
** 20 Has the auditee developed indirect cost rates in accordance with Federal
requirements7
*	21 Are separate ofTsite indirect cost rates applied to job site labor7
** 22 Are overhead expenses distributed between the various indirect cost pools in a
systematic manner7
** 23. Does the auditee post credits for rebates, returns, and allowances as a reduction
to expenditures7
Automated Data Processing (ADP)
** 1 Is the accounting system automated? (If "no," omit questions 2 through 10)
** 2 Are the ADP aspects of the auditee's financial accounting system documented?
** 3 Are audit trails provided that permit the tracing of any transaction back to the
original source document and forward to summary records7
** 4 Are source documents controlled from the point of origin to the point of
conversion to machine-readable media7
** 5 Is the access to machine-readable computer facilities and records (tapes, cards,
etc) controlled7
*	* 6. Arc rejected and erroneous data controlled until corrections are made?




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Survey of Grantee's Management System
Yes
No
N /A
W/P Ref.
•• 7 Are positive processing controls (eg, controls which make tests against
established criteria before processing action is taken, such as tests to determine whether
updates have been made, validity checks, limit tests, compatibility tests, field completeness
tests) programmed into the automated system''
•* 8 Are provisions made for
a Safeguarding computer programs and data Files,
b Backup or emergency operation, and
c Reconstruction of data files in case of catastrophe7
** 9 Does the system provide controls over the distribution of reports'
*• 10 Does the auditee's internal audit stafT periodically review the ADP function with
respect to
a Software and hardware utilization7
b Budgeted versus act ual operating costs7
Obligations
1	Does the system include accounting for obligations/encumbrances/commitments
(legally binding agreements)7
2	Does the system limit obligations to the amount approved for each respective
budget category7
3	Are procedures established to assure that obligations reported are supported by
appropriate purchase orders, contracts, etc 7
4	Do these procedures provide for a periodic validation of recorded obligations7
5	Are obligations entered on accounting records when the legal commitment is
made (e g , approval and issuance of subgrant or contract)7
6	Does the system require the timely liquidation of obligations7
7	Are obligations reclassified as expenditures when the goods or services are
received or constructive receipt occurs7
Cash controls
** 1 Are details of vouchers payable or accounts payable balanced monthly with
general ledger controls7
** 2 Are bank accounts reconciled monthly by employees who do not prepare or
approve checks and who do not have access to ledgers7
•* 3 Are supporting data attached to and filed with vouchers7
** 4 Are supporting data controlled and cancelled to minimize the possibility of
improper or duplicate payment7
5 Are records maintained to identify and support in-kind contributions applicable
to specific projects7




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Survey of Grantee's Management System
Yes
No
N/A
W/P Ref.
6 Are excess grant funds invested for interest by the auditee where permitted''
Personnel
*	• 1 Does the auditee maintain an organizational chart''
** 2 Are organizational functions and duties structured to segregate as much as
possible responsibilites such as approving financial transactions, entering transactions,
keeping control records, and maintaining custody of funds and property''
** 3 Are employee time distribution records maintained to reflect the actual time
spent on each activity, including leave9
•• 4 Are the individual time distribution records prepared and certified by each
employee and approved by his supervisor7
** 5 Are labor costs distributed in accordance with the time reflected on time
distribution records'
*• 6 Are such labor distribution costs periodically reconciled with the actual payroll
register''
** 7 Does the auditee have written policies for overtime payments''
*• 8 Are such overtime policies acceptable under the terms of the grant and
applicable Federal regulations''
*	* 9 Is unpaid overtime for exempt employees properly accounted for?
*• 10 Are labor rates consistently applied (eg, individual, category averages,
departmental averages)'
*	11 Are employees working under Federal grants/contracts paid" at rates
comparable to the rates paid employees working on other projects'
*	12 Has the auditee established reasonable and consistent labor rates to cover the
time spent by top executives'
*	13 Are formal policies in effect with respect to bonuses, retirement plans, and/or
profit sharing'
PROCUREMENT SYSTEM
•• 1 Do the procurement personnel have independent and final authority over the
award and administration of purchase contracts'
" 2 Do procurement policies and procedures require requisitioned to affirm that
a The items/services are really needed and not otherwise available'
b The specifications and quality requested are actually needed'
•• 3 Does the formal selection process attempt to restrict the use of sole-source
contracts and promote competitive bidding to the maximum extent possible?
a Is written justification required when noncompetitive selection is used in
lieu of formal public advertising on major procurements'




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Survey of Grantee's Management System
Yes
No
N/A
W/P Ref.
b Are all responsible bidders allowed a reasonable time in which to submit
their offers1
•• 4 Wherever possible, do major procurements require the use of
a Source lists and catalogues'
b Vendor files which cover
(1)	Technical and financial capabilities7
(2)	Quality and delivery experience7
•* 5 Is documentation maintained to support the costs or prices negotiated on all
major purchases and contracts7
** 6 Are procedures in effect to assure that required conditions stipulated in the grant
general provisions and appropriate clauses outlined in EPA regulations are incorporated
into procurement aggreements7
* * 7 Are procedures established to ensure that the type of purchase contract utilized is
appropriate for the procurement being undertaken and acceptable to the Federal
government7
PROPERTY MANAGEMENT SYSTEM
1	Does the auditee maintain property records for all government-furnished
property and equipment which show
a A description of the item7
b The date acqui red7
c A property tag I D number or manufacturer's serial number7
d The location of the property7
e The cost or value7
f The condition of the item7
g The percent of Federal participation7
2	Are periodic inventories made to validate government property information7
3	Are differences between physical and book inventories analyzed, and are the
resulting adjustments approved7
4	Does the auditee follow difTerent accounting policies with respect to major and
minor equipment expenditures7
5	Are procedures established to assure that required EPA approval is obtained for
purchases or any changes in use or disposition of grant/contract property7
6	Do the procedures require that EPA receive its appropriate share of any proceeds
from disposition of the property7
7	Has the auditee established procedures for classifying and recording property
improvements, major repairs, and the rearrangement of machinery and equipment7




Appendix I9-A-5
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SURVEY OF GRANTEE'S
MANAGEMENT
SYSTEMS
Appendix 19-E
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Survey of Grantee's
Management Systems
System
Yes
No
N/A
W/P Ref.
Accounting
1.	Has the grantee established project accounting
records to record the costs applicable to EPA
grants or contracts?
2.	Are all costs of a project recorded on these records?
3.	Are the costs in these records used as the basis for
the grantee's financial status reports or vouchers?
4.	Are the costs recorded on these records reflected on
and reconciled with control accounts contained in
the grantee's general ledger?
5.	Are project accounts broken into subaccounts by
program element or cost objective?
6.	Are approvals requested for significant deviations
from amounts contained in the grant proposals?
7.	Is appropriate documentation maintained to
support the costs of:
a.	personnel?
b.	consultants?
c.	fringe benefits?
d.	purchases of material, supplies, and equip-
ment?
e.	travel?
f.	other costs?
8.	Before being recorded, are the costs contained in
the project accounting records subjected to review
as to their reasonableness, allowability, and
allocability to the EPA grants?
9.	Are controls established to assure that the grantee
does not claim costs incurred prior to or subse-
quent to the established grant period?
10.	Are the controls or procedures exercised in
administering federal expenditures the same as
those utilized in the expenditure of the grantee's
funds? (When the grantee's requirements are more
stringent than EPA requirements, it is expected
that the grantee will treat federal funds as he
would treat his own.)




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System
Yes
No
N/A
W/P Ref.
11.	Are the grantee's accounting records subjected to
an independent audit at least every two years?
Cash
12.	Are appropriate controls in effect to assure that
vouchers or requests for advances are based on
actual expenditures recorded on the grantee's
project accounting records?
Personnel
13.	Are procedures established to assure that em-
ployees working under federal grants are paid at
rates comparable to the rates paid other em-
ployees?
14.	Do the personnel and/or payroll records provide
support for time and attendance, leave, and
earnings for all employees?
15.	Are time distribution records maintained to show
the amount of time spent on federal grants as well
as the time spent on other activities?
16.	Are controls in effect to assure that personnel
costs are distributed in accordance with the time
reflected on time distribution records, i.e., reconcil-
iation of labor distribution and payroll records?
17.	Have controls been established to assure that
overtime is appropriate for the project approved in
accordance with grantee policies, and acceptable
under the terms of the grant and applicable
Federal Regulations?
18.	When personnel are working on projects other
than that sponsored by the federal grant, is the
cost of overtime:
a.	charged to the federal project on which the
overtime was Bpent?
b.	allocated over the individual's total work
during that period?
c.	treated as an indirect cost?
d.	other?




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System
Yes
No
N/A
W/P Ref.
Personnel {continued)
19.	Have procedures been established governing the
charges of personnel time related to partners or
principles in closely held corporations?
20.	Are formal procedures established with respect to
bonuses, retirement plans, and/or profit sharing?
Procurement
21.	Are procedures established to assure that profes-
sional services, equipment, material and/or sup-
plies requested are really needed?
22.	Are existing supplies or inventories reviewed to
assure that items requested are not already
available?
23.	Are formal procurement procedures established to
assure that equipment, material, and supplies are
obtained on a competitive basis?
24.	Are solicitations obtained from several sources so
that the grantee has assurance of obtaining the
most qualified party to perform needed profession-
al services?
25.	Are quotations obtained and reviewed to assure
that the price proposed is reasonable to the
grantee and EPA?
26.	Are procedures established to assure that the type
of contract utilized is appropriate for the procure-
ment being undertaken?
27.	Are controls in effect to assure that the grantee
does not utilize types of contracts unacceptable to
the Federal Government?
28.	Are internal controls utilized to assure that
contracts contain all required clauses:
a.	access to records?
b.	ownership of data?
c.	termination?
d.	applicable cost principles?
e.	defective pricing (in fixed price contracts)?




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System
Ym
No
N/A.
W/riat
Procurement (continued)
29 Are procedures in effect to assure that the grantee
requests and obtains all required approvals:
a.	subcontracts?
b.	equipment purchases?
c.	other capital expenditures?
Travel
30.	Does the grantee have adequate established
policies governing reimbursement for travel?
31.	Do these policies:
a.	require the submission of travel vouchers
showing the time and purpose of travel?
b.	clearly indicate the nature of expenses being
claimed?
c.	require the submission of supporting documen-
tation?
Obligations
32.	Are procedures established to assure that oblige-
tions reported are supported by appropriate
purchase orders, contracts, etc?
Obligations (continued)
33.	Do these procedures require that obligations are
periodically reviewed with regard to their validi-
ty?
34.	Do the procedures require the timely liquidation of
the obligations and the updating of information
contained on financial status reports?
Indirect Costa
35.	Has the grantee established procedures indicating
which costs are considered direct costs a* opposed
to indirect costa?
36.	Is the grantee claiming indirect costs under
federal grants and contracts?
37.	Has the grantee been submitting the isqelied
indirect coet proposals to the federal agsedee or
retaining them for review during aoditf




Apijendix 19-B-4
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System
Yes
No
N/A
W/P Ref.
38.	Have these proposals been audited and negotiat-
ed?
Property Management
39.	Haw the grantee established an equipment inven-
tory system for controlling property obtained
under federal grants?
40.	Does this inventory system show:
a.	a description of the item?
b.	a related property tag number?
c.	the federal equity in the equipment?
d.	the location of the equipment?
e.	the condition of the equipment?
41.	Are periodic inventories made to validate invento-
ry information?
42.	Are procedures established governing the use and
disposition of property acquired with federal
funds?
43.	Do these procedures assure that EPA is notified of
any change in the use of the property?
44.	Do the procedures assure that EPA receives its
appropriate share of any proceeds from disposi-
tion of the property?
Grant-Related Income
45.	Have procedures been established to assure that
any income generated under the grant is identified
and that EPA will receive appropriate benefit from
such income?




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CHAPTER 20 - ACCOUNTING AND INTERNAL MANAGEMENT
Table of Contents
PARAGRAPH	PARAGRAPH
TITLES	NUMBERS
Recipient Accounting Systems		1
Cost of Upgrading and Maintaining Accounting Systems		2
Internal Controls		3
Accounting Records		4
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1. RECIPIENT ACCOUNTING SYSTEMS.
a.	Accounting System Requirements. A recipient's accounting systan must
account for all costs, including costs of subagreements, incurred under a
project, and must consistently apply generally accepted accounting principles
and practices. The systan must include:
(1)	Ledgers with accurate, current, and complete records of the financial
actions under each EPA project;
(2)	Records which identify the source and how all funds are used for
each EPA project (see 40 CFR 30.510(b) and paragraph I.e. of this chapter);
(3)	Control over project funds, property (see Chapter 26, "Property
Management"), and other assets;
(4)	Records that allow comparison of actual costs with budgeted costs
for each project;
(5)	Audits of the systan at least once every two years (State and
local governments should conduct their audits in accordance with CMB Circular
A-102, Attachment P);
(6)	Procedures to assure timely resolution of audit findings and
recanmendations; and
(7)	Data that provide program element or cost objective accounting
information, if the assistance agreement requires reports of such infomation.
b.	Accounting System Procedures. Recipients must:
(1)	Establish a "cost center" for each project and record all
financial transactions related to the project in Its cost center. A "cost
center" is a separate account or, if recipients have several projects and
do not want a cost center for each project, they may account Tor project costs
in subsidiary accounts. Ln such cases, recipients must include a "control
account" In the general ledger and reconcile any differences between the accounts;
(2)	Record all transactions in their ledgers, either in detail or in
sumary from subsidiary accounts. If records are kept in subsidiary accounts,
the ledger must refer to the subsidiary accounts and cross-reference each
entry to the appropriate subsidiary account;
(3)	Record all transactions in a timely and verifiable manner;
(4)	Designate one person who is not responsible for project operations
to account for all project funds;
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(5)	Record all project costs and differentiate between allowable (or
eligible) and unallowable (or ineligible) and direct and indirect costs (see
Chapter 13 "Determination of Costs").
(6)	Segregate actual costs from budgeted costs by project task and
performing organization;
(7)	Prepare monthly financial reports to inform project managers of the
financial status of their projects. Reports must be reconcilable to accounting
records; ard
(8)	Ensure prompt use of EPA funds after receipt (see Chapter 33,
"Payment Procedures").
c. Supporting Documentation. 40 CFR 30.510(b) requires recipients to
support entries in accounting systems by appropriate supporting (or source)
documentation. Supporting documentation may originate outside the recipients'
offices (e.g., invoices) or in the recipients' offices (e.g., payroll register
and time distribution records). Supporting documentation must include everything
needed to explain a transaction. For example, support for purchases of material
would include purchase requests, requests for proposals, purchase orders, con-
tracts, receiving reports, progress reports, invoices, and progress payments.
(1)	Recipients must cross-reference supporting documentation so that
a transaction can be traced from any document dealing with the transaction
back to the initiating documents and forward to entries in the accounting
system. This requires recipients to assign reference codes to each accounting
system entry and related document.
(2)	When an EPA project is audited, inadequately documented costs
claimed must be "questioned" or "set aside."
2.	POST OF UPGRADING AND MAINTAINING ACCOUNTING SYSTEMS. The cost of upgrading
and maintaining accounting systems is allowable and normally treated as an
indirect cost. There may be unusual cases when accounting changes are required
solely to satisfy EPA requirements. In those cases, the cost is allowable as
a direct cost, provided this treatment is consistent with the recipient's
normal accounting treatment o£ similar costs.
3.	INTERNAL CONTROLS.
a. Internal Control Processes.
(1)	Recipients must have internal control processes to assure that all
project funds, property, and other assets are used solely for purposes authorized
by the assistance agreement (see 40 CFR 30.510(c)).
(2)	If applicants' internal control processes appear inadequate after
reviewing information included with the application, audits of the applicants'
projects, or other knowledge about the applicant, Award Officials and the
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appropriate cost advisory or audit officials must review them before EPA makes
the award.
b.	Scope of Internal Control Process. The degree of internal control
necessary for recipients is dependent on the recipient's size and the funds
and resources for which they are responsible. Internal control processes may
be written or informal. In either case, recipients' internal control processes
must provide effective financial and operational control.
c.	Criteria. Recipients' accounting and management systems must meet the
following requirements to ensure adequate internal control.
(1)	Policy. Recipients' operating policies must conform to applicable
laws, regulations, and policies. Recipients must communicate operating policies
throughout the organization.
(2)	Organization. Recipients' organizational structures must assign
responsibility for the performance of all necessary duties. Che person should
not control all phases of a transaction involving expenditure of funds (e.g.,
advertise and approve a procurement, acknowledge receipt of the procured service,
approve payment for the service, and make payment for the service).
(3)	Staff Functions.
(a)	Recipients' officials and employees must know their assigned
responsibilities and the consequences of their performance; recipients must
provide their officials and employees appropriate training.
(b)	Recipients' officials' and employees' education, training,
experience, and competence must be commensurate with their responsibilities.
(c)	Recipients should require supervisory employees to provide
written approvals of major actions to reduce the possibility of fraudulent or
wasteful actions.
(d)	Recipients must conduct internal audits at least every two
years. Internal audits should review staff performance to assure that:
1^ Performance is effective, efficient, and economical;
2 The staff complies with management policies, applicable
laws, regulations, and assistance conditions; and
.3 The recipient can discover unauthorized or fraudulent
activities.
(*0 Procedures.
(a) Recipients must have adequate methods of authorization,
recordkeeping, and transaction coding procedures to:
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_1 Assure compliance with assistance agreement requirements
and applicable laws, regulations, and internal management policies;
2	Prevent illegal or unauthorized transactions; and
3	Provide proper accounting records for the expenditure of
assistance funds.
(b)	Recipients must have effective procedures for expenditure
control to assure that needed goods and services are acquired at the lowest
possible cost; that goods and services paid for are actually received; and
that quality, quantity, and prices are in accordance with applicable subagree-
ments.
(c)	Recipients must safeguard and inventory property to prevent
misuse and loss (see Chapter 26, "Property Management").
(d)	Recipients must assure that all contractors working on
projects fulfill their responsibilities. This requires careful monitoring of
the quality and timeliness of their work as well as scrutiny of their adherence
to contract terns and conditions. It also requires periodic review of contractors'
technical and financial records.
(e)	Recipients must assure timely and appropriate resolution of
audit findings and recommendations.
(f)	Recipients must conduct cost and price analyses in accordance
with Chapter 22, "Cost/Price Analysis."
4. ACCOUNTING RECORDS. Recipients should maintain accounting records necessary
to support all financial transactions. Recipients must maintain the following
accounting records:
a.	A "Cash Receipts Register" for recording funds received and a "Check
Disbursements Register" to record checks issued. Recipients may use a combined
Cash Receipts and Check Disbursements Register instead of separate registers.
b.	A "General Ledger" to record all accounting transactions.
c.	A "Cost Control Ledger" of separate subsidiary accounts with cross
references to the General Ledger.
d.	A "Journal Voucher" to record transactions in the General Ledger and/or
Cost Control Ledger which are not recorded from the Cash Receipts or Check
Disbursement Register (for example, to correct an erroneous classification of
the purchase of a supply item as the purchase of equipment).
e.	"Payroll Records" to accumulate the payroll data required by law for
each employee. In addition, recipients must maintain time and effort reports
indicating the areas and time worked by each employee for each project. A
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frequent cause of disallowed costs is lack of adequate documentation for
recipients' inhcuse labor. Generally, recipients' records must document that
direct labor costs charged to EPA projects are based on actual time worked on
the project (40 CFR 30.500(a)(5)).
f. "Property Records" for each item of nonexpendable property acquired.
(See Chapter 26, "Hroperty Management".)
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CHAPTER 21 - PROCUREMENT UNDER ASSISTANCE AGREEMENTS
Table of Contents
PARAGRAPH	PARAGRAPH
TITLES	NUMBERS
General	 1
Procurement System Evaluation	 2
Canpetition	 3
Requirements for Recipients of Construction
Grants for Wastewater Treatment works	 4
Requirements for Institutions of Higher Education
and Other Nonprofit Organizations	 5
Requirements for Recipients of Cooperative Agreements
Under the Catiprehensive Environmental Response,
Compensation, arri Liability Act of 1980		6
Preawand Review of Subagreements		7
Checklists for Reviewing Procurements		8
Skills of Reviewers		9
Availability of Training for Recipient Procurement
Personnel and Reviewers	 10
FIGURE	FIGURE
TITLES	NUMBERS
EPA Poan 5700-48, "Procurement Systsn Certification"	 21-1
APPENDIX	APPENDIX
TITLES	NUMBERS
Checklist for Reviewing Formally Advertised Subagreanents	 21-A
Checklist for Reviewing Competitively Negotiated Subagreenents........ 21-B
Checklist for Reviewing rtonconpetitively Negotiated Subagreements	 21-C
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1.	GENERAL.
a.	40 CFR Part 33, "Procuranent under Assistance ftjreanents," contains the
procurement requirements that recipients of EPA assistance agreements must follow
for the procurement of supplies, services (including legal and accounting
services), and construction.
b.	Recipients are responsible for the settlement and	satisfactory comple-
tion in accordance with sound business judgement and good	administrative practice
of all contractural and administrative issues arising out	of subagreements
entered into under the assistance agreanent.
c.	Part 33 states the responsibility for conducting procuranent but does
not restrict the Award Official's responsibility to perform progran or technical
reviews.
2.	PROCUREMENT SYSTEM EVALUATION.
a.	Applicants/recipients must evaluate their procurement practices
and policies and ccmpare them to the requirements in Part 33. Afterwards,
they must complete an EPA Form 5700-48, "Procurement Syston Certification,"
(see figure 21-1), and submit the completed form with an assistance applica-
tion. The recipient's cost to evaluate its procuranent systen is unallowable
because the procurement certification is part of the process of applying for
EPA assistance. This form indicates to the AwarxJ Official whether the recipient/
applicant certifies that its procurement systan:
(1)	Conforms to the requiranents in Part 33 and that it will use its
procurement procedures in place of EPA's; or
(2)	Does not meet the requiranents in Part 33 and, therefore, it will
follow the requirements in Part 33, including the procedural requirements in
Appendix 21-A, and will allow EPA to review its proposed subagreorients.
b.	If the applicant certified that its procurement systan conforms to
EPA's requirements, the Award Official will usually perform a pre-award
administrative review of a proposed subagreement only on an exception basis
(see §33.115). Certifying their procuranent system does not relieve a recipient
of its obligation to conduct all EPA funded procurements in accordance with the
standards the recipient certified that it met.
c.	If the Award Official determines that the recipient bias not followed
its certified standards, the Award Official must revoke the recipient's certifi-
cation and may apply the sanctions in 40 CFR Part 30 (see §33.115(c)). In
addition, the £ward Official may disallow the costs of procuranent awards viiich
do not conform with acceptable procuranent procedures.
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3.	COMPETITION«
a.	The basic purpose of Part 33 is to maximize free and open competition.
Part 33 provides recipients with four methods of procurement.
(1)	The small purchase method is to be used for procurorients whose
total value is under $10,000. The only requirements are that the recipient
cannot divide a procurement to get under the $10/000 limitation; all costs
associated with the procurement must be included to determine if the procurement
is less than $10,000, and the recipient must do some type of price analysis to
determine that the price is reasonable.
(2)	Ebrmal advertisement is the preferred method for procurement actions
over $10,000 and must be used unless the recipient can justify not using it.
(3)	Competitive negotiation can be used only if conditions are not
appropriate for the use of either the small purchase or formal advertisement
methods of procuranent.
(4)	Noncompetitive negotiation is the least preferred procurement method
and may be used only if the other three procuranent methods are inappropriate.
The recipient may use this procuranent method only as a last resort. Also, the
recipient must make the written justification for using noncompetitive procurement
available for public review (see §33.250).
b.	Recipients must justify which procurement method they use, and make
the justification part of the assistance file.
4.	REQUIREMENTS FOR RECIPIENTS OF CONSTRUCTION GRANTS FOR WASTEWATER TREATMENT
WORKS.
Recipients of a wastewater treatment construction grant must follow the require-
ments in 40 CFR Part 33, Subpart C in addition to the requirements in 40 CFR
Part 33, Subparts A, B, F, and G. Subpart C requires recipients to follow:
a.	Section 33.710, "Buy American," requires contractors to give preference
for the use of domestic materials in the construction of EPA funded wastewater
treatment works; and
b.	Section 33.715 requires that the recipient meet certain competition
related criteria if the recipient uses the same architect/engineer (VE) for
the Step 3 A/E services that provided the facilities planning or design Pt/E
services of the project.
5.	REQUIREMENTS FOR INSTITUTIONS OF HIGHER EDUCATION AND OTHER NONPROFIT
ORGANIZATIONS.
a. Recipients who are subject to the requiranents of OMB Circular A-110,
"Grants and Agreements with Institutions of Higher Education, Hospitals, and
Other Nonprofit Organizations," are subject to the requiranents in 40 CFR Part
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33, Subpart D in addition to the requirements in 40 CFR Part 33, Subparts A, B,
appropriate clauses in F, and all of G (see §33.810 for exceptions to Subpart F).
b. Although Part 33 does not include specific procedural requirements on
the use of formal advertising, competitive negotiation, and noncompetitive
negotiation (except for a requirement in §33.820(b) that the iWard Official
must approve any noncompetitive negotiation over $10,000), these recipients
must still maximize free and open competition (see §33.230). Because non-
competitive procurement does not encourage free and open competition, these
recipients cannot use noncompetitive negotiation unless they justify its use.
6. REQUIREMENTS FOR RECIPIENTS OF COOPERATIVE AGREEMENTS UNDER THE COMPREHENSIVE
ENVIRONMENTAL RESPONSE, COMPENSATION, AND LIABILITY ACT OF 1980.
a.	Recipients of awards under the Superfund Remedial Planning and
Implementation Progran for studies, investigations, or engineering activities
preceding a remedial action award are subject to the requirements in 40 CFR
Part 33, Subparts A, B, E, F, and G.
b.	Recipients of a Superfund remedial action assistance agreorient must
use formal advertising to award all construction subagreements, unless they
receive the EPA Award Official's prior written approval to use another form of
procurement.
c.	In the following cases, recipients of a Superfund renedial action award
may use the same A/E frcm one phase of the project to the next without going
through the public notice and evaluation procedures:
(1) Where the recipient conducted the Remedial Investigation (RI)
and/or Feasibility Studies (FS) activities without EPA assistance but is using
EPA funds for follow-on activities, the recipient may use the A/E for subsequent
work provided the recipient attests that:
(a)	It complied with the requirements in §33.230; §33.250(a)(1),
(a)(2), and (a)(3), and (b); and §33.505 through §33.525; and
(b)	It complied with the following:
1_ No employee, officer, or agent of the recipient, any
member of their immediate families, or partners have a financial or other
interest in the firm selected for award; and
2 None of the recipient's officers, employees, or agents
solicited or accepted gratuities, favors, or anything of monetary value from
contractors or other parties to the subagreements.
(c)	The subagreanent between the VE and the recipient must meet
all of the other requiranents in Part 33.
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(2)	If the recipient conducted the RI, FS, or design activities with
EPA assistance but the original subagreement did not include the follow-on
activities and the recipient wishes to use the same A/E for follow-on Superfund
remedial activities, the recipient does not have to follow the public notice
and evaluation requirements in 33.510 and 33.515 for subsequent activities
provided the recipient follows the rest of the requirements in Part 33.
(3)	If EPA conducted the RI, FS, or design activities under a direct
procurement contract but the recipient will assume the responsibility for
subsequent phases of ranedial response under a cooperative agreement, the
recipient may use, with EPA Avrard Official's approval, EPA's A/E contractor
without further public notice or evaluation provided the recipient follows the
rest of the requirements in Part 33.
(4)	If the recipient awards a subagreanent after Decanber 19, 1983,
the initial request for proposals or bid solicitations must clearly state the
possibility that the firm or individual selected could be awarded a subagreement
for follow-on activities.
7.	PREAWARD REVIEW OF SUBAGREEMENTS.
a.	All procurements are subject to EPA preaward review except:
(1)	Procuranents made by recipients \«ho have certified their procuranent
systems in accordance with the provisions of 40 CFR 33.110(b) and 33.110(c).
(2)	Small purchases, i.e., when individual procuranent actions are in
amounts less than 510,000 (see 33.310 and 33.315).
(3)	A procuranent under an intergovernmental agrearent which is incidental
to the purpose of the assistance agreement and made through a central public
procurement unit (see 33.260).
b.	Even if the recipient certifies its procuranent system, the Award
Official may review any procurement action or the recipient's procurement system
(see 33.110(e)). That review can be made under any circumstance. Pward
Officials must notify recipients of the results of procurement reviews.
8.	CHECKLISTS FOR REVIEWING PROCUREMENTS. Attached to this Chapter are three
checklists that reviewers may use when performing reviews of proposed subagreements
when the recipient has not certified its procuranent system, or when the Award
Official performs a review of a recipient with a certified procuranent system.
Recipients may use the checklists as a check to see that they have complied with
the requirements in Part 33. Appendix 21-A is a checklist for reviewing formally
advertised subagreanents. Appendix 21-B is a checklist for reviewing canpetitively
awarded subagreements, and Appendix 21-C is a checklist for reviewing nonccmpeti-
tivelly awarded subagreanents. Several items on the checklists require close
coordination between personnel doing the technical or engineering review and
those doing the business review.
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9.	SKILLS OF REVIEWERS.
a.	The nature of the service, supplies, or construction to be procured,
the type of competition, and the type of subagreement anticipated determine
the skills necessary to review procurements. Procurements of commercially
used products, for example, presuppose a relatively uncomplicated, formally
advertised, fixed price subagreement, necessitatis only minimal review.
b.	Procurements of A/E services and construction of complex facilities
may entail such activities as review by technical or engineering staffs, con-
struction techniques, labor hour proposals, engineering drawings, specifications,
and bills of materials. In addition, the EPA reviewer should review the adequacy
of the recipient's competition, the types of subagreements anticipated, pricing
or costing methods, contractual terms, and other management-related activities.
c.	The review of recipient procurements necessitates a variety of knowledge
and skills, including an understanding of EPA's program regulations as well as
40 CPR Part 33. Experience as a contracting officer, assistance specialist,
purchasing agent, cost or price analyst, or auditor is beneficial for reviewers
of the business aspects of procurement.
10.	AVAILABILITY OF TRAINING FOR RECIPIElfl? PROCUREMENT PERSONNEL AND REVIEWERS.
a.	There are many formal training courses available nationwide on various
aspects of procurenent including cost and price analysis, advertised procurements,
negotiated procurements, contracting for construction, subagreement administration,
automatic data processing procurement, and small purchases. Because of the
complexity of the procurement process, it is important that persons involved in
reviewing procuranent actions receive specialized procurenent training.
b.	Courses are offered by a variety of colleges and universities, profes-
sional associations, goverrment agencies, and commercial organizations. In
the Washington, D. C. area, for example, courses are offered by American University,
the University of Virginia School of Continuing Education, the Department of
Agriculture Graduate School, National Graduate University, various components
of the Department of Defense, the General Services Administration, the Office
of Personnel Management, and several commercial organizations.
c.	A list of colleges and universities nationwide offering specialized
training in procurement is available free from the Federal Acquisition Institute,
726 Jackson Place, N. W., Washington, D. C. 20503.
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UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
WASHINGTON, DC 20460
SrEPA procurement system certification
Form Approved
OMB No 2000-0453
Approval expires 10-31-87
APPLICANT S NAME
ASSISTANCE APPLICATION NUMBER
APPLICANT'S ADDRESS
SECTION I — INSTRUCTIONS
The applicant must complete and submit a copy of this form with each application for EPA Assistance If the
applicant has certified its procurement system to EPA within the past 2 years and the system has not been
substantially revised, complete Part A in Section II, then sign and date the form If the system has not been
certified within the past 2 years, complete Part B, then sign and date the form
SECTION II - CERTIFICATION
A I affirm that the applicant has within the past 2 years certified to EPA that its procurement
system complies with 40 CFR Part 33 and that the system meets the requirements in 40
CFR Part 33 The date of the applicant's latest certification is.	
MONTH/YEAR
B Based upon my evaluation of the applicant's procurement system,
applicant (Check one of the following)
I, as authorized representative of the
CD 1 CERTIFY that the applicant's procurement system will meet all of the requirements of 40 CFR Part 33
before undertaking any procurement action with EPA assistance
Please furnish citations to applicable procurement ordinances and regulations
u 2 DO NOT CERTIFY THE APPLICANTS PROCUREMENT SYSTEM The applicant agrees to
follow the requirements of 40 CFR Part 33, including the procedures in Appendix A, and
allow EPA preaward review of proposed procurement actions that will use EPA assistance
TYPED NAME AND TITLE
SIGNATURE
DATE
EPA Form 5700-48 (Rev 6-84) Previous edition is obsolete
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CHECKLIST FOR REVIEWING FORMALLY ADVERTISED SUBAGREEMENTS
1.	GENERAL.
a.	When reviewing a non-certified recipient's proposed procurement award
or reviewing a procurenent action of a recipient with a certified procurement
system, the reviewer must determine that the recipient has complied with all of
the requirements in 40 CFR Rart 33. This checklist asks questions concerning
the formal advertisement procurement method.
b.	Has the recipient made the following determinations?
(1)	A complete, adequate, and realistic specification or purchase
description of what is required;
(2)	The recipient is reasonably certain that there will be two or more
responsible bidders which are willing and able to ccmpete;
(3)	The procurement lends itself to the award of a fixed-price sub-
agreement; and
(4)	The selection of the successful bidder can be made principally on
the basis of price.
c.	Has the recipient maximized free and open canpetition? The principal
review emphasis is on the recipient's solicitation and bidding procedures to
assure that the recipient used maximum free and cpen competition.
d.	Has the recipient used a fixed-price type of subagreement? Subagreements
awarded under the formal advertising method are fixed-price and involve no
negotiations betvseen recipients and bidders. Fixed-price subagreements
are generally the least difficult and time consuming types of subagreements to
administer. A fixed-price subagreement is a lump sum award which includes
labor, material costs, overhead, and profit, or a unit price subagreement.
e.	Has the recipient submitted copies of the public notices or announcenents,
solicitation packages, sumnaries or abstracts of bids, as wall as copies of
proposed subagreenents?
f.	Has the recipient obtained the EPA Award Official's prior written
approval for using a procurerrent method other than formal advertising for
Remedial Action awards under Superfund?
2.	PUBLIC NOTICE.
a. Has the recipient given adequate public notice of the proposed award?
Review the notices, announcements, and other materials intended to inform
prospective bidders of the solicitation for bids (e.g., newspapers of general
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circulation, trade and professional journal announcements, and other publications
of general circulation). Assure that the notices indicate how and when to
acquire invitations for bid.
b.	Are the recipient's specifications clear and accurate? Check the soli-
citation packages to ensure that they include clear and accurate descriptions
of the products or services to be procured. Performance and design specifica-
tions must not be ambiguous and nor written to favor one product or design over
another. (Coordinate this portion of the review with technical or engineering
staff.) If the solicitation includes a "brand name" description, the words
"or equal" must follow the words "brand name," and the solicitation must list
the salient requirements of the named brand.
c.	Has the recipient allowed adequate time for bidders to prepare bids?
In addition to clearly identifying when and where bids are to be submitted,
check to assure that the solicitations allow sufficient time for prospective
bidders to prepare and submit their sealed bids. If the recipient is not
certified, the recipient must allow 30 days for the public notice and give
proposed bidders 30 days to prepare bids (see 40 CFR Part 33, Appendix A,
(b)(3), and (4)). If the recipient is certified, it must allow an "adequate
time" for the bidder to prepare its bid (see §33.415).
d.	Has the recipient complied with the affirmative steps to solicit small,
minority, and women's businesses and to procure from labor surplus area firms
in accordance with 40 CFR 33.240(c) and any Agency guidance issued by the EPA?
e.	roes the recipient's bid solicitation documents include:
(1)	A ccmplete statement of work to be performed including any design
drawings and specifications and the period of perfornence (ask technical or
engineering staffs to review the plans, specifications, and any other pertinent
technical or engineering documents);
(2)	The terms and conditions of the subagreement to be awarded,
including any payment, delivery schedules, point of delivery, and acceptance
criteria;
(3)	A clear explanation of the recipient's method of bidding and the
method of evaluating bid prices, and its basis and method for awarding the
subagreement;
(4)	Any other responsibility requirements or evaluation requirements
the recipient will use to evaluate bidders;
(5)	Indication which Department of Labor Davis-Bacon wage determinations
will be used, if applicable; and
(6)	The deadline and place to submit bids, a copy of §33.925, Subparts
F and G, and, if appropriate, Elft Form 5720-4, "Labor Standards Provisions."
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3. BID OPENING AND CONTRACT AWARD PROCESS.
a.	Has the recipient conducted a price analysis if fewer than three bids
were received? The price analysis should include comparisons of the recipients'
in-house estimates against the bids. Before the recipient makes the award, it
must determine that the bid is reasonable, and that the proposed contractor is
responsible. If the recipient receives only one bid, it must conduct a price
analysis and review the bidder's profit (see 33.290 and 33.235).
b.	Has the recipient checked that the proposed contractor is not on the
list of suspended or debarred contractors issued under 40 CFR Part 32? If the
contractor is on the list, the recipient must obtain the Director, Grants
Adminitration Division's approval to award the subagreonent (see 32.209).
Such approval will be given only in extraordinary circumstances.
c.	Has the recipient checked to assure that none of the work on subagree-
ments exceeding $100,000 will be performed at a facility on EPA's List of
Violating Facilities (see 40 CFR Part 15)?
d.	Has the recipient selected the lowest responsive and responsible bidder?
e.	Has the recipient received from the contractor (for construction subagreanents
over $100,000) bid guarantees in the amount of 5% of bid prices, and performance
and payment bonds for 100% of the subagreement price (see 33.265)?
f.	Does the recipient have a procedure to notify the Award Official within
ten calendar days after the award of each construction subagreement which has or
is expected to have an aggregrate value over $10,000 within a twelve month period?
(1)	The recipient is to serd the Award Official the following information:
(a)	Name, address, telephone number, and employee identification
number of the construction contractor;
(b)	Amount of the award:
(c)	Estimated starting and completion dates;
(d)	Project number, name, and site location of the project; and
(e)	Copy of the bid tabulation or list of offerors.
(2)	The A^rd Official is to send the information in subparagraph
3.f.(l)(a) through (d) to the appropriate Department of Labor Regional Office.
The Award Official is to send the information required in 3.f.(l)(e) to the
appropriate Divisional Inspector General for Investigations.
(3)	In States that have been delegated the procurement function under
the wastewater treabTient construction grants progran, the delegated State must
send the information requirel in 3.f.(l)(a) through (d) to the Department of
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Labor Regional Office with jurisdiction in that State. The State will send the
information required in 3.f.(l)(e) to the EPA Divisional Inspector General for
Investigations who has audit cognizance in that State.
g.	Has the recipient reported to the Award Official each subagreement it
or its contractors awarded to a minority or women's business on an EPA Form
6005-1, "Recipient Report on Minority and Wcnen's Business Utilization," (see
Chapter 24, "small, Wtmen's and Minority Business Utilization," for discussion
of the form).
h.	Did the recipient publicly open bids at the time and place identified
in the solicitations?
4. SUBAGREEMENT DOCUMENTS.
a. Has the recipient incorporated the appropriate model subagreement
clauses, or their equivalent, in subagreements? Equivalent clause must provide
the same protections and assurances as the model clause. Check to assure that
the following clauses cited in 40 CFR 33.1030, or their equivalents, have been
included:
(1)	Supersession (clause 1);
(2)	Privity of Subagreement (clause 2);
(3)	Changes (clause 3);
(a)	Paragraph (a) applies to subagreements for contractors;
(b)	Faragraph (b) applies to subagreements for services; and
(c)	Paragraph (c) applies to subagreements for supplies;
(4)	Differing Site Conditions (clause 4, for construction subagreements
only);
(5)	Suspension of Work (clause 5, for construction subagreanents
only)?
(6)	Termination (clause 6);
(7)	Remedies (clause 7);
(8)	Price Reduction for Defective Cost or Pricing Data (for negotiated
subagreements or change orders exceeding $100,000), (clause 8);
(9)	Audit, Access to Records (clause 9);
(10) Covenant Against Contingent Fees (clause 10);
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(11)	Gratuities (clause 11);
(12)	Buy American (clause 12, for wastewater treatment construction
subagreements);
(13)	Responsibility of the Contractor (clause 13)
(a)	Incorporate clause 13(a) if the subagreement is for services;
(b)	Incorporate clause 13(b) if the subagreement is for construc-
tion; and
(14)	Final Payment (clause 14).
b. Has the recipient included a ccpy of 40 CFR Part 33, Subpart G, "Protests,"
and if appropriate, the clauses in §33.1015 through 1021 in the subagreement?
5. SUBAGREEMENT CHANGES. Has the recipient performed a cost analysis of each
proposed change over $10,000? The reviewer and the technical or engineering
staffs should assure themselves that the recipient has analyzed the proposed
costs of the changes and found them to be necessary and reasonable. If the
recipient has not certified its procurement systan, it must use EPA Form 5700-41,
or equivalent (see Chapter 22, "Cost and Price Analysis" for a discussion of
cost analysis and a discussion on EPA Form 5700-41).
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CHECKLIST FOR REVIEWING COMPETITIVELY NEGOTIATED SUBAGREEMENTS
1. GENERAL.
a.	When reviewing a non-certified recipient's proposed procurement award or
reviewing a procurement action of a recipient with a certified procurement
system, the reviewer must determine that the recipient has complied with all of
the requirements in 40 CFR Part 33. This checklist asks questions concerning
the competitively negotiated procurement method.
b.	Has the recipient determined that the formal advertising procurement
method is not appropriate under the circumstances (see 33.405)? Competitive
negotiation is a more flexible procurement method and is generally applicable
to procurements of non-standard services or products. This process involves
discussion and bargaining between recipients and offerors.
c.	Has the recipient selected the appropriate type of subagreement?
(1)	The recipient must decide whether to use a negotiated fixed-price
subagreenent or a cost reimbursement subagreement. whenever possible, recipients
should use negotiated fixed-price subagreements because they involve less
documentation and are less time consuming to administer than cost reimbursement
subagreements. Fixed-price subagreements are used when there is effective
competition, there is a complete product description, the recipient has firm
specifications, and there are no technical and engineering unknowns. Cost
reimbursement subagreements are usually used where there are technical or
engineering unknowns, or if the vork is for research or demonstration.
(2)	If the recipient uses a cost reimbursonent subagreement, it must
determine that the prospective contractor has an accounting system that wi]1
provide appropriate documentation, allocation, and segregation of costs (see
33.220). Other Federal agencies may have had contractual dealings with the
prospective contractor and may be able to confirm the adequacy of the contractor's
accounting system.
(3)	Reviewers of cost reimbursement subagreements are faced with
considering several factors that are not pertinent to fixed-price subagreements.
These include justification for negotiations, cost analysis, and summaries
of negotiations.
d.	Has the recipient submitted copies of public notices or announconents,
Requests for Proposals (RFPs), m-house estimates, justifications for using
negotiated procurements, summaries of negotiations, cost analysis, justifications
for selecting the type of subagreement, and the proposed subagreement? If the
review is to be limited, recipients should be asked to provide only that
documentation pertinent to the limited review.
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2.	JUSTIFICATION FOR NEGOTIATION. Has the recipient justified usirg this
procurement method (see §33.250(a)(3))? Check to see that the recipient's
justifications support the decision.
3.	SOLICITATION AND REVIEW OF PROPOSALS.
a.	Does the recipient's public notice or announcement sufficiently identify
the services or products to be procured? Check to see if it was published in
a newspaper of general circulation, in appropriate trade or professional journals
(at least 30 days if the recipient is not certified, see 40 CFR Ifert 33, Appendix
A), and that the places and dates for obtaining the Request for Proposal (RFP)
were cited.
b.	Has the recipient used the optional procedures described in 40 CFR 33.525
to select A/E firms and negotiate subagreements? Check to be sure that the
requirements in that section were met.
c.	Has the recipient worded its RFP to assure that the specifications or
work statements do not unnecessarily restrict competition (see §33.255)?
Coordinate this aspect with technical or engineering staffs.
d.	Are the recipient's specifications and vrork statements clear and accurate?
Has the technical or engineering staff reviewed and the specifications, drawings,
work statements, or other technical documents to assure that they are clear and
accurate?
e.	Are the recipient's in-house estimates reasonable? Have the technical
or engineering staffs reviewed and the recipient's estimates to determine that
they are reasonable?
f.	Did the recipient include in its RFP the evaluation criteria and the
relative importance or weight of each criterion (see §33.515)?
g.	Has the recipient complied with the affirmative steps to solicit proposals
from small, minority, and womens' businesses and to procure frcm labor surplus
firms in accordance with §33.240 and any Agency guidance issued by the EPA?
h.	Has the recipient checked to be sure that the proposed contractor is not
on the list of suspended or debarred contractors under 40 CFR Part 32? If the
contractor is on the list, the recipient must have the Director, Grants Administration
Division's approval before the recipient awards the subagreement (see §32.209).
Such approval will be given only in extraordinary circumstances.
4.	COST ANALYSIS. Did the recipient perform a cost analysis ot all proposed
subagreeinsnts over $10,000? If the recipient has not certified its procuremsnt
systen, offerors must submit cost and pricing data to the recipient on EPA
Form 5700-41 or another form providing equivalent information. The recipient
must document the cost analysis and submit the documentation to the reviewer.
The reviewsr will not perform a separate cost analysis, but will assess the
adequacy of the cost analysis done by the recipient. (See Chapter 22, "Cost
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and Price Analysis," for analyzing costs and for discussions of EPA Form 5700-41.)
5.	NEGOTIATION AND SURAGREEMENT AWARD.
a.	Did the recipient use only the criteria in the RFP to determine the
offerors within the competitive range, and to decide which offeror will receive
the award? If the award is to be made based on initial offers, the RFP must
so state. Otherwise, the recipient must conduct meaningful negotiations with
the offerors in the canpetitive range. Check to determine that the recipient
had a supportable rationale for determining vMch offerors fell within the
canpetitive range.
b.	Did the recipient document any negotiations that took place and describe
the issues negotiated and the outcome of the negotiations? The reviewer should
analyze these suttmaries to assure that the recipient used good business and
technical judgements.
c.	Did the recipient justify making an award to a responsive and responsible
offeror whose cost or price proposal was not the lowest? The reviewer should
coordinate with technical or engineering staffs if the justification is based
on technical or engineering determinations.
6.	SURAGREEMENT DOCUMENTS.
a. Did the recipient incorporate the appropriate model clauses, or
their equivalent, in the subagreement? Equivalent clauses must provide the
same protections and assurances as the model clauses. Check to assure that the
following clauses cited in 33.1030, or their equivalent, have been included.
(1)	Suspension (clause 1);
(2)	Privity of Subagreesnent (clause 2);
(3)	Changes clause (clause 3);
(a)	Paragraph (a) applies to subagreaments for construction;
(b)	Paragraph (b) applies to subagreements for services*
(c)	Paragraph (c) applies to subagreaments for supplies;
(4)	Differing Site Conditions (clause 4, for construction subagreements
only);
(5)	Suspension of fotork (clause 5, for construction subagreenents only);
(6)	Termination (clause 6);
(7)	Remedies (clause 7);
(8)	Price Reduction for Defective Cost or Pricing Data (for negotiated
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subagreements or change orders over $100,000, clause 8);
(9) Audit, Access to Records (clause 9);
(10)	Covenant Against Contingent Fees (clause 10);
(11)	Gratuities (clause 11):
(12)	Buy American (clause 12, for wastewater treatment construction
subagreements);
(13)	Responsibility of the Contractor (clause 13);
(a)	Incorporate clause 13(a) if the subagreement is for services.
(b)	Incorporate clause 13(b) if the subagreement is for construction.
(14)	Final payment (clause 14).
b. Has the recipient included a copy of 40 CFR Part 33, Subpart G, "Protest"
and, if appropriate, the clauses in 40 CFR 33.1015 through 33.1021 in the sub-
agreement?
7. SUBAGREEMENT CHANGES. Has the recipient performed a cost analysis of each
proposed change over $10,000? Ihe reviewer and the technical or engineering
staffs should assure themselves that the recipient has analyzed the proposed
costs of the changes and found thou to be necessary and reasonable. If the
recipient has not certified its procurement system, it must use EPA Form 5700-41,
or equivalent.
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CHECKLIST FOR REVIEWING NONOOMPETITIVELY NEGOTIATED SUBAGREEMENTS
1.	GENERAL. A noncompetitive procurement is the least preferred procurement
method. Recipients are to make noncompetitive awards only on an exception
basis. EPA authorizes noncompetitive awards only under the following circumstances
(see 40 CFR 33.605):
a.	The product or service to be acquired is available only from a single
source.
b.	A public exigency or emergency of such severity exists that the time
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(c)	Substantial investment. Does the contractor have a substantial
investment of same kind viiich would have to be duplicated at Government
expense by another source entering the field?
(d)	Inadequate technical data and information. If lack of
drawings or specifications is a factor, why is the proposed contractor
best able to perform under these conditions?
(e)	Continuation of previous effort. Is the effort a continuation
of a previous effort by the contractor? Would an award to another contractor
be more costly and require an excessive amount of time to bring the new
contractor up to the present level of expertise of the incumbent?
(f)	Patents, data, and copyrights. Is competition precluded
because of the existence of patent rights, copyrights, or proprietary
processes?
(g)	Phasing of procurement. If the contactor was nonccmpetitively
procured for initial work is competitive procurement now possible?
(h)	Urgency.
_1 Vvhy wasn't procuranent processed in sufficient time to
permit competition? Urgency means that the need is so compelling that the
government would be injured financially or otherwise, if property or services
to be purchased were not furnished by a certain time. Explain the situation
and the circumstance that have led to the need for an urgent procuranent. It
should be noted that the existence of legislation, court order, or presidential
mandate is not, of itself, a sufficient basis for noncompetitive procuranent.
However, the situation and circumstances which have resulted in legislation,
court otder, or presidential mandate, may well establish a need for a procuranent
action to be taken on an expedited basis using noncompetitive methods.
2 The justification must be documented based on facts rather
than unsubstantiated conclusions. Documentation should be sufficient to permit
an individual without technical competence in the area to follow the rational
and reach the same conclusions.
b.	Has the recipient made its reasons for making a noncompetitive
award available for public review (see 33.250 (b))?
c.	Has the recipient's justified the noncompetitive award based on
availability of only a single source? Check with the technical or engineering
staff. If there is a doubt that there is only one source, did the recipient
solicit other potential sources, such as by using a "sources sought" announcement?
d.	Has the recipient justified the noncompetitive award based on public
exigency or emergency? Check to see if the recipient would be seriously
injured (from a health standpoint or otherwise) or that the public would be
harmed if the recipient had to take the time to compete the award. Check
with the technical or engineering staff.
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3.	SUSPENDED OR DEBARRED BIDDERS. Has the recipient checked to be sure that
the proposed contractor is not on the list of suspended or debarred contrators?
If the contractor is on the list, the recipient must have the Director, Grants
Administration Division's approval before the recipient awards the subagreement
(see §32.209). Such approval will be given only in extraordinary circumstances.
4.	EVALUATION OF COST. Has the recipient conducted a cost analysis of the non-
competitive award? If the recipient has not certified its procurement system,
it must use EPA Form 5700-41, or equivalent. (See Chapter 22, "Cost and Rrice
Analysis," for analyzing costs and for discussions of EPA Form 5700-41.)
5.	SUBAGREEMENT CHANGES. Has the recipient performed a cost analysis of each
proposed change over $10,000? The reviewer and the technical or engineering
staffs should assure themselves that the recipient has analyzed the proposed
costs of the changes and found than to be necessary and reasonable.
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APPENDIX 21-D ~ BASIC INFORMATION FOR PROCURING THROUGH SUBAGREEMENTS
(with references to EPA's Regulation for Procurement
Under Assistance Agreanents (40 CFR Part 33))
1. PROCUREMENT METHOD SELECTION CRITERIA (State and Local Governments).*#
a.	Sftiall Purchase Method (§33.305 through §33.315).#
(Method of procurement that may be used only when total cost of the
procurement is less than (<) $10,001)
0 Select sufficient nisnber of qualified sources, usually > 2;
° Obtain price/rate quotations; record them; then
° .Award the procurement.
b.	Formal Advertising Method (Preferred Method)(§33.405 through 33.430)0
(Reguires publicly solicited sealed bids; award to lowest, responsive,
responsible bidder; and agreement based on a fixed price; preferred
method when total cost of the procurement is greater than (» $10,000)
° The procurement must lend itself to award of a fixed-price
subagreement to lowest responsive and responsible bidder;
° Bidding documents must be canplete, adequate and contain a
realistic specification or purchase description (§33.420)
that includes:
-	complete statement of work
-	terms and conditions
-	method or evaluating bids and selecting successful offeror
-	evaluation criteria - discounts, transportation cost, life
cycle costs, etc.
-	prevailing wage determinations, if applicable;
° Price is the principal selection criterion - a fixed price can be
established for the project, either lump sum, unit price, or a
combination of the two; and
*	See 40 CFR §33.110(e) and §33.815 for special procurement previsions that
relate to institutions of higher education and other nonprofit organizations.
#	Recipients of Superfund cooperative agreements for ranedial action may not
use a method other than formal advertising to procure construction services
(other than architectural and engineering (A&E) services) unless they have
first obtained concurrence of the Award official.
@ Non-certified recipients must allow EPA preaward review of proposed
procurement using EPA fundc (ses 40 CFR 33.110(b)(2) and 33.250).
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° You expect two or more responsible bidders to compete.
0 You must publicly solicit sealed bids (§33.410 and
Appendix A(b)(3) and (4)).
0 When procuring by the formal advertising method, you must:
-	provide adequate public notice
-	advise where and when bid documents will be available
-	advise vrfiere and vshen to submit bids
-	advise where and when bids will be opened
-	provide the bid evaluation and selection criteria, and
-	provide at least 30 days to prepare and submit bids
(Appendix A(b)(3)).
0 You must hold a public bid opening (§33.425); and then
° Award to the lowest responsive and responsible bidder (§33.430).
c. Canpetitive Negotiation Method (§33.505).#@
(Use IF and WHEN it is determined that formal advertising is not
appropriate)
(1)	General Requirements for all canpetitive negotiations.
° Determine that formal advertising method is not appropriate
(§33.505);
° Prepare written request for proposals from qualified sources
(§33.510)
-	provide source of documents relevant to preparing proposal
-	provide enough information to enable prospective offerors to
prepare a proposal
-	state all evaluation criteria and relative importance of each
-	if award will be based on initial offers only, so state;
° Provide adequate public notice (see 40 CFR Part 33, Appendix A(b)(3)
& (4) and state the place to submit proposals and the deadline for
their receipt;
0 Receive and review proposals
-	uniformly and objectively evaluate the proposals; and
-	base determination of qualified offerors and acceptable
proposals solely on stated evaluation criteria;
° Allow EPA pre award review of the proposed procurement if you did
not certify your procurement system.
(2)	Negotiation and Award of Subagreements (Standard Negotiation
Method (§33.520)).
° Determine best qualified offerors with acceptable proposals within
the canpetitive range;
0 Conduct meaningful negotiations with them unless the RFP stated
that a^ard would be based on initial offers only (§33.520);
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° Do not disclose the identity of competing offerors; and
0 Dd not provide offerors information about carpeting proposals.
° Permit the best qualified offerors equal opportunity to negotiate
and/or revise their proposals to best and final offers;
° Analyze costs if subagreanent is estimated >$10,000 (§33.290);
° Assure only fair and reasonable profit by negotiating profit as a
separate element of price (§33.235);
° Averd the subagreement to responsible offeror whose proposal is
determined in writing to be most advantageous, considering price
and other stated evaluation criteria;
0 Notify unsuccessful offerors; and
0 Be certain to document the above actions.
(3) Optional Procedures for Selecting Architects and Engineers (A&Es) by
Ocmpetitive Negotiation(40 CFR §33.525).#
The recipient may evaluate, rank, and select architects and engineers using
these procedures in place of those in §33.520. You may evaluate, rank, and
select the most technically qualified architect or engineer using either a
prequalified list of persons or firms (§33.230(c) or by requesting prospective
offerors (individuals or firms) to submit a statement of qualifications.
1 Prequalified List.
° You must give adequate public notice of your pre-
qualif ica1- ^:>n procedures;
0 You mu.-,_ .^iate your list at least every six months; and
0 Review and act upon requests for prequalification received
more .n 30 days before your closing date for receipt
of proposals or bid opening.
2 Statgnent of qualifications (see §33.525(b)).
0 Invite A&Es to submit statements of their qualifications
for providing the required services;
_3 Evaluation and Selection. Using either a prequalified list
or a statement of qialifications, you must:
° Request the most qualified to submit technical proposals;
inform them of the criteria that you will use to evaluate
and rank proposals - note that price is not a criterion;
° Select the best technical proposal;
0 Negotiate fair and reasonable compensation with the offeror
that submitted the best technical proposal
-	offer fair and reasonable compensation
-	evaluate profit separately (§33.235)
° If you and that offeror agree on compensation, make the award;
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0 If you and that offeror can not agree on compensation, formally
terminate negotiations and then negotiate with the offeror with
the next best technical proposal;
0 Continue the process with successive offerors until a satisfactory
agreement is reached with a qualified offeror.
° Note that - once you terminate negotiations with an offeror you
cannot go back and renegotiate with that offeror.
d. Noncompetitive Negotiation (§33.605) .#(3
The noncompetitive negotiation method of procurement is authorized ONLY IF:
° You can not use either the small purchase, formal advertising, or
- competitive negotiation method; and
° You determine there is only one source of the required itenv/service;
or
0 You face a public exigency or emergency that is of such urgency
that you cannot accept the delay that would result from competing
the procurement(s) necessary to ronedy the problem; or
0 After soliciting a number of sources, competition proves inadequate;
or the
° Award Official authorizes noncompetitive negotiation (§33.715(a)(2)).
2. SELECTED RECIPIENT RESPONSIBILITIES AND STEPS FOR PROCURING GOODS AND
SERVICES THROUGH EPA ASSISTED"SUBAGREEMENTS **
(refer to 40 CFR Part 33 for the complete statement of requirements)
a. General Recipient Responsibilities (§33.210). As a recipient of an
assistance agreement, you are responsible for:
0 Completing and settling contractual and administrative issues
arising fran subagreesrents; you must
-	use sound business judgement
-	use good administrative practices
-	resolve all protests;
0 Obtaining approval prior to using innovative procurement methods;
0 Having a written standard of conduct (§33.270);
° Awarding a fair share of subagreanents to small, minority, and
women's businesses (§33.240); and
0 Maintaining an administrative system to assure contractor
performance in accordance with their subagreements.
** If needed, a recipient may request EPA technical or legal assistance with
the administration and e:>r-orcement of any subagreement.
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b.	Limitations on Subagreement Awards (33.220).
° You must award subagreements only to responsible contractors that
have the potential ability to perform successfully under the terms
and conditions of the proposed subagreement.
° Responsible contractors must have or demonstrate the ability to
obtain adequate:
-	financial resources
-	technical qualifications
-	experience
-	organization and facilities
-	resources to meet the planned completion schedule
-	a record for completing projects is satisfactory
-	accounting and auditing procedures;
0 Responsible contractors are kncwn to be law-abiding (§33.220(a)(5)
and (b)); and
0 Are not on EPA's Master List of Debarred or Suspended Bidders.
c.	Prohibited Types of Subagreements (§33.285).
' Percen tage-of-cons true t ion-cos t; and
0 Cos t-plu s-percentage-of-cos t.
d.	Competition (§33.230).
0 You must assure maximum open and free competition; and avoid
0 Unnecessary or unreasonably restrictive requirements
-	experience and bonding requirements
-	barriers that favor in-State or local offerors/bidders.
e.	Prequalification of Persons, Firms, or Products (33.230(c)).
0	You must update the list at least every six months;
0	Do not close the list more than 30 days before bid opening;
°	Provide public notice of the prequalification procedures; and
0	Avoid using the list in a way that unduly restricts competition.
f.	Profit (§33.235).
0 Profit must be fair and reasonable;
° You must negotiate profit as a separate element of price if there
is no price competition or price is based on cost analysis; and
0 You may consider profit included in competitive bids received in
response to a formally advertised, fixed price subagreanent as
reasonable, if two or more bids have been received.
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g.	Specifications (§33.255).
0 Mist be clear and accurate;
° Not be unduly restrictive;
0 Set forth minimum acceptable standards;
° "Brand Name or Equal" is permitted if clearly and accurately
describing the technical requirements in your proposal is
impractical or uneconomical; you must list salient characteristics
of the named brand;
h.	Bonding and Insurance (§33.265).
(1)	Subagreements $100,000 or less
0 Follow own requirements.
(2)	Subagreements >$100,000.
° Obtain Award Official's authorization to follow own requirements, or
-	require each bidder to provide bid guarantee equivalent to five
per cent of the bid price
-	require a performance bond for 100% of subagresnent price
-	require a payment bond for 100% of subagreement price;
° Be certain that bonds are with acceptable surities; and
° Follow flood insurance requirements vhen applicable
i.	Cost and Price Considerations (§33.290).
° Under a negotiated subagreement, require contractors and sub-
contractors to support their proposals with cost or pricing data;
0 Conduct a cost analysis of all negotiated subagreements >$10,000;
0 Conduct a cost analysis of all negotiated change orders; and
° Conduct a price analysis of all formally advertised procurements
estimated to exceed $10,000, if there were fewer than three bidders.
j. Cost Principles (§33.275).
0 State and Local governments - CMB Circular A-87;
0 Nonprofit organizations - CMB Circular A-122;
0 Educational institutions - 0MB Circular A-21;
0 All others - Federal Acquisition Regulations (48 CFR Subparts 31.1
and 31.2).
k. Payments to Consultants (§33.280).
0 EPA limits its participation in the salary rate (excluding overhead)
paid to individual consultants who are paid at a daily or hourly
rate to the maximum daily rate of a GS-18 Federal employee
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($263.36 per diem on 12A/85). This rate is in addition to any
entitlement to reimbursenent for subsistence and transportation
costs. Recipients may, at their own expense, pay consultants at
a greater rate.
0 These limits do not apply to firms that are awarded subagreements
using EPA's regulation for Procurement Under Assistance Agreements
1. Documentation (Subagreanents >$10,000) (§33.250)g
(1)	All recipients must document their:
°	Basis for selecting the contractor;
. °	Justification of the procurement method selected;
°	Justification for the use of any restrictive specifications;
°	Justification for the type of subagreenent;
°	Basis for award with a cqpy of the cost or price analysis;
0	Justification for rejecting bids;
°	Justification for using noncanpetitive negotiation basis.
(2)	In addition to (1), recipients not having a certified procurement
system (Appendix A(b)) must also;
a Provide a record of;
-	Public notice and bid solicitation (Appendix A(b)(4));
-	Allowing sufficient time for preparing bids (Appendix A(b)(3)).
-	Cost or pcice data on EPA Form 5700-41 or equivalent format; and
b Allow EPA preavgarxj review of proposed procurements (533.110(b)(2)).
m. Reporting (§33.211).
0 You must notify the Award Official within 10 days of the award
of each subagreenent with an estinated annual value > $10,000
-	identify the project and the selected contractor (name,
address, telephone number, etc.)
-	state the award amount
-	state the estimated starting and completion dates
-	provide a copy of the tabulation of bids or offer
-	identify the bidders/offerors; and
° Report on the use of small, minority and women's businesses
(§33.240) if required by your assistance agreement.
3. SELECTED SUBAGREEMENT CLAUSES AND PROVISIONS (40 CFR PART 33, SUBPART F).
° Each subagreement must define (§33.1015) the:
-	nature, scope, and extent of work to be performed
-	when that work must be performed (start by - canplete by)
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-	the total cost (fixed cost or not-to-exceed)
-	payment provisions.
0 Recipients must include appropriate clauses in their subagreements
(see model clauses on the following subjects in §33.1030):
J_ All subagreements.
-	supersession (§33.1030-1)
-	privity of subagreement (§33.1030-2)
-	termination (§33.1030-6)
-	remedies (resolution of claims, disputes, etc.)(§33.1030-7).
-	price reduction in response to defective cost/pricing
data (§33.1030-8)
-	access to contractors' records (§33.1030-9)
-	covenant against contingent fees (§33.1030-10)
-	contractor gratuities (§33.1030-11)
-	final payment (§33.1030-14)
-	conflict of interest (proposed)
2	Subagreements for construction.
-	changes to subagreement (§33.1030-3(a))
-	discovery of differing site conditions (§33.1030-4)
-	suspension of work (§33.1030-5)
-	respondibilities of contractor (§33.1030-13(b)).
3	Subagrcc..^ts for services.
-	changes (§33.1030-3(b))
-	responsi' .:ities of contractor (§33.1030-13(a)).
4	Subagreements for supplies.
-	changes (§33.1030-3(c)).
4. •-'ROTESTS OF RECIPIENT'S SOLICITATION OR CONTRACT AWARD (40 CFR PART 33, SUBPART G).
° Recipients must establish their own procedures for prompt review
and decision on protests (§33.1110);
° Protestor must have financial interest which is adversely affected
by the recipient's procurement action;
0 Protests should be in writing and addressed to the recipient;
° Recipient may proceed with a procurement action while a protest is
pending only at its own risk of disallowance of costs of the contested
contract if the protest appeal is upheld; and
° An affected party may "appeal" a recipient's protest decision to
the Award Official (633.1115 through 33.1130).
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5. SUBAGREEMENTS (SUBCONTRACTS) AWARDED BY A RECIPIENT'S CONTRACTOR (§33.295).
Assure that your contractor has knowledge of and ccmplies with the:
0 Responsibility requirements (§33.220(a)(1) through (a)(5));
° Profit requirements in (§33.235);
0 Specification requinnents (§33.255);
0 Cost principles (§33.275);
0 Avoidance of prohibited types of subagreements (§33.285);
0 Cost and price considerations (§33.290);
° Required subagreanent provisions -
-	nature, scope, and extent of work to be performed
-	timeframe for performance
-	total cost of the subagreenent
-	payment provisions
-	applicable labor standards
-	appropriate model clauses ((§33.1030);
0 Debarment and Suspension under EPA Assistance Programs 40 CFR Part 32;
° and MBE/WBE considerations (§33.240).
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CHAPTER 22 - COST AND PRICE ANALYSIS
Table of Contents
PARAGRAPH	PARAGRAPH
TITERS	NUMBERS
General		1
Cost Analysis		2
Price Analysis		3
Profit						4
Submission of Cost and Price Information		5
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CHAPTER 22 - COST AND PRICE ANALYSIS
1.	GENERAL.
a.	Purpose. This Chapter provides guidance to EPA staff and recipients
concerning cost and price analysis of awards of assistance or subagreements
under 40 CFR Part 30, "General Regulation for Assistance Programs" and 40 CPR
Part 33, "Procurement Under Assistance Agreements." (The cost and price analysis
function is a deligable function under the Construction Grants for Wastewater
Treatment Works program.)
b.	Definitions.
(1)	Cost analysis is the review and evaluation of each element of
subagreement cost to determine reasonableness, allocability, and allowability.
(2)	Price analysis is the process of evaluating a prospective price
without regard to the contractor's separate cost elements and proposed profit.
Price analysis determines the reasonableness of the proposed subagreement
price based on an adequate price ccmpetition, previous experience with similar
work, established catalog or market price, law, or regulation.
c.	Policy. Costs Incurred under EPA assistance agreements and subagreements
must be allowable, allocable, and reasonable.
d.	Allowable Costs. Requirements affecting the allowability of costs are
found in various EPA regulations. Some pertinent references are:
(1)	40 CPR 30.410, 30.412, 30.307;
(2)	40 CPR Part 35, Subpart E, §35-940;
(3)	40 CPR Part 35, Subpart I, Appendix A; and
(4)	40 CPR Part 35, Subpart H, §35.1650-5.
e.	Freedom of Information. Generally, EPA assistance applicants, recipients,
or contractors may claim nondisclosure rights to portions of their cost and
price submissions to cover such subjects as trade secrets, confidential personnel
data, and financial material. All assistance applications and subagreement
proposals are subject to the provisions of the Freedom of Information Act, as
amended (5 USC 553). A discussion of this subject will be found in Chapter 46
of this Manual.
2.	COST ANALYSIS.
a. Policy.
(1) Recipients of EPA assistance agreements must perform a cost
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analysis of all negotiated subagreements and all change orders over $10,000.
(See §33.290(a)).
(2)	The Headquarters Award Official or the program office may request
a cost analyses of assistance applications/agreements awarded by Headquarters
(generally, research, demonstration, and training). The Planning and Cost
Advisory Branch of the Procurement and Contracts Management Division will
conduct cost analyses of assistance applications awarded by Headquarters. The
Award Official will review the findings and recommendations of the cost analysis
report and make a written recaranendation to the program office. The program
office reviews the cost analysis report and the Award Official's recommendations
and proposes resolution of questioned items to the Award Official who makes
the final decision.
(3)	Regional Award Officials will determine whether the Regional office
will conduct a cost analysis of Regionally awarded assistance applications and
whether the Region will review a recipient's cost analysis of a subagreement.
b.	Review Objectives. The objective of a cost analysis review is to determine
that the recipient or contractor has the financial capability, accounting
system, and management resources to adequately account for and safeguard Federal
funds, and that proposed costs are reasonable.
c.	Extent of Review. The extent of review is dependent upon past experience
with the recipient or proposed contractor, total dollar award of the proposal,
extent to which proposed costs are supported by documentation, and other factors
which may affect the organization's financial capabilities to carry out the
terms of the assistance agreement.
d.	Financial Management Considerations. The initial review of the financial
aspects of an assistance application or proposed subagreement should emphasize the
recipient's or contractor's ability to manage the assistance agreement or sub-
agreement. A basic requirement for the financial management of a project is an
adequate accounting system (see Chapter 20, "Accounting and Internal Management").
An adequate accounting system includes the following elements:
(1)	Records. The maintenance of records, in chronological order, of
financial transactions that document receipts ami disbursements (include codes
and necessary clarifications) and that separate allowable from unallowable
costs and direct from indirect costs following established Federal cost principles
(see Chapter 13, "Determination of Costs");
(2)	Documentation. The supporting documentation of entries into
accounting records (e.g., purchase requests, subagreements, receipt reports,
progress payment reports, invoices) which adequately explain the transaction;
(3)	Audit Trail. The recipient's or contractor's provisions to maintain
the data which allows someone to trace an entry back to the source documentation;
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(4). Internal Control. The internal control procedures vhich contain
a system of checks and balances on the individuals involved in the recording
process.
e. Cost Analysis Considerations. The following subparagraphs discuss the
various elements of cost and give examples of the corresponding cost summary
format.
(1) Personnel Costs are costs for labor directly related to the
assistance agreement or subagreement.
EXAMPLE:
Estimated	Hourly
Category	Hours	Rate
Professional	100	x $14.00 = $1,400
Nonprofessional	1000	x	7.00 =	7,000
Clerical	800	x	5.00 = 4,000
Total Direct Personnel Cost	$12,400
Consider:
(a)	The level of effort or the total anount of time proposed.
The proposed effort should be consistent with the effort required by the assistance
agreement or subagreenent.
(b)	The labor mix or the labor categories proposed. Labor mix
should be consistent with the caliber of effort - professional versus non-
professional versus clerical required by the assistance agreement or subagreenent.
(c)	The current salary plus a reasonable escalation factor for any
project cost increases. Generally, the conversion of annual salaries into hourly
rates is accomplished by dividing the annual salary by 2,087 hours (assuming an
8 hour work day).
(2) Fringe Benefit Costs are costs for personnel anployment other than
the employees' direct incane (i.e., employer's portion of FICA insurance,
retirement, sick leave, holiday pay, and vacation cost) paid by the recipient
or contractor. While these costs are normally accumulated in a pool and allocated
using percentages as shown below, a recipient or contractor may calculate
actual fringe benefit costs for the employees proposed. Either method is
acceptable if applied consistently.
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EXAMPLE:




Category

Direct labor
Category
Rate

Base
Professional
10%
x
$1,400 = $140
Nonprofessional
10%
X
7,000 = 700
Clerical
10%
X
4,000 = 400
Total Fringe Benefit Cost	$1,240
Consider:
(a)	The fringe benefit rate applied to the direct labor base
should correspond to the cost of the proposed labor categories.
(b)	If costs for specific employees are computed, employer's FICA
insurance and unemployment insurance are applied only up to the maximum salary
limits established by statute.
(c)	Costs which vary with the length of service, e.g., vacation costs.
(3) Overhead Costs are costs which result from an allocation of a group
of indirect costs. (See definition of indirect costs, Chapter 2, "Glossary".)
In a small, uncomplicated organization, this group may represent all indirect
costs. A more complex organization may have several overhead pools and a
General and Administrative expense pool. The main criterion for determining
the number of pools and the composition of the pools is the allocation base.
Indirect costs should be logically grouped. The most popular base is direct
labor; however, there are instances where an equitable allocation cannot be
made using this base. Indirect costs that are usually allocated on a direct
labor base are space costs, equipment depreciation, and personnel costs.
EXAMPLE:
Direct Labor
Category	Rate X Base	=	Post
Overhead	50%	$13,668	$6,834
Total Overhead Cost $6,834
Consider:
(a)	The allocation base. Is it an equitable basis for distribution?
(b)	The proposed overhead rate. Has the rate been approved by
the recipient's cognizant Federal agency? If not, is there enough documentation
to allow an evaluation of the rate? Unallowable costs listed in the various
Federal cost principles (see 40 CFR 30.410) must be excluded frcm the pool(s).
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(4) Travel and Per Diem Costs. Costs for travel and subsistence which
can be directly related to the assistance agreement or subagreanent.
EXAMPLE:
Travel
Number of Miles Rate per Mile
Office to job site
and return
Office to EPA and
return
Per Diem:
50
20
Number of Days
10	x
x	$ .20
x	.20
Rate per Day
$75.00
$10.00
4.00
Tbtal	$14.00
$750.00
Tbtal Travel and Per Diem Cost	$764.00
Consider:
(a)	The type of trip to be made.
(b)	The number of trips to be made.
(c)	The number of people on the trip.
(d)	The cost per trip (per mile for local travel).
(e)	The rate of per diem allowance.
(5) Equipment, Materials, and Supply Costs. Costs for equipment,
material, and supplies directly related to the assistance agreanent or subagreement.
EXAMPLE:
Item
Quantity
Cost Per Item Cost
Recording Bararieters
5 x
$ 455 =
$2,275
Lysimeter Electrical Output Units
10 x
637 =
6,370
Incremental Water Quality Samplers
5 x
1,600 =
8,000
Aluminum Tubing
1500 ft. x
•70/ft. =
1,050
Other Equipment


1,525
Miscellaneous Supplies


580
Total Equipment, Materials
, Supply Cost

$19,800
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Consider:
(a)	The recipient must itemize pieces of equipment with a unit
acquisition cost of $1,000 or more.
(b)	The need for the itemized equipment.
(c)	The cost for itemized equipment including a discount factor
for quantity purchases.
(d)	The cost of rental vs. the cost of purchase.
(e)	Ihe proposed costs may include a handling charge if the accounting
system has a capability to segregate and handle sich service charges. Otherwise,
a service charge could be included in an overhead pool.
(6) Subagreement Costs are costs directly related to the EPA assistance
project. The procedures for cost analysis for subagreements are the same as
for assistance agreement applications except that the recipient must evaluate
profit as a separate element of cost.
EXAMPLE;	Price
Total direct and indirect costs	$100,000
Profit	10,000
Ttotal cost	$110,000
9nall Purchase Consultant Service
Daily Rate	No. of Days
$150	x	10	$1,500
Total Subagreorient Costs	$111,500
Consider:
(a)	The cost and profit sunmary of each subagreement.
(b)	For profit consider:
_1 The contractor's input to total performance.
2 The demonstrated performance history of the contractor.
2 The assumption of cost risk on the part of the contractor.
(c)	The hourly/daily rate and the number of hours/days proposed for
snail purchases consultant services.
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(7) General and Administrative (G&A) Costs include accounting, legal,
top level management and other costs benefiting the entire organization since
these costs are usually allocated ever the total cost of operations.
EXAMPLE:
G&A Rate G&A Base
2% x $346,152 = $6,923
Consider:
(a)	The same considerations as for overhead, subparagraph 2e(3).
(b)	If the allocation bases for overhead and G&A are identical,
it is possible that the pools could be combined to provide for only one rate.
f. Cost Analysis Findings. The cost analyst assesses all elements of cost
and divides them into the following categories with explanatory notes as needed.
(1)	Accepted Costs are costs which the cost analyst considers to be
reasonable as submitted, and may be included in the award or subagreement.
These costs are usually qualified to the extent that costs may became "questioned
costs" based on a technical evaluation.
(2)	Questioned Costs are costs of vdiich the cost analyst questions the
reasonableness, and recommends reduction or disallowance. The cost analyst will
document his reasons for taking exception to the cost sum-nary in a manorandum
for the official file.
(3)	Unallowable Costs are identified in the applicable cost principles
(see 40 CFR 30.410). A few examples of unallowable costs are:
(a)	Bad Debts. losses arising from uncollectable accounts and
other claims, and related costs.
(b)	Entertainment. Costs of amusements, social activities and
related costs such as meals or beverages.
(c)	Interest and Other Financial Costs. Interest on borrowing
(however represented), bond discounts, costs of financing operations, and
related legal and professional fees.
(d)	Fines and Penalties. Costs from violations of, or failure to
comply with Federal, State and local laws and regulations.
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(4) Set Aside Costs are costs the cost analyst has not determined are
allowable. The Award Official is the final arbitrator of set aside costs, and
EPA must not pay these costs until the Award Official determines whether they
are allowable.
3. PRICE ANALYSIS.
a.	General. A price analysis is an evaluation of a prospective price without
regard to the contractor's separate cost elements and proposed profit, and
assumes the seller is operating in a competitive market. A price analysis is
necessary for formally advertised subagreement awards only when there are fewer
than three bidders.
b.	Methods. The recipient may conduct price analysis by comparing:
(1)	Price quotations frcm suppliers or contractors;
(2)	Prior quotations and subagreement prices with current quotations
for the same or similar end itans?
(3)	Prices in published price lists, published market price commodities,
or other published lists;
(4)	Proposed prices with estimates of cost independently developed by the
recipient or EPA; and
(5)	Ratios (e.g., dollars per square foot, per hour, per drawing) to
highlight major deviations frcm past purchases.
c.	Adjustments in Pricing Data.
(1)	Price analysis is meaningful only if the data is comparable. This
wsuld not be the case when prices are developed on different assumptions about
technical or performance requirements. Therefore, it may be necessary to make
adjustments in the pricing data to develop a cannon base.
(2)	The recipient should determine that seme of the prices used for
comparison are reasonable. Perhaps the best evidence is the existence of
adequate conpetition which presumes to guarantee that the lowest responsive
bid is reasonable. Generally, price competition may be presumed to exist
vAiere:
(a)	Two or more offerors who can satisfy the technical qualifications
requirements compete independently for the award:
(b)	The offers are responsive to the requirements of the solicit-
ations r and
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(c) An award is to be made to the responsible, responsive offeror
with the lowest price.
4.	PROFIT. Recipients must assure that only fair and reasonable profits are
paid to contractors awarded subagreements under EPA assistance agreements.
There are no hard and fast rules to use when reviewing the amounts of profit
recipients allow in negotiated subagreements. 40 CFR 33.285 prohibits both
cost-plus-percentage-of-cost and percentage-of-construction-cost types of sub-
agreements, so profits do not increase if costs increase. Generally, recipients
should negotiate fee or profit amounts based on several factors:
a.	The greater the amount of risk the contractor assumes, normally the
higher the rate of profit. On firm-fixed-price subagreements involving complex
or difficult tasks, the contractor assumes considerably more risk than on
cost reimbursement subagreements.
b.	An increase in the fee or profit may occur if the contractor must incur
significant capital investment costs, exercise considerable ingenuity, or do
independent developmental work.
5.	SUBMISSION OF COST AND PRICE INFORMATION.
a.	Contractors may submit their cost and price information on either the
ERA Form 5700-41, "Cost and Price Summary" or provide the same information in
their own format. The information must reflect complete, current, and accurate
cost or price information. EPA Form 5700-41 provides contractors with guidance
on how to complete the form. The recipient's signature on the EPA Form 5700-41
represents evidence that the recipient has reviewed and accepted the contractor's
proposed cost or price.
b.	More detailed cost data than that required by the surmtary format is
normally required by EPA only when the selected contractor is unable to certify
that the cost or price data is complete, current, and accurate. EPA nay perform
a preaward review on any subagreement.
c.	If the Award Official determines that cost data was not current, complete,
and accurate, the costs are subject to downward renegotiation or recoupment of
funds.
d.	If EPA reviews the proposed subagreement, the Award Official must inform
the recipient of the results of the review, but that the subagreement is still
subject to an audit.
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CHAPTER 23 ~ CIVIL RIGHTS AND LABOR STANDARDS COMPLIANCE
PARAGRAPH	PARAGRAPH
TITLES	NUMBERS
Policy	 1
Responsibility					 2
Civil Rights Compliance
Procedures	 3
Labor Standards Compliance
Procedures	 4
Implementation Assistance			 5
FIGURE	FIGURE
TITT.F.S	NUMBERS
Compliance Report (EPA Form *1700-4)	 23-1
Regional Directors of Civil Rights and
Laboratory EEO Officers	 23-2
Notice to Complainant and Recipient	 ?3~3
Agency Letter to EEOC Transferring Complaint	 23-4
Agency Letter to Complainant and Recipient of
Complaint Transferring Complaint	 23-5
Agency Complaint Referral letter to EEOC	 23-6
Agency Letter to Complainant and Respondent
of Complaint Referral to EEOC	 23-7
Sample Memorandum to Award Official Re: Discrimination
Complaint Against Recipient or Applicant	 23-8
Sample Acknowledgement letter to Complainant				23-9
Authorization		23-10
Sanple Notification Letter to Recipient		23-11
Sample Complainant Letter				23-12
Sample Recipient Letter		23-13
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Table of Contents - Continued
FIGURE	FIGURE
TITLES	NUNRKRS
Sample Complainant Letter		23-14
Sample Recipient Letter		23-15
Sample Complainant Letter		23-16
Sample Recipient Letter		23-17
Sample Complainant Letter		23-18
Sample Memorandum to Award Office Re: Discrimination
Complaint Against Recipient of Assistance or Applicant	 23-19
Sample Request for Further Information	 23-20
EEOC District Offices and Jurisdictions	 23-21
APPENDIX	APPENDIX
TITLES	NUMBERS
Nondiscrimination in Programs Receiving Federal
Assistance from EPA (40 CFR Part 7 as amended
by 49 Fed. Reg. 1656, January 12, 1984)	 23-A
Procedures for Complaints of Employment Discrimination
Filed Against Recipients of Federal Financial
Assistance (29 CFR Part 1691 and 28 CFR Part 42 as
amended by 48 CFR Fed. Reg. 3570, January 25, 1983)	 23-B
Interim Procedures for Processing Complaints of
ftnployment Discrimination Against Recipients of
Federal Assistance (DOJ Management Directive EEO -
MPD 1002 of March 14, 1983)	 23-C
Labor Standards Provisions Applicable to Contracts Covering
Federally Financed and Assisted Construction (Also Labor
Standards Provisions Applicable to Nonconstruction Contracts
Subject to the Contract Work Hours and Safety Standards Act)	 23-D
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CHAPTER 23 - CIVIL RIGHTS AND LABOR STANDARDS OOMPLIANCE
1. POLICY. EPA must ensure that all recipients of EPA financial assistance
arid their contractors comply with applicable civil rights and labor standards
set forth in the following statutes, Executive Orders, and implementing regula-
tions.
a. Civil Rights Requirements.
(1) Nondiscrimination.
(a)	Title VI of Civil Rights Act of 1964. Title VT of the Civil
Rights Act of 1964, 42 U.S.C. 2000d, provides that no person in the United
States shall on the ground of race, color, or national origin be excluded frcm
participation in, be denied the benefits of, or be subjected to discrimination
under any program or activity receiving Federal financial assistance. See 40
CFR Part 7, as amended by 49 Fed. Reg. 1656, January 12, 1984 (Appendix 23-A).
(b)	Federal Water Pollution Control Act Amendments of 1972,
Section 13. Section 13 of the Federal Water Pollution Control Act Amendments
of 1972, 33 U.S.C. 1251 note (86 Stat. 816) provides that no person in the
United States shall on the ground of sex be excluded from participation in, be
denied the benefits of, or be subjected to discrimination under any program
or activity receiving assistance under the Federal Water Pollution Control
Act, as amended (86 Stat. 816). See 40 CFR Part 7, as amended by 49 Fed- Reg.
1656, January 12, 1984 (Appendix 23-A).
(c)	Title IX of the Education Amendments of 1972- Title IX of
the Education Amendments of 1972, 20 U.S.C. 1681, et _seq., provides that no
person in the United States shall, on the basis of sex be excluded frcm par-
ticipation in. be denied the benefits of, or be subjected to discrimination
under any educational program or activity receiving Federal financial
assistance. Note: this means any education program or activity, not only
those conducted by a formal education institution.
(d)	Section 504 of the Rehabilitation Act of 1973. Section 504
of the Rehabilitation Act of 1973, as amended, 29 U.S.C. 794, provides that no
otherwise qualified handicapped individual in the United States shall solely
by reason of his handicap, be excluded frcm participation in, be denied the
benefits of, or be subjected to discrimination under any program or activity
receiving Federal financial assistance. See 40 CFR Part 7, as amended by
49 Fed. Reg. 1656, January 12, 1984 (Appendix 23-A).
(e)	Age Discrimination Act of 1975. The Age Discrimination Act
of 1975, as amended, 42~ U.S.C. 6101 et. seq., prohibits with certain exceptions,
discrimination on the basis of age in programs or activities receiving Federal
financial assistance.
(f)	Title VIII of the Civil Rights Act of 1968. (Federal Fair
Housing Act), 42 U.S.C. 3601 et seq. Section 808 of that Act, 42 U.S.C. 3608,
provides for the administration of all Federal programs and activities relating
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to housing and urban development to affirmatively further fair housing through-
out the United States.
(2) Equal Employment Opportunity Requirements. Executive Order 11246,
as amended, with" regard to equal employment opportunities with contractors
(see 41 CFR Part 60-1 and 40 CFR Part 8) requires that a contractor under a
Federal or Federally assisted construction project not discriminate in employ-
ment on the basis of race, color, religion, sex, or national origin. The Order
requires contractors to take affirmative action to ensure that applicants are
employed and that employees are treated during employment without regard to
their race, color, religion, sex, or national origin. Further, it requires the
contractor to post all mandatory equal opportunity notices and complete all
required Department of Labor and Equal Opportunity Ccmmission reporting forms.
The Office of Federal Contract Compliance Programs (OFCCP), Department of
Labor, is responsible for complaint processing under Executive Order 11246,
as amended.
b. Labor Standards.
(1)	Davis-Bacon Act. The Davis-Bacon Act, as amended, 40 U.S.C. 276a
et seq., and the regulations issued thereunder, 29 CFR 5.1 et seq., govern
wage rates for Federally assisted construction contracts in "excess of $2,000.
These specify that not less than minimum wages as determined by the Secretary
of Labor be paid to the various classes of laborers and mechanics employed on
a particular project, based upon wages prevailing in the area as determined
by the Secretary of Labor.
(2)	Davis-Bacon Related A_cts. The Davis-Racon Related Acts, 42 (J.S.C.
6979 and 33 U.S.C. 1372 and applicable regulations 29 CFR 5.1 et seq., cover
Federally assisted construction projects. They make wage determinations
developed by the Secretary of Labor applicable to the projects. Wage deter-
minations provide minimum wages for laborers and mechanics employed on con-
struction work performed on Federally assisted construction projects. Only
those provisons of the Davis-Bacon Act which relate to the determination of
prevailing wages apply to Federally assisted construction projects.
(3)	The Copeland Act. The Copeland (Anti-Kickback) Act, 18 U.S.C.
874, 40 U.S.C. 275c, and the regulations issued thereunder, 29 CFR 3.1 et
s_eq. , prohibit the inducement of an employee to give up any part of the com-
pensation to which he has a right under the contract of employment.
(4)	The	Work Hours and Safety Standards Act. The Contract
Wnrk Hours and Safety Standards Act, 40 U.S.C. 327. et seq., and the regulations
issued thereunder, 29 CFR Part 5, provide a uniform standard of an 8-hour
workday and a 40-hour workweek, with one and a half times the basic rate of
pay required for all work in excess of eight hours per day or 4D hours per week.
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2. RESPONSIBILITY.
a* Office of Civil Rights.
(1)	The Office of Civil Rights (OCR) serves as the principal advisor
to the Administrator with respect to the policies in paragraph 1. OCR functions
and responsibilities are agencywide and apply to the provision of leadership,
services, and advice with respect to carrying out the polic^, ;his includes
providing program policy guidance for the evaluation of activities to carry
out the policy in paragraph 1.
(2)	OCR's External Compliance Programs Branch (ECP) develops policies
and procedures for and ensures the implementation of agencywide programs that
assure compliance with the policy in paragraph 1.
b. Assistance Administration Unit (AAU). Each Assistance Administration
Unit shall assist OCR in carrying out the policy in paragraph 1. Responsibilities
include the following:
(1)	Cooperate with OCR in the development of procedures to carry out
the policy of paragraph 1•
(2)	Disseminate guidance developed by OCR to appropriate entities;
(3)	Implemsnt OCR policy guidance as appropriate;
(4)	Assist OCR in carrying out the policy in paragraph 1;
(5)	Implement interim procedures, subject to OCR oversight, where
necessary to carry out the policy set forth in paragraph 1;
(6)	Ensure that all applications contain the required assurances of
compliance. Where assurances require Agency approvals, they must be processed
under mechanises established by the Regional Director of Civil Rights or as
otherwise set forth in this Chapter. The assurance of compliance is incor-
porated in Part V of the F!PA applications for Construction Grants for Wastewater
Treatment (WWT) Vforks (EPA Form 5700-32) and for Continuing Environmental
Support Programs (EPA Form 5700-33). Applicants for WWT construction grants
must submit a properly executed Compliance Report, EPA Form 4700-4 (see figure
23-1) with their applications;
(7)	Forward copy of the Compliance Report submitted with a WWT construc-
tion grant application to the appropriate Regional Director of Civil Rights:
(8)	Incorporate approved conditions in the assistance agreement for
nondiscrimination, equal employment opportunity, and labor standards:
(9)	Withhold or cause to be withheld frora a recipient or prime contrac-
tor, as appropriate, as much of the accrued payments or advances as may be
determined necessary (1) to pay laborers and mechanics, including apprentices,
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trainees, watchmen, and guards employed by the contractor, backwages under
the Davis-Bacon and Related Acts and/or the contract Wbrk Hours & Safety Standards
Act and (2) to satisfy any liability of any contractor for liquidated damages
under paragraph (b) of the clause entitled "Contract Wbrk Hours and Safety
Standards Act-Overtime Compensation" pursuant to guidance received fran the
EPA Headquarters Office of Civil Rights (OCR). (Note: existing procedures
shall remain in place until altered by OCR); and,
(10) Perform the functions contained in paragraph 4, "Labor Standards
Compliance Procedures" of this Chapter.
c. Regional Directors of Civil Rights and Laboratory EEO Officers, The
Regional Directors of Civil Rights and the Laboratory EEO Officers are respon-
sible for ensuring that the policy set forth in paragraph la is carried exit
under procedures and guidance issued by Headquarters OCR. A list of these
officials is attached as figure 23-2. Responsibilities include the following:
(1)	Establish regional mechanises to carry out those policies;
(2)	Monitor regional mechanisms to ensure they are functioning;
(3)	Cooperate with OCR in the development of procedures to carry
out the policy in paragraph la;
(4)	Disseminate guidance developed by OCR to appropriate entities;
(5)	Implement guidance as appropriate;
(6)	Assist OCR in carrying out the policy in paragraph 1;
(7)	Ensure that preaward reviews are conducted in accordance with the
preaward procedures in paragraph 3a;
(8)	Ensure that postaward compliance reviews are conducted in accordance
with postaward procedures in paragraph 3b; and
(9)	Ensure that complaints are processed in accordance with canplamt
procedures in paragraph 3c.
3• CIVIL RIGHTS COMPLIANCE PROCEDURES.
a. Preaward Review Procedures.
(1) General. Applicants for EPA assistance shall sufcmit, pursuant to
interim procedures implemented by the Regional Director of Civil Rights and the
Laboratory EEO Officer, the following information regarding the program or activity
that would receive EPA assistance:
(a) An assurance of compliance (See paragraph 2b(6))r
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(b)	Notice of any lawsuit pending against the applicant alleging
discrimination on the basis of race, color, sex, handicap, or national origin;
(c)	A brief description of any applications pending to other
federal agencies for assistance, and of federal assistance being provided at
the time of the appplication; and
(d)	A statement describing any civil rights compliance reviews
regarding the applicant conducted during the two-year period before the
application, and information concerning the agency or organization performing
the reviews.
(2)	Civil Rights Compliance Reports. Applicants for Step 2+3, Step 3,
and Step 4 WWT construction grants must submit a properly executed Compliance
Report, EPA Form *1700-4 (see figure 23-1) to EPA pursuant to Interim procedures
implemented by the Regional Director of Civil Rights with the assistance applica-
tion. Applicants are required to submit the Compliance Report form as part of
their facility plan. In the event a recipient requests an increase in the
amount of funding because of a change in project scope Incident to a change in
the populations to be served by the project work, an updated Compliance Report
may be submitted as a condition of approval of such Increase. Form 4700-4
incorporates the information required by paragraph 3a(l)(b) and (c). The infor-
mation required by paragraph 3a(l)(a) and (d) must be submitted In addition to
Form 4700-4. No WWT construction grant should be awarded for Steps 2+3, Step 3
or Step 4 without prior approval of the Compliance Report by the Regional
Director of Civil Rights or designee.
(3)	If the information submitted indicates no potential civil rights
problem, the award may be made. If the information does indicate a potential
civil rights problem, Headquarters OCR should be consulted.
(4)	Access for the Handicapped.
(a)	Applicants and recipients must comply with 40 CFR 7.70, as
amended by 49 Fed. Reg. 1656, January 12, 1984 (Appendix 23-A). Section 7.70
requires that new facilities be designed and constructed to be readily accessible
to and usable by handicapped persons except as provided in paragraph 3a(4)(b)
below. Conformance with the 1980 "American National Standards Institute,
Inc." (1980 ANSI Standards) constitutes compliance with this section.
(b)	Section 7.70(d) contains a limited exception which applies
only to the design, construction, or alteration of any portion of a building
that, because of its intended use, will not require accessibility to the public
beneficiaries or will not result In the employment or residence therein of
physically handicapped persons. Fbr example, if a facility or portion of a
facility is not visited by the public or beneficiaries and, because of the
nature of the facility and the requirements of the jobs there, it is not likely
that persons with particular handicaps could meet the physical requirements for
those Jobs, even with reasonable accommodations, the exception may be applied.
For example, elevator access need not be provided in a sewage treatment plant
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for certain areas associated with the treatment process because of the potential
hazards that exist and because full mobility may be necessary to perform some
of the essential functions of the jobs in those areas. Providing accessibility
for wheelchair users In these areas would impose an undue hardship on the
operation of the recipient's activity. Recipients are required to provide
accessibility for persons with other handicaps, such as hearing impairments,
who could perform jobs in treatment areas without creating safety or health
hazards. However, separate administrative or laboratory areas in the same
facility must be accessible to persons in wheelchairs.
b.	Postaward Compliance Review Procedures. Until OCR issues agencywide
guidance, Regional Directors of Civil Rights, or their designees, and laboratory
EEO Officers should conduct postaward compliance reviews under 40 CFR 7.115
after consulting with OCR.
c.	Procedures for Processing Civil Rights Complaints Against Recipients.
Regional Offices, Headquarters, and laboratories must use the following
procedures:
(1) Purpose. These procedures guide EPA personnel in Regional Offices,
laboratories, and Headquarters in processing civil rights complaints against
recipients. They Implement the complaint processing procedures found in EPA's
regulation entitled "Nondiscrimination in Programs Receiving Federal Assistance
Prom the Ehvirormental Protection Agency" found at 40 CFR 7.120 - 7.135, as
amended by 49 Fed. Reg. 1656, (January 12, 1984). See Appendix 23-A.
(2)	Scope. These procedures apply only to processing civil rights
complaints against recipients of EPA assistance (external complaints). They
do not apply to processing civil rights complaints filed by employees or
applicants for employment against EPA (Internal complaints). This guidance
is not intended to advise as to what does or does not constitute a substantive
civil rights violation.
(3)	Relationship of this Guidance to Regulations. Each procedure is
cross-referenced to a regulation section. That reference will be indicated as
follows (40 CFR NNN.N). For example, procedures for who may file a complaint
will be followed by 40 CFR 7.120(a). This Indicates where authority for this
procedure can be found in the regulation. The procedures do not always follow
the sequence in the regulation. This Chapter puts the complaint procedures in
a chronological sequence. All regulatory references are to 40 CFR Part 7, as
amended by 49 Fed. Reg. 1656, January 12, 1984 (Appendix 23-A).
(4) Overview of Procedures - Time Frames. The regulation (Appendix
23-A) generally requires that:
(a)	Complaints be in writing and filed with EPA within 180 days
of the alleged discrimination;
(b)	The Regional Directors of Civil Rights or laboratory EEO
Officers must notify the complainant and the recipient of the complaint within
5 calendar days of its receipt (40 CFR 7.120(c));
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(c)	Within 20 calendar days of acknowledgement (25 days from
receipt), the Regional Directors of Civil Rights or laboratory EEO Officers must
decide to accept, reject, or refer the ccmplaint to an appropriate Federal
agency (40 CFR 7.120(d)(1));
1	If the ccmplaint is accepted, the Regional Directors of
Civil Rights or laboratory EEO officers will notify the complainant and award
official. The Regional Director of Civil Rights or laboratoi'j i":iD Officers also
must notify the recipient of the allegations and ask for pertinent information
(40 CFR 7.120(d)(l)(ii)).
2	If the ccmplaint is rejected, the Regional Directors of
Civil Rights or laboratory EEO Officers will close their file and so notify the
complainant and recipient (40 CFR 7.120(g)).
3	If the ccmplaint is referred to another agency, the
Regional Directors of Civil Rights or laboratory EEO Officers will notify the
ccmplainant and recipient of this fact (see 40 CFR 7.125).
(d)	Within 180 calendar days of the start of a complaint investi-
gation (normally considered to be 180 days from the date of receipt of a ccm-
plaint), OCR will issue a preliminary finding (40 CFR 7.120(d)(2), 7.115(c),
and regulation preamble, 49 Fed. Reg, at 1659); and
(e)	If there is a preliminary finding of noncompliance, the
Regional Directors of Civil Rights and laboratory EEO Officers must begin
formal enforcement (40 CFR 7.115(c)-(e)) and (40 CFR 7.130.)
(5)	Use of Form Letters. The fonn letters included in figures 23—3
to 23-19 should be used where possible. They are intended to ensure that
everyone filing an external ccmplaint with EPA receives the same information.
They can be altered or tailored to each situation. To the extent there are
problems with the form letters, they should be brought to the attention of the
Headquarters OCR so that they can be revised.
(6)	Administrative Matters. This Chapter sets forth a number of
administrative requirements primarily concerning maintenance of files, notifica-
tions to OCR, and the like. It is essential that these matters be attended to so
that OCR can:
(a)	Ensure that what constitutes an external civil rights violation
is the same in all Regions and laboratories, i.e., the same set of facts lead
to the same conclusions no matter where they may arise;
(b)	File reports with the Department of Justice as required by
Executive Order 12250 and regulations issued thereunder;
(c)	File reports with the Equal Employment Opportunity Ccmmission
(EEOC) that it may request under Executive Order 12067;
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(d)	Respond to the Office of Management and Budget Circular A-ll
Report requests;
(e)	Respond to the U.S. Commission on Civil Rights;
(f)	Respond to Congressional inquiries; and
(g)	Prepare for Congressional oversight hearings.
(7) Filing a Ocmplaint (40 CFR 7.120(a)).
(a) Who May File (40 CFR 7.120(a))? Any person may file who
believes he/she or a specific class of persons has been discriminated against
by a recipient of, or applicant for, EPA assistance funds on the basis of:
_1 Race/color
2	National origin:
3	Sex-
4	Handicap; and/or
5	Age.
I
(b) Where to File. (40 CFR 7.120(b)). The complainant may file
a complaint with any EPA Office.
1	If it is filed with a Regional Office or laboratory, the
Regional Director of Civil Rights or the laboratory EEO Officer should ensure
it is processed under procedures set forth in this Chapter. If it is filed
with a Regional Office or laboratory against a recipient within the purview of
another Region or laboratory, it should be magnafaxed or E-mailed to the appro-
priate Region or laboratory for processing.
2	If it is received by EPA headquarters, it should be
referred immediately to Headquarters OCR for initial processing:
a Headquarters OCR will perform the initial acknowledge-
ments
b Headquarters OCR will assign a file number; and
c Headquarters OCR will send it to the appropriate Region
or laboratory for further processing.
(c)	When to _File^ (40 CFR 7.120(b)(2)). The complaint must be
filed within 180 calendar days of the alleged discriminatory acts, unless Head-
quarters OCR concurs in waiving the time for good cause (40 CFR 7.120(b)(2)).
If OCR waives the time limit, a complaint will be considered filed timely when
the required information is received.
(d)	How to File (40 CFR 7.120(b), 40 CFR 7.120(a)). The following
information is required;
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1	Complaints must be in writing (40 CFR 7.120(b)).
2	Complaints must describe the alleged discriminatory act(s)
in sufficient detail to let EPA know what occurred and when it occurred
(40 CFR 7.120(b)).
_3 If the complaint alleges snployment discrimination, it
must identify at least one individual affected by such discrimination
(40 CFR 7.120(a)).
(e) Additional Information.
JL If it is not obvious from the complaint, EPA should also
get sufficient information to identify the EPA applicant or recipient involved.
2 If the complainant described the alleged discriminatory
acts involved but does not provide sufficient detail to let EPA know the
basis of the alleged violation (race, color, national origin, sex, handicap, or
age), the Regional Director of Civil Rights must request this information.
(8) Administrative_ Matters - Files.
(a)	Upon receipt of the written complaint, the Region or laboratory
must obtain a file number from Headquarters OCR. That file number must appear
on any correspondence and memoranda concerning the matter.
(b)	A file must be established and maintained by the Region or
laboratory and contain the following items:
1_ Complaint;
2 Headquarters OCR complaint timetable and checklist;
2 General correspondence related to the complaint;
4. Funding information concerning the recipient or applicant
(see paragraph 8(c) below)-
_5 Ijog of all telephone contacts with date, person talked
with, and a summary of the conversation:
6	Investigator's workplan:
7	Investigator's Report;
8	Witness' statements;
9	Documentary evidence:
10 Finding:
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11	Memoranda or correspondence documenting attempts at informal
resolution or voluntary compliance; and
12	Closeout correspondence.
(c) Once the recipient or applicant is identified, the Region or
laboratory must prepare a file memorandum documenting previous and current funding
and/ or pending applications for funding at the time of the alleged discrimination.
The Headquarters Office of Civil Rights must be provided a copy of each memorandum.
These memoranda should indicate:
2 The EPA Assistance Identification Number of the application
or agreement;
2	The purpose of the proposed or funded activity (the project
summary is sufficient);
3	Whether any of the money is for an anployment purpose;
^ Whether an applicant has a potential of being funded and
when. If an applicant has little or no likelihood of being funded, EPA will
probably refer the complaint to an agency currently providing assistance;
5^ If an active project, the amount left to be drawn down or
paid and the expected closeout date; and
6 Whether the recipient had EPA funding at the time of the
alleged discrimination different than current EPA funding.
(9) Categories of Complaints. For purposes of notification, this
Chapter divides canplaints into two broad categories because the regulation
provides that individual complaints limited to employment discrimination on the
basis of race, color, national origin, sex, or religion against an EPA recipient
or applicant will be handled under the Procedures for Complaints of Ffriployment
Discrimination Filed Against Recipients of Federal Assistance (see 28 CFR Bart
42, Subpart H and 29 CFR Part 1691) (40 CFR 7.120(a)). Ihese procedures,
issued jointly by the Department of Justice (DOJ) and the Equal Employment
Opportunity Commission (EEOC), provide for the investigation and conciliation
of individual complaints by EL'OC. Tb the extent possible, this Chapter attempts
to reconcile the notification and timeframes required by the DOJ/EEOC procedures
applicable to Category I complaints with those required by EPA regulations and
applicable to Category II ccmplaints. (The full text of the DOJ/EEOC regulations
and procedures are found at Appendices 23~B and 23-C). The two categories are:
(a) All complaints against an EPA applicant or recipient alleging
only employment discrimination against an individual on the basis of race,
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color, national origin, sex, or religionJL/ These are called Category I
ccmplaints.
(b) All other ccmplaints including those alleging employment
discrimination on the basis of handicap, those alleging both employment and
services discrimination, and those alleging a pattern or practice of employment
discrimination. This category also includes ccmplaints alleging only discrimi-
nation in the provision of services. These ccmplaints are called Category II
complaints.
(10) Notifications - Category I.
(a)	Five-Day Notice Letter. The Region or Tab must notify the
complainant and recipient of receipt of a complaint within 5 calendar days of
receiving a ccmplaint (40 CFR 7.120(c)). A file number must have been secured
from Headquarters OCR. The form letter and attachment illustrated in figure
23-3 should be used.
(b)	Lack of Confidentiality Guarantee Notice. The following
notice must always be attached to the EPA letter to the complainant. It
informs the complainant that his/her anonymity cannot be guaranteed when the
ccmplaint is sent to EEOC. If the complainant calls and indicates this is not
acceptable, OCR should be consulted to determine proper procedure.
- Notice -
If it is determined that the Equal Employment Opportunity Ccmmission
(EEOC) should investigate this complaint, it will be processed in
accordance with EEOC's established procedures for handling charges
under Title VII of the 1964 Civil Rights Act. It will normally be
necessary to reveal the identity of the complainant to the recipient.
The Environmental Protection Agency (EPA) cannot protect the anonymity
of individuals who file complaints that must be transferred to EEOC in
accordance with the procedures required by the joint DOJ/EEOC regula-
tion concerning procedures for ccmplaints of employment discrimina-
tion filed against recipients of Federal assistance (28 CFR Part 42,
Subpart H and 29 CFR Part 1691) and related management directives.
Title VTI and the Equal Pay Act prohibit retaliation against
persons who have filed charges or ccmplaints. If you do not wish
your identity revealed, immediately contact the signatory of the
letter to which this notice is attached at the telephone number
indicated.
1/ EPA does not have statutory jurisdiction on ccmplaints alleging discrimina-
tion on the grounds of religion. It is included in Category I complaints
because the DOJ/FEOC rule also deals with such ccmplaints. See subparagraphs
3c(10)(d)2 and 3c(ll)(d)2.
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(c)	A copy of the complaint and a copy of the memorandum
detailing funding the recipient was receiving at the time of the alleged
discrimination, and pending applications with the expected award dates should
be sent to Headquarters OCR.
(d)	Jurisdiction. You must consult Headquarters OCR before
making a jurisdiction decision. Normally, EPA will not have jurisdiction if:
_1 The alleged discrimination involves an entity vdiich was
not an EPA recipient at the time it occurred unless it Involves property
purchased or constructed with EPA assistance;
2 The alleged discrimination is a type which is not covered
by any of the civil rights statutes EPA is responsible for enforcing. For
example, EPA has no statutory authority to investigate allegations of
religious discrimination.
(e)	20-Day Notice Letter (40 CFR 7.120(d)(1)). Within 20 days
of acknowledging a complaint (25 days frcm receipt), EPA must determine
whether EPA accepts or rejects the conplaint and/or refers it to EEOC. Ihe
following procedure should be used as the circumstances of the conplaint
warrant:
JL EPA does not have jurisdiction, EEOC appears to have
jurisdiction. EEOC may have jurisdiction over any Category I conplaint. If
it is determined that EPA does not have jurisdiction over a Category I complaint,
send the appropriate letter (figures 23-4 and 23—5)- Figure 23-21 lists the
EEOC district offices and the States over which they have jurisdiction. As
far as EPA is concerned, the file Is closed. However, EPA should keep a copy
of the conplaint and of the letter transferring the conplaint to EEOC.
2 EPA does not have jurisdiction and EEOC does not have
jurisdiction. If neither EPA nor EEOC has jurisdiction, contact Headquarters
OCR on how to proceed. OCR will attempt to determine what Federal agency, if
any, has jurisdiction so the Region or laboratory can refer it to the appropriate
agency. As far as EPA is concerned the file is closed. However, a copy of the
conplaint should be retained and the original sent to the appropriate agency.
3_ EPA has or may have jurisdiction and EEOC has jurisdiction.
If it appears there is joint jurisdiction, i.e., EPA has or may have juris-
diction and EEOC also has jurisdiction, EEOC will Investigate it and attempt
conciliation, i.e., attempt to achieve voluntary compliance when it makes a
cause finding.
a The form letters in figures 23-5 and 23-6 should be
sent. If there is some question as to wtiat information should be included in
the letter, consult with Headquarters OCR. Die standard questions mentioned
in point 2(a) of the agency conplaint referral letter (Figure 23-5) are found
as the last two pages of Attachment C to Appendix 23-C.
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b If EEOC investigates a complaint, makes a cause
determination (i.e., a finding that there is reason to believe discrimination
occurred) and cannot conciliate the complaint, the matter will be returned to
EPA. EPA is obligated to give the EEOC's cause determination due weight. If
EPA disagrees with this cause determination, it must notify in writing the
Assistant Attorney General for Civil Rights and the Chairman of EEOC of the
basis for disagreeing with the determination. All EEOC cause determinations
should be immediately referred to Headquarters OCR. Headquarters OCR will
handle further processing.
(f) Notification to the Award Official. In all cases where it
is determined that EPA has probable jurisdiction over a complaint, the appro-
priate OCR must notify the Award Official (40 CFR 7.120(d)(11)). This should be
done even if it is decided to refer a complaint over which EPA has jurisdiction
to another agency for processing. The attached model memorandum (figure 23-8)
is suggested for this purpose.
(11) Notifications - Category II.
(a)	Five-Day Letter. The Region or laboratory must notify the
complainant and recipient within 5 calendar days of receipt of the complaint
(40 CFR 7.120(c)). A file number must have been secured fran Headquarters
OCR. The form letter in figure 23-9 nust be sent to the complainant. The
identity release authorization (figure 23-10) must be attached. The form letter
modeled in figure 23-11 must be sent to the recipient.
(b)	Reasons For Identity Release Authorization.
1_ 40 CFR 7.120(e) states that EPA will keep the complainant's
identity confidential except to the extent necessary to carry out the purposes
of the regulation which includes the conduct of the investigation, a hearing, or
other judicial proceeding. Both the Privacy Act of 1974 and the Freedom of
Information Act encompass discrimination complaint files and records, and
protect the individual or entity complaining. EPA's Privacy Act regulation
requires a written authorization before the complainant's identity can be
released in the course of an investigation (40 CFR 16.10). Therefore, unless
an identity release authorization is obtained, neither the investigator nor any
EPA employee may be allowed to identify the complainant in any way.
2 When discussing this natter with a complainant, it should
be pointed out that it may be impossible to conduct an investigation without
Identifying him or her and therefore nay be necessary to administratively close
the file.
_3 A copy of the complaint and a copy of the memorandum
detailing funding which the recipient was receiving at the time of the alleged
discrimination as well as previous and current funding must be sent to
Headquarters OCR. If an applicant for funds Is i nvolved, a summary of pending
applications must be sent along with the expected award date.
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(c)	Jurisdiction. You must consult with Headquarters OCR before
making a jurisdiction decision. Normally, EPA will not have jurisdiction if:
1	The alleged discrimination involves an entity which was
not an EPA recipient at the time it occurred unless it involves property
purchased or constructed with EPA assistance; or
2	The alleged discrimination is a type which is not covered
by any of the civil rights statutes EPA is responsible for enforcing. For
example, EPA has no jurisdiction to investigate allegations of religious
discrimination.
(d)	20-Day Notice Letter [40 CFR 7.120(d)(1)]. Within 20 days
of acknowledging a complaint (25 days from receipt), EPA must determine whether
to accept or reject the complaint and/or to refer it to another Federal agency.
The following procedures should be used sis the circumstances of the complaint
warrant:
_1 EPA does not have jurisdiction. If it is determined that
EPA does not have jurisdiction, the Region or laboratory should attempt to
determine If another Federal agency has jurisdiction. Headquarters OCR should
be consulted if it is found that no other Federal agencies have jurisdiction.
a If EPA does not have jurisdiction and no other Federal
agency is located with possible jurisdiction, send the letters following the
examples provided by figures 23-12 and 23-13.
b If EPA does not have jurisdiction and another Federal
agency with possible jurisdiction is located, send letters following the
examples provided by figures 23-14 and 23-15.
In both situations, as far as EPA is concerned, the complaint is closed.
2	EPA closes the complaint because it is not timely. If it
is determined that EPA will not accept a complaint because it was not filed
within 180 days of the alleged discrimination (40 CFR 7.120(b)(2)), send
letters patterned after those provided in figures 23-16 and 23-17.
3	EPA has probable jurisdiction and determines to refer a
complaint to another Federal agency with jurisdiction for processing. If it
is determined that EPA has jurisdiction, it may wish to refer the complaint to
another appropriate Federal agency with jurisdiction for processing. A copy
of the complaint should be retained and the original sent to the appropriate
agency. This may be done for a number of reasons. For example:
a Limited resources may prevent EPA frcm expeditiously
investigating a complaint which another agency may be able to investigate more
quickly;
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b Another agency may already have an ongoing investi-
gation:
c Another agency may have greater expertise in the area
covered by the complaint;
d Another agency may provide more Federal assistance to
the recipient involved and therefore be in a better position to resolve any
identified discrimination. Consult with Headquarters OCR concerning how best
to proceed before referring a case to another agency when EPA has jurisdiction.
When a case is referred in such a situation, if the agency to which it was
referred concludes there was discrimination and cannot obtain voluntary
compliance, it will send the matter back to EPA to participate in any resulting
enforcement action. Both the complainant and recipient must be notified of
the referrals.
4 EPA has jurisdiction and decides to process the matter.
If it is determined that EPA has jurisdiction and is going to investigate the
complaint, EPA should send the complainant the letter illustrated in figure
23-18. EPA must send a letter to the recipient informing it of the allegations
and provide the recipient an opportunity to make a written submission responding
to, rebutting, or denying the allegations raised by the complaint (40 CFR
7.120(d)(l)(ii)). It must also request preliminary information relevant to
the complaint investigation. You may wish to consult with Headquarters OCR
regarding what information should be requested and the form the letter should
take.
(e) Notification to the Award Official. In all cases where it is
determined that EPA has jurisdiction over a complaint, the Award Official must
be notified (40 CFR 7.120(d)(ii)). This must be done even if it is decided to
refer a complaint over which EPA has jurisdiction to another agency for process-
ing. The memorandum illustrated by figure 23-19 is suggested for this purpose.
(12) Incomplete Complaints. If a complaint does not contain all the
information contained in paragraph 3c(7)(d) of this Chapter, adapt the
letter provided by figure 23-20 to elicit the necessary information. It may
also serve as the five-day (5) notice letter, if appropriate. If there is some
doubt as to what information to request, you should consult with Headquarters
OCR.
4. LABOR STANDARDS COMPLIANCE PROCEDURES.
a. Procurement Contracts Under Assistance Agreements. The policies and
procedures set forth below are provided to assist those responsible for
supervising the administration of the labor standards requirements of the
laws, regulations, and contract provisions which are applicable to procurement
contracts under EPA assistance agreements. They state the responsibilities
ot Headquarters Office of Civil Rights (OCR), Award Officials, Heads of
Assistance Administration Units, recipients, and the Department of Labor.
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b.	Applicability to Direct Federal Procurement. Most of the laws and
regulations governing labor standards on procurement contracts under assistance
agreements also apply to direct Federal (EPA) procurement of construction.
c.	Federal Labor Requirements. A number of Federal statutes and regula-
tions apply to contractors and subcontractors of Federally assisted contracts.
In many cases these requirements mandate the inclusion of clauses in those
contracts, thereby making them integral parts of the contracts. Failure to
comply with the requirements of Federal statutes and regulations may subject
contractors and subcontractors to administrative, civil, or criminal action.
The rules and regulations of the Department of Labor are stated in Appendix 23-D.
(1) Minimum Wages for Laborers and Mechanics. The statutory basis for
the requirement of payments of not less than the Federally prescribed minimum
wages (determined by the Department of Labor) in the case of Federally assisted
and direct-Federal construction contracts consists of two statutes.
(a) The Davis-Bacon Act and Davis-Bacon Related Acts.
1_ The Davis-Bacon Act (DBA). This Act requires the payment
of prevailing wages to specified categories of workers (laborers and mechanics)
who are employed under Federal contracts In excess of $2,000 to which the
United States is a party, for the construction, alteration and repair, including
painting and decorating, of public buildings or public works. Contracts that
are subject to the Davis-Bacon Act must include provisions for:
a Minimum wages, fringe benefits, payments without
deduction or rebates;
b Witholdlng funds frcm contractors to ensure compliance
with the wage-provisions, and
c Termination of the contract for failure to pay the
required wages.
2 Davis-Bacon Act Sanctions. The Act provides for debarment
by the Comptroller General of the United States of contractors and subcontractors
who are found to have disregarded their obligations to employees. If funds
withheld from the contractor are insufficient for full reimbursement of the
amount of wages due unpaid employees, the Act creates a right of action by
enployees against the contractor and his sureties. The Davis-Bacon Act does
not apply to recipients of EPA grant and cooperative agreenents directly.
(b) Davis-Bacon Related Acts (DBRA). The Davis-Bacon Act (DBA)
does not apply to construction projects funded under Federal assistance agreenents.
However, certain statutes, known as Davis-Bacon-Related Acts, extend Davis-Bacon
Act coverage to specific EPA financial assistance programs which provide funding
to construction projects. They make the payment of prevailing wages, determined
by the Secretary of labor in accordance with the Davis-Bacon Act, applicable
to the laborers and mechanics employed on construction work on Federally (EPA)
assisted construction projects whose funding is authorized by the related Act.
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(2)	Standard Work Day - Standard Work Week. The Contract Work Hours
and Safety Standards Act (CWiSSA) provides that the wages of every laborer and
mechanic employed by any contractor or subcontractor in the performance of
work in connection with direct Federal and Federal-aid construction projects
shall be computed on the basis of a standard work day of eight hours and a
standard work week of 40 hours. The work in excess of eight hours per day or
40 hours per week shall be compensated for at rates not less then one and
one-half tiroes the basic rate of pay. The Act requires that all contracts
requiring the employment of laborers and mechanics, including watchmen and
guards, on such projects contain provisions which make the contractors and any
subcontractors who violate the Act liable to the affected employees for their
unpaid wages, and to the United States government for liquidated damages. The
Act establishes an appeals system and makes intentional violations of the Act
a Federal criminal misdemeanor.
(3)	Kickback of Wages. The Copeland "Anti-Kickback Act" (Copeland Act)
makes it a criminal offense for any person to induce, by any manner whatsoever,
any person employed in the construction, prosecution, completion, or repair of
any public building, public works, or building or vork financed in whole or in
part by loans or grants or cooperative agreements frcm the United States, to
give up any part of the compensation to which he is entitled under his contract
of employment. The Act also provides that the Secretary of Labor shall make
reasonable regulations for contractors engaged in such public works. The
Department of Labor's regulations, 29 CFR Part 3, apply to all contracts
which are subject to Federal wage standards. They apply to direct Federal
construction as well as Federally assisted construction projects. The Act, as
implemented throughout the DDL regulations, requires that contractors provide
the recipient of EPA assistance with weekly certified statements of wages paid
under the contract. Violations. Any suspected violations of the criminal
provisions of the Copeland Act which are uncovered by either the recipient or
EPA should be immediately reported to the appropriate Regional U.S. Department
of Labor, Wage and Hour Division for further action.
d. Responsibility for Labor Standards Compliance.
(1) General.
(a)	Agency Ccmpliance Officer. The Headquarters Director, Office
of Civil Rights, is the Agency's Compliance Officer and has the responsibility
of carrying out the duties imposed by law or regulation on the EPA Administrator.
(b)	Award Officials. (Reserved)
(c)	Delegated States. (Reserved)
(d)	Recipients of EPA Financial Assistance. On EPA assisted
construction projects, each recipient is responsible for assuring that con-
tractors comply with labor standards. When inspecting projects, EPA employees
will ordinarily be accompanied by an employee of the recipient and will not
deal directly with the contractor or contractor's employees. Before EPA treats
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any circumstance as a violation, every reasonable effort should be made by the
recipient to obtain the contractor's voluntary compliance.
(e) Department of Labor. (Reserved)
(2) Contract Wbrk Hours and Safety Standards Act.
(a)	EPA Award Officials. EPA is primarily responsible for approving
payments of Federal funds in connection with the performance of contract work
funded with EPA funds and for the administration and enforcement of this Act
on EPA supported projects. Award Officials and the Heads of their respective
Assistance Administration Units must ensure that recipients properly enforce
contractors' compliance with the Act and should take direct enforcement action
if the recipient fails to do so.
(b)	Recipient Responsibility. Compliance with the provisions of
the Act on the part of a recipient becomes a condition of Federal participation
in the project. Each recipient, as the contracting entity, is responsible to
EPA for enforcement of the overtime provisions of the Act and must ensure that:
1^ All contracts and subcontracts contain the requisite
contract provisions prescribed by the Act and by the implementing regulations;
2 The contractors and subcontractors comply with applicable
Department of Labor regulations;
_3 The recipient honors the Award Official's requests for
the withholding of funds from the contract equivalent to the computed amounts
of unpaid wages and liquidated damages for overtime violations; and
j4 The recipient and its contractors and subcontractors comply
with all instructions relative to inspections, investigations and reports.
(c)	Department of Labor Responsibility. (Reserved)
(d)	Violations Under Contract Work Hours and Safety Standards Act.
1	Contractor/subcontractor Liability. If a contractor or
subcontractor violates the contract overtime provisions, it is liable to each
affected employee for his/her unpaid wages. In addition, it is liable to the
United States for liquidated damages computed in the sum of $10.00 per employee
per day for each violation. Intentional violations are a Federal misdemeanor.
Violations of these provisions may also be grounds for termination of the
contract or assistance agreement.
2	Computing Payments Due and Liquidated Damages. Whenever
the DOL Compliance Officer has cause" to believe that employees have been under-
paid for overtime work, he shall compute the wage payments due and the liqui-
dated damages applicable. The overtime wages due the employee must be
calculated both on the eight-hour basis and the 40-hour basis.
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3 Withholding. EPA shall withhold the full amount of the
amount computed for overtime back wages and liquidated damages until the
contractor or subcontractor makes full payment to the underpaid employees and
the United States for the violations.
(3) The Copeland "Anti-Kickback" Act.
(a)	EPA Award Officials. Award officials must ensure that
the recipient canplies with the provisions of the Act and its implementing
regulations and that violations are reported by:
^ Ensuring that the recipient receives weekly certified
statements-
2 Reviewing contractors' and subcontractors' payroll records;
3^ Assuring that the recipient interviews an unbiased sampling
of employees to verify compliance; and
4^ Recommending to the recipient the action to be taken in any
instances of suspected violations.
(b)	Recipient Responsibility. The recipient is primarily respon-
sible for ensuring":hat its contractors and subcontractors canply with the
provisions of the Act and its implementing regulations and for reporting
suspected violations by them. The recipient shall ensure that;
1	All Federally assisted construction contracts and subcon-
tracts contain the required contract provisions making the Copeland Act
regulations a part of all such contracts;
2	Contractors arid subcontractors canply with the required
contract provisions:
3	Compliance verification is carried out by interviewing an
unbiased sampling of employees;
4	Contractors and subcontractors retain payroll records as
required by the regulations (29 CFR 3.3)-
5	Each contractor and subcontractor furnishes a certified
statement weekly to the project engineer;
6	CcmpJaints and reports of violations are promptly and
fully investigated and reports submitted to EPA and DDL-
7	Contractors' and subcontractors' payroll records are
reviewed;
8	Subcontracts include the contract labor standards clauses
and provide for the contract's minimum wage rates.
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(c) Department of Labor. The Department of Labor (DOL) is the
primary authority for administration of the Copeland Act. (Reserved).
(4) Recipient Responsibility for Davis-Bacon and Related Acts (Minimum
Wages for Laborers and Mechanics)"! The Recipient must assure that:
(a)	All laborers and mechanics employed by contractors or sub-
contractors on construction work performed on EPA funded projects shall be
paid wages at the rate prevailing in the immediate locality as determined by
the Secretary of Labor in accordance with the Davis-Bacon Act; and that
requests for wage rate decisions are submitted as required;
(b)	All contracts and subcontracts contain wage rate decisions
and the requisite labor standards clauses;
(c)	Wage rate decisions are posted conspicuously on the project
site;
(d)	Laborers and mechanics are paid at least once a week at
rates not less than those prescribed for the classification of work which they
actually perform;
(e)	Work is properly classified in conformity with Department of
Labor standards and procedures and that there is no disproportionate employ-
ment of laborers, helpers or apprentices;
(f)	Appropriate action in conformity with contract provisions is
taken to preclude or correct any failure of the contractor or subcontractor to
pay the proper wage rate; and that there is no disproportionate employment of
laborers, helpers or apprentices (apprentices must be registered in an approved
apprenticeship program);
(g)	Appropriate action in conformity with contract provisions is
taken to preclude or correct any failure of the contractor or subcontractor to
pay the proper wage rate;
(h)	Disputes as to the proper wages payable are promptly settled
in accordance with contract terms.
e. Recipient Responsibility for Compliance Inspections.
(1) General. The recipient must enforce the Federal labor standards
requirements and compliance with those standards is a condition of Federal
participation in Federally assisted projects. The recipient is expected to
cooperate with and assist fully in the conduct of labor inspections whether
conducted by EPA or DOL.
(2) Recipient Inspections. The recipient's project engineer, or
other individual(s) representing the recipient, must be assigned to carry out
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the recipient's continuing responsibility for the enforcement of the contract
provisions for the duration of the job. The project engineer or other individual
should become fully familiar with each contractor's practices in the employment
and payment of persons working on the project. The project engineer shall
inspect the contractor's and all subcontractor's employment records which are
required to be made available at the project site. The inspection should be
designed to establish; whether the wages being paid to laborers and mechanics
are at proper rates and contained in the contract provisions; whether the
work being performed by any specific class of employee conforms to the
classifications set forth in the contract provisions; whether the classifica-
tions are correct; whether there is disproportionate employment of laborers,
helpers, or apprentices so as to indicate avoidance of the minimum wage rate
provisions and other labor provisions of the contract. The project engineer
should report to the Regional Director of Civil Rights violations of a serious
nature or ones that are not readily adjustable.
f.	Payroll Records. Contractors and subcontractors are not required to
keep copies of payroll records at the site of the project; however, upon being
notified by Federal officials that an Inspection of the payroll records is
scheduled, they are required to make such records available for inspection by
authorized representatives of EPA, DOL and the recipient at the site for
inspection and/or review. These records must contain the following data:
(1)	The employee's full name, address, and social security number;
(2)	The employee's classification;
(3)	Hourly wage rate and overtime hourly rate;
(4)	The daily and weekly hours worked In each classification,
including actual overtime hours worked;
(5)	The itanized deductions made; and
(6)	The net wages paid.
g.	Investigation of Allegations of Labor Standards Violations.
(1)	General. Investigations are generally conducted by the U.S.
Department of labor. The EPA conducts follow-up investigations whenever there
is reason to believe that violations exist and efforts by the recipient officials
have failed in obtaining a contractor's voluntary compliance.
(2)	Investigation. The DOL Compliance Officer (CO) establishes a
case file with all documentary material pertaining to the Investigation. Ihe
investigation includes: an examination of the contract ascertaining whether
the labor standards provisions have been inserted in the prime contract and
all subcontracts- recording the contract number; date of the award; description
of work of contractor and subcontractors; applicable wage rates; names and
addresses of prime contractor and each subcontractor. The CO checks for proper
23-21
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ASSISTANCE ADMINISTRATION
5700
12/3/84
posting of wage rate decisions- Copies of the contractor's and subcontractor's
payrolls are checked for accuracy and completeness with regard to the names
and addresses of employees, job classifications, wage rates, hours worked,
gross earnings, Itemized deductions and net weekly wages paid. Ihe wage rate
for each classification is compared with the corresponding rate set in wage
rate decisions.
(3) The Investigative Report. The investigative report consists of
a transmittal of written findings. Narrative summary of facts disclosed by the
investigation and specific items reported are: the nature of the violation or
violations involved such as failure to pay predetermined wage rates, violations
of overtime requirements, etc.; the names, addresses, and identification data
of the affected employees; and the dates of each violation for each employee.
In overtime violations (the Contract Work Hours and Safety Standards Act only):
the duration of each violation for each anployee and the equal amount of funds
to be withheld; the corrective action required of the contractor; the amount
of liquidated damages owed to the Federal government; and an equal amount to
be withheld.
(4) EPA Action on Reports Alleging Labor Standards Violations,
(a) Contract Work Hours and Safety Standards Act.
1 Initial Actions.
a The Director, Office of Civil Rights (OCR), receives all
investigative reports of allegations of labor standards violations. Upon receipt
of the Investigative report, the OCR reviews the report. In cases vfoere viola-
tions of the labor standards provisions have been found, the Director, OCR,
prepares a written statement of the finding and sends instructions that must be
followed to the appropriate parties. Where the report finds violation of the over-
time provisions of the Contract Work Hours and Safety Standards Act and computes
liquidated damages, the Director, OCR, shall make an initial decision concerning
the assessment of liquidated damages or a waiver.
b The Director, OCR, has authority to assess liquidated
damages and to waive such damages in cases where the amount Is $500 or less.
If the liquidated damages exceed $500, and it is desired that they be waived
in whole or in part, the Director, OCR, shall forward the recommendations to
the U.S. Department of Labor which must approve the recommendation.
c The Director, OCR, shall promptly notify the contractor
by registered or certified mail, return receipt requested, if liquidated damages
are to be assessed on the contractor in whole or In part. The notice shall
advise the interested parties of the right to appeal the assessment to the
Judicial Officer, EPA, within 60 days of receipt of the notice. Ihe Regional
Office Assistance Administration Unit shall receive a copy of the contractor's
notice of assessment of liquidated damages. If funds are not yet being withheld
for this purpose, that Unit shall Immediately withhold the appropriate amount
from the funds awarded under the project agreement.
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ASSISTANCE ADMINISTRATION
5700
12/3/84
2	Appeals and Reviews. An appeal of an assessment of
damages under Contract Work Hours and Safety Standards Act must be taken within
60 days frcm the date of receipt of notice of such assessment. The Judicial
Officer has the authority to review the administrative determination of liquidated
damages and to issue a final order affirming such determination or, if the
amount involved is $500 or less, the Judicial Officer has the authority to waive
the liquidated damages upon appeal. If the amount involved is over $500; the
Department of Labor, upon the recanmendation of the Administrator, has the
authority to make such a waiver. The Administrator has delegated his authority
to the Judicial Officer. The waiver authority of the Department of Labor is
vested in the Wage and Hour Division. Upon receipt of an adverse determination
by the Wage and Hour Division, a contractor has another appeal right. This
appeal can be taken to the Wage Appeals Board, DOL, within 60 days of receipt
of such determination. If the Judicial Officer, in the case of amounts of' $500
or less, declines to waive the liquidated damages, the contractor involved
may, within 60 days of receipt of such determination, file a claim in the
United States Claims Court.
3	Debarment. A contractor or subcontractor who has been
notified of a pending debarment or who has been debarred by DOL in accordance
with the provision of 29 CFR 5.12(a)(1), may in accordance with the procedures
of 29 CFR 7.9, file a petition for review with Wage Appeals Board, DOL.
£ Final Payment. EPA may not approve final payment to a
recipient for a project when there is an appeal concerning the withholding of
liquidated damages, until a final determination on that appeal has been issued
by either the EPA or the DOL. However, all payments may be made for work
completed with the exception of an amount adequate to cover any unpaid wages
plus the liquidated damages involved. Upon administrative determination of the
claim, the final settlement voucher may be processed with the exception of an
amount adequate to cover the full unpaid wages. The Regional Office shall be
promptly notified upon administrative determination of the claim and also upon
resolution of the liquidated damages issue.
(b) (Reserved).
5. B1PLEMENTATI0N ASSISTANCE. For assistance in administering policies and
procedures regarding nondiscrimination, equal employment opportunity, and
labor standards requirements contact the EPA Headquarters Office of Civil
Rights, External Compliance Staff or the appropriate Regional Director of
Civil Rights or Lab EEO Officer.
23-23
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U S ENVIRONMENTAL PROTECTION AGENCY
COMPLIANCE REPORT
(Title VI, Civil Rights Act of 1964 and Section 13, Federal
Water Pollution Control Act, As Amended)
Form Approved
0MB No 2000-0006
Approval expires 7 31 86
NOTE: READ INSTRUCTIONS ON REVERSE BEFORE COMPLETING FORM
1 A APPLICANT (Name and Stole)
B PROJECT NO
II HAVE ANY LAWSUITS OR COMPLAINTS BEEN FILED AGAINST APPLICANT? ~ YES ~ NO
A IF ' YES LIST THOSE COMPLAINTS AND THE DISPOSITION OF EACH COMPLAINT
li COMPl E T£ THE cOL'.OWING
A SUBMIT INFORMATION TO EXPLAIN THE APPLICANT'S
1	GEOGRAPHICAL JURISDICTION FOR PROVISION OF TREATMENT SYSTEM SERVICE
2	EXISTING TREATMENT SYSTEM COVERAGE
}	CONSTRUCTION PROPOSED UNDER EPA GRANT PROJECT AND ANY ON-GOING ASSOCIATED CONSTRUCTION
4	AREAS OF PLANNED FUTURE TREATMENT SYSTEM CONSTRUCTION
B COMPLETE THE TABLE BELOW
POPULATION CHARACTERISTICS
1 OTAL
1. POPULATION OF THE ENTIRE COMMUNITY

2. NUMBER OF PERSONS SERVED BY THE PROJECT

3. MINORITY POPULATION OF THE ENTIRE COMMUNITY

4. NUMBER OF MINORITY PERSONS SERVED BY THE PROJECT

C IF ENTIRE COMMUNITY UNDER THE APPLICANT'S JURISDICTION IS NOT SERVED UNDER THE EXISTING FACILITIES
OR WILL NOT BE SERVED UNDER THE PROPOSED PLAN, GIVE REASONS WHY
I
D" GIVE THE SCHEDULE FOR FUTJRE CONSTRUCTION SY WHICH TREATMENT SYSTEM SERVICE WILL BE PROVIDED TO ALL INHABI-
TANTS WITHIN APPLICANT'S JURISDICTION
E IS ANOTHER FEDERAL AGENCY BEING ASKED TO PROVIDE FINANCIAL ASSISTANCE TO ANY CONSTRUCTION ASSOCIATED WITH
THIS PROJECT7 [~ |-vES [" )no	 		
1 IF "YES" LIST THE OTHER FEDERAL AGENCY(S) AND DESCRIBE THE ASSOCIATED WORK
IV	CERTIFICATION
I certify that the information given above ts true and correct to the best of my knowledge or btlief (A willfully false statement is
punnhabtc by /aw— U S Code, Tide 18, Section J001)		________ 			
A SIGNATURE OF AUT HORIZED OFFICIAL
B TITLE OF AUTHORIZED OFFICIAL
DAT E
FOR U S ENVIRONMENTAL PROTECTION AGENCY

tuuAi urrumuNiir umCtH

DATE
| ] APPROVED [["] OISAdoROVED



EPA Form 4700-4 (Rev 10-83) Previous editions are obsolete
^Wire 23-1
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INSTRUCTIONS
GENERAL
Title VI of the Civil Rights Act of 1964 provides that no person in the United States shall, on the grounds of race,
color, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimina-
tion under any program or activity receiving Federal financial assistance The Act goes on to explain that the title
shall not be construed to authorize action with respect to any employment practice of any employer, employment
agency, or labor organization (except where the primary objective of the Federal financial assistance is to provide
employmentI
Section 13 of the 1972 Amendments to the Federal Water Pollution Control Act provides that no person in the United
States shall, on the ground of sex, be excluded from participation in, be denied the benefits of, or be subjected to
discrimination under any program or activity receiving financial assistance under the Federal Water Pollution Control
Act, as amended
The primary purpose of the treatment works construction grant program under the Federal Water Pollution Control
Act, as amended, is development of water pollution control facilities
Accordingly, the information on this form is required to enable the U S Environmental Protection Agency to deter-
mine whether prospective treatment works construction grantees are developing treatment system projects on a non-
discriminatory basis as required by the above referenced statutes
Submit the original and two copies of this form
If any item cannot be answered or does not appear to be related or relevant to the project for which assistance is
requested, write "NA" for "not applicable "
ITEMS
I	Self-explanatory
II	Self-explanatory
II	A "Complaints" list any previous or pending lawsuits or any complaints filed against the applicant, the type of
complaint (including complaints of employment discrimination) and how each complaint was resolved
III	"Jurisdiction" means the geographical area over which Applicant has authority and duty to provide treatment
works service
"Treatment system" embraces all elements which provide for treatment of sewage or industrial wastes of a liquid
nature, including sewage collection lines Any individual "treatment system," therefore, would begin upstream
with collector sewers transporting wastewater from the service areas, and would include all downstream waste-
water components involved in the transport and treatment of the wastewater to ultimate disposal ot the treated
water and sludge residue "Treatment works" is the term set forth in the Federal Water Pollution Control Act,
as amended, and refers to treatment projects eligible for construction grants assistance. It is defined by the
statute as any devices and systems used in the storage, treatment, recycling, and reclamation of municipal
sewage of industrial wastes of a liquid nature necessary to recycle or reuse water at the most economical cost
over the estimated life of the works, including intercepting sewers, outfall sewers, sewage collection systems,
pumping power, and other equipment and their appurtenances, extensions, improvements, remodeling, additions,
and alterations thereof, and any elements essential to provision of a reliable recycled water supply such as stand-
by treatment units and clear well facilities.
A "treatment system" is the whole, of which "treatment works" are component parts
IIIA Self-explanatory
1	Self-explanatory
2	Self-explanatory
3	Self-explanatory
4 Self-explanatory
1MB Give population of Applicant's treatment system jurisdiction, broken out by categories as specified
IIIC, Self-explanatory
D&E
IV Self explanatory
EPA Form 4700-4 (Rev 10-83) Reverse
Figure 23-lA
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5700
ASSISTANCE ADMINISTRATION	12/3/84
REGIONAL DIRECTORS OF CIVIL RIGHTS AND LABORATORY EEO OFFICERS
Mr. Paul G. Keough
Civil Rights Director/DRA
EPA Region I
John F. Kennedy Federal Bldg.
Boston, MA 02203
Mr. Herbert Barrack
Civil Rights Director/ARA
EPA Region II
26 Federal Plaza
New York, NY 10278
Mr. Alvin R. Morris
Civil Rights Director/ARA
EPA Region III
6th & Walnut Streets, Curtis Bldg.
Philadelphia, PA 19106
Mr. Howard D. Zeller
Civil Rights Director/ARA
EPA Region IV
345 Courtland Street, N.E.
Atlanta, GA 30365
Mr. Robert Springer
Civil Rights Director/MDD
EPA Region V
230 South Dearborn Street
Chicago, IL 60604
Mr. John S. Floeter
Civil Rights Director/ARA
EPA Region VI
First International Building
1201 Elm Street
Dallas, TX 75270
Ms. Susan C. Gordon
Civil Rights Director/ARA
EPA Region VII
324 East Eleventh Street
Kansas City, MO 64106
Mr. Jack W. Hoffbuhr (Acting)
Policy & Management
Civil Rights Director/ARA
EPA Region VTII
1860 Lincoln Street
Denver, CD 80295
Mr. Charles W. Murray, Jr.
Civil Rights Director/ARA
EPA Region IX
215 Fremont Street
San Francisco, CA 94105
Ms. Nora McGee
Civil Rights Director/MDD
EPA Region X
1200 Sixth Avenue
Seattle, m 98101
Ms. Dianne Laws
EEO Officer
Office of Civil Rights
Research Triangle Park, NC 27711
Mr. William E. Tolliver
EEO Officer
Office of Civil Rights
Cincinnati, OH 45268
Ms. Pat McKenzie
EPO Officer
Office of Civil Rights
Las \fegas, NV 89114
Figure 23-2
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ASSISTANCE ADMINISTRATION
5700
12/3/84
(NOTICE TO COMPLAINANT AND RECIPIENT)
Recipient:
Agency Complaint No.:
Date Received:
EPA Project No.:
Dear (Complainant/Recipient):
This agency is in receipt of the above-referenced complaint filed against
(Recipient's Name) alleging an (Unlawful employment practice and/or discrim-
ination) on the basis of	. (State place and circumstances, date of
alleged unlawful practice or attach copy of complaint.)	
We are reviewing the complaint to determine whether it will be investigated
by this agency or the Equal Employment Opportunity Commission (EEOC). The EEOC
has jurisdiction over complaints received by this agency which allege discrim-
ination in employment. If the complaint is sent to EEOC for investigation, it
will be deemed a charge received by EEOC on the same date as it was received
by this agency unless it was received earlier by EEOC.
A determination will be made as to which organization will process this
complaint within twanty-five (25) days of the date the complaint was received,
and you will be notified of this decision by letter. If you have any questions,
please contact me at (telephone number) .
Sincerely yours,
Name" and Title of Representative
Referring Agency
Attachment with Complainant letter only
cc: OCR Desk Officer
Figure 23-3
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ASSISTANCE ADMINISTRATION
5700
12/3/84
- NOTICE -
If it is determined that the Equal Employment Opportunity Commission (EEOC)
should investigate this complaint, it will be processed in accordance with EEOC's
established procedures for handling charges under Title VTI of the 1964 Civil
Rights Act. It will normally be necessary to reveal the identity of the com-
plainant to the recipient. The Environmental Protection Agency	cannot
protect the anonymity of individuals filing complaints that must be transferred
to EEOC in accordance with the procedures required by the joint DOJ/EEOC regula-
tion concerning procedures for complaints of employment discrimination filed
against recipients of Federal assistance (28 CFR Part 42, Subpart H and 29 CFR
Part 1691) and related management directives.
Title VTI and the Equal Pay Act prohibit retaliation against persons who
have filed charges or complaints.
If you do not wish your identity revealed, immediately contact the signatory
of the letter to which this notice is attached at the telephone number indicated.
To be attached to Complainant's letter only
Figure 23-3A
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ASSISTANCE ADMINISTRATION
5700
12/3/84
(AGENCY LETTER TO EEOC TRANSFERRING COMPLAINT)
Joe Green, Director
Equal Employment Opportunity Ccmmission
(City) Office
1111 Any Street
City, State Zip Code
Recipient:
Complainant:
Agency Complaint No.:
Date Received
EPA Project No.:
Dear Mr. Green-
Enclosed is the above-referenced complaint, transferred for your processing.
We have determined that our agency does not have jurisdiction over the ccmplaint,
but that EEOC may have jurisdiction.
We are notifying the complainant and respondent of this transfer and the
reason for the transfer. The parties have been informed that the date of
receipt by the agency shown above will be deemed the receipt date under Title
VII and/or the Equal Pay Act unless an earlier charge was received by EEOC.
This transfer and the above notice to the parties concludes this agency's
consideration of this complaint.
Sincerely yours,
Name and Title of Representative
Referring Agency
Enclosure: Complaint
Related Documents
Notice to Parties
cc: Desk Officer
Figure 23-4
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ASSISTANCE ADMINISTRATION
5700
12/3/84
(AGENCY LETTER NOTIFYING COMPLAINANT AND RECIPIENT OF
COMPLAINT OF TRANSFER TO EEOC)
(Address to
Complainant and
Respondent)
Complainant:
Agency Complaint No.
Date Received:
EPA Project No. .*
Dear (Oanplainant/Recipient):
The purpose of this letter is to advise you that the above referenced
complaint has been transferred to the Equal Employment Opportunity Caranission
(EEOC) (City) Office, __ (Address of EEOC Office)	 .
We are transferring the complaint because we have determined that this
agency does not have jurisdiction over the complaint, but that EEOC may have
jurisdiction.
The date the complaint was received by this agency will also be deemed
the date it was received by EEOC unless a charge was received earlier by EEOC.
A representative of the EEOC will contact you concerning the processing of
this ccmplaint.
Sincerely yours,
Name and Title/Representative
Referring Agency
cc: Desk Officer
Figure 23-5
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ASSISTANCE ADMINISTRATION
5700
12/3/84
(AGENCY COMPLAINT REFERRAL LETTER TO EEOC)
Joe Green, Director
Equal Employment Opportunity Commission
City	 District Office
City, State ~ Zip
Complainant?
Agency Complaint No.:
Date Received:
EPA Project No.:
Dear Mr. Green:
Transmitted herewith is the above-referenced complaint, which we are
referring to your office for processing, pursuant to the Procedures for Complaints
of Employment Discrimination Filed Against Recipients of Federal Financial
Assistance, 28 CFR 42.601 et seq.; and 29 CFR 1691.
This Agency has (may have) jurisdiction over the complaint under (Statute
or_ Regulation) . (Attach ccpy of the applicable statute or regulations if
jurisdiction not under Title VI, Title IX).
1.	If the agency has jurisdiction under Title VI: (Check, if appropriate).
( ) A primary objective of the Federal financial assistance to the
organization named in the complaint is to provide employment.
2.	If the agency requests EEOC to conduct a factual investigation relating
to the Agency's jurisdiction: (Check the following, as appropriate).
( ) a. We request further information on whether the complaint
arises under a program or activity which receives Federal
financial assistance. (Attach list of questions if standard
interrogatories should not be used).
( ) b. We request further information as to whether the alleged
employment discrimination affects intended beneficiaries of
Federal financial assistance. (Attach list of questions as
ma).
Figure 23-6
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ASSISTANCE ADMINISTRATION
5700
12/3/84
3. If EEOC has received a similar canplaint and agency requests deferral
of EEOC's investigation: (Check one of the following as appropriate).
( ) We understand that EEOC has received a similar charge.
that you defer investigation of this charge because 	
	[give special circumstances]	
We request
( ) We understand that EEOC has received a similar charge. We request
that you defer investigation of this charge because it is a part
of a ccmplaint received by this agency alleging anployment dis-
crimination and discrijnlnation in other areas within our jurisdic-
tion.
If the agency requests notice of any conciliation negotiations:
(Check, if appropriate).
( ) This agency requests that it receive advance notice of any concil-
iation negotiations conducted by EEOC.
If you have questions concerning this ccmplaint referral, please call me
at
Sincerely,
Name and Title of Representative
Referring Agency
Ehclosures: Ccmplaint
totice(s) to Parties
Related Documents
cc: Desk Officer
Figure 23-6A
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ASSISTANCE ADMINISTRATION
5700
12/3/84
(AGENCY LETTER TO COMPLAINANT AND RESPONDENT OF COMPLAINT
REFERRAL TO EEOC)
(Address to Complainant
and Respondent)
Complainant:
Agency Complaint No.:
EEOC Charge No.:
Date Received?
EPA Project No.:
Dear [Canplainant/Recipient];
The above-referenced complaint has been referred to the Equal Employment
Opportunity Commission (EEOC) [city] Office, [address of EEOC office] for
	investigation and conciliation (where apppropriate) pursuant to 29 CFR
Part 1691.
EEOC, acting under its own authority and the delegated authority of this
agency under [State authority-Title VI, IX, or other], will conduct an inves-
tigation of the allegations of employment discrimination. This agency may,
therefore, use information obtained by EEOC under the agency's investigative
authority in a subsequent proceeding under the aforementioned authority. The
date this agency received the complaint shall be deemed the date the complaint
is received under Title VII and the Equal Pay Act unless an earlier charge was
received by EEOC.
If EEOC is unable to settle or conciliate this ccmplaint/ charge, this
agency will review the Commission's findings/determination and make its own
determination on the basis of the statutes it administers and the facts of the
case.
A representative of the EEOC will contact you concerning the processing
of this ccmplaint.
Sincerely yours,
Name and Title of Representative
cc: Desk Officer
Figure 23-7
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ASSISTANCE ADMINISTRATION
5700
12/3/84
(SAMPLE MEMORANDUM TO AWARD OFFICIAL RE: DISCRIMINATION COMPLAINT
AGAINST RECIPIENT OR APPLICANT)
MEMORANDUM
SUBJECT : Notification of Discrimination Complaint Filed Against
FROM
Name, Title, Office
TO
Name, Title, Office
Pursuant to §7.120(d)(ii) of 40 CFR Part 7, this is to advise you that a
complaint of discrimination on the basis of			
against (name, address, assistance agreement or application number of respondent)
has been accepted for investigation by EPA.
If, at the conclusion of the investigation, a finding of discrimination
is made and compliance cannot be achieved voluntarily, it may be necessary to
deny, annul, suspend or terminate EPA's assistance to the recipient (40 CFR
7.130(b)(1)).
You will be notified of the finding made in this matter.
[Please contact 	 		before the final approval on this
application is made.]*
If you have any questions about this matter, please contact (Name)	 	
at	(Phone#)
cc: Desk Officer
* Use only if respondent has an application for funds pending.
Figure 23-8
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ASSISTANCE ADMINISTRATION
5700
12/3/84
(SAMPLE ACKNOWLEDGEMENT LETTER TO ODMPLAINANT)
Recipient:
File No.:
EPA Project No. :
Dear			r
This will acknowledge receipt of your complaint on the basis of
against		 	 	
Processing procedures on the complaint will begin immediately. Within 20
calendar days from the date of this letter, a decision will be made by the
Envirormental Protection Agency whether to accept, reject or refer the complaint
to another Federal agency, if appropriate. You will be notified of that decision.
If you have any questions, please contact me at 	 .
Vfe have enclosed a copy of the Authorization Form concerning the Privacy
Act of 1974. This Act protects you against unauthorized use and disclosure
of personally identifiable information by any Federal agency and provides you
with the right to obtain the information from the government agency. However,
in order for us to investigate your complaint, it may be necessary to disclose
your name to the recipient and to persons who may have information about your
canplaint. Please read and sign the attached Authorization Form and return it
to this office.
Sincerely,
Name and Title
cc: Desk Officer
Figure 23-9
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ASSISTANCE ADMINISTRATION
5700
12/3/84
AUTHORIZATION
I, 	, hereby authorize the Office of Civil Rights, Environmental
Protection Agency, or its designee, to release my name and other pertinent
information concerning me when it is deemed necessary by the Office of Civil
Rights in order to conduct an investigation regarding my discrimination
ccnplaint.
This authorization is in accordance with the regulation implementing the
Privacy Act of 1974 set forth at 40 CFR 16.10.
DATE:		SIGNED:	
Printed Name
Signature
"Address
Home Telephone Number
Work Telephone Number
Figure 23-10
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ASSISTANCE ADMINISTRATION
5700
12/3/84
(SAMPLE NOTIFICATION LETTER TO RECIPIENT)
Recipient:
File No. •
EPA Project No.:
Dear _	;
This letter is to notify you that a complaint of discrimination on the
basis of 	 	 has been filed against (you) (your company)
with this Agency.
The Environmental Protection Agency (EPA) is responsible for enforcing
the civil rights laws which prohibit discrimination on the basis of race,
color, national origin, sex or handicap in federally-assisted programs.
Processing procedures on the complaint will begin immediately.	Within 20
calendar days fran the date of this letter, a decision will be made	by EPA
whether to accept, reject or refer the complaint to another Federal	agency, if
appropriate. You will be notified of that decision.
Sincerely,
Nairn and Title
ccr Desk Officer
Figure 23-11
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5700
ASSISTANCE ADMINISTRATION	12/3/84
(SAMPLE COMPLAINANT LETTER)
Recipient:
Agency Complaint No.:
EPA Project No.•
Dear Complainant:
This is to advise you that the Environmental Protection Agency has no
jurisdiction over your complaint for the following reasons:
Vfe are therefore closing our file in this matter and rejecting your can-
plaint.
If we can be of service to you in the future, please let us know.
Sincerely,
Name, Title
cc: Desk Officer
Figure 23-12
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ASSISTANCE ADMINISTRATION
5700
12/3/84
(SAMPLE RECIPIENT LETTER)
Recipient:
Agency Complaint No.:
EPA Project No.
Dear Recipient:
This is in reference to your letter of		, 19_ informing you
that the Environmental Protection Agency (EPA) has received a ccmplaint of
discrimination filed against you.
We have determined that EPA does not have jurisdiction over the ccmplaint
and are closing the file.
Sincerely,
Name, Title
cc: Desk Officer
Figure 23-13
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ASSISTANCE ADMINISTRATION
5700
12/3/84
(SAMPLE COMPLAINANT LETTER)
Recipient:
Agency Complaint No.:
EPA Project No.*
Dear Complainant:
This is to advise you that the Environmental Protection Agency has no
jurisdiction over your complaint for the following reasons*
We are therefore closing our file in this matter and rejecting your com-
plaint. However, we have determined that	
may TTave^yurfsdiction "and have referred the ccnplaint to than for such action
as they deem appropriate.
Sincerely,
Name, Title
cc: Desk Officer
Figure 23-14
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ASSISTANCE ADMINISTRATION
5700
12/3/84
(SAMPLE RECIPIENT LETTER)
Recipient:
Agency Canplaint No.:
EPA Project No.•
Dear Recipient-
This is in reference to our letter of	, 19	informing you
that the Environmental Protection Agency (EPA) has received a canplaint of
discrimination filed against you.
We have determined that EPA does not have jurisdiction over the canplaint
and are closing the file. However, we have determined that 	
may have jurisdiction and have referred the complaint to them for such action-
as they deem appropriate.
Sincerely,
Name, Title
cc: Desk Officer
Figure 23-15
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ASSISTANCE ADMINISTRATION
5700
12/3/84
(SAMPLE COMPLAINANT LETTER)
Recipient:
Agency Complaint No.:
EPA Project No.
Dear Complainant:
This is to advise you that the Environmental Protection Agency (EPA) is
rejecting your complaint because it was not filed within 180 days of the alleged
discriminatory act as required by EPA regulations, 40 CFR 7.120(b)(2), as amended
by 49 Federal Register 1656 (January 12, 1984).
We are therefore closing our file in this matter.
Sincerely,
Name, Title
cc: Desk Officer
Figure 23-16
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ASSISTANCE ADMINISTRATION
5700
12/3/84
(SAMPLE RECIPIENT LETTER)
Recipient:
Agency Complaint No.:
EPA Project No.-
Dear Recipient
This is in reference to our letter of 			. 19 	 informing you
that the Environmental Protection Agency (EPA) had received a ccmplaint of
discrimination filed against you.
EPA has determined that the canplaint was not filed within 180 days of
the alleged discriminatory action as required by EPA regulations, 40 CFR
7.120(b)(2) as amended by 49 Federal Register 1656 (January 12, 1984).
We are therefore rejecting the ccmplaint and closing our files in this
matter.
Sincerely,
Name, Title
cc- Desk Officer
Figure 23-17
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ASSISTANCE ADMINISTRATION
(SAMPLE ODMPLAINANT LETTER)
5700
12/3/84
Recipient:
Agency Complaint No.:
EPA Project No..*
Dear Canplainant;
This is to advise you that the Environmental Protection Agency (EPA) has
accepted your complaint for processing and will be in contact with you during
the course of its investigation.
Should you have any questions, please contact me at	-
Sincerely.
Name, Title
cc: Desk Officer
Figure 23-18
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ASSISTANCE ADMINISTRATION
5700
12/3/84
(SAMPLE MEMORANDUM TO AWARD OFFICIAL RE: DISCRIMINATION COMPLAINT
AGAINST RECIPIENT OF ASSISTANCE OR APPLICANT)
MEMORANDUM
SUBJECT: Notification of Discrimination Complaint Filed Against
FROM : Name, Title, Office
TO : Name, Title, Office
Pursuant to S7.120(d)(11) of 40 CFR Part 7, this is to advise you that a
complaint of discrimination on the basis of against 	
(name, address, assistance agreement or application number of"respondent)-has
been accepted for investigation by EPA.
If, at the conclusion of the investigation, a finding of discrimination
is made and compliance cannot be achieved voluntarily, it may be necessary to
deny, annul, suspend or terminate EPA's assistance to the recipient (40 CFR
7-130(b)(i)) -
You will be notified of the finding made in this matter.
[Please contact	before the final approval on this
application is made.]*
If you have any question about this matter, please contact (Name)
at	(Phone #)	.
cc: Desk Officer
* Use only if respondent has an application for funds pending.
Figure 23-19
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ASSISTANCE ADMINISTRATION
5700
12/3/84
(SAMPLE REQUEST FDR FURTHER INFORMATION)
Recipient:
File NO.:
EPA Project No.:
Dear Complainant:
On	,19 , the Environmental Protection Agency received your
complaint dated 		' 19 _ ' alleging that you had been discriminated
against on the basis of _ 			 . Before EPA can further process
your complaint, however, we need the following information from you concerning
your complaint.
In addition, please provide us with a telephone number, and times when we
can contact you. If we do not receive this information within 30 days from
the date of receipt of this letter, ws will have to close your case due to the
lack of information.
We would appreciate the names of any other Federal agency with which you
have filed a similar complaint and its status. This will enable EPA to coordinate
its processing of your complaint with these agencies if appropriate.
[Vfe have enclosed an authorization form concerning the Privacy Act of 1974.
This Act protects you against unauthorized use and disclosure of personally
identifiable information by any Federal agency and gives you the right to
obtain this information frcm this agency.]
[However, in order to investigate your canplamt, we may need to give your
name to	and to persons who may have information about your
complaint". PleaseTsign the authorization form and return it with the information
requested above.]
If you have any questions, please contact me at		
Sincerely,
cc: Desk Officer	Name, Title
*Include the bracketed material and an authorization form only if the form has
not already been sent.
Figure 23-20
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ASSISTANCE ADMINISTRATION
5700
12/3/84
EEOC DISTRICT OFFICES AND JURISDICTIONS
OFFICE	JURISDICTION
Atlanta District Office	Georgia and South Carolina
U.S. Equal Employment Opportunity Commission
Citizens Trust Building, 10th Floor
75 Piedmont Avenue, NE
Atlanta, Georgia 30335
(404) 212-6091/FTS 242-6091
Baltimore District Office
Rotunda Building, Suite 210
711 West 40th Street
Baltimore, Maryland 21211
(301) 922-4070/FTS 922-0896
Birmingham District Office
2121 Eight Avenue, North
Birmingham, Alabama 35203
(205) 254-1166/FTS 229-1166
Maryland, Virginia and the
District of Columbia
Alabama and Mississippi
Charlotte District Office	North Carolina
1301 E. Morehead Street
(cor/Kenilworth)
Charlotte, North Carolina 28204
(704) 371-6437/FTS 353-2713
Chicago District Office
Federal Building, Rocm 234
536 South Clark Street
Chicago, Illinois 60605
(312) 352-2713/FTS 353-2713
Illinois except Southwestern
Illinois counties in St.
Louis jurisdiction
Cleveland District Office	Ohio
Engineers' Building, Rocn 402
1365 Ontario Street
Cleveland, Ohio 44114
(216) 522-7425/FTS 293-7425
Dallas District Office
1900 Pacific Avenue Building
Dallas, Texas 75201
(214) 767-4607/FTS 729-4607
Northern half of Texas and
Oklahoma
Denver District Office
1531 Stout Street, 6th Floor
Denver, Colorado 80202
(303) 837-2771/FTS 327-2771
Colorado, Montana, North
Dakota, South Dakota,
Nebraska and Wyoming
Figure 23-21
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ASSISTANCE ADMINISTRATION
EEOC DISTRICT OFFICES AND JURISDICTIONS - CONTINUED
OFFICE
5700
12/3/84
Detroit District Office
First National Building,
Suite 600
Detroit, Michigan 48226
(313) 226-7636/FTS 226-7636
JURISDICTION
Michigan
Houston District Office	Counties of Southern
Federal Ruilding, Roan 1101	Texas
2320 LaBranch
Houston, Texas 77004
(713) 226-2601/FTS 526-5601
Indianapolis District Office	Indiana
Federal Ruilding, Roam 1101
46 East Ohio Street, Room 456
Indianapolis, Indiana 46204
(317) 269-7212/FTS 331-7212
Los Angeles District Office	Counties of Southern
3255 Wilshire Boulevard, 9th Floor	California and Nevada
Los Angeles, California 90010
(213) 688-3400/FTS 798-3400
Memphis District Office	Tennessee and Kentucky
1407 Union Avenue, Suite 502
Memphis, Tennessee 38104
(901) 521-2617/FTS 222-2617
Miami District office	Florida
DuFbnt Piazza Center, Suite 414
300 Riscayne Boulevard Way
Miami, Florida 33131
(305) 350-4491/FTS 350-4491
Milwaukee District Office
342 North Water Street, Roam 612
Milwaukee, Wisconsin 53202
(414) 291-1111/FTS 362-1111
Wisconsin, Minnesota and
Iowa
New Orleans District Office
F. Edward Hebert Federal Ruilding
600 South Street
New Orleans, Louisiana 70130
(504) 589-3842/FTS 682-3842
Louisiana and Arkansas
Figure 23-21A
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ASSISTANCE ADMINISTRATION
5700
12/3/84
EEOC DISTRICT OFFICES AND JURISDICTIONS - CONTINUED
OFFICE
JURISDICTION
New York District Office
90 Church Street, Roan 130
New York, New York 10007
(212) 264-7161/FTS 264-7161
Philadelphia District Office
127 N. 4th Street
Phildelphia, Pennsylvania 19106
(215) 597-7784/FTS 597-7784
New York, Northern New
Jersey, New England States,
Puerto Rico, U.S. Virgin
Islands
Pennsylvania, Delaware and
Southern New Jersey
Phoenix District Office
201 N. Central Avenue
Suite 1450
Phoenix, Arizona 85703
(602) 261-3882/FTS 261-3882
Arizona, Utah and New Mexico
St. Louis District Office
625 N. Euclid Street
St. Louis, Missouri 63108
(314) 279-6585/FTS 279-6585
Counties of Southwestern
Illinois, State of Missouri
and Kansas
San Francisco District Office
1390 Market Street, Suite 325
San Francisco, California 94102
(415) 556-0260/FTS 556-0260
Northern California, Hawaii,
Samoa, Guam, Wake Island,
Northern Mariana Islands
Seattle District Office
Dexter Horton Building
710 Second Avenue
Seattle. Washington 98104
(206) 442-0968/FTS 399-0968
Alaska, Idaho, Oregon and
Washington
Figure 23-2IB
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5700
12/3/84
E-	=
S
E	"E
Thursday
January 12, 1984
Part IV
Environmental
Protection Agency
40 CFR Parts 7 and 12
Nondiscrimination in Programs Receiving
Federal Assistance From the
Environmental Protection Agency; Final
Rule
Appendix
23-A-l
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1656
Federal Register / Vol 49, No. 8 / Thursday. January 12. 1984 / Rules and Regulation*
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Parts 7 and 12
(FRL 2420-4)
Nondiscrimination In Programs
Receiving Federal Assistance From
the Environmental rmto^nuii Myen^y
AOENCY: Environmental Protection
Agency (EPA).
action: Final rule
summary: This rule implements statutes
which prohibit discrimination on the
grounds of race, color, national origin,
sex and handicap Instead of a separate
rule to implement each statute, this
consolidated rule includes all
requirements of the statutes and
cUrifies the requirements imposed on
EPA assistance [see Appendix for
partial listing)
When implemented, this regulation
will streamline the administrative
requirements currently imposed on
recipients of agency funds by multiple
nondiscrimination regulations In
addition, it will strengthen agency
monitoring efforts by eliminating
redundancy and refining compliance
procedures
EFFECTIVE DATE: February 13.1984
FOR FURTHER INFORMATION CONTACT:
Nathaniel Scurry, Director. Office of
Civil Rights {A—105), U S Environmental
Protection Agency, 401 M Street SW ,
Washington. D C 20460, (202) 382—4575
(voice) or TDD (202) 382-4565 Copies of
the rule will also be available in Braille
at EPA Headquarters and each EPA
Regional Office
SUPPLEMENTARY INFORMATION: This rule
revises the EPA regulation implementing
Title VI of the Civil Rights Act of 1964,
as amended, published in the Federal
Register on July 5,1973 (40 CFR Part 7),
and incorporates the regulation
implementing Section 13 of the Federal
Water Pollution Control Act
Amendment of 1972 (Pub L 92-500),
published by EPA on September 13,1974
(40 CFR Part 12), which prohibits sex
discrimination in all EPA assisted
programs under the Federal Water
Pollution Control Act This rule
consolidates EPA's handicap and sex
nondiscrimination requirements into 40
CFR Part 7. 40 CFR Part 12 is being
removed
Title IX of the Education Amendments
of 1972 (relating to nondiscrimination on
the basis of sex in educational
programs) is not addressed in this
regulation Under 40 CFR Part 30.
howe\er, recipients of EPA assistance
must comply with Title IX if applicable
This rule was proposed in the Federal
Register on January 8.1981 (46 FR 2306]
and the comment period ended on
March 9,1981 Extensive comments from
the EPA Program Offices and the
Department of Justice (DOJ) have been
incorporated in this final rule Further,
the requirements covering Section 504 of
the Rehabilitation Act of 1973 as
amended, comport with the coordination
guidelines established by the
Department of Health. Education, and
Welfare and transferred to the
Department of Justice by Executive
Order 12250 as they are interpreted by
the Department of Justice The proposed
rule contained provisions on Age
discrimination that are not included ui
this final rule because they have not
been approved by HHS. This rule will be
amended to include those provisions
when HHS approval is obtained This
final rule deviates to some extent from
the proposed rule to accommodate the
above Changes to Subpart C.
Discrimination Prohibited on the Basis
of Handicap, were made in reliance on
guidance and advice given by the
Department of Justice pursuant to its
responsibilities under Executive Order
12250 in order to reflect what judicial
precedent requires Rationale relative to
reformating. as well as the substantive
comments received, follow:
Subpart A of this regulation seta forth
the purpose of the regulation and
general definitions We have moved
former paragraph (a) of { 7 20, Agency
responsibilities, to Subpart E. Agency
Compliance Procedures, as $ 7 105,
General policy Since this paragraph
summarized EPA's compliance policy,
this was a logical move. Throughout the
rule we changed "Assistance Approving
Official" to "Award Official" to more
accurately describe the function One
commenter considered the definition of
"Facility" to be too broad We have
changed the definition to make it less
broad, and have described limitations to
it under our comments relating to
Subpart D. Requirements for Applicants
and Recipients.
One commenter recommended that
the definition of Hispanic be expanded
to include persons of Portuguese origin
We cannot accept this recommendation.
The basic racial and ethnic categories
for all federal data collection and
reporting purposes are established by
Directive 15 of the Office of Federal
Statistical Policy and Standards, whose
function is now in the Office of
Information and Regulatory Affairs.
Office of Management and Budget. 43
FR 19260. The Department of Justice's
Title VI coordination regulation (28 CFR
42 401 to 42 415) also requires that these
categories be used
Subpart B describes the prohibitions
against all forms of discrimination
covered by this regulation except
discrimination against handicapped
persons. We made editorial changes for
reasons of clarity.
Within Subpart C, Discrimination
Prohibited on the Basis of Handicap, we
have responded to several comments
which described certain provisions of
the proposed Subpart as confusing,
particularly those dealing with
accessibility.
Paragraph (a)(2) of g 7.65 codifies
recent case law that defines the scope of
a recipient's obligation to ensure
program accessibility This paragraph
provides that in meeting the program
accessibility requirement a recipient is
not required to take any action that
would result in a fundamental alteration
in the nature of its program or activity or
in undue financial and administrative
burdens This provision is based on the
Supreme Court's holding in
Southeastern Community College v.
Davis, 442 U S 397 (1979). that section
504 does not require program
modifications that result in a
fundamental alteration in the nature of a
program, and on circuit court '
applications of the Court's statement in
Davis that section 504 does not require
modification that would result in "undue
financial and administrative burdens "
442 U.S. at 412. see. eg. Dopico v
Goldschmidt, 687 F.2d 644 (2d Cir 1982).
American Public Transit Association v
Lewis (APTA). 655 F 2d 1272 (D C Cir
1981) In APTA the United Stales Court
of Appeals for the District of Columbia
applied the Davis language and
invalidated the section 504 regulations
of the Department of Transportation
The court in APTA noted "that at some
point a transit system's refusal to take
modest affirmative steps to
accommodate handicapped persons
might well violate section 504 But
DOTs rules do not mandate only
modest expenditures. The regulations
require extensive modifications of
existing systems and impose extremely
heavy financial burdens on local transit
authorities." 655 F 2d at 1278
The inclusion of paragraph (a)(2) is an
effort to conform the agency's
implementation of section 504 to the
Supreme Court interpretation of the
statute in Davis as well as to the
decisions of lower courts following the
Davis opinion This paragraph
acknowledges, in light of recent case
law, that in some situations, certain
accommodations for a handicapped
person may so alter recipients' programs
or activities, or entail such extensive
costs and administrative burdens, that
Appendix 23-A--2
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Federal Register / Vol 49. No 8 / Thursday. January 12. 1984 / Rules and Regulations 1G57
the refusal to undertake their
accommodations is not discriminatory
The failure to include such a provision
reflecting judicial interpretation of
section 504 could lead to judicial
invalidation of the regulation or reversal
of particular enforcement actions taken
under the regulation
This paragraph, however, does not
establish an absolute defense, it does
not relieve a recipient of all obligations
to handicapped persons Although a
recipient is not required to take actions
that would result in a fundamental
alteration in the nature of a program or
activity or in undue financial and
administrative burdens, it nevertheless
must take any other steps necessary to
ensure that handicapped persons
receive the benefits and services of the
federally assisted program or activity
New paragraph (e) of section 7 65
states that alterations to existing
facilities need not be undertaken when
they are structurally or financially not
feasible
Paragraph (b) of 5 7 70, New
construction, stipulates the effective
date of applicable accessibility
requirements on design of new
construction
New paragraph (d) of { 7 70. New
construction, excludes certain types of
areas of EPA projects from the
accessibility requirement We anticipate
use of this exemption only in those
instances where a facility or portion of a
facility is not visited by the public or
beneficiaries and where, because of the
nature of the facility and the
requirements of the jobs there, it is not
likely that persons with particular
handicaps could meet the physical
requirements for those jobs, even with
reasonable accommodation In those
instances the areas in question would
not have to be accessible to persons
with those handicaps For example
elevator access need not be provided in
a sewage treatment plant for certain
areas associated with the treatment
prur-cbs because of the potential hazards
that exiSi and because full mobility may
be necessary to perform some of the
essential functions of the jobs in those
areas Providing accessibility for
wheelchair users in these areas would
impose an undue hardship on the
operation of the recipient's activity
Recipients would be required to provide
accessibility for persons with other -
handicaps, such as hearing impairments,
who could perform jobs in treatment
dreas without creating safety or health
hazards However sepdrate
administrative or laboratory areas in the
same facili'j most be accessible to
persons in wheelchairs
EPA and recipients should not. of
course, make blanket assumptions that
handicapped persons car.not perform
jobs in paiticular areas, but should
consult witn handicapped persons and
their representative organizations in
determining how facilities can be
designed to provide employment
opportunities EPA and recipients
should consult with the Equal
Employment Opportunity Commission
(EEOC) for guidance on the 6Cope of this
exemption as it relates to employment
opportunities The EEOC has
responsibility for coordinating the
federal effort to enforce the federal
equal employment opportunity law (E O
12067, 43 CFR 28967) We have also
followed the suggestions of several
commenters to establish timeframes for
compliance with accessibility
requirements
One commenter thought that the
proposed rule did not sufficiently
specify requirements to accommodate
handicapped people We have chosen to
leave the specifics to the particular
situation as it arises Reasonable
accommodation is required To
determine specifically what is necessary
for any particular program is lefl to the
judgment of the program management as
guided by this regulation
One of the major difficulties EPA has
encountered in attempting to define
"reasonable accommodation" is that
each form of impairment of handicapped
employ ees or persons seeking
employment requires different methods
of accommodation to achieve equality of
opportunity with the nonimpaired It
would neither be practical to list every
form of accommodation that would
achieve this end. nor to dictate a
uniform degree of accommodation based
upon cost. Finally, certain programs,
such as construction grants for
wastewater treatment works, create
employment opportunities which expose
employees to high risks of injury The
ability to perform safely is an essential
function of any hazardous job and a
recipient may consider dangers to
employees as a faclor in determining
whether an accommodation is
reasonable In all cases where qualified
handicapped persons are employed by
or seek employment from EPA assisted
recipients, recipients will be expected to
extend such employment opportunities
as may be available to persons within
the limits of coverage of Subpart C.
unless the recipient can demonstrate
that such accommodation would impose
an undue hardship on its operation The
standards of the Department of justice
in 28 CFR Part 42 511 which defines
reasonable accommodation,' will lie
used to determine whether
accommodation should be made by the
recipient Several Federal circuit conns
have ruled that employment is cov ered
by section 504 only where a pr'mj-y
purpose of the assistance is to prov ide
employment Scan Jar v Atascadero
State Hospital. 877 F 2d 1271 [9th Cir
1982). United States v. Cubrin: Med.c.J
Center. 839 F 2d 908 (2d Cir 19S1J
Carmi v. Metropolitan St Louis Spu er
District. 820 F 2d 672 (8th Cir 1980) ce:t
denied, 449 U S 892 (198u), Tn:geser \
Libbie Rehabilitation Cer'er Inc. 590
F 2d 87 (4th Cir. 1978). cert denied 442
U.S 947 (1979) However, the Third and
Eleventh Circuit Courts of Appeals hd\c
recently held that section 504 generally
applies to employment LeStroi'ge v
Consolidated Rail Corp, 687 F 2d 76"
(3rd Cir. 1982) cert granted. 51 U S L W
3598 (U S. Feb. 22.1983). (No 82-862)
/ones v. Metropolitan Atlanta Rap'd
Transit Authority, 681 F 2d 1376 (11th
Cir 1982). pet for cert filed. 51 U S L \V
3535 (U.S.. Jan 11.1983) (No 82-1159)
Pending further clarification of the
law. Subpart C will not be enforced with
respect to employment where
employment is not a primary purpose of
the EPA assistance in States located in
the Second. Fourth, Eighth, and Ninth
Circuits (New York. Connecticut
Vermont, Maryland, North Carolina.
South Carolina, Virginia, West Virginia,
Arkansas, Iowa Minnesota Missouri
Nebraska, North Dakota South Dakota
Alaska. Arizona, California Idaho
Montana, Nevada, Oregon. Washington
Guam, and Hawaii)
Subpart D sets forth the proceduies
applicants and recipients must fullovs
for EPA to determine whether they a'e
in compliance with this regulation
Section 7JBD describes the
requirements for applicants Paragraph
(a) of this section provides that all
applicants must submit an assurance
that the assisted program or activity *i'l
not involve any discrimination
prohibited by this Pari Paragraph (i>) ol
this section clarifies that construction
grant applicants must also submit a
compliance report, EPA Form 4700-1
These are mandatory requirements foi
applicants and will, we expect prov i Je
the basis on which EPA will make the
majority of preaward compliance
determinations. However, the Office of
Civil Rights (OCR) if unable to make a
determination based only on such
submissions, may request additional
information from the applicant or others
in accordance with pdrdgraph (a](l) of
§ 7 BO Pursuant to the DO| Coord.ndtion
Regulation. Paragraph fc) has been
added to require bubnussiun of
compliantp infomidlion from dpp!ic»"'s
Appendix 23-A-3
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1658	Federal Register / Vol. 49. No. 8 / Thursday, January 12, 1984 / Rules and Regulations
The information required includes notice
of any pending lawsuits alleging
discrimination by the applicant in the
program or activity that would be the
subject of the EPA assistance It also
solicits a description of applications to,
or current assistance from, other federal
agencies for the same program or
activity that EPA would =>-"t a
statement on any compliance reviews
conducted for that program or activity
during the two years before the EPA
application
Section 7 85 describes the compliance
information that EPA recipients must
collect, maintain, and, on request,
submit to EPA Several commenlers
requested clarification of the proposed
requirements One criticized the section
for providing too little guidance and
requested a "more clear, detailed
description" of the information that
should be collected In response to this,
we have reordered sections of Subpart
D of the final rule to make it more
descriptive and inclusive and have
expanded some provisions for clarity
Paragraph (a) of this section provides
that a recipient must collect and
maintain four basic categories of
information, namely information
concerning lawsuits pending against the
recipient that allege discrimination this
Part prohibits, information concerning
complaints of alleged discrimination
filed with the recipient, data showing
the racial/ethnic, national origin, sex,
and handicap condition of beneficiaries
of the recipient's program, and reports of
compliance reviews conducted by other
agencies A recipient may also be
required 1o collect and maintain such
other information as the OCR
determines to be necessary to assure
compliance Paragraph (d) of this section
describes the factors that a recipient
must take into account in developing
such information Paragraph (e) of this
section requires a recipient to retain
compliance information for a certain
period and to make such information
available to EPA and the public, upon
request While recipients are not
required to submit routine compliance
reports, they must have the information
available to submit if requested by EPA
Several commentera expressed
concern over whether Part 7 applied to
all the facilities and operations of an
EPA applicant/recipient or only to those
facilities and operations directly
connected with or employed in
furthering the project objectives Part 7
applies only to those facilities,
operations, and activities of a recipient
that receive EPA assistance If a
recipient received assistance under an
EPA statute, the purpose and scope of
which is to assist the entire operation of
the recipient, then the entire range of the
recipient's facilities, operations, and
activities become subject to the civil
rights statutes implemented by this
regulation
Several commenters were confused
about our intent when we used the term
"subrecipient" in the proposed rule in
i 7.75 Compliance reports. It is our
intent that the entity actually
implementing the EPA assisted program
comply with the requirements of this
Part and be able to give assurance of
such compliance with respect to such
program To clarify our intent we have
eliminated the term "subrecipient."
In response to the comment which
asked if proposed S 7.75 required a
recipient to keep a log of "service"
complaints (as well as employment
complaints) when such complaints were
maintained by another city agency,
those requirements (now appearing
under 5 7 85] would be met if the
recipient can provide the required data
upon request to EPA or an interested
party
One commenter suggested that EPA's
monitoring of compliance would be
improved if we required recipients to
identify any discriminatory policies or
practices and indicate steps they would
take to modify those practices While
we do not require such "self-evaluation"
to be submitted to EPA. it is expected,
as stated in paragraph (c) of S 7.85, that
recipients will identify discrimination
prohibited by this Part in any of their
funded programs or activities
Proposed { 7.80, now J 7 90, required
each recipient to adopt a gnevance
procedure and designate a person to
coordinate its compliance efforts. Two
commenters asked for further
explanation of "appropriate due
process" for that proposed procedure.
We concluded that this phrase may
have implied too much We intend that
recipients establish a standard
procedure for dealing with complaints
that provides an opportunity for a timely
and fair resolution We have, therefore,
revised paragraph (a) of $ 7.90 to require
a recipient to adopt a grievance
procedure that assures the prompt and
fair resolution of complaints
Proposed { 7 70. now { 7 95, required
each recipient to provide public notice
of nondiscrimination to designated
groups and individuals Several
commenters indicated that the proposed
requirement that notice "must be"
included in all major correspondence
would be burdensome to recipients One
comment indicated that other suggested
forms of notice were more appropriate
than this apparently mandatory form,
another comment indicated that if all
federal agencies had such a requirement
"there would be little space left on
correspondence for correspondence "
We agreed with these comments and
have made this form of notice
discretionary
In { 7 85 of the proposed rule a
recipient was required to notify the OCR
at the time a lawsuit alleging
discrimination was Hied One
commenter indicated that such a
requirement would be burdensome to a
recipient since it would presumably
require the recipient to keep EPA
apprised of the progress of the lawsuit
The same commenter noted that other
federal agencies simply require such
information be submitted annually or
periodically as part of an application,
and recommended that we eliminate this
requirement We modified paragraph (a)
of S 7.85 accordingly and now require
that a recipient maintain information on
pending lawsuits and submit such
information upon request
Section 7 100 prohibits an applicant,
recipient or other person from
intimidating, threatening, coercing or
discriminating against an individual or
group in order to interfere with« right or
privilege guaranteed by the ,
nondiscrimination provisions of this
Part or because such individual has
Tiled a complaint or participated in
enforcement of this regulation One
commenter noted that this section
needed "more teeth " Since a compldint
of intimidation would be treated
according to the complaint procedure in
{ 7 120, an applicant or recipient found
in violation of 8 7.100 could be sub|ect to
enforcement procedures We think this
is a sufficiently severe sanction
Another commenter criticized the
entire compliance section for "lack of
coordination" with the guidelines issued
by the Department of Labor and the
Attorney General We think this
criticism is unfounded. We have
developed our regulation in compliance
with the Department of Justice
guidelines on Title VI and Section 504.
and after numerous discussions vw;h the
Department The Department of Labor is
responsible for the administration of
Section 503 of the Rehabilitation Act of
1973, as amended, an affirmative action
statute that applies to certain federal
contractors It must be noted that
revised Pari 7 does not apply to those
that receive EPA funds through direct
federal procurement arrangements
Subpart E sets forth the procedures
that EPA will follow in assuring that
applicants and recipients are in
compliance with the requirements of the
Acts and this Part
Appendix 23-A-4
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Federal Register / Vol. 49, No. 8 / Thursday, January 12, 1984 / Rules and Regulations 1659
One commenter suggested that it
would be more logical to reorder the
sections in the proposed Subpart to have
preaward compliance, postaward
compliance, and complaint
investigations precede the sections on
sanctions and coordination with other
agencies. We have accepted this
suggestion and have restructured this
Subpart. New { 7.110 describes EPA's
preaward review of an applicant's
submission(s) Paragraph (a) provides
that the OCR will determine compliance
based on "any other information EPA
receives during this time or has on file
about the applicant" One commenter
asked what this latter provision
included Many EPA recipients,
particularly those constructing
wastewater treatment facilities, have
received a series of awards and,
therefore, EPA has a "file" that may
contain information useful to the OCR.
In addition, the application itself may
include data that would be of interest to
the OCR (e.g., other federal assistance
an applicant is receiving)
One commenter suggested greater
specificity as to when the OCR would
conduct an on-site review. An on-site
review of the covered program or
activity shall take place only when OCR
has reason to believe discrimination
may be occurring Of course, OCR may
request data and information from
applicants at the preaward stage
Section 7 115 of this final rule
(formerly { 7 120) describes EPA's
postaward compliance process. One
commenter noted that EPA will only
conduct compliance reviews where
compliance problems have been
identified and suggested that EPA
should also conduct reviews of
recipients where there have been no
complaints or investigations. Another
commenter also recommended "random
reviews" in addition to the proposed
approach. It is our view that EPA's
compliance resources will have the
greatest impact when used to address
identified problem areas Accordingly,
postaward on-site reviews of covered
programs or activities shall take place
only when OCR has reason to believe
discrimination may be occurring. We
note, however, that revised paragraph
(a) of S 7.115 permits EPA to collect data
and information as part of a compliance
review of any recipient of EPA
assistance on a random basis.
Section 7.120 provides the procedure
for investigating and resolving
complaints of discrimination One
commenter recommended that we
establish a specific time limit (rather
than merely "promptly") for resolving
complaints We ha\e revised paragraph
(c) of this section to require the OCR to
notify ell parties within five (5) calendar
days of the receipt of a complaint and to
notify them within twenty (20)
additional calendar days, according to
paragraph (d)(1), whether EPA accepted,
rejected or referred the complaint to
another agency Further, we have
clarified the time limit for resolving
complaints by applying the postaward
compliance procedure set forth In
9 7.115 to them. That section has been
amended to include, where appropriate,
references to complaint investigatioa
Under these provisions, a preliminary
decision must be made within 180
calendar days from the time a complaint
is received by the agency Paragraph (f)
of { 7.120 is reserved for the mediation
process that applies only to complaints
of age discrimination
In the proposed regulation, 8 7.130
described the procedure for annulling,
suspending or terminating EPA
assistance upon e finding of
noncompliance One commenter asked
whether such procedures apply to denial
of assistance as well They do We have
revised this section to include the
procedures for refusing to provide
financial assistance We have also
rewritten this section to clarify the
decision-making process and the rights
of applicants and recipients It should be
noted that before EPA denies, annuls,
suspends, or terminates assistance on
the basis of noncompliance, the
applicant or recipient has the statutory
right to an evidentiary hearing
Regulation Development Process
Under Executive Order 12291. EPA
must judge whether a rule is "major"
and therefore subject to the Regulatory
Impact Analysis requirements of the
Order. We have determined that this
regulation is not "major" as it will not
have a substantial impact on the
economy This rule was submitted to the
Office of Management and Budget for
review, as required by Executive Order
12291
Office of Management and Budget
Review
Under the Paperwork Reduction Act
of 1080.44 U.S.C. 3501 et seq . the
information provisions of this rule found
in Sections 7 80 and 7 85 were approved
by the Office of Management and
Budget (OMB), control number 2000-
0006, and are reflected in this rule
Environmental Impact Statement
This regulation does not affect the
environment An Environmental Impact
Statement is not required under the
National Environmental Policy Act of
1969
This regulation does not supersede 40
CFR Part 8 which implements Executive
Order 11246
List of Subjects in 40 CFR Part 7
Civil nghts, Sex discrimination,
Discrimination against handicapped
In consideration of the foregoing. 40
CFR is amended by removing Part 12
and revising -,i0 CFR Part 7 to read as
follows:
PART 7—NONDISCRIMINATION IN
PROGRAMS RECEIVING FEDERAL
ASSISTANCE FROM THE
ENVIRONMENTAL PROTECTION
AGENCY
Subpart A—General
Sec.
710 Purpose of this part.
715 Applicability.
7 20 Responsible agency officers
7.25 Definitions
Subpart B—Discrimination Prohibited on
the Basis ot Race, Color, National Origin or
Sex
7.30 General prohibition.
7 35 Specific prohibitions
7.40 (Reserved)
Subpart C—Discrimination Prohibited on
the Basis of Handicap
745 General Prohibition
7 SO Specific prohibiUons against
discrimination
7.55 Separate or different programs
7 60 Prohibitions and requirements relating
to employment.
7 65 Accessibility
7 70 New construcUon.
7 75 TransiUon plan.
Subpart D—Requirements tor Applicants
and Recipients
7 80 Applicants.
7 83 Recipients
7.90 Grievance procedures.
7 95 Notice ot nondiscrimination
7100 IntimidaUon and retaliation
prohibited.
Subpart E—Agency Compliance
Procedures
7105 General policy
7110 Preaward Compliance
7115 Postaward compliance
7120 Complaint investigations
7125 Coordination with other agencies
7130 Actions available to EPA to obtain
compliance
7135 Procedure for regaining eligibility
Appendix A—EPA Assistance Programs as
Listed in the "Catalog of Federal
Domestic Assistance"
Authority The Civil nghts Act of 1964. as
amended. 42 U S C ZOOOd el seq. sec 504
Rehabilitation Act of 1973. as amended 29
USC 794 sec 13. Federal Waler Pollution
Control Act Amendments of 1972, Pub L 92
500
Appendix 23-A-5
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1660	Federal Register / Vol. 49. No. B / Thursday. January 12, 1984 / Rules and Regulations
Subpart A—General
§ 7.10 PurpoM of this part
This Part implements' Title VI of the
Civil Rights Act of 1964, as amended.
Section 504 of the Rehabilitation Act of
1973. as amended; and Section 13 of the
Federal Water Pollution Control Act
Amendments of 1972, Pub. L 92-500,
(collectively, the Acts).
§ 7 15 Applicability.
This Part applies to all applicants for.
and recipients of, EPA assistance in the
operation of programs or activities
receiving such assistance beginning
Feburary 13,1984 New construction
(5 7 70) for which design was initiated
prior to February 13.1984, shall comply
with the accessibility requirements in
the Department of Health, Education
and Welfare (now the Department of
Health and Human Serviced)
nondiscrimination regulation, 45 CFR
84 23. issued June 3,1977, or with
equivalent standards that ensure the
facility is readily accessible to and
usable by handicapped persons Such
assistance includes but is not limited to
that which is listed in the Catalogue of
Federal Domestic Assistance under the
66 000 series. It supersedes the
provisions of former 40 CFR Parts 7 and
12
§ 7JO Responsible agency officers.
(a)	The EPA Office of Civil Rights
(OCR) 19 responsible for developing and
administering EPA's compliance
programs under the Acts.
(b)	EPA's Project Officers will, to the
extent possible, be available to explain
to each recipient its obligations under
this Part and to provide recipients with
technical assistance or guidance upon
request
§7.25 Definitions.
As used in this Part
"Administrator" means the
Administrator of EPA. It includes any
other agency official authorized to act
on his or her behalf, unless explicity
stated otherwise.
"Alcohol abuse" means any misuse of
alcohol which demonstrably interferes
with a person's health, interpersonal
relations or working ability.
"Applicant" means any entity that
files an application or unsolicited
proposal or otherwise requests EPA
assistance (see definition for "EPA
assistance").
"Assistant Attorney General" is the
head of the Civil Rights Division, U S.
Department of justice
"Award Official" means the EPA
official with the authority to approve
and execute assistance agreements and
to take other assistance related actions
authorized by this Part and by other
EPA regulations or delegation of
authority
"Drug abuse" means:
(a)	The use of any drug or substance
listed by the Department of Justice in 21 .
CFR 130811, under authority of the
Controlled Substances Act, 21 (JSC 801,
as a controlled substance unavailable
for prescription because:
(1)	The drug or substance has a high
potential for abuse,
(2)	The drug or other substance has no
currently accepted medical use in
treatment In the United States, or
(3)	There is a lack of accepted safety
for use of the drug or other substance
under medical supervision.
Note.—Examples of drugs under paragraph
(a)(1) of this section include certain opiates
and opiate denvatives (eg, heroin) and
hallucinogenic substances (eg., marijuana,
mescaline, peyote) and depressants [eg.
melhaqualone). Examples of (a)(2) include
opium, coca leaves, methadone,
amphetamines and barbiturates
(b)	The misue of any drug or
substance listed by the Department of
(ustice in 21 CFR 1308.12-15 under
authority of the Controlled Substances
Act as a controlled substance available
for prescription
"EPA" means the United States
Environmental Protection Agency.
"EPA" assistance" means any grant or
cooperative agreement, loan, contract
(other than a procurement contract or a
contract of insurance or guaranty), or
any other arrangement by which EPA
provides or otherwise makes available
assistance in the form of:
(1)	Funds:
(2)	Services of personnel, or
(3)	Real or personal property or any
interest in or use of such property,
including
(i) Transfers or leases of such
property for less than fair market value
or for reduced consideration; and
(li) Proceeds from a subsequent
transfer or lease of such property if
EPA's share of its fair market value is
not returned to EPA.
"Facility" means all, or any part of, or
any Interests in structures, equipment,
roads, walks, parking lots, or other real
or personal property.
"Handicapped person."
(a) "Handicapped person" means any
person who (1) has a physical or mental
impairment which substantially limits
one or more major life activities, (2) has
a record of such an impairment, or (3) is
regarded as having such an impairment.
For purposes of employment, the term
"handicapped person" does not include -
any person who is an alcoholic or drug
abuser whose current use of alcohol or
drugs prevents such individual from
performing the duties of the job in
question or whose employment, by
reason of such current drug or alcohol
abuse, would constitute a direct threat
to property or the safety of others.
(b) As used in this paragraph, the
phrase'
(1)	"Physical or mental impairment"
means (i) any physiological disorder or
condition, cosmetic disfigurement or
anatomical loss affecting one or more of
the following body systems:
neurological: musculoskeletal: special
sense organs; respiratory, including
speech organs; cardiovasular
reproductive; digestive, genito-urinary;
hemic and lymphatic, skin, and
endocrine: and (ii) any mental or
psychological disorder, such as mental
retardation, organic brain syndrome,
emotional or mental illness, and specific
learning disabilities.
(2)	"Major life activities" means
functions such as caring for one's self,
performing manual tasks, walking,
seeing, hearing, speaking, breathing,
learning, and working
(3)	"Has a record of such an
impairment" means has a history ofv or
has been misclassified as having, a
mental or physical impairment that
substantially limits one or more major
life activities.
(4)	"Is regarded as having an
impairment" means:
(i)	Has a physical or mental
impairment that does not substantially
limit major life activities but that is
treated by a recipient as constituting
such a limitation;
(ii)	Has a physical or mental
impairment that substantially limits
major life activities only as a result of
the attitudes of others toward such
impairment; or
(iii)	Has none of the impairments
defined above but is treated by a
recipient as having such an impairment.
"Office of Civil Rights" or OCR means
the Director of the Office of Civil Rights.
¦EPA Headquartera or his/her designated
representative.
"Project Officer" means the EPA
official designated m the assistance
agreement (as defined in "EPA
assistance") as EPA's program contact
with the recipient; Project Officers are
responsible for monitoring the project
"Qualified handicapped person"
means:
(a) With respect to employment' a
handicapped person who, with
reasonable accommodation, can perform
the essential functions of the job in
question.
Appendix 23-A-6
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Federal Register / Vol. 49, No. 8 / Thursday, January 12, 1934 / Rules and Regulations 1C61
(b) With respect to services' a
handicapped person who meets the
essential eligibility requirements for the
receipt of such services
"Racial classifications " 1
(a)	American Indian or Alaskan
native. A person having origins in any of
the original peoples of North America,
and who maintains cultural
identification through tribal affiliation or
community recognition.
(b)	Asian or Pacific Islander. A person
having origins in any of the original
peoples of the Far East, Southeast Asia,
the Indian subcontinent, or the Pacific
Islands. This area includes, for example,
China, Japan, Korea, the Philippine
Islandsi and Samoa.
(c)	Black and not of Hispanic origin. A
person having origins in any of the black
racial groups of Africa.
(d)	Hispanic. A person of Mexican.
Puerto Rican, Cuban, Central or South
American or other Spanish culture or
origin, regardless or race
(e)	White, not of Hispanic origin A
person having ongins in any of the
original peoples of Europe, North Africa,
or the Middle East
"Recipient" means, for the purposes of
this regulation, any state or its political
subdivision, any instrumentality of a
state or its political subdivision, any
public or private agency, institution,
organization, or other entity, or any
persoh to which Federal financial
assistance is extended directly or
through another recipient. Including any
successor, assignee, or transferee of a
recipient, but excluding the ultimate
beneficiary of the assistance.
"Section 13" refers to Section 13 of the
Federal Water Pollution Control Act
Amendments of 1972.
"United States" includes the states of
the United States, the District of
Columbia, the Commonwealth of Puerto
Rico, the Virgin Islands, American
Samoa. Guam, Wake Island, the Canal
Zone, and all other territories and
possessions of the United Stales, the
term "State" includes any one of the
foregoing
'Additional subcategories based on national
origin or primary language spoken may be used
where appropriate on either a national or a regional
basis Subparagraphs (a) through (e) are in
conformity with Directive 15 of the Office of Federal
Statistical Policy and Standards whose function is
now in the Office of Information and Regulatory
Affairs Office of Management and Budget Should
that office or any successor office, change or
otherwise amend the categories listed in Directive
IS the categories in this paragraph shall be
interpreted to conform tilth am such changes or
amendments
Subpart B—Discrimination Prohibited
on the Basia of Race, Color, National
Origin or Sex
5 7.30 General prohibition.
No person shall be excluded from
participation in, be denied the benefits
of, or be subjected to discrimination
under any program or activity receiving
EPA assistance on the basis of race,
color, national origin, or on the basis of
sex in any program or activity receiving
EPA assistance under the Federal Water
Pollution Control Act, as amended,
Including the Environmental Financing
Act of 1972.
{ 7.35 Specific proMMttonm.
(a)	As to any program or activity
receiving EPA assistance, a recipient
shall not directly or through contractual,
licensing, or other arrangements on the
basis of race, color, national ongin or, if
applicable, sex:
(1)	Deny a person any service, aid or
other benefit of the program.
(2)	Provide a person any service, aid
or other benefit that is different, or is
provided differently from that provided
to others under the program.
(3)	Restrict a person m any way in the
enjoyment of any advantage or privilege
enjoyed by others receiving any service,
aid. or benefit provided by the program;
(4)	Subject a person to segregation in
any manner or separate treatment in
any way related to receiving services or
benefits under the program:
(5)	Deny a person or any group of
persons the opportunity to participate as
members of any planning or advisory
body which is an integral part of the
program, such as a local sanitation
board or sewer authority.
(6)	Discriminate in employment on the
basis of sex in any program subject to
Section 13. or on the basis of race, color,
or national origin in any program whose
purpose is to create employment; or, by
means of employment discrimination,
deny intended beneficianes the benefits
of the EPA assistance program, or
subject the beneficiaries to prohibited
discrimination.
(7)	In administering a program or
activity receiving Federal financial
assistanoe in which the recipient has
previously discriminated on the basis of
race, color, sex. or national ongin. the
recipient shall take affirmative action to
provide remedies to those who have
been injured by the discrimination.
(b)	A recipient shall not use criteria or
methods of administering its program
which have the effect of subjecting
individuals to discrimination because of
their race, color, national ongin. or sex.
or have the effect of defeating or
substantially impairing accomplishment
of the objectives of the program with
respect to individuals of a particular
race, color, national ongin. or sex
(c)	A recipient shall not choose a si!e
or location of a facility that has the
purpose or effect of excluding
individuals from, denying them the
benefits of, or subjecting them to
discrimination under any program to
which this Part applies on the grounds of
race, color, or national origin or sex or
with the purpose or effect of defeating or
substantially impeinng the
accomplishment of the objectives of ths
subpart
(d)	The specific prohibitions of
discrimination enumerated above do not
limit the general prohibition of 6 7-30
{7.40 (Reserved)
Subpart C—Discrimination Prohibited
* on the Basis of Handicap
{ 7.45 General prohibition.
No qualified handicapped person shall
solely on the basis of handicap be
excluded from participaUon in. be
denied the benefits of. or otherwise be
subjected to discnmination under an}
program or activity receiving EPA
assistance
{ 7.50 Specific prohibitions against
discrimination.
(a) A recipient, in providing any aid,
benefit or service under any program or
activity receiving EPA assistance shall
not. on the basis of handicap, directlv or
through contractual, licensing or other
arrangement
(1)	Deny a qualified handicapped
person any service, aid or other benefit
of a federally assisted program.
(2)	Provide different or separate aids,
benefits, or services to handicapped
persons or to any class of handicapped
persons than is provided to others
unless the action is necessary to provide
qualified handicapped persons with
aids, benefits, or services that Bre as
effective as those provided to others
(3)	Aid or perpetuate discrimination
against a qualified handicapped person
by providing significant assistance to an
entity that discriminates on the basis of
handicap in providing aids, benefits, or
services to beneficiaries of the
recipient's program,
(4)	Deny a qualified handicapped
person the opportunity to participate as
a member of planning or advisory
boards, or
(5)	Limit a qualified handicapped
person in any other way in the
enioyment of any nght, privilege,
advantage, or opportunity enjoyed by
others recen ing an aid. benefit or
service from the program
Appendix 23-A-7
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1662 Federal Register / Vol 49. No. 8 / Thursday, January 12. 1984 / Rules and Regulations
(b)	A recipient may not, in
determining the -site or location of a
facility, make selections (1) That have
the effect of excluding handicapped
persons from, denying them the benefits
of, or otherwise subjecting them to
discrimination under any program or
activity that receives or benefits from
EPA assistance or (2} that have the
purpose or effect of defeating or
substantially impairing the
accomplishment of the objectives of the
program or activity receiving EPA
assistance with respect to handicapped
persons
(c)	A recipient shall not use criteria or
methods of administering any program
or activity receiving EPA assistance
which have the effect of subjecting
individuals to discrimination because of
their handicap, or have the effect of
defeating or substantially impairing
accomplishment of the objectives of
such program or activity with respect to
handicapped persons
(d)	Recipients shall take appropriate
steps to ensure that communications
with their applicants, employees, and
beneficiaries are available to persons
with impaired vision and hearing
(e)	The exclusion of non-handicapped
persons or specified classes of
hdndicapped persons from programs
limited by federal statute or Executive
Order to handicapped persons or a
different class of handicapped persons
is not prohibited by this subpart
} 7.55 Separate or different program*.
Recipients shall not deny a qualified
handicapped person an opportunity
equal to that afforded others to
participate in or benefit from the aid,
benefit, or service in the program
receiving EPA assistance Recipients
shall administer programs in the most
integrated setting appropriate to the
needs of qualified handicapped persons^
§ 7.60 Prohibitions and requirements
relating to employment
(a)	No qualified handicapped person
shall, on the basis of handicap, be
subjected to discrimination in
employment under any program or
activity that receives or benefits from
federal assistance
(b)	A recipient shall make all
decisions concerning employment under
any program or activity to which this
Part applies in a manner which ensures
that discrimination on the basis of
handicap does not occur, and shall not
limit segregate, or classify applicants or
employees in any way that adversely
dffecls their opportunities or status
because of handicap
(c)	The prohibition sgainst
discrimination in employment applies to
the following activities
(1)	Recruitment, advertising, and the
processing of applications for
employment,
(2)	Hiring, upgrading, promotion,
award of tenure, demotion, transfer,
layoff, termination, right of return from
layoff, and rehiring,
(3)	Rates of pay or any other form oi
compensation and changes in
compensation.
(4)	Job assignments, job
classifications, organizational
structures, position descriptions, lines of
progression, and seniority lists;
(5)	Leaves of absence, sick leave, or
any other leave,
(6)	Fringe benefits available by virtue
of employment, whether or not
administered by the recipient,
(7)	Selection and financial support for
training, including apprenticeship,
professional meetings, conferences, and
other related activities, and selection for
leaves of absence to pursue training.
(6) Employer sponsored activities,
including social or recreational
programs, or
(9) Any other term, condition, or
privilege of employment
(d)	A recipient shall not participate in
a contractual or other relationship that
has the effect of subjecting qualified
handicapped applicants or employees to
discrimination prohibited by this
subpart The relationships referred to in
this paragraph include relationships
with employment and referral agencies,
with labor unions, with organizations
providing or administering fringe
benefits to employees of the recipient,
and with organizations providing
training and apprenticeship programs.
(e)	A recipient shall make reasonable
accommodation to the known physical
or mental limitations of an otherwise
qualified handicapped applicant or
employee unless the recipient can
demonstrate that the accommodation
would impose an undue hardship on the
operation of its program.
(f)	A recipient shall not use
employment tests or criteria that
discriminate against handicapped
persons and shall ensure that
employment tests are adapted for use by
persons who have handicaps that impair
sensory, manual, or speaking skills.
(g)	A recipient shall not conduct a
preemployment medical examination or
make a preemployment inquiry as to
whether an applicant is a handicapped
person or as to the nature or severity of
a handicap except as permitted by the
Department of Justice in 28 CFR 42 513
{7.65 Accessibility.
(a)	General A recipient shall operate
each program or activity receiving EPA
assistance so that such program or
activity, when viewed in its entirely, is
readily accessible to and usable by
handicapped persons This paragraph
does not.
(1J Necessarily require a recipient to
make each of its existing facilities or
every part of an existing facility
accessible to and usable by
handicapped persons.
(2) Require a recipient to take any
action that the recipient can
demonstrate would result in a
fundamental alteration in the nature of
its program or activity or in undue
financial and administrative burdens If
an action would result in such an
alternation or such financial and
administrative burdens, the recipient
shall be required to take any other
action that would not result in such an
alteration or financial and
administrative burdens but would
nevertheless ensure that handicapped
persons receive the benefits and
services of the program or activity
receiving EPA assistance
(b)	Methods of making existing *
programs accessible A recipient.ma>
comply with the accessibility
requirements of this section by making
structural changes, redesigning
equipment, reassigning services to
accessible buildings, assigning aides to
beneficiaries, or any other means that
make its program or activity accessible
to handicapped persons. In choosing
among alternatives, a recipient must
give priority to methods that offer
program benefits to handicapped
persons in the most integrated setting
appropriate
(c)	Deadlines (1) Except where
structural changes in facilities are
necessary, recipients must adhere to the
provisions of this section within 60 days
after the effective date of this Part
(2) Recipients having an existing
facility which does require alterations in
order to make a program or activity
accessible must prepare a transition
plan in accordance with 5 7 75 within
six months from the effective date of
this Part. The recipient must complete
the changes as soon as possible, but not
later than three years from date of
award
(d)	Notice of accessibility The
recipient must make sure that interested
persons, including those with impaired
vision or hearing, can find out about the
existence and location of the assisted
program services, activities, and
facilities that are accessible to and
usable by handicapped persons
Appendix 23-A-8
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Federal Register / Vol 49, No 8 / Thursday, January 12, 1994 / Rules and Regulation* 16E"1.
(e) Structural and financial feasibility
This section does not require structural
alterations to existing facilities if
making such alterations would not be
structurally or financially feasible An
alteration is not structurally feasible
when it has little likelihood of being
accomplished without removing or
altenng a load-bearing structural
member Financial feasibility shall take
into account the degree to which the
alteration work is to be assisted by EPA
assistance, the cost limitations of the
program under which such assistance is
provided, and the relative cost of
accomplishing such alterations in
manners consistent and inconsistent
with accessibility
} 7.70 New construction
(a)	General New facilities shall be
designed and constructed to be readily
accessible to and usable by
handicapped persons Alterations to
existing facilities shall, to the maximum
extent feasible, be designed and
constructed to be readily accessible to
and usable by handicapped persons
(b)	Any construction for which design
is initiated on or after the effective date
of this Part shall comply with the
accessibility requirements of this
section Any construction for which
design was initiated prior to the
effective date of this Part shall comply
with accessibility requirements in the
Department of Health. Education and
Welfare (now the Department of Health
ar\d Human Services) nondiscrimination
regulation, 45 CFR 84 23, issued June 3.
1977, or with equivalent standards that
ensure the facility is readily accessible
to and usable by handicapped persons
(c)	Design, construction or alteration
of facilities in conformance with the
1980 "American National Standard
Specifications for Making Buildings and
Facilities Accessible to and Usable by
the Physically Handicapped." published
by the American National Standards
Institute, lnc . constitutes compliance
with this section'
(dj Exception This section shall not
appl) to the design, construction or
alteration of any portion of a building
that, because of its intended use. will
not require accessibility to the public
beneficiaries or result in the
employment or residence therein of
physically handicapped persons
8 t.75 Transition ptan.
If structural changes to facilities are
necessary to make the program
The American National Standards Institute Inc.
is located at 1430 Broad*a\ Net* York NY 10O16
A cop\ of the document ma> be purchased IrDm this
Institute (or SS 00 plus Si 00 shipping cost
accessible to handicapped persons, a
recipient must prepare a transition plan
(a)	Requirements The transition plan
must set forth the steps needed to
complete the structural changes required
and must be developed with the
assistance of interested persons,
including handicapped persons or
organizations representing handicapped
persons At a minimum, the transition
plan must
(1)	Identify the physical obstacles in
the recipient's facilities that limit
handicapped persons' access to its
program or activity,
(2)	Describe in detail what the
recipient will do to make the facilities
accessible.
(3)	Specify the schedule for the steps
needed to achieve full program
accessibility, and include a year-by-year
timetable if the process will take more
than one year,
(4)	Indicate the person responsible for
carrying out the plan
(b)	Availability Recipients shall make
available a copy of the transition plan to
the OCR upon request and to the public
for inspection at either the site of the
project or at the recipient's main office
Subpart D—Requirements for
Applicants and Recipients
{ 7 J0 Applicants
(a) Assurances —(1) General
Applicants for EPA assistance shall
submit an assurance with their
applications stating that, with respect to
their programs or activities that receive
EPA assistance, they will comply with
the requirements of this Part Applicants
must also submit any other information
that the OCR determines is npcessary
for preaward review The applicant's
acceptance of EPA assistance is an
acceptance of the obligation of this
assurance and this Part.
(2) Duration of assurance —(i) Real
property When EPA awards assistance
in the form of real property, or
assistance to acquire real property, or
structures on the property, the assurance
will obligate the recipient, or transferee,
during the period the real property or
structures are used for the purpose for
which EPA assistance is extended, or.
for another purpose in which similar
services or benefits are provided The
transfer instrument shall contain a
covenant running with the land which
assures nondiscrimination Where
applicable, the covenant shall also
retain a nght of reverter which will
permit EPA to recover the property if the
covenant is ever broken
(it) Personal property When EPA
provides assistance in the form of
-personal property, the assurance will
obligate the recipient for so long as it
continues to own or possess the
property
(in) Other forms of assistance In all
other cases, the assurance will oblip.ito
the recipient for as long as EPA
assistance is extended
(b)	Wastewater treatment project
EPA Form 4700-4 shall also be
submitted with applications for
assistance under Title II of the Federal
Water Pollution Control Act
(c)	Compliance information Each
applicant for EPA assistance shall
submit regarding the program or aclivih
that would receive EPA assistance
(1)	Notice of any lawsuit pending
against the applicant alleging
discrimination on the basis of race,
color, sex. handicap, or national origin
(2)	A brief description of any
applications pending to other federal
agencies for assistance, and of federal
assistance being provided at the time of
the application, and
(3)	A statement describing any civil
rights compliance reviews regarding the
applicant conducted during the two-year
period before the application, and
information concerning the agency or
organization performing the reviews
(Approved by the Office of Management and
Budget under Control Number 2000-0006 )
{7JS Recipients.
(a]	Compliance information Each
recipient shall collect, maintain, and on
request of the OCR, provide the
following information to show
compliance with this Part
(1)	A brief description of any lawsuits
pending against the recipient that allege
discrimination which this Part prohibits,
(2)	Racial/ethnic, national origin, sex
and handicap data, or EPA Form 4700-4
information submitted with its
application:
(3)	A log of discrimination complaints
which identifies the complaint, the date
it was filed, the date the recipient s
investigation was completed, the
disposition, and the date of disposition,
and
(4)	Reports of any compliance reviews
conducted by any other agencies
(b)	Additional compliance
information If necessary, the OCR may
require recipients to submit data and
information specific to certain programs
to determine compliance where there is
reason to believe that discrimination
may exist in a program or activity
receiving EPA assistance or to
investigate a complaint alleging
discrimination in a program or activity
receiving EPA assistance Requests shall
be limited to data and information
which is relevant to determining
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Federal Register / Vol 49, No. 8 / Thursday, January 12, 1984 / Rules and Regulations
compliance and shall be accompanied
by a written statement summarizing the
complaint or setting forth the basis for
the belief that discrimination may exist.
(c)	Self-evaluation Each recipient
must conduct a self-evaluation of its
administrative policies and practices, to
consider whether such policies and
practices may involve hand ccp.
discrimination prohibited by this Part.
When conducting the self-evaluation,
the recipient shall consult with
interested and involved persons
including handicapped persons or
organizations representing handicapped
persons The evaluation shall be
completed within 18 months after the
effective date of this Part
(d)	Preparing compliance information.
In preparing compliance information, a
recipient must
(1)	[Reserved]
(2)	Use the racial classifications set
forth in j 7 25 in determining categories
of race, color or national origin
(e)	Maintaining compliance
information Recipient? must keep
records for {a] and (b) of this section for
three (3) years after completing the
project When any complaint or other
action for alleged failure to comply with
this Part is brought before the three-year
period ends, the recipient shall keep
records until the complaint is resolved
(f)	Accessibility to compliance
information A recipient shall
(1)	Give the OCR access during
normal business hours to its books,
records, accounts and other sources of
information, including its facilities, as
may be peitinent to ascertain
compliance with this Part.
(2)	Make compliance information
available to the public upon request, and
(3)	Assist in obtaining other required
information that is in the possession of
other agencies institutions, or persons
not under the recipient's control If such
party refuses to release that information,
the recipient shall inform the OCR and
explain its efforts to obtain the
information
(g)	Coordination of compliance effort
If the reruienl employs fifteen (15) or
more employees, it shall designate at
least ore person to coordinate its efforts
to comply with its obligations under this
Part
(Approved by the Office of Management and
Dudget under Control Number 2000-0006 )
5 7 90 Grievance procedures.
(a) Requirements Each recipient shall
adopt grievance procedures that assure
the prompt and fair resolution of
complaints which allege violation of this
Part
(b E\ception Recipients with fewer
than fifteen (15) full-time employees
need not comply with this section unless
the OCR finds a violation of this Part or
determines that creating a grievance
procedure will not significantly impair
the recipient's ability to provide benefits
or services.
8 7.95 Notice ot nondiscrimination.
(a)	Requirements A recipient shall
provide initial and continuing notice
that it does not discriminate on the basis
of race, color, national origin, or
handicap in a program or activity
receiving EPA assistance or. in programs
covered by Section 13, on the basis of
sex Methods of notice must
accommodate those with unpaired
vision or hearing At a minimum, this
notice must be posted in a prominent
place in the recipient's offices or
facilities Methods of notice may also
include publishing in newspapers and
magazines, and placing notices in
recipient's internal publications or on
recipient's printed letterhead Where
appropriate, such notice must be in a
language or languages other than
English The notice must identify the
responsible employee designated in
accordance with { 7 85.
(b)	Deadline Recipients of assistance
must provide initial notice by thirty (30)
calendar days after award and
continuing notice for the duration of
EPA assistance
$7,100 Intimidation and retaliation
prohibited.
No applicant, recipient, nor other
person shall intimidate, threaten, coerce,
or discriminate against any individual or
group, either
(a)	For the purpose of interfering with
any nght or privilege guaranteed by the
Acts or this Part or
(b)	Because the individual has filed a
complaint or has testified, assisted or
participated in any way in an
investigation, proceeding or heanng
under this Part, or hai opposed any
practice made unlawful by this
regulation.
Subpart E—Agency Compliance
Procedures
} 7.105 General policy.
EPA's Administrator, Director of the
Office of Civil Rights, Project Officers
and other responsible officials shall
seek the cooperation of applicants and
recipients in securing compliance with
this Part, and are available to provide
help
5 7.110 Preaward compliance.
(a) Re i lew of compliance information
Within EPA's application processing
period, the OCR will determine whether
the applicant u in compliance with this
Part and inform the Award Official This
determination will be based on the
submissions required by S 7 80 and any
other information EPA receives during
this time (including complaints) or has
on file about the applicant When the
OCR cannot make a determination on
the basis of this information, additional
information will be requested from the
applicant, local government officials, or
interested persons or organizations,
including handicapped persons or
organizations representing such persons
The OCR may also conduct an on-site
review only when it has reason to
believe discrimination may be occurring
in a program or activity which is the
subject of the application.
(b)	Voluntary compliance If the
review indicates noncompliance, an
applicant may agree in writing to take
the steps the OCR recommends to come
into compliance with this Part The OCR
must approve the written agreement
before any award is made
(c)	Refusal to comply If the applicant
refuses to enter into such an agreement,
the OCR shall follow the procedure
established by paragraph (b) of S 7 130
5 7.115 Poataward compliance.
(a)	Periodic review. The OCR rrfay
periodically conduct compliance
reviews of any recipient's programs or
activities receiving EPA assistance,
including the request of data and
information, and may conduct on-site
reviews when it has reason to believe
that discrimination may be occurring in
such programs or activities
(b)	Notice of review After selecting a
recipient for review or initiating a
complaint investigation in accordance
with S 7120, the OCR will inform the
recipient of
(1} The nature of and schedule for
review, or investigation, and
(2) Its opportunity, before the
determination in paragraph (d) of this
section is made, to make a written
submission responding to, rebutting, or
denying the allegations raised in the
review or complaint
(c)	Post re view notice (1) Within 180
calendar days from the start of the
compliance review or complaint
investigation, the OCR will notify the
recipient in writing by certified mail,
return receipt requested, of
(1)	Preliminary findings,
(n) Recommendations, if any. for
achieving voluntary compliance, and
(in) Recipient's nght to engage in
voluntary compbance negotiations
where appropriate
(2)	The OCR will notify the Award
Official and the Assistant Attorney
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Federal Register / Vol 49, No 8 / Thursday, January 12, 1984 / Rules and Regulations 1665
General for Civil Rights of the
preliminary findings of noncompliance
(d)	Formal determination of
noncompliance After receiving the
notice of the preliminary finding of
noncompliance in paragraph (c) of this
section, the recipient may
(1)	Agree to the OCR's
recommendations, or
(2)	Submit a written response
sufficient lo demonstrate that the
preliminary Findings are incorrect, or
that compliance may be achieved
through steps other than those
recommended by OCR
If the recipient does not take one of
these actions within fifty (50) calendar
days after receiving this preliminary
notice, the OCR shall, within fourteen
(14) calendar days, send a formal
written determination of noncompliance
to the recipient and copies to the Award
Official and Assistant Attome\ General
(e)	Voluntary compliance time limits
The recipient will have ten (10) calendar
davs from receipt of the formal
determination of noncompliance in
which to come into voluntarj
compliance If the recipient fails to meet
this deadline, the OCR must start
proceedings under paragraph (b) of
5 7 130
(f)	Form of voluntary' compliance
agreements All agreements to come into
voluntary compliance must
(1) Be in writing.
[Z\Set forth the specific steps the
recipient has agreed to take, and
(3)	Be signed by the Director OCR or
his/her designee and an official with
authority to legallv bind the recipient
§ 7 120 Complaint Investigations
The OCR shall promptly investigate
all complaints filed under this section
unless the complainant and the party
complained against agree to a delay
pending settlement negotiations
(a) Who may file a complaint A
person who believes that he or she or a
specific class of persons has been
discriminated against in violation of this
Part may file a complaint The complaint
may be fi'ed by an authorized
representative A complaint alleging
employment discrimination must
identify at least one individual
aggrieved by such discrimination
Complaints solely alleging employment
discrimination against an individual on
the basis of race, color, national ongin.
sex or religion shall be processed under
the procedures for complaints of
employment discrimination filed against
recipients of federal assistance (see 28
CFR Part 42. Subpart H and 29 CFR Part
1691) Complainants are encouraged but
not required to make use of any
grievance procedure established under
{ 7.90 before filing a complaint Filing a
complaint through a grievance
procedure does not extend the 180 day
calendar requirement of paragraph (b)(2
of this section
(b)	Where, when and how to file
complaint The complainant may file a
complaint at any EPA office The
complaint may be referred to the region
in which the alleged discriminatory acts
occurred
(1)	The complaint must be in writing
and it must describe the alleged
discriminatory acts which violate this
part
(2)	The complaint must be filed within
180 calendar days of the alleged
discriminatory acts, unless the OCR
waives the time limit for good cause.
The filing of a grievance with the
recipient does not satisfy the
requirement that complaints must be
Tiled within 160 days of the alleged
discriminatory acts
(c)	Notification The OCR will notify
the complainant and the recipient of the
agency's receipt of the complaint within
five (5) calendar days
(d)	Complaint processing procedures
After acknowledging receipt of a
complaint, the OCR will immediately
initiate complaint processing
procedures
(1)	Preliminary investigation (i)
Within twenty (20) calendar days of
acknowledgment of the complaint, the
OCR will review the complaint for
acceptance, rejection, or referral to the
appropriate Federal agency
(n) If the complaint is accepted, the
OCR will notify the complainant and the
Award Official The OCR will also
notify the applicant or recipient
complained against of the allegations
and give the applicant or recipient
opportunity to make a written
submission responding to. rebutting, or
denying the allegations raised in the
complaint
(ih) The party complained against
may send the OCR a response to the
notice of complaint within thirty (30)
calendar days of receiving it
(2)	Irforma! resolution (i) OCR shall
attempt to resolve complaints informally
whenever possible When a complaint
cannot be resolved informally. OCR
shall follow the procedures established
by paragraphs (c) through (e) of { 7 115
(n) (Reserved)
(e)	Confidentiality EPA agrees to
keep the complainant's identity
confidential except to the extent
necessary to carry out the purposes of
this Part, including the conduct of any
investigation, hearing or judicial
proceeding arising thereunder
Ordinarily in complaints of employment
discrimination, the name of the
complainant will be given to the
recipient with the notice of complaint
(f)	(Reserved]
(g)	Dismissal of complaint If OCR s
in\estigation reveals no violation of this
Part, the Director, OCR, will dismiss the
complaint and notif) the complainant
and recipient
S 7 12S Coordination with other agencies
If, in the conduct of a compliance
review or an investigation, it becomes
evident that another agency has
jurisdiction over the subject matter,
OCR will cooperate with that agenc\
during the continuation of the re\ ie", of
investigation EPA will
(a)	Coordinate its efforts with the
other agency, and
(b)	Ensure that one of the agencies is
designated the lead agency for this
purpose When an agency other thdn
EPA serves as the lead agency, any
action taken, requirement imposed or
determination made b> the lead agenc>
other than a final determination to
terminate funds shall have the same
effect as though such action had been
taken by EPA
} 7.130 Actions available to EPA to obtain
compliance
(a)	General If compliance with this
Part cannot be assured by informal
means. EPA may terminate or refuse to
award or to continue assistance EPA
may also use any other means
authorized by law to get compliance,
including a referral of the matter to the
Department of Justice
(b)	Procedure to deny, annul, suspend
or terminate EPA assistance
(1)	OCR finding If OCR determines
that an applicant or recipient is not in
compliance with this Part, and if
compliance cannot be achieved
voluntarily. OCR shall make a finding of
noncompliance The OCR will notify the
applicant or recipient (by registered
mail, return receipt requested) of the
finding the action proposed to be taken,
and the opportunity for an evidentiar>
hearing
(2)	Hearing (i) Within 30 days of
receipt of the above notice, the applicant
or recipient shall file a written answer,
under oath or affirmation, and ma>
request a hearing
(n) The answer and request for a
hearing shall be sent by registered mail,
return receipt requested, to the Chief
Administrative Law Judge (ALJ) (A—110).
United States Environmental Protection
Agency. 401 M Street. S W ,
Washington. D C 20460 Upon receipt of
a request for a hearing, the AL] will
Bend the applicant or recipient a copy of
the ALJ's procedures If the recipient
Appendix 23-A-ll
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1666 Federal Register / Vol. 49, No. 8 / Thursday, January 12, 1984 / Rules and Regulations
does not request a hearing, it shall be
deemed to have waived its right to a
hearing, and (he OCR Finding shall be
deemed to be the ALJ's determination
(3)	Final decision and disposition, (i)
The applicant or recipient may, within
30 days of receipt of the ALJ's
determination, file with the
Administrator its exceptions to that
determination When such exceptions
are filed, the Administrator may. within
45 days after the ALJ's determination,
serve to the applicant or recipient, a
notice that he/she will review the
determination In the absence of either
exceptions or notice of review, the ALJ's
determination shall consUtute the
Administrator's final decision
(n) If the Administrator reviews the
ALJ's determination, all parties shall be
given reasonable opportunity to Hie
written statements A copy of the
Administrator's decision will be sent to
the applicant or recipient
[in) If the Admmistfator's decision is
to deny an application, or annul,
suspend or terminate EPA assistance,
that decision becomes effective thirty
(30) days from the date on which the
Administrator submits a full written
report of the circumstances and grounds
for such action to the Committees of the
House and Senate having legislative
jurisdiction over the program or activity
involved The decision of the
Administrator shall not be subject to
further administrative appeal under
EPA's General Regulation for Assistance
Programs (40 CFR Part 30 Subpart L)
(4)	Scope of decision The denial,
annulment termination or supension
shall be limited to the particular
applicant or recipient who was found to
have discriminated, and shall be limited
in its effect to the particular program or
the part of it in which the discrimination
was found
§ 7 135 Procedure for regaining eligibility.
(a)	Requirements An applicant or
recipient whose assistance has been
denied, annulled, terminated, or
suspended under this Part regains
e'igibility as soon as it'
(1)	Provides reasonable assurance
that it is complying and will comply
with this Part in the future, and
(2]	Satisfies the terms and conditions
for regaining eligibility that are specified
in the denial, annulment, termination or
suspension order
(b)	Procedure The applicant or
recipient must submit a written request
to restore eligibility to the OCR
declaring that it has met the
requirements set forth in paragraph (a)
of this section Upon determining that
these requirements have been met. the
OCR must notify the Award Official.
and the applicant or recipient that
eligibility has been restored
(c) Rights on denial of restoration of
eligibility If the OCR denies a request to
restore eligibility, the applicant or
recipient may Hie a written request for a
hearing before the EPA Chief
Administrative Law Judge in accordance
with paragraph (c) } 7130, listing the
reasons it believes the OCR was in
error
Appendix A—EPA Assistance Programs at
Listed in the "Catalog of Federal Domestic
Assistance"
1	Assistance provided by the OfTice of Air,
Noise and Radiation under the Clean Air Act
of 1977, as amended. Pub. L 95-65.42 U SC.
7401 el seq (ANR 66 001)
2	Assistance provided by the Office of Air,
Noise and Radiation under Ihe Clean Air Act
of 1977, as amended. Pub L 95-95, 42 U S C
7401 el seq (ANR 66 003)
3	Assistance provided by the Office of
Water under the Clean Water Act of 1977, as
amended. Sections 101(e). 109(b) 201-05, 207,
208(d), 210-12, 215-19, 304(d)(3). 313. 501, 502.
511 and 516(b). Pub L 97-117. Pub L 95-217,
Pub L 96-483. 33 U S C 1251 el seq (OW
66 418)
4	Assistance provided by the Offioe of
Water under the Clean Water Ad of 1977, as
amended §106 Pub L 95-217. 33 U S C 1251
el seq (OW 66 419)
5	Assistance provided by the Office of
Water under the Clean Water Act of 1977, as
amended Pub L 95-217. 33 USC 1251 el
seq (OW 66 426)
6	Assistance provided by the Office of
Water under the Public Health Service Act.
as amended by the Safe Drinking Water Act,
Pub L. 93-523. as amended by Pub L 93-190"
Pub L 96-63. and Pub L 93-502. (OW 66 432)
7	Assistance provided by the Office of
Water under the Safe Drinking Water Act.
Pub L. 93-523 as amended by Pub. L 96-63,
Pub L 95-190. and Pub L 96-502 (OW
66 433)
B Assistance provided by the Offioe of
Water under the Clean Water Act of 1977.
Spction 205(g) as amended by Pub L 95-217
and the Federal Water Pollution Control Act,
as amended. Pub L 97-117. 33 U.S C 1251 el
eeq (OW66 438)
9	Assistance provided by the Office of
Water under the Resource Conservation ft
Recovery Act of 1976 as amended by the
Solid Waste Disposal Act. Pub L 94-560;
} 3011. 42 U-S C 693V 6947. 0948-49 (OW
66 802)
10	Assistance provided by the Office of
Research and Development under the Clean
Air Act of 1977, as amended Pub L 95-95. 42
USC el seq , Clean Water Act of 1977, as
amended. Pub L 95-217, 33 U S C 1251 el
seq. s 8001 of the Solid Water Disposal Act.
as amended by the Resource Conservation ft
Recovery Act of 1976, Pub L 94-560; 42
USC 6901 Public Health Service Act as
amended by the Safe Drinking Water Act as
amended by Pub L 95-190. Federal
Insecticide Fungicide ft Rodenticide Ait
Pub L 95-516, 7 U SC 136 ef seq. as
amended by Pub L's 94-140 and 95-396,
Toxic Substances Control Act. 15 J SC 2809;
Pub L 94-469. (ORD 66 500)
11	Assistance provided by the Office of
Research and Development under the Clean
Air Act of 1977, as emended. Pub L 95-95. 42
U SC. 7401 et seq (ORD 66.501)
12	Assistance provided by the Office of
Research and Development under the Federal
Insecticide. Fungicide & Rodenticide Act.
Pub L 95-516. 7 U S C 138 el seq, as
amended by Pub L's 94-140 and 95-396
(ORD 66 502)
13	Assistance provided by the Office of
Research and Development under the Solid
Waste Disposal Act, as amended by the
Resource Conservation ft Recovery Act of
1976; 42 U S C. 6801. Pub L 94-580. { 8001
(ORD 8&504)
14	Assistance provided by the Office of
Research and Development under the Clean
Water Act of 1977, as amended, Pub L 95-
217, 33 U S C 1251 et seq (ORD 66 505)
15	Assistance provided by the Office of
Research and Development under the Public
Health Service Act as amended by the Safe
Drinking Water Act, as amended by Pub L
95-190 (ORD 66 506)
16	Assistance provided by the Office of
Research and Development under the Toxic
Substances Control Act Pub L 94-469- 15
U.S C 2609; | 10 (ORD 66 507)
17	Assistance provided by the Office of
Administration, including but not limited to
Clean Air Act of 1977. as amended. Pub L.
95-95.42 U SC 7401 et seq. Clean Wtfter Act
of 1977 as amended. Pub L 95-217, 33 U S C
1251 et seq. Solid Waste Disposal Act. as
amended by the Resource Conservation ft
Recovery Act of 1976, 42 U.S C 6901; Pub L
94-580;	Federal Insecticide. Fungicide ft
Rodenticide Act Pub L 92-516; 7 U S C 136
et seq as amended by Pub L's 94-140 and
95-396;	Public Health Service Act. ai
amended by the Safe Drinking Water Act as
amended by Pub L 95-190 (OA 66 600)
18	Assistance provided by the Office of
Administration under the Clean Water Act of
1977, as amended. Pub L 95-217, Section 213,
33 U SC 1251 et seq (OA 66 603)
19	Assistance provided by the Office of
Enforcement Counsel under the Federal
Insecticide ft Rodenticide Act, as amended;
Pub L 92-S1& 7 U S C 136 et seq.. as
amended by Pub L 94-140, Section 23(a) and
Pub L 85-396. (OA 66 700)
20	Assistance provided by the Office of
Solid Waste and Emergency Response under
the Comprehensive Environmental
Responses. Compensation and Liability Act
of 1980; Pub L 96-510. ( 3012, 42 U S C 9601.
et seq (OSW—number not to be assigned
since Office of Management and Budget does
not catalog one-year programs )
21	Assistance provided by the Office of
Water under the Dean Water Act as
amended. Pub L 97-117, 33 U.SC. 1313
(OW—66 454)
Dated October 27,1983.
William D Ruckelshaus,
Administrator. Environmental Protection
Agency
|FD Doc S4-«U Filed 1-11-S4 6 43 a«i|
MIXING COOE S5SO-SO-M
Appendix 23-A-12
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Tuesday
January 25, 1983
Part III
Department of
Justice
Equal Employment
Opportunity
Commission
Procedures for Complaints of
Employment Discrimination Filed Against
Recipients of Federal Financial
Assistance
23-B -1
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3570	Federal Register / Vol. 48, No. 17 / Tuesday. January 25.1983 / Rules and Regulations
D^ARTMENT OF JUSTICE
UAL EMPLOYMENT OPPORTUNITY
wOMMISSION
28	fcFR Part 42
29	CFR Part 1691
[Attorney General Order No. 992-63]
Procedures for Complaints of
Employment Discrimination Filed
Against Recipients of Federal
Financial Assistance
agency: Department of Justice and
Equal Employment Opportunity
Commission.
action: Final rule
SUMMAflV: This rule establishes
procedures for handling complaints of
employment discrimination filed on or
after the effective date of the rule with
Federal fund granting agencies under
Title VI of the Civil Rights Act of 1964,
Title IX of the Education Amendments
of 1972, the State and Local Fiscal
Assistance Act of 1972. as amended, and
other provisions of Federal law which
prohibit discrimination on grounds of
¦e, color, religion, sex or national
,in in programs or activities receiving
.deral financial assistance. The rule
allows the fund granting agency to refer
complaints to the Equal Employment
Opportunity Commission (EEOC] For
complaints covered both by Title VII of-
the Civil Rights Act of 1964, as amended,
or the Equal Pay Act of 1983 and by
Title VI of the Civil Rights Act of 1964,
or other statutes under the fund granting
agency's jurisdiction, the rule
contemplates that complaints solely
alleging employment discrimination
against an individual will be referred to
EEOC and that EEOC will conduct the
investigation and conciliation efforts in
most cases. The rule, therefore, will
reduce duplicative efforts by different
Federal agencies to enforce differing
employment discrimination prohibitions,
and thereby will reduce the burden on
employers covered by more than one of
those prohibitions. At the same time it
will allow the Federal fund granting
agencies to focus their resources on
allegations of services discrimination
and systemic employment
discrimination. Employment
discrimination complaints over which
the Federal fund granting agency does
not have jurisdiction will be transferred
"J-OC This rule is not a "major rule"
defined by Section 1(b) of Executive
^rder 12291.
EFFECTIVE DATE: March 28.1983
FOR FURTHER INFORMATION CONTACT:
Stuart Frisch, Acting Director,
Coordination Division, Coordination
and Guidance Services, Office of
Legal Counsel. Equal Employment
Opportunity Commission, 2401 E
Street, NW., Washington, D.C. 20508;
(202) 853-9133: or
David L Rose, Chief, Federal
Enforcement Section, Civil Rights
Division, Department of Justice.
Washington, D C. 20530; (202) 833-
383i.
SUPPLEMENTARY INFORMATION:
I. Background
The authority of the Equal
Employment Opportunity Commission
(EEOC) to enforce prohibitions against
employment discrimination on the basis
of race, color, national origin, sex, or
religion overlaps with the authority of
Federal funding agencies to enforce
prohibitions against employment
discrimination by recipients ofFederal
funds. There is, therefore, a potential for
duplicative efforts by Federal agencies
that may cause needless burdens on the
recipients, such as separate
investigations by EEOC and other
Federal agencies of the same complaint,
In addition, victims of discrimination
may be confused about where to Tile
their complaints of employment
discrimination and may, therefore,
inadvertently lose their nghts.
EEOC has responsibility to coordinate
the Federal effort to enforce Federal
equal employment opportunity law.
Executive Order 12087,43 FR 28987. The
Attorney General has responsibility to
coordinate Federal enforcement of Title
VI of the Civil Rights Act of 1964, 42
U.S C. 2000d et seq. ('Title VI") and
Title IX of the Education Amendments
of 1972, 20 U S.C. 1881 et seq. ('Title
IX"). Executive Order 12250, 45 FR
72995 EEOC and the Department of
Justice hereby promulgate this
regulation in order to coordinate
enforcement of Federal equal
employment opportunity law and to
minimize the potential for duplicative
investigations of employers covered by
such laws.
The regulation allows Federal funding
agencies to refer to EEOC complaints of
employment discrimination covered by
Title VI or similar provisions. Title IX. or
the State and Local Fiscal Assistance
Act of 1972. as amended, 31 U.S.C. 1221
et seq. (the "revenue sharing act"), if
they are also covered by Title VII of the
Civil Rights Act of 1964, as amended, 42
USC. 2000e et seq ('Title VIL!) or the
Equal Pay Act of 1963, 29 U.S.C. 206(d)
These complaints are called "joint
complaints " EEOC. acting under its own
authority and the delegated authority of
the agency, would conduct an
Investigation of the allegations of
employment discrimination and atterr
to conciliate the complainL
Under1 the'regulation an agency mui
determine within thirty days of receip
of a complaint of employment
discrimination whether it has
jurisdiction over the complaint. If an
agency does not have jurisdiction but
EEOC may have jurisdiction, then the
agency must transfer the complaint to
EEOC. As a result, complainants are
protected against losing their private
nghts because they filed their
complaints with the wrong agency.
Joint complaints solely alleging
employment discrimination against an
individual will be referred to EEOC. If
special circumstances warrant agency
Investigation of such a joint complaint,
an agency may do so but it must first
determine that EEOC will not
independently investigate a similar
complaint. In contrast, an agency is
required to retain joint complaints
alleging a pattern or practice of
employment discrimination unless
special circumstances warrant referral
of the complaint to EEOC.
The procedures established by this
regulation should reduce duplicative
investigations by various Federal
agencies of similar complaints of
employment discrimination against an
employer. Because agencies will refer to
EEOC all joint complaints solely alleging
employment discrimination against an
individual, agencies will be able to focus
their efforts on possible instances of
systemic employment discrimination or
discrimination in the provision of
services to beneficiaries of Federally
assisted programs. Consequently,
agencies will be better able to perform
their civil nghts enforcement
responsibilities. At the same time, the
regulation will remove needless burdens
on recipients of Federal funds
The proposed regulation was
published for public comment on Apnl
17,1981. We received and analyzed 14
comments from employers and their
representatives, agencies and civil rights
groups. Most of the comments were
favorable Our response to the
comments and an explanation for
significant changes in the proposed rule
are set forth in the section-by-section
anaylsis. infra. As an overview, we have
made the following major changes'
(1) The regulation now applies to
complaints of employment
discnmination covered by the revenue
sharing act. As a result, the Office of
Revenue Sharing of the Detriment of
the Treasury may refer to EEOC
complaints covered by the revenue
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Federal Register / Vol. 48, No. 17 / Tuesday, January 25, 1983 / Rules and Regulations 3571
sharing act if they are also covered by
tie VD or the Equal Pay Act.
(2)	The rule now provides that an
dgency must refer all joint complaints
solely alleging employment
discrimination against an individual to
EEOC If. however, an agency
determines that special circumstances
warrant its investigation of the
complaint then it may do so provided
that its investigation will not duplicate
independent efforts by EEOC
(3)	The regulation has been
reorganized so that it will parallel the
chronological processing of a complaint.
In addition, we received a number of
comments from civd rights groups and
others on Title IX coverage. Many urged
that we delay promulgating this rule
until the Supreme Court determined the
extent to which Title IX covers
employment. Promulgation of the rule
was not delayed for that reason. Since
the propose of the rule is to avoid
duplication of effort, the scope of Title
IX coverage was not'viewed as critical.
We note that the Supreme Court has
ruled that Title IX covers employment
discrimination and that the Department
of Education's implementing regulations
concerning employment discrimination
are valid. North Haven Board of
Education v. Bell,	U S.	. SO
" S.LW. 4501 (May 17.1982).
.. Section-by-Section Analysis
Section 1 (28 CFR 42 601; 29 CFR
16911). This section describes the
purpose and application of this
regulation. When this regulation was
published for comment, this section
stated that the rule would not apply to
complaints of employment
discrimination filed under the revenue
sharing act At that time. EEOC and the
Department of the Treasury's Office of
Revenue Sharing ("ORS") planned to
enter into a new Memorandum of
Agreement concerning the matters
covered by this regulation. After
publication, EEOC and ORS decided to
forego their separate Memorandum and
to have their relationship covered by/
this rule. Accordingly, the existing
Memorandum of Agreement between
EEOC and ORS. dated October 11,1974,
is superseded by this rule
This approach was supported in a
comment wntten by various civil rights
groups. That comment urged that the
proposed rule be amended to
incorporate the time limits in the
revenue sharing act, 31 U.S.C 1245,
because in their view EEOC would be
bound by revenue sharing act time limits
vhen it processes a joint complaint '
;ferred by ORS. We have not
incorporated those tune limits because
we believe the revenue sharing act time
limits are "directive" and that the
revenue sharing act does not create a
private right of action against ORS for
failure to comply with the time limits. As
such, the effect of those time limits are
similar to the time limits in Section
706(b) of Title VII, 42 U S.C. 2000e-5[b),
on EEOC determinations of reasonable
cause. See Occidental Life Insurance
Co. v. EEOC. 432 U.S. 355 (1977).
This rule does not effect existing
Memoranda of Understanding between
EEOC and the Office of Federal
Contract Compliance Programs of the
Department of Labor, between EEOC
and the Federal Communications
Commission and between EEOC and the
Office of the Federal Inspector of the
Alaska Natural Gas Transportation
System.				
Section 2 (28 CFR 42 602; 29 CFR
1691 2). This section provides for the
sharing of information by EEOC and
Federal fund granting agencies. It
provides for the exchange of information
relevant to EEOC and agency efforts to
fulfill their respective enforcement
responsibilities. The exchange of
information is, therefore, not limited to
information relevant to specific
complaints of employment
discrimination. Such a limitation, which
was proposed by one comment, would
unduly restnct government efforts to
coordinate investigations of systemic
employment discrimination.
Section 3 (28 CFR 42 603; 29 CFR
1691 3). Title VII places confidentiality
requirements on EEOC 42 U.S C. 2000e-
5(b). 2000e-8(e). 29 CFR 1601.22,1601.29.
This section provides that when EEOC
supplies information, which is subject to
Title VU's confidentiality requirements,
to an agency, the agency is bound to
observe Title VII's confidentiality
requirements as would EEOC except in
two cases. An agency would not be
bound by the requirements when; (1) It
obtains the same information which it
received from EEOC from an
independent source, or (2) EEOC has
obtained the information in the course
of investigating a joint complaint and
the agency plans to use the information
in an enforcement proceeding. In the
latter case, the agency is not bound by
Title VU's confidentiality requirements
because the agency had delegated its
investigative authority to EEOC. EEOC.
therefore, obtained the information
under the agency's authority, as well as
Title VII. Accordingly, the information
may be used by the agency in an
enforcement proceeding
This section has been revised In order
to make it clear that it applies to all
information, which EEOC provides to an
agency, that is subject to Title VU's
confidentiality requirements. In
addition, we have deleted our attempt to
summarize the confidentiality
requirements in order to avoid the
possible implication—noted by one
commeht—that the section was not
intended to be coextensive with the
requirements of Title VII
Section 4 (28 CFR 42.604: 29 CFR
1691.4).	Section 4 provides that in
determining whether a recipient of
Federal financial assistance has
engaged in an unlawful employment
practice, agencies shall consider Title
VII case law and EEOC guidelines,
unless inapplicable. This section is an
effort to foster a uniform approach to
Federal equal employment opportunity
law. Subsequent to the publication for
comment of the proposed regulation, the
Supreme Court granted certiorari in an
employment discrimination case to
review the issue of whether Title VI
prohibits only intentional
discrimination. Guardians Association
v. Civil Service Commission, 633 F.2d
232 (2d Cir. 1980), cert, granted. No. 81-
431	[January 11,1982). By conditioning
consideration of Title VII case law and
EEOC Guidelines on their applicability,
this Section will be able to
accommodate the Supreme Court's
decision on this legal issue.
Section 5 (28 CFR 42.605; 29 CFR
1691.5).	This section provides time limits
and procedures for agency processing of
complaints of employment
discrimination filed against recipients of
Federal funds.
Section 5 has been restructured in an
attempt to clarify the agency's
responsibilities. Within ten days of
receipt of a complaint of employment
discrimination, an agency shall notify
the respondent that it has received a
complaint This requirement of
notification to the respondent within ten
days is intended to be consistent with
the notice requirement in Section 706(b)
of Title Vn. 42 US C 2000e-5[b): see
also 31 CFR 51.61(b)(1). The consistency
is necessary because complaints
received by an agency which are
transferred or referred to EEOC are
deemed charges received by EEOC. The
failure to provide such notice within ten
days, however, does not bar the
charging party from enforcing his or her
Title VII rights. Eg, EEOC v. Burlington
Northern, Inc., 644 F.2d 717 (8th Cir.
1981). Similarly, an agency's failure to
meet any of the time limits set in this
regulation will not bar the Government
from taking enforcement action based
upon the complaint involved. See
Occidental Life Insurance Co. v EEOC,
432	U.S. 355 (1977)
Section 5(b) expressly requires an
agency to determine whether it has
Appendix 23-B-3
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3572 Federal Register / Vol. 48. No. 17 / Tuesday. January 25. 1983 / Rules and Regulations
¦insertion over the complaint and
'her EEOC may have jurisdiction
he complaint under Title VII or the
jI Pay Act This requirement was
implicit In the proposed rule and is now
stated expressly m order to eliminate
possible confusion. In addition, those
determinations are to be made within
thirty days of receipt of the complaint
The rule distinguishes between a
"transfer" and a "referral." A transfer
occurs when an agency does not have
jurisdiction over the complaint but
EEOC may have jurisdiction. A transfer
should, therefore, occur when an agency
determines that it does not have
junsidiction over such a complaint.
After a complaint is transferred, an
agency has no further obligations in
regard to the complaint.
A referral may occur when an agency
and EEOC both have jurisdiction over
the complaint Such complaints are
called "joint complaints." Under the
rule, an agency may refer a joint
complaint to EEOC for investigation and
conciliation.
An agency may refer a joint complaint
to EEOC without first consulting EEOC.
The rule places a time limit on such
referrals, requiring that they occur
within thirty days of agency receipt of
the complaint. The addition of this time
' will insure that agencies act
ptly on joint complaints.
ae proposed rule distinguished
between "individual" and "systemic"
jent complaints. The guidelines
established by the proposed rule were
that Individual complaints should
ordinarily be referred by the agency,
whde systemic complaints should
ordinarily be retained by the agency.
Section 5(e) requires an agency to
refer to EEOC all joint complaints solely
alleging employment discrimination
against an individual. The reason the
rule now requires that all joint
complaints solely alleging employment
discrimination against an individual be
referred to EEOC is to protect the rights
of complainants who may be confused
about where to file their complaints. By
requiring agencies to refer all individual
complaints to EEOC, the rule insures
that the rights of complainants will be
preserved under the statute of the fund
granting agency and under Title VII.
An agency may investigate a joint
complaint that it is required to refer to
EEOC under Section 5(e) if it determines
that special circumstances warrant such
action and that its investigation will not
be duplicative of an EEOC investigation.
While the rule does not define what
cial circumstances would warrant
xy investigation, one example
jld be where an agency is in the
process of conducting a compliance
review of the respondent and
determines that it can handle the
complaint expeditiously.
If there has been a dual filing (i.e..
with the agency and EEOC). then it
would be unwarranted for an agency to
begin an investigation if EEOC already
had one under way. The agency may
investigate the complaint only if EEOC
agrees to defer its investigation pending
the agency investigation. If, on the other
hand, there has not been a dual Tiling,
then the agency may investigate the
complaint if special circumstances
warrant such action and EEOC will
defer its investigation of the referred
complaint pending the agency
investigation
SecUon 5(f) requires an agency to
retain joint complaints that allege a
pattern or practice of employment
discrimination unless special
circumstances warrant referral of the
complaint to EEOC Because several
comments requested clarification of the
term used in the proposed rule—
"systematic acts of employment
discrimination"—we have replaced that
term with the term "pattern or practice,"
which is a term that is used in statutes
such as Title VII and the revenue
shanng act. See Teamsters v. United
States. 431 U S 324 (1977): United States
v. Ironworkers. Local 86. 443 F. 2d 544,
552 (9th Cir), cert, denied. 404 U.S 984
(1971).
Several comments suggested that
agencies should be encouraged or
required to refer joint complaints of
systemic employment discrimination to
EEOC. We have not adopted these
suggestions because the investigation of
such complaints is often fundamental to
agency compliance programs and
EEOC's resources to investigate those
complaints are limited. Indeed, EEOC
ordinarily limits the investigation of
systemic complaints to the allegations
which directly affect the complainant
Agencies should take these factors into
account in deciding whether special
circumstances warrant referral of
pattern or practice complaints to EEOC.
We have also revised the procedures
for handling jomt complaints that allege
discrimination in employment and in
other (non-employment) practices of the
recipient. Under the proposed rule, an
agency had discretion to refer the
employment aspects of the complaint
but was required to retain the other
aspects. If the agency referred the
employment aspects of the complaint,,
then the agency and EEOC were
required to coordinate their
investigations. Several comments
suggested that dividing these kinds of
complaints between the agency and
EEOC would be more burdensome to the
respondent and would not Increase
efficiency. As a result, the rule now
requires an agency to handle the entire
complaint, absent special
circumstances In addition, the agency
shall determine whether the
complainant has filed a similar charge
with EEOC. If the.complainant has filed
such a charge, then the agency and
EEOC will coordinate their activities
and upon agency request. EEOC will
ordinarily defer its investigation pending
the agency investigation These changes
should reduce the potential for
duplicative investigations.
Finally, four additions have been
made to the notice requirements upon
referral of a joint complaint. First, the
agency shall advise EEOC if it wants to
receive advance notice of conciliation
negotiations. Second, the agency shall
advise EEOC whether It wants EEOC to
investigate the facts "concerning the
relationship between the alleged
discrimination and the recipient's
Federally assisted programs or
activities." Third, the agency shall,
where appropriate, advise EEOC
whether a primary objective of financial
assistance is to provide employment.
EEOC needs this information in order to
determine what information it must
gather. See infra, Section 6. Because the
revenue sharing act and Title IX, as well
as some other grant statutes, cover
employment discrimination without
regard to whether a primary objective of
the funds Is to provide employment, this
requirement does not apply to referrals
under those statutes. Fourth, the agency
shall inform the complainant and the
recipient that the date the agency
received the complaint will be deemed
the date it was received by EEOC.
Section 8 (28 CFR 42.608. 29 CFR
1691.8). Under the proposed rule, an
employment discrimination complaint
covered by Title VII. which was filed
with an agency, was treated as a Title
VII charge. But the proposed rule did not
provide for EEOC involvement or the
issuance of a notice of right to sue under
Title VII unless the agency transferred
or referred the complaint to EEOC. In
order to eliminate the confusion. Section
6(a) provides that a complaint Sled with
an agency will be deemed a charge
received by EEOC only if an agency
transfers or refers the complaint to
EEOC. In such cases, the date the
complaint was received by the agency
will be deemed the date it was received
by EEOC. Such complaints will be
deemed charges filed with EEOC in
accordance with the requirements of
Section 708 of Tide VII and EEOC's
regulations. 29 CFR 1801.13. See
Mahasco Corp. v. Silver, 447 U S. 807
Appendix 23-B-4
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Federal Register / Vol. 48, No. 17 / Tuesday, January 25. 1983 / Rules and Regulations 3573
'1980). Bcciuio of the 6pcd&J nature of
m complaints. EEOC will request
a State and local fair employment
,_actice agency, which is a deferral
agency, waive its right to the statutory
period of exclusive processing, except
when the deferral agency has earlier
received the complaint and commenced
its fact-finding or investigation.
Section 6(b) is new. It provides that
EE0C shall, where appropriate, seek
information concerning "whether the
alleged discrimination is in a program or
activity that receives Federal financial
assistance." In addition, Section 6(b)
concerns those referrals where
employment discrimination is covered
only if it causes discrimination with
respect to beneficiaries or potential
beneficiaries of the assisted programs,
i e , where the financial assistance does
not have as a primary objective the
provision of employment. Of course,
none of the referrals under the revenue
sharing act or Title IX will be subject to
this kind of limitation. This subsection
requires EEOC to seek sufficient
information to allow the referring
agency to determine whether the alleged
employment discrimination causes
discrimination against beneficiaries or
potential beneficiaries of the assisted
program. As one agency noted In its
nent, if EEOC did not gather this
nation, then the agency would
d to do so before it reached its
determination on the merits in cases
where EEOC found cause, was unable to
conciliate and returned (he complaint to
the agency. In order to avoid having the
referring agency conduct an
investigation after EEOC has finished its
investigation, this new provision was
added. This provision does not,
however, give EEOC authonty to make
determinations about "whether the
alleged employment discrimination is in
a program or activity that receives
Federal financial assistance" or whether
it causes discrimination against
beneficiaries or potential beneficiaries
of the assisted program.
Section B (c) and (d) appeared
elsewhere in the proposed rule.
Section 6(e) is new. It provides that
when EEOC agrees to defer an
investigation of a complaint it has
received pending an agency's
Investigation of the complaint, it shall
give due weight to the agency's
determination concerning the complaint.
This requirement parallels the
requirement that an agency give due
weight to an EEOC determination
concerning a complaint it had referred
OC.
ion 7 (28 CFR 42.607; 29 CFR
/). This section on EEOC dismissals
of complaints has been simplified. The
proposed rule distinguished between
dismissals based upon untimely filings,
failure to state a claim and lack of
reasonable cause. Under EEOC
regulations, however, EEOC may
dismiss a charge for other reasons 29
CFR 1601.19 (c), (d) and (e). The final
rule does not distinguish between kinds
of dismissals. It. therefore, may not be
read to limit EEOC'b ability to dismiss a
joint complaint.
This section has also been revised to
provide that EEOC, rather than the
referring agency, is to notify the
complainant and the respondent of the
dismissal, the reasons for dismissal and
the effect it has on the complainant's
nghts. The proposed rule required the
referring agency to give this notice but
EEOC is in a better position to give this
notice and to give it sooner. In addition,
the section now expressly provides that
notice goes to the recipient, as well as
the complainant, that EEOC transmits
its file to the referring agency and that
EEOC issues a notice of right to sue
under Title VII when it dismisses a
complaint 	
Section 8 (28 CFR 42.008: 29 CFR
1691 8) We received several comments
suggesting that a referring agency
should not be allowed to investigate a
case after an EEOC dismissal. On the
other hand, we also received a comment
stating that a referring agency should
not be allowed to close a complaint
which is timely and states a claim under
Tide VL ssnply because it is untimely or
fails to state a claim under Title VII.
We believe that, consistent with an
agency's statutory obligations, an
agency should make determinations
under Title VI, Title IX or the revenue
sharing act. Section 8, therefore,
provides that a referring agency shall
give "due weight" to EEOC's dismissal
of the Title VII allegations of"a joint
complaint. If a complaint is dismissed
because a charge is not timely under
Title yn but the complaint is timely
under Title VI, then little weight is due
EEOC's dismissal. If, on the other hand,
EEOC determines after investigation
that there is not reasonable cause to
believe the allegations of employment
discrimination are true, then the
referring agency should give great
yveight to EEOC's dismissal. Indeed,
should the referring agency decide to
take action despite EEOC's no cause
Ending, the agency is required to justify
that decision in writing to thfc Assistant
Attorney General and the Chairman of
the EEOC. Still, the agency retains the
authority to conduct additional
investigation if necessary to discharge
its duties.
SecUon 8 also provides that the
referring agency shall determine ita
course of action within 30 days. This
limit makes the section consistent with
the time limit for referring agency
determinations in unresolved complaints
where EEOC found reasonable cause
and was unable to conciliate. Section
10(a). The agency is also required to
notify the respondent, as well as the
complainant, of its determination.
Section 9 (2o CFR 42 609; 29 CFR
1691 9). Section 9 provides the procedure
for EEOC reasonable cause
determinations and conciliation efforts.
The proposed rule provided that
agencies shall participate in settlement
and conciliation negotiations.
"Settlement" negotiations are part of
EEOC's rapid charge processing during
which EEOC also conducts its
preliminary investigation. We have
determined that if agencies are required
to participate in this phase of EEOC's
work, then the agencies will save little
work by referring joint complaints to
EEOC. Section 9(a), therefore, providea
that, upon EEOC's request, the referring
agency shall participate in conciliation
negotiations, which occur after a
reasonable cause determination, but not
In settlement negotiations. In additioa
the rule has been revised to require
EEOC to provide advance notice of any
conciliation negotiations to agencies
that request such notice.
Section 9(b) has been revised to state
more clearly what happens when EEOC
finds cause and is unable to conciliate.
Section 9(b) provides that EEOC issues
a notice of failure of conciliation in
accordance with its rules and transmits
the Die to the referring agency. In
complaints against pnvate employers.
EEOC determines whether it will litigate
and, in accordance with its regulations,
issues a notice of right to sue.
Complaints against public employers are
referred to the Department of |ustice.
EEOC and the Department of justice are
required to notify agencies if they decide
to bring suiL Section 12(b).
SecUon 10 (28 CFR 4Z610; 29 CFR
1691.10). Section 10 provides the
procedure for agency enforcement of
complaints where EEOC has made a
reasonable cause determination and
conciliation efforts have failed. The
section has only been revised slightly.
The referring agency is required to give
due weight to EEOC's determination and
to make its determination, within thirty
days, of whether the recipient has
violated any applicable civil rights
provision which it has responsibility to
enforce Although one agency
commented that the period should be
lengthened, we believe that no change is
necessary because the agency	be
able to make its determination be»od
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3574 Federal Register / Vol. 46. No. 17 / Tuesday, January 25. 1983 / Rules and Regulations
upfen material In the EEOC file. Indeed,
-'nder the revisions of the rule EEOC
II gather Information for agency use
jt oniy on whether the alleged
employment discrimination occurred,
but also on whether it Is covered by the
relevant statute. Section 6(b). Should the
agency need additional information to
make ita determination, it should
attempt promptly to obtain the
information.
Section 10(b) addresses cases where
the referring agency has determined that
the recipient has violated a civil rights
provision which it has a responsibility to
enforce. This subsection has been
revised to require that the referring
agency notify the complainant, as well
as the recipient, if it determines that a
civil rights provision has been violated.
In addition, Section 10 [c) has been
revised to provide that when a referring
agency determines that its civil rights
provisions have not been violated, it
must so notify the complainant and the
recipient and inform EEOC and the
Department of Justice of the basis of its
decision. 			
Section 11 [28 CFR 42.611; 29 CFR
1691.11).	Section 11 provides that when
EEOC negotiates a settlement prior to a
determination or a conciliation
agreement after a determination. EEOC
'hall so notify the referring agency. The
erring agency may not take further
tion on the complaint of employment
discrimination. The agency may.
however, take the existence of the
complaint into account in scheduling the
recipient for a review under the agency's
regulations. 	
Section 12 (28 CFR 42.612; 29 CFR
1691.12).	This section provides for
interagency consultation on pattern or
practice investigations, administrative
enforcement and litigation concerning
the employment practices of the
recipients of Federal funds. The
regulation contemplates that
interagency consultation shall routinely
occur before the specified actions are
Initiated but recognizes that prior
consultation may not always be
practical. When it is not practical,
consultation should occur as soon as
possible after the action is initiated.
Section 13 (28 CFR 42.613; 29 CFR
1691.13).	This definition sectloaJias
been modified only in relatively minor
ways. First, the Age Discrimination in
Employment Act has been deleted from
the definition of a "joint complaint"
Section 13 (f), and age from the
definition of Title VL Section 13 (I); See
Section 1. EEOC is not required to
'ivestigate complaints under the Age
scnmination In Employment Act It is
Jy required to notify prospective
defendants and attempt conciliation by
informal methods. Under the regulation,
EEOC will, however, accept referrals of
joint complaints which allege
discrimination on the ground of age, as
well as a ground covered by Title VII.
Second, the term "covered
employment" was defined in the
proposed rule to describe employment
practices covered by Title VI. That
definition provided, in part, that Title VI
covers employment practices which
"cause discrimination with respect to
beneficiaries or potential beneficiaries
of the assisted program." One comment
argued that Title VI did not cover such
employment practices. Courts have,
however, recognized that employment
discrimination which results in
discrimination against beneficiaries or
potential beneficiaries of a federally
assisted program violates Title VI. E. g..
United States v. Jefferson County Board
of Education, 372 F.2d 836, 881-686 (5th
Cir. 1966), cert denied, 389 U.S. 840
(1967). In addition, the definition of
"covered employment" is substantively
identical to the one used in the
Department of Justice's Coordination of
Enforcement of Non-discrimination in
Federally Assisted Programs regulation,
28 CFR 42.402(f), except that under this
rule discrimination on the basis of
religion or sex may also becovered. We
have, however, deleted the definition
because the term "covered employment"
is not used in this regulation.
Third, for purposes of this rule, the
term "Federal financial assistance" is
defined to Include funds disbursed
under the revenue sharing act even
though for purposes other than this rule
such funds do not constitute "Federal
financial assistance." See, Coolsbyv.
Blumenthal, 590 F.2d 1369 (5th Cir. 1979)
(en banc), cert dewed, 44 U.S. 970
(1980).
III. Regulatory Impact/Flexibility
Analyses Not Required
This rule is not a "major rule" as
defined by Section 1(b) of Executive
Order 12291. The rule simply
coordinates Federal agency
investigation and enforcement of certain
employment discrimination complaints.
It will not have a major or significant
impact on the economy. Accordingly, a
regulatory Impact analysis as described
in Executive Order 11291 is not required.
In addition, a regulatory flexibility
analysis as described in the Regulatory
Flexibility Act 5 U.S.C. 601 et eeq* is
not required because the rule will not
"have a significant economic impact on
a substantial number of small entities."
6 U.S.C. 605.
This action does not constitute a
major Federal action significantly
affecting the quality of the human
environment .Therefore, no
environmental Impact statement was
prepared.
List of Subjects 1b 28 CFR Part 42 and 29
CFR Port 1691
Civil rights, iqual employment
opportunity, and Nondiscrimination.
Signed at Washington. D.C this 9th day of
December 1982.
For the Commission
Clarence Thomas,
Chairman.
Signed at Washington. 0 C this 3rd day of
January 1983.
For the Department
William French Smith.
Attorney General.
TITLE 29—(AMENDED]
Chapter XIV—Equal Employment
Opportunity Commission
1. By virtue of the authority vested in
me by Exec. Order No. 12067,3 CFR 206
(1979), 43 FR 28967, and for the reasons
set out in the preamble, the rules of the
Equal Employment Opportunity
Commission, at Chapter XIV of Title 29,
Code of Federal Regulations, are hereby
amended by adding as a new Part 1691,
the following;
PART 1691—PROCEDURES FOR
COMPLAINTS OF EMPLOYMENT
DISCRIMINATION FILED AGAINST
RECIPIENTS OF FEDERAL FINANCIAL
ASSISTANCE
Sec
1691.1	Purpose and application.
1691.2	Exchange of information.
1691.3	Confidentialfty.
1691 4 Standards for investigation, reviews
and hearings.
1691.5 Agency processing of complaints of
employment discrimination
1691.8 General rules concerning EEOC
action on complaints.
1691 7 EEOC dismissals of complaints.
1691.8 Agency action on complaints
dismissed by EEOC
1691 9 EEOC reasonable cause
determinations and conciliation efforts
1691.10	Agency enforcement of unresolved
complaints.
1691.11	EEOC negotiated settlements and
conciliation agreements.
169112 Interagency consultation.
1691.13 DeflniUons. '
Authority: E.0.1225ft 45 FR 72095
(November 4.1080] and E.O 12067.43 FR
26967 (June 30,1976).
s 1691.1 PurpoM and application.
The purpose of this regulation is to
implement procedures for processing
and resolving complaints of employment
discrimination filed against recipients ot
Federal financial assistance subject to
Appendix 23-B-6
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Federal Register / Vol 48. No. 17 J Tuesday, January 25. 1983 / Rules and Regulations
3575
Yitle VI of ibe Civil Right* Act of 1864,
Title IX of the Education AmendmeaU
of 1972. the Slate and Local Fiscal
Assistance Act of 1972. as amended, and
provisions similar to Title V] And Title
IX in Federal grant statutes.
Enforcement of such provisions in
Federal grant statutes is covered by this
regulation to the extent they relate to
prohibiting employment discrimination
on the ground of race, color, national
origin, religion or sex in programs
receiving Federal financial assistance of
the type subject to Title VI or Title IX.
This regulation does not. however, apply
to the Omnibus Crime Control and Safe
Streets.Act of 1968, as amended, the
Juvenile Justice and Delinquency
Prevention Act, as amended, the
Comprehensive Employment Training
Act of 1973, as amended, or Executive
Order 11246.
{ 1691.2 Exchange ol Information.
EEOC and agencies shall share any
information relating to the employment
policies and practices of recipients of
Federal financial assistance that may
assist each office in carrying out its
responsibilities. Such information shall
include, but not necessarily be limited
to, affirmative action programs, annual
employment reports, complaints,
investigative files, conciliation or
compliance agreements, and compliance
review reports and files.
{1691.3 Confidentiality.
When an agency receives information
obtained by EEOC, the agency shall
observe the confidentiality requirements
of Sections 706(b) and 709(e) of Title VII
as would EEOC, except in cases where
the agency receives the same
information from a source independent
of EEOC or has referred a joint
complaint to EEOC under this
regulation. In such cases, the agency
may use independent source information
or information obtained by EEOC under
the agency's investigative authority in a
subsequent Title VI, Title IX orsevenue
shanng act enforcement proceeding.
Agency questions concerning
confidentiality shall be directed to the
Associate Legal Counsel for Legal
Services, Office of Legal Counsel of
EEOC.
- { 1691.4 Standards for Investigation,
reviews and hearings.
In any investigation, compliance
review, hearing or other proceeding,
agencies shall consider Title VU case
law and EEOC Cuidelines. 29 CFR Parts
1604-1607, unless inapplicable, in
determining whether a recipient of
Federal financial assistance has
engaged In an unlawful employment
practice.
11691.S Agency procmsfng of complaints
of employment discrimination.
' (a) Withrn ten days of receipt of a
complaint of employment
discrimination, an agency ahall notify
the respondent that it has received a
complaint of employment
discrimination, including the date, piece
and circumstances of the alleged
unlawful employment practice.
(b)	Within thirty days of receipt of a
complaint of employment discrimination
an agency shall:
(i) Determine whether it has
jurisdiction over the complaint under
Title VI, Title IX, or the revenue shanng
act and
(if) Determine whether EEOC may
have jurisdiction over the complaint
under Title VII or the Equal Pay Act.
(c)	An agency shall transfer to EEOC
a complaint of employment
discrimination over which it does not
have jurisdiction but over which EEOC
may have jurisdiction within thirty days
of receipt of a complaint. At the same
time, the agency shall notify the
complainant and the respondent of the
transfer, the reason for the transfer, the
location of the EEOC office to which the
complaint was transferred and that the
date the agency received the complaint
will be deemed the date it was received
by EEOC.
(d)	If an agency determines that a
complaint of employment discrimination
is a joint complaint, then the agency
may refer the complaint to EEOC The
agency need not consult with EEOC
prior to such a referral. An agency
referral of a joint complaint should
occur within thirty days of receipt of the
complaint.
(e)	An agency shall refer to EEOC all
joint complaints solely alleging
employment discrimination against an
individual If an agency determines that
special circumstances warrant its
investigation of such a joint complaint,
then the agency shall determine whether
the complainant has filed a similar
charge of employment discrimination
with EEOC.
(i) If an agency determines that the
complainant has filed a similar charge of
employment discrimination with EEOC,
then the agency may investigate the
complaint if EEOC agrees to defer its
investigation pending the agency
investigation.
(u) If an agency determines that the
complainant has not filed a similar
charge of employment discrimination
with EEOC, then the agency may
investigate the complaint if special
circumstances warrant such action. In
such cases, EEOC shall defer its
investigation of the referred joint
complaint pending the agency
investigation.
(fl ^n agency shall not refer to'EEOC
a joint coteplaint alleging a partem or
practice of qpiployment discrimination
unless special circumstances warrant
agency referral of the complaint to
EEOC.
(g)	If a joltiI rainpiaint alleges
discrimination in employment and in
other practices of a recipient an agency
should, absent special circumstances,
handle the entire complaint under the
agency's own investigation procedures.
In such cases, the agency shall
determine whether the complainant has
filed a similar charge of employment
discrimination with EEOC If such a
charge has been filed, the agency and
EEOC shall coordinate their activities
Upon agency request, EEOC should
ordinarily defer its investigation pending
the agency investigation.
(h)	When a joint complaint i9 referred
to EEOC for investigation, the agency
shall advise EEOC of the relevant avil
rights provision(s) applicable to the
employment practices of the recipient,
whether the agency wants to receive
advance notice of any conciliation
negotiations, whether the agency wants
EEOC to seek Information concerning
the relationship between the alleged
discrimination and the recipient's
Federally assisted programs or activities
and, where appropriate, whether a
primary objective of the Federal
financial assistance is to provide
employment. The agency shall also
notify the complainant and the recipient
of the referral the location of (he EEOC
office to which the complaint was
referred, the Identity of the civil rights
provision(s) involved, the authority of
EEOC under this regulation and that the
date the agency received the complaint
will be deemed the date it was received
by EEOC Specifically, the notice shall
inform the recipient that the agency has
delegated to EEOC its investigative
authority under Title VI, Title LX, or the
revenue shanng act, and the relevant
act's implementing regulations. The
agency, therefore, may use information
obtained by EEOC under the agency's
investigative authonty in a subsequent
Title VI, Title IX or revenue shanng act
enforcement proceeding.
$1691.6 General rules concerning EEOC
action on complaints.
(a) A complaint of employment
discrimination fded with an agency,
which is transferred or referred to EEOC
under this regulation, shall be deemed a
charge received by EEOC For all
Appendix 23-B-7
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3576 Federal Register / Vol. 4B, No. 17 / Tuesday, January 25. 1B83 / Rule9 and Regulations
lurpbses under Title VII and the Equal
'> Act, the date such a complaint was
ived by an agency shall be deemed
date It was received by EEOC.
(b)	When EEOC investigates a joint
complaint it shall, where appropriate,
seek sufficient information to allow the
referring agency to determine whether
the alleged employment discrimination
is in a program or activity that receives
Federal financial assistance and/or
whether the alleged employment
discrimination causes discrimination
with respect to beneficiaries or potential
beneficiaries of the assisted program.
(c)	Upon referral of a joint complaint
alleging a pattern or practice of
employment discrimination, EEOC
generally will limit Its investigation to
the allegation(s) which directly affect.
the complainant.
(d)	If EEOC. in the course of an
investigation of a joint complaint, is
unable to obtain information from a
recipient through voluntary means.
EEOC shall consult with the referring
agency to determine an appropriate
course of action.
(e)	If EEOC agrees to defer its
investigation of a complaint of
employment discrimination pending an
agency investigation of the complaint,
then EEOC shall give due weight to the
ncy's determination concerning the
plaint.
9 1691.7 EEOC dismissals of complaints.
If EEOC determines that the Title VII
allegations of a joint complaint should
be dismissed. EEOC shall notify the
complainant and the recipient of the
reason for the dismissal and the effect
the dismissal has on the complainant's
rights under the relevant civil rights
provision(s) of the referring agency, and
issue a notice of right to sue under-Title
VII. At the same time, EEOC shall
transmit to the referring agency a copy
of EEOC's file.
9 1691.8 Agency action on complaints
dismissed by EEOC.
Upon EEOC's transmittal of a
dismissal under S 1691 7 of this part, the
referring agency shall determine within
thirty days, what, if any. action the
agency intends to take with respect to
the complaint and then notify the
complainant and the recipient. In
reaching that determination, the
referring agency shall give due weight to
EEOC's determination that the Title VII
allegations of the joint complaint should
be dismissed If the referring agency
decides to take action with respect to a
-mplaint that EEOC has dismissed for
k of reasonable cause to believe that
.!e VII has been violated, the agency -
shall notify the Assistant Attorney
General and the Chairman of the EEOC
in writing of the action it plans to take
and the basis of its decision to take such
action.
{ 16919 EEOC reasonable cause
determinations and conciliation efforts.
(a)	If EEOC. after investigation of a
joint complaint, determines that
reasonable cause exists to believe that
Title VU has been violated, EEOC shall
advise the referring agency, the
complainant and the recipient of that
determination and attempt to resolve
the complaint by Informal methods of
conference, conciliation and persuasion.
If EEOC would like the referring agency
to participate in conciliation
negotiations. EEOC shall so notify the
agency and the agency shall participate.
EEOC shall provide advance notice of
any conciliation negotiations to referring
agencies that request such notice,
whether or not EEOC requests their
participation in the negotiations.
(b)	If EEOC's efforts to resolve the
complaint by informal methods of
conference, conciliation and persuasion
fail, EEOC shall:
(i) Issue a notice of failure of
concdiation to the recipient in
accordance with 29 CFTR 1601 25;
(11) Transmit to the referring agency a
copy of EEOC's investigative file,
including its Letter of Determination and
notice of failure of conciliation,
(ui) If the recipient is not a
government, governmental entity or
political subdivision, determine whether
EEOC will bring suit under Title VII and,
in accordance with 29 CFR 1601.28, issue
a notice of right to sue under Title VII;
(iv) If the recipient is a government
governmental entity or political
subdivision, refer the matter to the
Attorney General in accordance with 29
CFR 1601 29. The Attorney General, or
his or her delegate, will determine
whether the Department of Justice will
bnng suit under Title VII and, in
accordance with 29 CFR 1601.28, issue a
notice of nght to sue under Title VII.
5 1691.10 Agency enforcement of
unresolved complaints.
(a) Upon EEOC's transmittal of a
reasonable cause determination and
notice of failure of conciliation under
fi 1691.9(b)(ii) of this regulation, the
referring agency shall determine, within
thirty days, whether the recipient has
violated any applicable civil rights -
provision(s) which the agency has a
responsibility to enforce. The referring
agency shall give due weight to EEOC's
determination that reasonable causa
exists to believe that Title VII has been
violated
(b)	If the referring agency determines
that the recipient has violated any
applicable civil rights provlslon(s) which
the agency haB a responsibility to
enforce, (he agency shall so notify the-
complainant and the recipient and
determine whetner further efforts to
obtain voluntary compliance are
warranted. In reaching that
determination, the agency shall give due
weight to the failure of EEOC's efforts to
resolve the complaint by informal
methods. If the referring agency
determines that further efforts to obtain
voluntary compliance are not warranted
or if such further efforts fad, the agency
shall initiate appropriate enforcement
proceedings under its own regulations.
(c)	If the referring agency determines
that the recipient has not violated any
applicable civil rights provision(s) which
the agency has a responsibility to
enforce, the agency shall notify the
complainant, the recipient, the Assistant
Attorney General and the Chairman of
the EEOC in writing of the basis of that
determination.
S 1691.11 EEOC negotiated s«ttl«monta
and conciliation agreements.
If the parties enter into a negotiated
settlement (as described in 29 CFR
1601 20) prior to a determination or a
conciliation agreement (as desenbed in
29 CFR 1601.24) after a determination,
EEOC shall notify the referring agency
that the complaint has been settled The
agency shall take no further action on
the complaint of employment
discrimination thereafter except that the
agency may take the existence of the
complaint into account in scheduling the
recipient for a review under the agency's
regulations.
} 1691.12 Interagency consultation.
(a)	Before investigating whether the
employment practices of a recipient of
Federal financial assistance constitute a
pattern or practice of unlawful
discrimination or initiating formal
administrative enforcement procedures
on that basis, an agency shall, to the
extent practical, consult with the
Chairman of the EEOC and the
Assistant Attorney General to assure
that duplication of effort will be
minimized.
(b)	Prior to the initiation of any legal
action against a recipient of Federal
financial assistance alleging unlawful
employment practices, the Department
of Justice and/or EEOC shall, to the
extent practical, notify the appropriate
agency or agencies of the proposed
action and the substance of the
allegations.
Appendix 23-B-8
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Federal Register / Vol 48, No 17 / Tuesday, January 25, 1983 / Rulea and Regulations
3577
'810B1.11 Definitions.
As used In this regulation, the term:
(a)	"Agency" means any Federal
department or agency which extends -
Federal financial assistance subject to
any civil rights provision(s) to which
this regulation applies.
(b)	"Assistant Attorney General"
refers to the Assistant Attorney General,
Civil Rights Division, United States
Department of Justice, or his or her
delegate.
(c)	"Chairman of the EEOC refers to
the Chairman of the Equal Employment
Opportunity Commission, or his or her
delegate.
(d)	"EEOC" means the Equal
Employment Opportunity Commission
and, where appropriate, any of its
District Offices.
(e)	"Federal financial assistance"
includes: (1) Grants and loans of Federal
funds, (2) the grant or donation of
Federal property and interests in
property, (3) the detail of Federal
personnel, (4) the sale and lease of. and
the permission to use (on other than a
casual or transient basis). Federal
property or any interest in such property
without consideration or at a nominal
consideraUon, or at a consideration
which is reduced for the purpose of
assisting the recipient, or in recognition
of the public interest to be served by
such sale or lease to the recipient, and
(5) any Federal agreement, arrangement,
or other contract which has as one of its
purposes the provision of assistance. For
purposes of this regulation, the term
"Federal financial assistance" also
includes funds disbursed under the
revenue sharing act.
(f)	"Joint complaint" means a
complaint of employment discrimination
covered by Tide VII or the Equal Pay
Act and by Title VI. Title IX. or the
revenue sharing act.
(g)	"Recipient" means any State,
political subdivision of any State, or
instrumentality of any State or political
subdivision, any public or private
agency, institution, organization, or
other entity, or any individual, in any
State, to whom Federal financial
assistance is extended. direcUy or
through another recipient, for any
program, including any successor,
assign, or transferee thereof, but such
term does not include any ultimate
beneficiary under such program.
(h)	"Revenue sharing act" refers to the'
Stale and Local Fiscal Assistance Act of
1972, as amended, 31 U.S.C. 1221 et seq.
(i)	"Title VI" refers to Title VI of the
Civil Rights Act of 1964, 42 U.S.C. 2000d
to 2000d-4. Where appropriate, 'Title
VI" also refers to the civil rights
provisions of other Federal statutes or
regulations to the extent that they
prohibit employment discrimination on
the grounds of race, color, religion, sex
or national origin in programs receiving
Federal financial assistance of the type
sub)ect to Title VI itself.
(j) 'Title VII" refers to Title VII of tlie
Civil Rights Act of 1984, as amended, 42
USC. 2000e. et seq.
(k) 'Title IX" refers to Title IX of the
Education Amendments of 1972.20
USC. 1681 to 1683.
TITLE 28—(AMENDED]
Chapter I—Department of Justice
2. By virtue of the authority vested in
me by Section 602 of Title VI of the Civil
Rights Act of 1984. 78 Stat 252,42 U S.C.
2000d-l, Exec. Order No. 12250, 3 CFR
298 [1981], 45 FR 72295, and for the
reasons set out in the preamble, the
rules of the Department of Justice, at
Part 42 of Title 28 of the Code of Federal
Regulations, are hereby amended by
adding as a new Subpart H. the
following:
PART 42—NONDISCRIMINATION;
EQUAL EMPLOYMENT OPPORTUNITY;
POLICIES AND PROCEDURES
• • • » *
Sec.
42 601 Purpose and application.
42.602	Exchange of informaUoa
42.603	Confidentiality
42 604 Standards for investigation, reviews
and heanngB.
42 60S Agency processing of complaints of
employment discrimination.
42.606 General rules concerning EEOC
' action on complaints.
42 607 EEOC dismissals of complaints - '
42.608	Agency acUon on complaints
dismissed by EEOC
42.609	EEOC reasonable cause
determinations and conciliation efforts
42 610 Agency enforcement of unresolved
complaints.
42.611 EEOC negotiated settlement and
conciliation agreements.
42 612 Interagency consultation.
42.613 Definitions.
Authority: E.0.12250,45 FR 7299S
(November 4.1980 and E.0.12067, 43 FR
28967 (June 30.197B).
Subpart H—Procedures tor Complaints ol
Employment Discrimination Filed Against
Recipients of Federal Financial Assistance
S 42.601 Purpose and application.
The purpose of this regulation is
Implement procedures for processing
and resolving complaints of employment
discrimination filed against recipients of
Federal financial assistance subject to
Title VI of the Civil Rights Act of 1984.
Title IX of the Education Amendments
'of 197?, tlje State and Local Fiscal
Assistance Act of 1972, as amended, and
provisions similar to Title VI and Title
.IX in Federal grant statutes.
Enforcement of such provisions in
Federal grant statutes is covered by this
regulationta the extent they relate to
prohibiting employment discrimination
on the ground of race, color, national
origin T-i or sex in programs
receiving r_jcral financial assistance
"thB type subject to Title VI or Title IX.
This regulation does not, however, apply
to the Omnibus Crime Control and Safe
Streets Act of 1988, as amended, the
Juvenile Justice and Delinquency
Prevention Act as amended, the
Comprehensive Employment Training
Act of 1973, as amended! or Executive
Order 11248.
142.602 Exchange of Information.
EEOC and agencies shall share any
information relating to the employment
policies and practices of recipients of
federal financial assistance that may
assist each office in carrying out its -
responsibilities. Such information shall
include, but not necessarily be limited
to, affirmative action programs, annual
employment reports, complaints,
investigative files, conciliation or
compliance agreements, and compliance
review reports and files.
S 42.603 Confidentiality.
When an agency receives information
obtained by EEOC, the agency shall
observe the confidentiality requirements
of Sections 706(b) and 709(e) of Title VII
as would EEOC, except in cases where
the agency receives the same
information from a source independent
of EEOC or has referred a joint
complaint to EEOC under this
regulation. In such cases, the agency
may use independent source information
or information obtained by EEOC under
the agency's investigative authority in a
subsequent Title VL Title IX or revenue
sharing act enforcement proceeding.
Agency questions concerning
confidentiality shall be directed to the
Associate Legal Counsel for Legal
Services. Office of Legal Counsel of
EEOC.
9 42.604 Standards for Investigation,
reviews and hearings.
In any investigation, compliance
review, hearing or other proceeding,
agencies shall consider Title VII case
law and EEOC Guidelines, 29 CFR Parts
1604-1607, unless inapplicable, in
determining whether a recipient of
Federal financial assistance has
engaged in an unlawful employment
practice.
Appendix 23-B-9
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3578 Federal Register / Vol. 48, No. 17 / Tuesday, January 25, 1983 / Rules and Regulations
8 42.605 Agency processing of complaints
at employment discrimination.
(a)	Within ten days of receipt of a
complaint of employment
discriminatioa an agency shall notify
the respondent that it has received a
complaint of employment
discrimination, including the date, place
and circumstances of the alleged
unlawful employment practice.
(b)	Within thirty days of receipt of a
complaint of employment discrimination
an agency shall-
(i) Determine whether it has
jurisdiction over the complaint under
Title VI. Title IX. or the revenue sharing
act, and
(u) Determine whether EEOC may
have jurisdiction over the complaint
under Title VII of or the Equal Pay Act.
(c)	An agency shall transfer to EEOC
a complaint of employment
discrimination over which it does not
have jurisdiction but over which EEOC
may have jurisdiction within thirty days
of receipt of a complaint. At the same
time, the agency sball.notify the
complainant and the respondent of the
transfer, the reason for the transfer, the
location of the EEOC office to which the
complaint was transferred and that the
date the agency received the complaint
will be deemed the date it was received
by EEOC.
*d) If any agency determines that a
mplaint of employment discrimination
>3 a joint complaint then the agency
may refer the complaint to EEOC. The
agency need not consult with EEOC
prior to such a referral. An agency
referral of a joint complaint should
occur within thirty days of receipt of the
complaint.
(ej An agency shall refer to EEOC all
joint complaints solely alleging
employment discrimination against an
individual. If an agency determines that
special circumstances warrant its
investigation of such a joint complaint,
then the agency shall determine whether
the complainant has filed a simdar
charge of employment discrimination
with EEOC.
(i) If an agency determines that the
complainant has Hied a similar charge of
employment discrimination with EEOC.
then the agency may investigate the
complaint if EEOC agrees to defer its
investigation pending the agency
investigation.
(n) If an agency determines that the
complainant has not Tiled a simdar
charge of employment discrimination
with the EEOC, then the agency may
investigate the complaint if special
~~umstances warrant such action. In
i cases, EEOC shall defer its
.-stigalion of the referred joint
complaint pending the agency
investigation.
(f)	An agency shall not refer to EEOC
a joint complaint alleging a pattern or
practice of employment discrimination
unles9 special circumstances warrant
agency referral of the complaint to
EEOC.
(g)	If a joint complaint alleges
discrimination in employment and in
other practices of a recipient, an agency
should, absent special circumstances,
handle the entire complaint under the
agency's own investigation procedures.
In such cases, the agency shall
determine whether the complainant has
filed a similar charge of employment
discrimination with EEOC. If such a
charge has been filed, the agency and
EEOC shall coordinate their activities.
Upon agency request, EEOC should
ordinarily defer its investigation pending
the agency investigation.
(h)	When a joint complaint Is referred
to EEOC for investigation, the agency
shall advise EEOC of the relevant civil
rights provision(s) applicable to the
employment practices of the recipient,
whether the agency wants to receive
advance notice of any conciliation
negotiations, whether the agency wants
EEOC to seek information concerning
the relationship between the alleged
discrimination and the recipient's
Federally assisted programs or activities
and, where appropriate, whether a
primary objective of the Federal
financial assistance is to provide
employment. The agency shall also
notify the complainant and the recipient
of the referral, the location of the EEOC
office to which the complaint was
referred, the identity of the civil rights
provisionis) involved, the authority of
EEOC under this regulation and that the
date the agency received the complaint
will be deemed the date it was received
by EEOC. Specifically, the notice shall
inform the recipien' that the agency has
delegated to EEOC its investigative
authority under Title VI. Title IX, or the
revenue sharing act, and the relevant
act's implementing regulations. The
agency, therefore, may use information
obtained by EEOC under the agency's
investigative authority in a subsequent
Title VI, Title IX or revenue sharing act
enforcement proceeding.
{ 42.600 General rules concerning EEOC
action on complaint*.
(a) A complaint of employment
discrimination filed with an agency,
which is transferred or referred to EEOC
under this regulation, shall be deemed a
charge received by EEOC. For all
purposes under Title VII and the Equal
Pay Act, the date such a complaint was
received by-an agency shall be deemed
the date it was received by EEOC.
(b)	When EEOC investigates a joint
complaint it shall, where appropriate,
seet sufficient information to allow' the
referring ageqey to determine whether
the alleged employment discrimination
is in a program or activity that receives
Federal financial assistance and/or
whether the alleged employment
discrimination causes discrimination
with respect to beneficiaries or potential
beneficiaries of the assisted program.
(c)	Upon referral of a joint complaint
alleging a pattern or practice of
employment discrimination, EEOC
generally will limit its investigation to
the allegation(s) which directly affect
the complainant.
(d)	If EEOC, in the course of an
investigation of a joint complaint, la
unable to obtain information from a
recipient through voluntary means,
EEOC shall consult with the referring
agency to determine an appropriate
course of action.
(e)	If EEOC agrees to defer Its
investigation of a complaint of
employment discrimination pending an
agency investigation of the complaiht,
then EEOC shall give due weight to the
agency's determination concerning the
complaint.
{ 42.607 EEOC dismissals of complaints.
If EEOC determines that the Title VII
allegations of a joint complaint should
be dismissed, EEOC shall notify the
complainant and the recipient of the
reason for the dismissal end the effect
the dismissal has on the complainant's
rights under the relevant civil rights
provision(s) of the referring agency, and
issue a notice of right to sue under Title
VII. At the same time, EEOC shall
transmit to the referring agency a copy
of EEOCs file.
5 42.608 Agency action on complaints
dismissed by EEOC.
Upon EEOCs transmittal of a
dismissal under { 42.807 of this
regulation, the referring agency shall
determine withm thirty days, what, if
any, action the agency intends to take
with respect to the complaint and then
notify the complainant and the recipient.
In reaching that determination, the
referring agency shall give due weight to
EEOCs determination that the Title VII
allegations of the joint complaint should
be dismissed If the referring agency
decides to take action with respect to a
complaint that EEOC has dismissed for
lack of reasonable cause to believe that
Title VII has been violated, the agency
shall notify the Assistant Attorney
General and the Chairman of the EEOC
Appendix 23-B^10
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Federal Register / Vol. 48. No. 17 / Tuesday, January 25, 1983 / Rules and Regulations 3579
in writing of the action it plans to take
and the basi9 of its decision to take such
action.
§ 42.609 EEOC reasonable cauM
determination and conciliation efforts.
(a)	If EEOC, after investigation of a
joint complaint, determines that
reasonable cause exists to believe that
Title VII has been violated, EEOC shall
advise the referring agency, the
complainant and the recipient of that
determination and attempt to resolve
the complaint by informal methods of
conference, conciliation and persuasion.
If EEOC would like the referring agency
to participate in conciliation
negotiations, EEOC shall so notify the
agency and the agency shall participate.
EEOC shall provide advance notice of
any conciliation negotiations to referring
agencies that request such noUce,
whether or not EEOC requests their
participation in the negotiations.
(b)	If EEOC's efforts to resolve the
complaint by informal methods of
conference, conciliation and persuasion
fail, EEOC shall.
(0 Issue a notice of failure of
conciliation to the recipient in
accordance with 29 CFR 1601.25;
(ii) Transmit to the referring agency a
copy of EEOC's investigative file,
including its Letter of Determination and
notice of failure conciliation,
(in) If the recipient is not a
government, governmental entity or
political subdivision, determine whether
EEOC will bring suit under Title VII and,
in accordance with 29 CFR 1601.28, issue
a notice of nght to sue under Title VH;
(iv) If the recipient is a government,
governmental entity or political
subdivision, refer the matter to the
Attorney General in accordance with 29
CFR 1601.29. The Attorney General, or
hia or her delegate, will determine
whether the Department of Justice will
bring suit under Title VII and. in
accordance with 29 CFR 1601 28. issue a
notice of nght to sue under Title VII.
$42,610 Agency enforcement of
unresolved complaints.
(a)	Upon EEOC's transmittal of a
reasonable cause determination and
notice of failure of conciliation under
S 42 609(b)(u) of this regulation, the
referring agency shall determine, within
thirty days, whether the recipient has
violated any applicable civil rights
provision(s) which the agency has a
responsibility to enforce. The referring
agency Bhall give due weight to EEOC's
determination that reasonable cause
exists to believe that Title VII has been
violated.
(b)	If the referring agency determines
that the recipient has violated any
applicable civil rights provision(s) which
the agency has a responsibility to
enforce, the agency shall so notify the
complainant and the recipient and
determine whether further efforts to
obtain voluntary compliance are
warranted. In reaching that
determination, the agency shall give due
weight to the failure of EEOC's efforts to
resolve the complaint by informal
methods. If the referring agency
determines that further efforts to obtain
voluntary compliance are not warranted
or if such further efforts fail, the agency
shall initiate appropriate enforcement
proceedings under its own regulations.
(c) If the referring agency determines
that the recipient has not violated any
applicable civil nghts provision(s) which
the agency has a responsibility to
enforce, the agency shall notify the
complainant, the recipient, the Assistant
Attorney General and the Chairman of
the EEOC in writing of the basis of that
determination.
5 42.611 EEOC negotiated settlements and
conciliation agreements.
If the parties enter into a negotiated
settlement (as described in 29 CFR
1601.20) prior to a determination or a
conciliation agreement (as described in
29 CFR 1601 24) after a determination,
EEOC shall notify the referring agency
that the complaint has been settled. TTie
agency shall take no further action on
the complaint of employment
discrimination thereafter except that the
agency may take the existence of the
complaint into account in scheduling the
recipient for a review under the agency's
regulations.
5 42.612 Interagency consultation.
(a)	Before investigating whether the
employment practices of a recipient of
Federal financial assistance constitute a
pattern or practice of unlawful
discrimination or initiating formal
administrative enforcement procedures
on that basis, an agency shall, to the
extent practical, consult with the
Chairman of the EEOC and the
Assistant Attorney General to assure
that duplication of effort will be
minimized.
(b)	Prior to the initiation of any legal
action against a recipient of Federal
financial assistance alleging unlawful
employment practices, the Department
of Justice and/or EEOC shall, to the
extent practical, notify the appropriate
agency or agencies of the proposed
action and the substance of the
allegations.
5 42.613 Definitions.
As used in this regulation, the term:
(a)	"Agency" means any Federal
department or agency which extends
Federal financial assistance subject to
any civil nghts provision(s) to which
this regulation applies.
(b)	"Assistant Attorney General"
refers to the Assistant Attorney General.
Civil Rights Division, United States
Department of Justice, or his or her
delegate.
(c)	"Chairman of the EEOC" refers to
the Chairman of the Equal Employment
Opportunity Commission, or his or her
delegate.
(d)	"EEOC" means the Equal
Empoyment Opportunity Commission
and. where appropriate, any of its
District Offices.
(e)	"Federal financial assistance"
includes: (1) Grants and loans of Federal
funds, (2) the grant or donation of
Federal property and interests in
property. (3) the detail of Federal
personnel, (4) the sale and lease of. and
the permission to use (on other than a
casual or transient basis), Federal
property or any interest in such property
without consideration or at a nominal
consideration, or at a consideration
which is reduced for the purpose of
assisting the recipient or in recognition
of the public Interest to be served by
such sale or lease to the recipient, and
(5) any Federal agreement, arrangement,
or other contract which has as one of its
purposes the provision of assistance. For
purposes of this regulation, the term
"Federal financial assistance" also
includes funds disbursed under the
revenue sharing act.
(f)	"Joint complaint" means a
complaint of employment discrimination
covered by Title VII or the Equal Pay
Act and by Title VI. Title DC or the
revenue sharing act.
(g)	"Recipient" means any State,
political subdivision of any State, or
instrumentality of any State or political
subdivision, any public or private
agency, institution, organization, or
other entity, or any individual, in any
State, to whom Federal financial
assistance is extended, directly or
through another recipient, for any
program, including any successor,
assign, or transferee thereof, but such
terms does not include any ultimate
beneficiary under such program.
(h)	"Revenue sharing act" refers to the
State and Local Fiscal Assistance Act of
1972, as amended, 31 U S C. 1221 et seq
(i)	"Title VI" refers to Title VI of the
Civil Rights Act of 1984.42 U S.C. 2000d
to 2000d~4. Where appropriate, 'Title
VI" also refers to the civil rights
provisions of other Federal statutes or
regulations to the extent that they
prohibit employment discrimination on
Appendix 23-B-ll
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3580
Federal Register / Vol. 48,. No. 17 / Tuesday, lanuary 28. 1083 I Rule* and Regolattons
'b^grotmd or ran, color, religion, sex or
"tonal origin in programs receiving
wal financial assistance of the type
ject to Title VI itself.
(J j "Title VTCT refers to Title VII of the
Civil Rights Act of 1964, as amended, 42
U.S.C 2000e, et seg.
(k) "Title DC" refers to Title DC of the
Education Amendments of 1972,20
U.S.C. 1681 to 1683.
(TO Doe. O-UM FUad V44-afc MS 
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y*si<*****aas***aa*****************************************
|	THE DEPARTMENT OF JUSTICE
t	BOUAU BMPkOVMCNT OPPORTUNITY COMMISSION
EQUAL EMPLOYMENT OPPO
MANAGEMENT DIRECTIVE
rFft-un 1002
Kafch J4, 1983
DATE:	.	
TO THE HEADS OF FEDERAL AOEHCIES
1. SUBJECT: INTERIM PROCEDURES FOR PROCESSING COMPLAINTS OF EMPLOYMENT
DISCRIMINATION FILED AGAINST RECIPIENTS OF FEDERAL FINANCIAL
ASSISTANCE (26 C.F.I. Part 42, Subpart H and 29 C.F.R. Part
1691)
PURPOSE: This interim directive implements the nev regulation adopted
Jointly by the Department of Justice and the Equal Employment Opportunity
Commission on this subject; it applies to complslnts of employment
discrimination filed on or after March 28, 1963, against recipients of
Federal financial assistance or revenue sharing funds subject to Title VI
of the Civil Rights Act of 1964, Title IX of the Education Amendments of
1972, the Stste and Local Fiscal Asslstsnce Act of 1972, as attended (the
revenue sharing act) and provisions slmllsr to Title VI and Title IX in
Federal grant statutes to the axtent they prohibit amployment discrimina-
tion on the basis of race, color, religion, sex or national origin. See
Appendix A. (Coaplainta involving employment discrimination solely on
jthe basis of age or handicap are not covered by this rule or directive.)
The Department of Justice and the Equal Employment Opportunity Commission
(EEOC) have developed these procedures In order to coordinate enforcement
of federal EEO law and to alnlalte duplicative investigations of amployers
covered by ouch lavs. Because this directive is Interim rather than
final, each agency coordinator may submit a cement within 90 days from
the affective date of this directive.
3.	AUTHORITY: Iasued pursuant to the Commission's authority under Executive
Order 12067, 43 F.R. 28967 (June 30, 1978), and the Depsrtment of Justice's
authority under Executive Order 12250, 45 F.R. 72995 (November 4, I960),
to Implement the recently adopted regulation on this subject, 48 FR 3570
(January 25, 1983), 28 C.F.R. Part 42, Subpart R and 29 C.F.R. Part 1691.
4.	PROCEDURE: This interim directive allows, and for many complaints directs
Federal	j'*"* financial assistant* ***• *»wenue aharing funds
fyfefer to EEOC conplslnts of employment dlscrlnlnstlon covered by
'Title VI, Title IX, and similar atatutes as noted above, if the complaints
allege discrimination which la subject to Title VII of the Civil Rights
Act of 1964 or the Equal Pay Act of 1963 (EPA.) Title VII prohibits
discrimination on the basis of race, color, religion, oex or national
2.

ee oc
•Appendix 23-C-l
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2
origin in most phases of employment and the Equal Pay Act prohibits
discrimination on the basis of sex In the payment of wages to men and
women performing equal work. Such complaints are defined as "joint
complaints." Generally, for complaints against Individuals, EEOC, acting
under Its o*rr authority and the delegated authority of the agency, will
conduct an Investigation of the allegations of employment discrimination
and attempt to resolve the complaint.
A.	Agency Representative - Each agency covered by these instructions
will designate individuals who will serve as the ajency's contact
persons and coordinators (hereinafter referred to as the agency "repre-
sentatives") to resolve procedural problems, e.g., when Information
relevant to the Investigation cannot be obtained voluntarily, when coordi-
nation is necessary to determine which agency will process a complaint,
when it is desirable to include the agency in a conciliation conference
or when there is a problem with scheduling witness Interviews* Where
possible, representatives would be located In all offices of the agency in
question which correspond to the field offices of the EEOC (list attached
as Appendix B.). Each agency subject to these rules should appoint a
coordinator in its Headquarters office t'6 handle problems that cannot be
resolved locally. Within 15 days of this date, each agency will advise
EEOC and DOJ of the names, titles, addresses and telephone numbers of its
representatives.
B.	Initial Processing of Complaints of Employment Discrimination
1.	Notice to Recipient - When an agency covered by these instructions
receives >a complaint which contains allegations of employment dis-
crimination, it will notify the recipient within ten (10) days, using
the letter at Exhibit 1, that it Is in receipt of the complaint, including
the date, place and circumstances surrounding the allegation(s). The
contents of the notice will state that the agency Is reviewing the com-
plaint to determine whether EEOC will have a role in the processing of
the complaint, and that if the complaint is referred or transferred to
EEOC. the date of the agency's receipt of the complaint will be deemed
the date received by EEOC unless EEOC has received It earlier. Exhibit 1
may also be used, where appropriate, to Inform the complainant that the
agency has received the complaint.
2.	Determination of Jurisdiction'- Within thirty (30) days of receipt of
a crmp1?1rf the agency shall make an Initial^determination as to whe-
ther It has jurisdiction over the complaint under Title VI. Title IX or ~
the rev?r"n "baring act, or similar staCute forbidding discrimination by
recipients of federal fundsf and also shall determine whether the complaint
alleges employment discrimination on the baglB Of F&ce. color, religion,
sex or~national origin by an employer with 15 or more employees (subject
to Title VII) or wage discrimination on the basis of sex (subject to the
EPA).
.Appendix 23-C-2
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3
3* When Agency Does Hot Have Jurisdiction - When an agency determine*
thnt It does not have jurisdiction over a complaint, but that It
appears that EEOC has jurisdiction, the agency will transfer the complaint
to EEOC within thirty days of receipt using the letter at Exhibit 2. At
the Bane time, using the letter at Exhibit 3, the agency shall notify the
complainant and the recipient by letter of the transfer, the reason for
the transfer, the location of the EEOC office to which the complaint was
transferred and that the date the agency received the complaint will be
deemed the date it was received by EEOC unless EEOC received the complaint
earlier. .After thf transfer, an agency has no further obligation In
regard to' the complaint*
4* Processing Joint Complaints - Joist complaints are complaints that
an agency receives over which the agency has or may have Jurisdiction
and which allege employment discrimination subject to Title VII and/or
the Equal Pay Act* Age may be a basis named in such complaints but
only those age cases which also allege discrimination subject to Title VII
and/or the EPA will be processed in accordance with this directive* EEOC
will investigate those age aspects of a joint complaint it receives for
processing if they are subject to the Age Discrimination in Employment
Act which protects individuals between the ages of 40 and 70 from age
discrimination in most phases of employment*
There are three kinds of Joint complaints: 1) complaints solely alleging
discrimination in employment on the basis of race, color, religion, sex or
national origin against an individual; 2).complaints alleging discriml"
nation in employment on the basis of race, color, religion, sex, or national
origin And discrimination in other practices of a recipient; 3) complaints
alleging a pattern or practice of employment discrimination on the basis
of race, color, religion, sex, or national origin*
a. Individual Joint Complaints - An agency shall refer to EEOC all Joint
complaints solely alleging employment discrimination against an
individual. The agency need not consult with EEOC prior to a referral*
Agency referral of a joint complaint should occur within thirty days of
receipt of the complaint.
i* Procedure for Referring Joint Complaints - An agency shall use Exhibit 4
to refer a Joint complaint to EEOC*
If the complaint is filed under Title VI, the agency should indicate in
the appropriate box on Exhibit 4 if a primary objective of the Federal
financial assistance to the recipient named in the complaint is to provide
employment. (P&l.)
An agency may request that EEOC conduct a factual Investigation relating
to the agency's jurisdiction by checking the appropriate boxes on Exhibit 4*
EEOC will use the standard interrogatories attached as Appendix C unless
the agency prepares special interrogatories and attaches them to Exhibit 4.
Appendix 23-C-3
-------
It the agency believes special circumstances exist warranting its
investigation of an individual joint complaint, rather than EEOC, then
the agency shall follow the procedures outlined below, check the
appropriate box on Exhibit 4 and explain the special circumstances that
warrant its Investigation of the complaint.
Finally, If the agency wants to receive advance notice of EEOC conciliation
negotiations, it shall check the appropriate box on Exhibit 4.
11• Procedure for Agency Investigation of Individual Joint Complaints.
An agency may investigate a Joint'complaint solely alleging discrimi-
nation against an individual only If special circumstances warrant Its Inves-
tigation of the complaint. If the agency believes such circumstances exist,
the agency representative shall contact the appropriate EEOC office and
request that the EEOC representative determine whether a similar complaint
has been filed with EEOC.
If the agency finds out that EEOC has received a similar complaint, the
agency will so indicate on Exhibit 4 when it refers the complaint to EEOC
and explain the special dreamstances that warrant its investigation of
the complaint* Within ten days of receipt of the referral, EEOC will
determine which agency will investigate the complaint. EEOC will generally
make the determination on the basis of whether or not it has already
begun processing the similar—complaint and has conmitted Its resources to
the resolution of the complaint. When EEOC notifies the agency of its
determination, the agency will send the appropriate notice to the complainant
and the recipient, i.e., Exhibit 5 if EEOC will investigate the complaint
or Exhibit 6 if the agency will Investigate the complaint.
On the other hand, If the agency fittds out that EEOC has not received
a similar complaint, the agency will so Indicate on Exhibit 4 when it refers
the complaint and explain the special circumstances that warrant Its
investigation of the complaint. The agency may proceed with its
investigation of the complaint without further consultation vlth EEOC.
(EEOC will, however, confirm in writing that it will defer its Investigation
pending completion of the agency Investigation). In these circumstances,
the agency shall use Exhibit 6 to notify the complainant and the recipient
that it will Investigate the complaint.
ill. Agency Notice of Referral to Complainant and Recipient. When a Joint
complaint is referred to EEOC for investigation, the agency shall
use Exhibit 5 to Inform the complainant and recipient of the referral and
the reason for the referral and that the date the complaint was received
by the agency will be the date it will be deemed to have been received by
EEOC for the purposes of Title VII and/or the EPA. This notice will inform
the parties that the agency has delegated to EEOC its Investigative
authority under Title VI, Title IX, the revenue sharing act, or other
statute. The agency should identify the statute and/or regulation and
attach a copy of the relevant nondiscrimination provisions If the law is
not Title VI, Title IX or the revenue sharing act. The EEOC will acknowledge
receipt of the complaint, in writing, to the complainant, respondent and
referring agency.
Appendix 23-C-4
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5
When a joint complaint Is referred to EEOC, but the agency will
conduct the Investigation the agency shall use Exhibit 6 to Inform the
complainant and recipient.
b.	Joint Complaints alleging Discrimination in Employment and Other
Practices* An agency, absent special circumstances, will retain and
investigate all allegations of a joint complaint which alleges discrimination
in employment and other practices of a recipient*
The agency representative shall contact the appropriate EEOC office and
request that the EEOC representative determine whether a similar complaint
has been filed with EEOC. If such a complaint has been filed, the agency and
EEOC shall coordinate their activities. The agency may coordinate by check*
lng the appropriate box on Exhibit 4 requesting that EEOC defef its investi-
gation pending the agency investigation. The EEOC will notify the agency in
writing whether or not it will defer Its investigation. Ordinarily, EEOC
should defer Its investigation.
The agency shall notify the complainant and recipient that It will inves-
tigate the complaint using Exhibit 7.
If an agency believes special circumstances warrant EEOC's investigation
of the employment discrimination allegations of the complaint, the agency
shall refer the complaint using Exhibit 4, and notify the complainant and
recipient of the referral using Exhibit""5*.
c.	Joint Complaints Alleging a Pattern or Practice of Employment
Discrimination. An agency, absent special circumstances, will retain
and investigate Joint complaints alleging a pattern"or practice of
employment discrimination. It is the obligation of the agency receiving
such complaints, however, to make a determination that the issues specified
in the complaint relate to a pattern or practice of unlawful employment
diecrimination. In general, a complaint that alleges a discriminatory
discharge or refusal to hire, promote or transfer an individual should
not be treated as a pattern or practice complaint — even if it is so
characterized by the complainant — unless there are factual allegations
that the refusal was part of an overall pattern, or pursuant to a specific
practice which has an adverse impact on persons by race, color, religion,
sex, or national origin. On the other hand, a claim that one (or more than
one) specific hiring, promotion, compensation, recruitment, assignment or
discharge procedure is discriminatory should be treated as a pattern or
practice complaint, if the procedure Is one followed by the employer,
generally or widely.
The agency shall notify the complainant and recipient that It will Inves-
tigate the complaint using Exhibit 7.
If an agency determines that due to special circumstances it will not
conduct its own Investigation or that the complainant's allegations are
not pattern or practice alllegations, the agency should refer the complaint
to EEOC using Exhibit A and notify the complainant and recipient of the
referral using Exhibit 5. Upon receipt of the referral, EEOC trill
ordinarily inform the complainant that It will narrow its investigation
to the issues involving the individual complainant.
Appendix 23-C-5
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6
5.	EEOC Deferral of Investigation to Agency - If the agency decides to Investi-
gate a joint complaint and the EEOC agrees to defer its Investigation of a
related complaint pending an Investigation by the agency, Che Commission
will give due weight to the agency's determination on the complaint. The
agency should inform EEOC of its prehearing determination on the complaint
within 10 days of making ltB finding.
6.	Complainant's Anonymity - Since joint complaints will be processed In
accordance with the Commission's established procedures for handling
charges under Title VII, it will normally be necessary to reveal the
Identity of thg	«-» t-Vp recipient. Any individual who wishes
to file a complaint with an agency and who requests anonymity should be
advised by the agency that It cannot protect the anonymity of individuals
filing complaints that must be transferred or referred to EEOC In accordance
with this directive. The potential "latent should also be advised that
Title VII and the EPA prohibit retaliation against persons who have filed
charges or complaints.! Xf, after such counseling, the potential complainant
insists on anonymity with respect to the complaint, he/she should be Informed
that a Title VII charge on the complainant's behalf or (if the allegations
involve the payment of unequal wages on the basis of sex for equal work)
a confidential complaint under the EPA may be filed directly with the
nearest office of the EEOC.
C. Processing of Referred Complaints
1.	Withdrawals - If an Individual who has filed a complaint requests that
processing of the complaint be discontinued, the EEOC will generally con-
sent to a withdrawal of a complaint unless the withdrawal would defeat the
purposes of Title VII or the Equal Pay Act* EEOC will contact the
referring agency prior to completing the processing of a request for
withdrawal. (The complainant will be asked to sign a statement that he/she
understand1* ***"*" »»•'<¦'the withdrawal of a complaint concludes the
processing by all concerned agencles. ^!^
2.	Commission Negotiated Settlements - The agency will not have a role In
settlement discussions prior to a determination on the merits of the
complaint* If the parties enter Into a negotiated settlement prior to a
determination, the Commission will notify the referring agency that the
complaint has been settled. A provision in the agreement will state that
the agency shall take no further action on the complaint of employment
discrimination thereafter, except that the agency may take the existence
of the complaint into account in scheduling the recipient for a review
under the agency's regulations.
3.	Dismissals - If the Title VII and/or EPA allegations of a joint
complaint are dismissed, EEOC will issue a notification of right to
sue under Title VII to the complainant and will send copies of the file
and relevant documents to the referring agency by certified mall.
Upon receiving the file, the agency will make a determination
within 30 days as to the effect the dismissal has on the complainant's
rights under the relevant civil rights provisions) enforced by the
agency. Dismissals of Joint complaints by EEOC on the basis of lack of
jurisdiction under Title VII or the EPA, need not be given great weight
by Mie agency. The agency will, however, be required to give great
Appendix 23-C-6
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7
weight to dismissals by EEOC on the basis "that there Is not reasonable
cause to believe that the allegations of employment discrimination are
true* The agency will notify the complainant and recipient of Its deter-
mination. When the agency's determlnaMnp	not concur with that of
the EEOC. the agency shall explain the reason for nonconcurrence to the
Chairman of the EEOC and the Assistant Attorney General using the letter
at ExhjM.t -
4. EEOC Reasonable Cause Determinations and Conciliation Efforts -
If the investigation results in a reasonable cause determination on
the Title VII aspects of the complaint, the EEOC shall advise the complainant
and recipient, in writing, of that determination and provide advance
notice to the complainant and recipient to attend a conciliation confer*
ence in an attempt to resolve the complaint. The EEOC determination will not
include a determination on the relevant civil rights' provision^) of
agency. The referring agency will be informed of t^e conference if it
has requested to participate or if EEOC deems such participation relevant
to the disposition of the complaint. If EEOC requests agency particlpa-
tion in conciliation discussions, the agency shall designate a represen-
tative for this purpose. (Participation, when such is requested, will not
necessarily entail the presence of this representative at the conciliation
discussions.) A letter from EEOC to the agency representative will clearljt
state the role of the referring agency in the conciliation conference*
The referring agency should make an effort to concur with the EEOC's
scheduling of the conference.
If the	efforts to resolve the complaint through conciliation
fall, the EEOC will:
a.	Issue a notice of failure of conciliation letter to the recipient; and
b.	Transmit to the referring agency a copy of the Commission's notice of
failure of conciliation letter; and
c.	If the recipient is not a government, governmental entity or political
subdivision, Issue a Notice of Right to Sue (Conciliation Failure)
nnHof Tfrio VTTf whpr«» appropriate, after a Commission determination as
tr> whpthor fh* rnmnisalon w!3,l bring suit ntirfgr	VII (and/or EPA);"
d.	If the recipient is a government, governmental entity or political
subdivision, refer th<» mat-mr to the Attorney General for a determination
as to whether the Department of Justice will bring suit under ntie VII and,"*"
where apfirppjclflfis fe%r	nr « Nntlro nf Right to~"Sue under Title' VII.
D. Agency Processing of Complaints Unresolved by EEOC - Upon EEOC's transmittal
of a reasonable cause determination and notice of failure of conciliation,
the referring agency will determine,-within thirty days, whether the reci-
pient has violated anv applicable civil rights provisions ) which the
agency has a responsibility to enforce.. The referring agency will give
due weight to EEOCTs determination that reasonable cause exists to believe
that_.there has been a violation of Title VII. Normally no additional inves-
tigation should be made by the agency.
Appendix 23-C-l"
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1.	Violation - If the referring agency determines that the recipient haa
violated any applicable civil rights provisions) which the agency has
a responsibility to enforce, the agency vill so notify the complainant and
the recipient In writing determine whether further efforts to obtain
voluntary corT1*""™ ar" warranted. Tti rgarMng rhaf Haton.1	the
referring agency will give due weight to the failure of EEOC's efforts to
resolve the complaint by Informal methods* If the referring agency determines
that further efforts to obtain voluntary compliance are not warranted or If
such further efforts fall, the agency will Initiate appropriate enforcement
proceedings under its own regulatlons or refer the case to the Civil Rlftfttfl
D1vis1on of the_Departttent of Justice for a determination as to whether *
judicial enforcement nrarffdines will be instituted.
2.	No Violation - If the referring agency determines that the recipient
has not violated any applicable civil rights provision(s) which the
agency has a responsibility to enforce, the agency shall notify the
complainant and the recipient. In addition, using the letter at Exhibit 8,
the agency shall notify the Assistant Attorney General and the Chairman
of the EEOC of the basis of that determination.
E.	Agency Standards for Investigations, Reviews and Hearings - In any inves-
tigation, compliance, review, hearing or other proceeding, agencies shall
consider Title VII case law and EEOC Guidelines 29 CFR, Parts 1604-1607,
unless inapplicable, in determining whether a recipient of Federal financial
assistance has engaged In an unlawful employment practice.
F.	Interagency Consultation
1.	Pattern or Practice Investigations - Before investigating whether the
employment practices of a recipient of Federal financial assistance
constitute a pattern or practice of unlawful employment discrimination or
initiating formal administrative enforcement procedures on that basis,
the representative or authorized official of the agency will, to the
extent practical, consul	rva
-------
9
Recipient Refusal to Provide Information - The EEOC will ordinarily
request the assistance of agencies In obtaining information where
the recipient refuses to provide data necessafy CO Che investigation*
A refusal to provide information to i£UUC snouia oe considered as a refusal
to provide information to the agency and the established agency procedures
for obtaining information subsequent to a recipient refusal should be
followed. If EEOC and the agency are unable to resolve the problems
with obtainf^Lng the information, EEOC will contact the Chief of the
Federal Enforcement Section, Civil Rights Division of the Department
of Justice*
I. Confldentlallty — When EEOC supplies information to an agency and the
Information is subject to the confidentiality requirements of Sections
706(b) and 709(e) of Title VII of the Civil Rights Act, as amended, the
agency 1* bound to observe the same confidentiality requirements as EEOC.
These requirements state that	n, rhar^e la filed by or on behalf
of a person claiming to be aggrieved, nothing said or done relating to
€Ke charge and Information obtained by EEOC in the course of investigating
the~"charge may be made public prior to initiation of a legal proceeding*
The penalty for violating the confidentiality requirement can result in a
fine of not more than $1,000 or imprisonment for not more than one year.
There are two exceptions to the confidentiality requirement: (1) when
the agency obtains the sa*"» ^nformar^n uMch it received from EEOC from
another source, and (2) when EEOC has obtained the Information, other
than by subpeona» in the course of Investigating a joint complaint and
the agency plana to use the information, in an. enforcement proceeding.
Agency questions concerning confidentiality should be directed to the
Office of Legal Counsel, EEOC*
5.	EFFECTIVE DATE: March 28, 1983
6.	INQUIRIES: Further information concerning this directive may be
obtained by contacting:
Special Services Staff
Office of Program Operations
Equal Employment Opportunity Commission
2401 B Street, N.W»
Washington, D.C. 20506
(202) 634-6806
Win. Bradford Reynolds
Assistant Attorney General
Civil Rights Division
Department of Justice
Clarence Thomas
Chairman, Equal Employment
Opportunity Commission
(Date)
(Date)
Appendix 23-C-9
-------
10
(NOTICE TO COMPLAINANT AND RECIPIENT)
Recipient:
Agency Complaint No.:
Date Received:
Dear Mr* Smith:
This agency Is in receipt of thte above-referenced complaint filed against
[Recipient's Name]	alleging an [Onlawful employment practice and/or
discrimination]	on the basis of	. [State place and
circumstances, date of alleged unlawful practice or attach copy of complaint.]
We are reviewing the complaint to determine whether it will be investigated
by this agency or the Equal Employment Opportunity Commission (EEOC).
The EEOC has Jurisdiction over complaints received by this agency whlch_
allege discrimination In employment. If the complaint Is sent to EEOC
for investigation, it will be deemed a charge received by EEOC on the
same date as it was received by this agency unless it was received earlier
by EEOC.)
A determination will be made as to which organization will process this
complaint within thirty (30) days of the date the complaint was received,
and you will be notified of this decision by letter. If you have any
questions, please contact me at (telephone number)	.
Sincerely yours,
Name and Title of Representative
Referring Agency
Exhibit 1
Appendix 23-C-10
-------
11
(AGENCY LETTER TO EEOC TRANSFERRING COMPLAINT)
Joe Green, Director
Equal Employment Opportunity Commission
(City)	 Office
1111 Any Street
City, State	Zip
Recipient:
Complainant:
Agency Complaint No*
Date Received:
Dear Mr. Green:
Enclosed Is the above-referenced complaint, transferred for your processing.
We have determined that our agency does not have Jurisdiction over the
complaint, but that EEOC may have jurisdiction*
Ve are notifying the complainant and respondent of this transfer and the
reason for the transfer. The parties have been informed that the date
of receipt by the agency shown above will be deemed the receipt date
under Title VII and/or the Equal Pay Act unless an earlier charge was
received by EEOC.
This transfer and the above notice to the parties concludes this agency's
consideration of this complaint*
Sincerely yours,
Name and Title of Representative
Referring Agency
Attachment: Complaint
Related documents
Notice to Parties
Exhibit 2
Appendix 23-C-ll
-------
12
(AGENCY LETTER TO COMPLAINANT AND RECIPIENT OF COMPLAINT TRANSFER TO EEOC)
(Address to
Complainant and
Respondent)
Complainant:
Agency Complaint No.:
Date Received:
Dear [Complainant/Recipient]:
The purpose of this letter Is to advise yon Chat the above-referenced complaint
has been transferred to the Equal Employment Opportunity Commission (EEOC)
[city] Office,	[address of EEOC Office]	~
Ve are transferring the complaint because we have determined that this
agency does not have jurisdiction over the complaint, but that EEOC nay
have Jurisdiction.
The date the complaint was received by this agency will also be deemed
the date it was received by EEOC unless a charge was received earlier
by EEOC. A representative of the EEOC will contact you concerning the
processing of this complaint.
Sincerely yours,
Name and Title/ Representative
Referring Agency
Exhibit 3
Appendix 23-C-12
-------
13
(AGENCY COMPLAINT REFERRAL LETTER TO EEOC)
Joe Green, Director
Equal Employment Opportunity Commission
City	District Office
City, State Zip
Complainant:
Agency Complaint No.:
Date Received:
Dear Mr. Green:
Transmitted herewith is the above-referenced complaint, which we are
referring to your office for processing, pursuant to the Procedures for
Complaints of Employment Discrimination Filed Against Recipients of
Federal Financial Assistance, 28 CFR 42.601 et. seq.; and 29 CFR 1691.
Agency has [may have] jurisdiction over the complaint under
[Statute or Regulation] . (Attach copy of the applicable statute or
regulations if jurisdiction not under Title VI, Title IX or the revenue
sharing act.)
1. If the agency has jurisdiction under Title_VI; (Check, if appropriate*)
f~] A primary objective of the Federal financial assistance to the
organization named in the complaint is to provide employment.
2. If the agency requests EEOC to conduct a factual investigation relating
to the Agency's jurisdiction: (Check the following, as appropriate.)
n a. We request further information on whefcher the complaint
arises under a program or activity which receives Federal
financial assistance. (Attach list of questions if standard
interrogatories should not be used.)
n b. We request further information as to whether the alleged
employment discrimination affects intended"benficiaries of
Federal financial assistance. (Attach list of questions as
in a.)
Exhibit A
Appendix 23-C-13
-------
14
3. If EEOC has received a similar complaint and agency requests deferral
of EEOC'b Investigation: (Ch-jck. one of the following as appropriate.)
rj We understand that EEOC has received a similar charge. Ve request
that you defer investigation of this charge because
[Rive special circumstances]
n Ve understand that EEOC has received a similar charge. We request
that you defer investigation of this charge because it Is a part of
a complaint received by this agency alleging employment discrimina-
tion and discrimination in other areas within our jurisdiction.
4. If the agency requests notice of any conciliation negotiations: (Check,
if appropriate.)
/ / This agency requests that it receive advance notice of any conciliation
negotiations conducted by EEOC.
If you have questions concerning this complaint referrral, please call ne
at 	 .
Sincerely,
"" ' ' ~~ 1 - . t,
Name and Title of Representative
Referring Agency
Enclosures: Complaint
Notlce(s) to Parties
Related Documents
Exhibit 4 (Continued)
Appendix 2 3-C- J.4
-------
15
,AGENCY LETTER TO COMPLAINANT AND RESPONDENT OF COMPLAINT REFERRAL TO EEOC)
(Address to
Complainant
and Respondent)
Complainant:
Agency Complaint No*:
EEOC Charge No*:
Date Received:
Dear IComplainant/Recipient]:
The above-referenced complaint has been referred to the Equal Employment
Opportunity Commission (EEOC) [city] Office, 	[address of EEOC
office] for investigation and conciliation (where appropriate) pursuant
to 29 C.F.R., Part 1691.
EEOC, acting under its own authority and the delegated authority of this
agency under [State authority-Title VI, IX, revenue sharing act or other],
will conduct an investigation of the allegations of employment discrimination*
This agency may, therefore, use information obtained by EEOC under the
agency's investigative authority in a subsequent proceeding under the afore-
mentioned authority. The date this agency received the complaint shall
be deemed the date the complaint is received under Title VII and the
Equal Pay Act unless an earlier charge was received by EEOC*
If EEOC is unable to settle or conciliate this complaint/charge, this agency
will review the Commission's findings/determination and make its own deter-
mination on the basis of the statutes it administers and the facts of the
case.
A representative of the EEOC will .contact you concerning the processing
of this complaint*
Sincerely yours,
Name and Title of Representative
Exhibit 5
Appendix 23-C-15
-------
16
(NOTICE TO COMPLAINANT AND RECIPIENT
AGENCY DECISION TO INVESTIGATE REFERRED COMPLAINT)
(Address to Complainant and Recipient)
Agency Complaint No.
Date Received:
Dear [Complainant/Recipient]:
Our Initial review of the above referenced complaint shows that:
[J A related complaint has been filed with EEOC. (Specify EEOC
charge number.)
n A related complaint has not been filed with EEOC. In accor-
dance with the Procedures for Complaints of Employment Discrim-
ination Filed Against Recipients of Federal Financial Assistance,
29 CFR 42.601 et seq.; 29 CFR 1691, ve have refered this com-
plaint to the EEOC in order to assure the complainant's rights
under Title VII. The date the complaint was received by
this agency will be deemed the date EEOC received the Title
VII charge.
In order to reduce duplicative efforts, this agency will investigate the com-
plaint and EEOC will defer its consideration of the related complaint until
this agency concludes Its investigation. EEOC will give due weight to
this agency's findings/determination under the statutes It enforces. You
will be contacted concerning the processing of your complaint by this
office.
If you have any questions, please call me at	.
Sincerely,
Name and Title of Representative
Funding Agency
Exhibit 6
Appendix 23-C-16
-------
17
(NOTICE TO COMPLAINANT AND RECIPIENT - AGENCY TO INVESTIGATE
COMPLAINT NOT REFERRED TO EEOC)
(Addres8 to Complainant and Recipient)
Agency Complaint No.:
Date Received:
Dear [Complainant/Recipient)	:
This Is to notify you of this agency's determination that it (and not
EEOC) will investigate the above referenced complaint*
If you have any questions, you may call me at	•
Sincerely,
Name and Title of Agency
Representative
Exhibit 7
Appendix 23-C-17
-------
16
(NOTICE TO EEOC AND DEPARTMENT OF JUSTICE OF RO VIOLATION DETERMINATION ON A
JOINT COMPLAINT)
(Address to Assistant Attorney General,
Department of Justice and Chairman,
Equal Employment Opportunity Commission)
EEOC Charge No.:
Agency Complaint No.:
Complainant:
Respondent/Recipient:
Dear	:
This Is to notify you that our determination of the above-referenced
complaint differs from EEOC'a determination. Attached for your refer-
ence are copies of the respective determinations.
The reason that this agency's determination differs from EEOC'a determina-
tion Is as follows:	.	
Sincerely,
(Name and title)
Agency Representative)
Exhibit B
Appendix 23-C-18
-------
19
(NOTICE TO EEOC AND DEPARTMENT OF JUSTICE ON COMMENCEMENT OP PATTERN OR
PRACTICE INVESTIGATION)
(Address to Assistant Attorney General,
Department of Justice and Chalraan,
Equal Eaployoent Opportunity Coaalssloo
or designees)
EEOC Charge No.:
Agency Coaplalnt No.:
Complainant:
Respondent:
Dear	t
This Is to notify you of this agency** Intent to cooaence a pattern or
practice investigation of the caployaent practices of the above refer-
enced respondent*
Ve are undertaking this action becsuse
If you have any questions concerning this aatter, please call »e at
Sincerely,
(Name and title)
Agency Representative
Kshiblt 9
Appendix 23-C-19
-------
APPENDIX A
A-l
Federal Financial Assistance Statutea Prohibiting Dlecrlalnation on the
Basle of Race, Color, tellgion, las or Rational Origin 1/
Agricultural College Act
1890, 7 U.S.C.
11321-326, 1323, ai
amended by P.L. 96-88
(1979)
Pood Stamp Act of 1964
7 U.S.C. 112011-2016,
12020, aa amended by
P.L. 95-113 (1977) 4
P.l. 96-249 (1980)
National Routing Act of
1934, 12 U.S.C.
fS1701 - 1750JJ,
fl735f-5, as aaended by
P.L. 93-383 (1974)
National Consuaer
Cooperative Bank Act
of 1978, 12 U.S.C.
IS3001 - 3050,
13015, P.L. 95-351 (1978)
Federal Energy
Administration Act of
1974, 15 U.S.C. 11761 - 786,
1775, P.L. 93-275 (1974)
Full Employment and
Balanced Crovth Act of
1978, 15 U.S.C.
113101-3152, 13151,
P.L. 95-523, (1978)
Youth Conservation Corps
Act of 1970, 16 U.S.C.
111701-1706, 11704, aa
aaended by P.L* §3*408
(1974) 4 P.L. 92-579 (1972)
Higher Education Act of
1965, 20 U.S.C. 111001-
1150, Il087-2(e) 4 11142,
aa amended by P.L. 94-482
(1976), and renumbered by
P.L. 96-374 (1980)
Education Aaendments of
1972, 20 U.S.C. 111601-
1686, 111681-1686, P.L.
92-318 (1972), as aaended
by P.L. 93-568 (1974), and
amended by P.L. 94-482
(1976)2/
Drug Abuse Prevention
Treataent 4 Kehabllltatlon
Act of 1976, 21 U.S.C.
111101-1194, 11174,
P.L. 94-237 (1976)
Foreign Aaalatance Act
of 1961, 22 U.S.C. 112151-
2429, 12314(g), as aaended
by P.L. 94-329 1302(a)
(1976) and returned Inter-
national Security Assistance
and Ares Export Control Act
of 1976.
yAgency coordinators are requested to consent eo the appropriateneas of
adding or withdrawing provisions from this list.
2/ Agencies which the Departaent of Justice has deteralned to have Title
IX responsibility Include: ACTION; Departaent of Agriculture; Agency for
International Developaent; Civil Aeronautics Board; Departaent of Conserce;
Departaent of Defense; Departaent of Education; Environmental Protection
Agcney; Ceneral Services Adalnlatratlon; Departaent of Health and Hunan
Services; Departaent of the Interior; International Communication Agency;
Office of Justice Assistance, tesearch and Statlatlca, Departaent of
Justice; Departaent of Labor; National Aeronautlca and Space Adalnlatratlon;
National Endowaent for the Arte; National Endowment for the Huaanltlss;
National Science Foundation; Nuclear Regulatory Comnlealon; Office of
Personnel Management; Small Business Administration; Departaent of State;
Departaent of Tranaportatlon; Veterans Administration.
Appendix 23-C-20
-------
APPENDIX A (CONTINUED)
A-2
Federal*Ald Highway Act
ef 1963, 23 U.S.C. 11101-
156, 1140, as amended by
P.L. 90-495 (1966), P.L.
91-605 (1970) & P.L.
94-250 (1976)
federal-Aid Highway Act
ef 1958, 23 U.S.C.
11301-324, 1324, at
aoended by P.L. 93-87
(1973)
Youth Employment and
Demonstration Projects Act
of 1977, 29 U.S.C. 998
Job Training Fartnerahlp
Act ef 1982, S167, P.L.
97-300 (1982) (to be
codified at 29 U.S.C.
SS1501-1781, 1577)
Surface Mining Control
and Reclamation Act of
1977, 30 U.S.C. 151201-
1328, 1242(a), aa amended
by P.L. 94-488 (1976)
State and Local Flacal
Assistance Act of 1972,
31 U.S.C. ($1221-1264,
11242(a), as amended by
P.L. 94-48B (1976)
Federal Vater Pollution
Control Act of 1948,
93 U.S.C. 111251-2376,
11251 note, as amended by
P.L. 92-500 113 (1972)
Amateur Sports Act ef
1978, 36 U.S.C. 11371-396,
1391(b), P.L. 95-606 (1978)
Appalachian Kegional
Development Act ef 1965,
40 U.S.C. App. IS 1-405,
1223 note, aa amended by
P.L. 92-65 (1971)
Federal Property and
Administrative Services
Act of 1946, 40 U.S.C.
11471-535, 1476, as
•mended by P.L. 94-519
(1976)
Public Health Service Act
of 1944, 42 U.S.C. !201-300x,
I292d, as amended by
P.L. 93-348 (1971), and
renumbered by P.L. 94-484
(1976)
!298b-2, as added by ?.L.
92-158	(1971)
f300a-7(a) to 7(d), P.L.
93-45	(1973), P.L. 93-348
(197.4), as amended by
P.L. 96-76 (1979)
Appendix 23-C-21
-------
APPENDIX A (CONTINUED)
Preventive Health and
Health Services Ilock
Crant, 42 U.S.C. §f300v
to 300v-8, l300v-7(
P.L. 97-35.
Alcohol ft Dnig Abuse 4
Mental Health Services
42 D.S.C. 11300* to
300x-9, !300*-9,
P.L. 97-35.
Prlnary Care Block Crant
42 U.S.C. «»300y to 300y-ll,
»300y-9, P.L. 97-35.
Maternal and Child Health
Service* Block Crant Act
of 1981, 42 U.S.C., 11701-
709, 1708, as aaended by
P.L. 97-35, 1708, 12191
(1981)
Civil Rights Act of 1964,
42 U.S.C. 112000a to
2000h-6, !2000d, P.L.
68-352 (1964)3/
Coaprehensive Older
Aaerlcans Act, 42 U.S.C.
IS3001-3045, 13027, as
anended by P.L. 95-478
(1978)
Public Vorks and Economic
Developaent Aet of 1965,
42 D.S.C. 1131210246b,
13123, as aaended by P.L.
•2-65 (1971)
Coaprehensive Alcohol
Abuse 4 Alcohollsa
Prevention, Treataent ft
Rehabilitation Aet of 1970,
42 U.S.C. 114541-4593,
14581, aa aaended by P.L.
94-371 (1976) ft P.L. 94-
561 (1976)
Xntargovernaental Personnel
Act of 1970, 42 U.S.C.
114701-4772, 14728(b), as
aaended by P.L. 95-454
(1976)
Doaestlc Volunteer Services
Act of 1973, 42 U.S.C.
II 4951-5085, 15057, P.L.
93-113 (1973), as aaended
by P.L. 96-143 (1979)
Disaster Relief Act of 1974,
42 U.S.C. 115121-5202, 15151,
P.L. 93-288 (1974)
V Federal agencies with Title VI responsibility Include: ACTION; Depart-
ment of Agriculture; Agency (or International Developaent; Civil Aeronautics
Board; Departaent of Coaaerce; Departaent of Defense; Departaent of
Education; Envlronaental Protection Agency; Departaent of Energy; Pederal
Eaergency Manageaent AGency; General Services Adnlnlstratlon; Departaent
of Health and Huaan Services; Depsrtaent of Housing and Urban Developaent;
Departaent of the Interior; International Coonunlcatlon Agency; Departaent
•f Justice; Office of Justice Assistance, Research and Statistics (Depsrt-
aent of Justice); Departaent of Labor; National Aeronautics and Space
Administration; Rational Endovaent for the Arts, National Endowment for
the Humanities; National Science Foundation; Nuclear Regulatory Cooalsslon;
Office of Personnel Manageaent; Saall Business Administration; Departaent
of State; Departaent of Transportation; Departaent of Treasury; Tennessee
Valley Authority; Veterans Adalnlstratlon.
Appendix 23-C-22
-------
APPENDIX A (CONTINUED)
Housing and Commit?
Developnent Act of 1974,
42 U.S.C. 115301-5317,
15309, P.L. 93-383 (1974),
as attended by P.I. 97-33
(1981)
Energy Reorganisation Act
Of 1974, 42 U.S.C. 115801-
5891, 15891, P.L. 93-438
(1974)
Konmiclear Energy Research and
Developnent Act of 1974,
42 U.S.C. Il3903c-3920,
*5919 (v), P.L. 93-577 (1974),
as added by P.L. 95-238 (1978),
and anended by P.L. 96-470
(1980)
Public Works Employment
Act of 1976, 42 U.S.C.
f16701-6735, 16727, as
anended by P.L. 95-30
(1977)
Energy Conservation and
Production Act of 1976,
42 U.S.C. 116801-6892,
96870, P.L. 94-385 (1976),
as attended by P.L. 96-294
(1980)
Bom Energy Assistance
Act of 1980, 42 U.S.C.
118601-8629, 18625, as
aoended by P.L. 97-35
12606 (1981)
Cooounlty Econonlc
Developnent Act of
1981, 42 U.S.C. 119801-
9822, 19821, P.L. 97-35 1677
(1981)
lead Start Act of 1981,
42 U.S.C. 119831-9852,
19849, P.L. 97-35 1654
(1981)
Conunity Services Block
Crant Act of 1981, 42
U.S.C. 919901-9912,
19906, P.L. 97-35
1632 (1981)
Federal Land Policy and Hanagesent
Act of 1976, 43 U.S.C. 911701-1783,
11747 (10), as attended by P.L.
95-352 (1978)
Railroad Revitallsatlon and
Regulatory Refora Act of 1976,
45 U.S.C. 11801-855, 1803, P.L.
94-210 (1976)
Public Broadcasting
Financing Act of 1962,
47 U.S.C. 9S390-399,
81392(f) t 398(b), as
attended by P.L. 95-567
(1978)
Conveyance of Subserged
Lands to Territories Act
of 1974, 48 U.S.C.
111701-1708, 11708, P.L.
93-435	(1974)
Urban Mass Transportation
Act Of 1964, 49 U.S.C.
1(1601-1628, 91615, as
•¦ended by P.L. 95-599
(1978)
Airport and Airway
Developaent Act of 1970,
49 U.S.C. 111701-1743,
11730, a> eaended by P.L.
94-353	(1976)
Appendix 23-C-23
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Atlanta District Office
Citizens Trust Building, 10th Fl.
"»5 Fiedrcnt Avenue, N.E
Atlanta, Georgia 30335
(404) 212*6091/175 242-6091
APPENDIX B	. B-3^
Indianapolis District Office
Federal Bldg., Room 1101
46 Bast Ohio Street, Rocm 456
Indianapolis, Indiana 46204
(317) 269-7212/FXS 331-7212
Baltimore District Office
Rotunda Bldg., Suite 210
711 West 40th Street
Baltinore, Maryland 21211
(301) 922-4070/FIS 922-0896
Los Angeles District Office
3255 Wilshire Blvd., 9th Fl.
Los Angeles, California 90010
(213) 688-3400/ttS 796-3400
Birmingham District Office
2121 Eight Avenue, North
Birmingham, Alabama 35203
(205) 254-1166/FTS 22*-1166
Menphis District Office
1407 Onicn Avenue, Suite 502
Menphis, Tennessee 38104
(901) 521-2617/RS 222-2617
Charlotte District Office
1301 E. More head Street
(cor/It enilvorth)
Charlotte, North Carolina 28204
(704) 371-6437/ITS 672-6455
Chicago District Office
Federal Building, Roan 234
536 South Clark Street
Chicago, Illinois €0605
(?12i 35?-S713/ns 353-2713
Miami District Office
DuPont Piazza Center, Suite 414
300 Biscayne Blvd. Way
Miami, Florida 33131
(305) 350-4491/lTS 350-4491
b"f D -
If C	v
Milwaukee District Office
342 North Water Street, Roam 61?
MilwauJoee, Wisconsin 53202
(414) 291-1111/ns 362-1111
Cleveland District Office
Engineers' Bldg., Roan 402
1365 Ontario Street
Cleveland, Ohio 44114
(216) 522-7425/FZS 293-7425
New Orleans District Office
F. Edward Hebert Federal Building
600 South Street
New Orleans, Louisiana 70130
(504) 589-3842/FXS 662-3842
Dallas District Office
1900 Pacific Avenue Bldg.
Dallas, Texas 75201
(214) 767-4607/FTS 729-4607
New York District Office
90 Church Street, Room 130
New York, New York 10007
(212) 264-7161/FTS 264-7161
Appendix 23-C-24
-------
APPENDIX B
DISTRICT OFFICE JURISDICTIONS
AHAN3A SO
¦U,TIK*E 00
BIRMXNOAM DO
OftRLOTOE DO
CH2AC30 DO
CLEVELAND DO
DALLAS DO
DENVER DO
DLTHUIT DO
BOUSTON DO
2NDIM9JOLIS DO
CBON&TI DO
LOS ANGELES DO
ICMPHIS DO
KAMI DO
KIUftlXEE DO
MEW ORLEANS SO
States of Georgia, South Carolina
States of Maryland, Virginia
District of Oolunbia
States of Alabma and
Tennessee
State of North Carolina
State of Illinois except
Illinois Counties in St.
Louis jurisdiction
State of Ohio
State of Texas except counties
in Rous ten jurisdiction, State
of Oklahoma
States of Colorado, Montana,
North Datota, South Dakota,
Nebraska and ttyaning
State of Michigan
Counties of Southern Texas
State of Indiana
State of Ohio
Counties of Southern
California, Nevada
States of Tennessee,
Mississippi, Kentucky
State of Florida
States of Wisconsin,
Minnesota and Iowa
States of Louisiana
and Artansas
Appendix 23-C-25
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JUTENDXX B	. B-2,
DISTRICT 0FT1CE JURISDICTIONS (continued)
MEW YOK DO
PHnADELMIA DO
PHDENIX DO
ST. LOUIS DO
SW FFANC25CD DO
SEATTLE DO
States of New York
Western New Jersey, New
Bigland States, Puerto
Rico, D.S. Virgin Islands
States of Pennsylvania,
Delaware, and Eastern
New Jersey
States of Arizona,
Utah and New Mexico
Counties of Southwestern
Illinois, States of
Missouri and Kansas
Northern California,
State of Hawaii,
S&too, Guam-and
Wate Island
States of Alaska, Idaho,
Oregon and Washington
Appendix 23-C-26
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APPZKDXX C
v-1
DRAFT
2/9/83
Z. Employer
for the Department or agency or other oroployer alleged to
have engaged in discriminatory employment act(s) or prac-
tice (s), ascertaint
A.	The name and function of -the department or
agency, its location or locations, and the nfcmber of its
employees, by race, sex and national origin by EEO-1, et seg..
category, preferably in the form of EEO-4, 5 or 6 reports.
B.	The name, function and location of the division
or unit within the agency or department in which the dis-
criminatory act(s) or practice(s) occurred; together with the
number of employees, by.race, sex and national origin and by
EEO-1, et seg. category.
C.	Zf the complaint alleges that any discriminatory
act or practice occurred in r* department or ageney ether than
the direct employer (such as a civil service, personnel or
merit system commission or agency), the name, function and
location of the other department or agency; together with the
number of its employees, by race, sex and national origin and
by EEO-1, et seg.. category.
ZZ. Federal financial Assistance
The following questions pertain to each type or
category of Federal financial assistance received by the
Department, agency or other employer, and for other departments
or agencies described in Z C above, currently and for each of
the last five years.
A. Please describe the statutory basis under which
the assistance was rendered, the Federal fund granting agency
through which it was provided, and the date and number of any
grant or cooperation agreement.
-Appendix 23-C-27
-------
APPEfDIX C	q^2
Mi Please set forth the amount of Federal financial
assistance received in each type or category of Federal
financial assistance for each year.
C.	Zf the Federal financial assistance vas received
Indirectly, please describe the name and location of each
department, agency or person(s) which received the funds or
other assistance prior to .the employer. Zf the assistance is
received from many persons (i.e., students), a description of
the class of persons is sufficient.
D.	For what purpose (s) vas the Federal financial.-
assistance used? Was the iassistance separately accounted for
or was it mingled with other funds? Zf it was mingled with
other funds, for what purpose(s) was those mingled funds used?
ZXI. Title VI of the Civil Rights Act of 1964
The questions below are for allegations of discrimination
based on face (including • color), or national origin in em-
ployment in violation of. Title VI of the Civil Rights Act,
where the primary purpose of the federal funds is not to
provide employment.
A.	Do the duties of the position(s) involved in the
alleged discriminatory conduct include contact with the
public in the .provision of services [i.e., doctors,
nurses, dentists, teachers, teachers aides, social work-
ers, etc.]?
B.	Zf so, set forth the nature of the contact; the
number of persons holding each of such positions with the
employer, by race and national origin and location; the
composition by race and national origin of the population
eligible for federally-assisted service administered by
the employer, and the population actually served.
Appfihdix 23-C-28
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Appendix 23-D
Friday
April 29, 1983
Part III
Department of Labor
Employment Standards Administration,
Wage and Hour Division
Office of the Secretary
Labor Standards Provisions Applicable to
Contracts Covering Federally Financed
and Assisted Construction (Also Labor
Standards Provisions Applicable to
Nonconstruction Contracts Subject to the
Contract Work Hours and Safety
Standards Act)
Appendix 23-D-l
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Federal Register / Vol. 48, No. B4 / Friday. April 29. 1983 / Rules and Regulatiom 19541
Section S.13 ii amended lo include in
paragraph (d)(4) (he variation from the
overtime requirement* of the Contract
Work Hour* and Safety Standards Act
for plloti and copilots of fixed-wing and
rotary-wing aircraft employed on
contracti for fire fighting or luppresiion
and related lervicei. which wai
published as a final rule in the Federal
Register of July 2.1982 (47 FR 28916).
Mthor editorial changes and
necessary typographical corrections
have ajgo been made in the following
sectioris- Table of Contents at 5 5.11. §§
S.l(a); 5.2(h); 5.2||): 5.2(n); 5.5(a)(4).
5.7(d); 5.8(b); 5.11: and 5.12(d)(4).
The document being published today
is not a major rule since it is simply a
republication and implementation of
provisions previously published. A full
Final Regulatory Impact end Regulatory
Flexibility Analysis was prepared in
connection with the May 28.1982
publication of the regulations and a
summary was published therein. See 47
FR 23681 Because of the Court
injunction, the alternatives selected
cannot be fully implemented et this
time.
As discussed above, this document is
only a republication and implementation
of regulations previously published for
notice and comment to the extent
implementation is permitted by the
court's iniunction Other changes are
only editorial in nature. Accordingly,
additional notice and comment is
impracticable, unnecessary and contrary
to the public interest.
In accordance with the Paperwork
Reduction Act of 1980 (44 U S C. 3501 et
seq). the reporting and recordkeeping
provisions included in this rule were
submitted for approval to the Office of
Management and Budget (OMB).
Subsequent to the May 28 publication of
this rule, the information collection
requirements contained in this
regulation (see SS 5 5(a)|1 J(n),
5.5(a)(l)(iv). 5.5(a)(3)[i), 5 5(
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19540
Federal Register / Vol. 48, No. M / Friday. April 2B. 1083 / Rules and Regulations
DEPARTMENT Of LABOR
Employment Standards
Administration, Wage and Hour
Division
Office of the Secretary
29 CFR Part S
Labor Standard* Provisions Applicable
to Contracts Covering Federally
Financed pnd Assisted Construction
(Also Latfor Standards Provisions
Applicable to Nonconstruction
Contracts Subject to the Contract
Work Hours and Safety Standards Act)
|NOTE This reprint incorporates
editorial corrections that are published
in the Federal Register of Friday.
May 6.1983)
AGENCY: Wage and Hour Division.
Employment Standards Administration.
Labor.
ACTION: Implementation of final rule
summary: This document provides for
implementation of regulations. 29 CFR
Part 5. Subpart A, previously published
in the Federal Register on May 28.1982
(47 FR 23658), on labor standards
applicable to contracts for federally
financed and assisted construction
subject to the Davis-Bacon and Related
Acts and contracts subject to the
Contract Work Hours and Safety
Standards Act (CWHSSA). to the extent
that its implementation is permitted by
the permanent injunction issued by the
U.S. District Court for the District of
Columbia on December 23.1982. The
enjoined provisions of the May 1982
final rule continue to be deferred
DATES: Effective date June 28.1983 See
SUPPLEMENT ANY INFORMATION below for
dates of applicability.
FOR FURTHER INFORMATION CONTACT:
William M Otter, Administrator. Wage
and Hour Division. Employment
Standards Administration, U.S.
Department of Labor, Room S-3502,200
Constitution Avenue, NW. Washington.
D C. 20210. Telephone 202-523-8305
SUPPLEMENTARY INFORMATION: On
August 14.1981. a proposal was
published in the Federal Register (48 FR
41456) to make revisions to Subpart A of
Regulations. 29 CFR Part 5. Labor
Standards Provisions Applicable to
Contracts Covering Federally Financed
and Assisted Construction (Also Labor
Standards Provisions Applicable to
Nonconstruction Contracts Subject to
the Contract Work Hours and Safety
Standards Act), allowing 60 days for
public comment
On May 28.1982. the regulation was
published in the Federal Register (47 FR
23658) as a final rule with a scheduled
effective date of july 27.1982 However.
on June 11.1982. a suit was filed against
the Department of Labor in U.S. District
Court for the District of Columbia
seeking to prevent the implementation
of the revised regulations On)uly22.
1982. the Court issued a preliminary
injunction enjoining the Department
from implementing certain provisions of
the revised regulations pending final
disposition of the suit (Building and
Construction Trades Department. AFL-
CIO. et al. v. Raymond/. Donovan, et
at.. 543 F. Supp. 1282). The Department
published a notice in the Federal
Register on july 26.1982 (47 FR 32070).
deferring the implementation of this
regulation in its entirety until further
notice
On December 23.1982, the Court
issued a permanent injunction which, as
modified by its order of January 17.1683,
enjoined gj 5.2(n)(4) (helpers).
5 5(a)(l](ii)(A) (helpers). 5 5(a)(4)(iv)
(helpers). 5 5(a)(3)(u) (Copeland Act
requirements), and 5 6(a) (2) and (3)
(Copeland Act requirements) of this
regulation The Department has
appealed this ruling
The document published today
implements those provisions of the final
rule published in the Federal Register on
May 28.1982 (47 FR 23658) which have
not been enjoined by the court The
effective date of the enioined provisions
is deferred, by separate notice in today's
Federal Register, pending final
determination of the validity of those
provisions If the Department prevails
on appeal, the deferred provisions
(S5 5 2(n)(4), 5.5(a)(l)(ii)(A). 5 5(a)(3) (n)
and (in). 5 5[a)(4)(iv), and 5 6(a) (2) and
(3)) will then be implemented
As dpscribed more fully below, the
court order necessitated corresponding
deletions of sections or portions of
sections in the text of the regulations
now being implemented, in addition,
since the court enjoined the new rule's
elimination of the requirement for
weekly submission of certified payrolls,
that requirement from { 5 5(a)(3)(u) of
the previous regulations is incorporated
In the text To avoid confusion, the text
of the entire rule as implemented at this
time is set forth herein
The following is a description of the
changes made to the May 28.1982
regulations in order to comport with the
Court's decision and order, pending final
disposition of the appeal
Sections 5 2(n)(4) and 5 5(a)(4)(i v}—
Helpers
The enjoined definition of' helper" in
i 5 2(n)(4). as well as the conditions
governing the use of helpers contained
in enjoined } 5 5(a)(4)(iv) are deleted
from the text
Section 5.3(a)(J)(nJ(A}—Conformance
Procedures.
This section as enjoined provided that
helper rates could be conformed without
regard to the requirement applicable to
all other conformance actions that the
work to b$ performed by the conformed
class is not work performed by a class
already listed in the wage
determination. The separate treatment
of helpers in the conformance of wage
rates has been deleted from the text
Sections 3 5(a)l3j (u) cmd (in) and 5 6(a)
(2) and (3)—Submission of Wage
Payment Information
These sections would have eliminated
the requirement that contractors submit
weekly a copy of payrolls and instead
would have required only a weekly
submission certifying compliance with
the Davis-Bacon and Copeland Acts
The regulations would have required
contractors to submit payrolls upon
request of contracting agencies or the
Department of Labor, but such requests
would be made only in conjunction with
specific compliance checks or
enforcement actions. Because of the
injunction, the weekly payroll
submission requirement in the previous
regulation has been added to the text,
with language clarifying that copies of
regular payrolls containing all of the
required information (in any form
desired by the contractor) are sufficient
to satisfy the requirements Furthermore.
Optional Form WH-347 is available for
the purpose of reporting payroll
information if the contractor so chooses,
but it is not mandatory that this form be
used.
In addition to the textual changes
described above, the following
necessary changes have been made
The definition of "construction" in
I 5 2(j) is amended to delete the
reference to "initial construction"
contained in section 113 of Title 23.
U.S C., in order to comport with a
legislative amendment effective on
January 0,1983, as part of the Surface
Transportation Assistance Act of 1982.
Pub. L 97-424 (See also { 5 1(a) 12 )
An editorial change is made in the
text of the conformance procedures
contained in | S5(a)(l)(n) (B) and (C) to
clarify that the contracting officer must
concur with a proposed classification
and wage rate conformance action
before submitting the mailer to DOL for
review or else it will be considered a
dispute to be resolved by DOL and to
provide further that the contracting
officer will be notified of the Wage and
Hour Administrator's decision on all
proposed conformance actions
Appendix 23-D-3
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19542 Federal Register / Vol. 46. No. 64 / Friday, April 20, 1083 / Rulea and Regulation*
17. Stat* and Local Fiscal Assistance Act
of 1972 |kc 123(a)(6). 86 Stal 933.31 U.S C
1240(a)(0)).
IB Federal Water Pollution Control Act
(mc. 513 of sec Z 86 Stat 691. 33 U.S.C. 1372)
IB Veteran* Nursing Home Care Act of
1964	(78 Stat. 502. ai amended. 38 U.S C
5035(a)(8)).
20	Poatal Reorganization Act (tec
410(b)(4)(C). 84 Slat 726 at amended. 39
U.SC 410(b)(4)(C)).
21	National Visitor* Center Facilities Act
of I960 (sec.110. 32 Stat 45. 40 U.S C. 808).
22	Appalachian Regional Development Act
of 1965 (*&. 402.79 Stat 21. 40 U S.C. App
402).
23. Health Service* Retearch. Health
Staliitlc*. and Medical Ubrarfts Act of 1974
(*ec 107, tee sec 308(h)(2) thereof. 86 Stat.
37a •* amended by BO Stal 378.42 U.S.C
242m(h)(2))
24 Hospital Survey and Construction Act.
a* amended by the Hospital and Medical
Facilities Amendments of 1984 (sec. 605(a)(5),
78 Stat. 453. 42 U S C. 29Ie(a)(5|)
25. Health Professions Educational
Assistance Act (sec. 303(b). SO Stat 2254.42
U S.C 293a(g)(1)(C): alio tec. 308a. BO Stat
2258.42 U.S.C 293a(c)(7))
28. Nurae Training Act of 1964 (sec.
941(a)(1)(C). 89 Stat 384. 42 U S C 296a(b)(5))
27. Heart Disease. Cancer, and Stroke
Amendments of 1985 (sec 904. as added by
sec. 2. 79 Stat. 928. 42 U S C 299d(b](4)).
28	Safe Drinking Water Act (sec 2(a) see
sec 1450e thereof. 88 Stal 1691,42 U S C
300)-9(e)).
29	National Health Planning and
Resources Act (sec 4, see sec 1604(b)(1)(H).
08 Slat. 2261.42 U.S C 300o-3(b)(1)(HJ)
30	U S Housing Act of 1937. as amended
and recodified (88 Stat 687. 42 U S C. 1437j)
31	Demonstration Cities and Metropolitan
Development Act of 1966 (sees 110.311.503,
1003. 60 Stat 1259.1270,1277.1284. 42 U S C
3310:12 U.S C. 1715c. 42 U S C 1437|)
32	Slum clearance program Housing Act of
1949 (sec 109. 83 Stat 419. as amended. 42
USC 1459)
33	Farm jiousing Housing Act of 1964
(adds sec 516(0 ,0 Housing Act of 1949 by
sec 503.78 Slat 797.42 U.S C 1486(0)
94 Housing Act of 1961 (sec 707. added by
•ec 907.79 Stat 496. aa amended, 42 U S C
1500c-3)
35. Defenie Housing and Community
Facilitie* and Services Act of 1951 (sec 310.
65 Stat 307. 42 U S C. 1592i)
36 Special Health Revenue Sharing Act of
1B75 (sec. 303, see tec 222(a)(5) thereof. B9
Stat 324,42 U.S C. 2689)(a](5))
97. Economic Opportunity Act of 1964 (*ec
807, 78 Stat. 532; 42 U S C 2947)
38.	Headstart. Economic Opportunity, and
Community Partnership Act of 1974 (sec 11.
see sec >11 thereof, 68 Stat. 2327.42 U S C.
2992a).
39.	Housing and Urban Development Act of
1965	(see 707, 79 Stat 492 as amended. 42
U.S C- 3107).
40	Older Americans Act of 1965 (sec 502.
Pub L 89-73. as amended by sec 501. Pub L.
93-29. 87 Stat 50: 42 U S C. 3041a(a)(4))
41	Public Works and Economic
Development Act of 1965 (sec 712. 79 Stat.
675 ds amended. 42 U.S C 3222)
42	|uvanile Delinquency Prevention Act
(sec 1. 88 Slat. 538.42 U.S.C. 3884)
43	New Communities A.-t of 1968 (sec 410.
82 Stat 516.42 U.S C 9909).
44	Urban Growth and New Community
Development Act of 1970 (see 727(0. (4 Stat
1803.42 USC4529).
45. Domestic Volunteer Service Act of 1973
I sec 406.87 Stat. 410:42 U S C 5048)
46	Housing and Community Development
Acl of 1974 (sees 110.802(g). 88 Stat 849. 724.
42 U S C 5310.1440(g)).
47	Developmentally Disabled Assistance
and Bill of Rights Act (sec 126(4], 89 Stat 488.
42 U S C. 6042(4), title I. tec. Ill, 89 Stat. 491.
42 U S C 6063|b)(19)).
48	National Energy Conservation Policy
Act (sec 312. 92 Stat. 3254. 42 U.S C 0371|)
49	Public Works Employment Act of 1976
(sec 109.50 Stat 1001. 42 U.S C 8708. alto
tec 208.90 Stat 1008,42 U S C 8728).
50	Energy Conservation and Production
Acl (tec 451(h). 90 Stat 1168. 42 U.S.C.
8841(h))
51	Solid Waste Disposal Act (sec 2.90
Slat 2823. 42 U S C 6979)
52	Rail Passenger Service Act of 1970 (sec
405d. 84 Stal 1337. 45 USC 565(d))
53	Urban Mass Transportation Act of 1964
(sec 10. 78 Stat 307, renumbered sec. 13 by
88 Stat 715.49 USC 1609)
54	Highway Speed Ground Transportation
Study (sec. 6(b). 7B Stat. 693.49 U.S C.
1636|b))
55	Airport and Airway Development Act
of 1970 (sec 22(b). 84 Stat 231. 49 U S.C
1722(b))
58 Federal Civil Defense Act of 1950 (50
USC App.2281i).
57	National Capital Transportation Act of
1965 (sec 3(b)(4). 79 Stat 644.40 U S C
682(b)(4) Note.—Repealed December 9,1969.
and labor standards incorporated in sec 1-
1431 of the District of Columbia Code)
58	Model Secondary School for the Deaf
Act (sec 4.80 Stat 1027. Pub L 89-694. but
not in the United Slates Code)
59	Delaware River Basin Compact (sec
151 75 Slat 714. Pub L 87-328) (considered
a statute for purposes of the plan but not in
the United Slates Code)
60	Energy Security Act (see 175(c). Pub L
96-294. 94 Slat 611:42 U.S C 8701 note).
(b) Part 1 of this subtitle contain* the
Department'* procedural rules governing
requests for wage determinations and
the issuance and use of such wage
determinations under the Davis-Bacon
Act and its related statutes as listed in
that part
18.2 Definition*.
(a)	The term "Secretary" includes the
Secretary of Labor, the Deputy Under
Secretary for Employment Standards,
and their authorized representatives.
(b)	The term "Administrator" means
the Administrator of the Wage and Hour
Division or the authorized
representative as set forth in this part. In
the absence of the Wage-Hour
Administrator, the Deputy
Administrator of the Wage and Hour
Division, is designated to act for the
Administrator under this Part. Except as
otherwise provided in this Part, the
Assistant Administrator for Government
Contract Wage Standards i* the
authorized representative of the
Administrator In the administration of
the itatutes lilted in 15.1.
(c)	The term "Federal agency" means
the agency or Instrumentality of the
United State* which enter* into the
contract or provides assistance through
loan, grant, loan guarantee or insurance,
or otherwise, to the project subject to a
•tatute listed in ( 5.1.
(d)	The term "Agency Head" means
the principal official of the Federal
agency and includes those persons duly
authorized to act in the behalf of the
Agency Head.
(e)	The term "Contracting Officer"
means the individual, a duly appointed
successor, or authorized representative
who is designated and authorized to
enter into contracts on behalf of the
Federal agency.
(f)	The term "labor standards" as used
In this part means the requirements of
the Davis-Bacon Act, the Contract Work
Hours and Safety Standards Act (other
than those relating to safety and health),
the Copeland Act. and the prevailing
wage provisions of the other statutes
listed in S 5.1, and the regulations in
Parts 1 and 3 of this subtitle and this
part
(g)	The term "United States or the
District of Columbia" means the United
States, the District of Columbia, and all
executive departments, independent
establishments, administrative agencies,
and instrumentalities of the United
States and of the District of Columbia,
including corporations, all or
substantially all of the stock of which is
beneficially owned by the United States,
by the foregoing departments,
establishments, agencies,
instrumentalities, and including
nonappropriated fund instrumentalities
(h)	The term "contract" means any
prime contract which is subject wholly
or in part to the labor standards
provisions of any of the acts listed in
(51 and any subcontract of any tier
thereunder, let under the prime contract.
A State or local Government is not
regarded as a contractor under statutes
providing loans, grants, or other Federal
assistance in situations where
construction is performed by its own
employees. However, under statutes
requiring payment of prevailing wages
to all laborers and mechanics employed
on the assisted project, such as the U S
Housing Act of 1937, State and local
recipients of Federal-aid must pay these
employees according to Davis-Bacon
labor standards
Appendix 23-D-4
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Fodoral RegUtw /' Vol. 48. No. 64 / Friday. April 29. 1983 / Rules and Regulation*
10543
(i) The tanna "building" or "work"
generally include con*traction activity
a* distinguished from manufacturing,
famishing of materials, or servicing and
maintenance work. The terms include
without limitation, buildings, structures,
%nd improvements of ell types, such as
bridges, dams, plants, highways,
parkways, streets, subways, tunnels,
aewere, mains, power lines, pumping
stsUons, heavy generator*, railways,
airports, terminals, docks, piers,
wharvfes, ways, lighthouses, buoys,
Jetties,' breakwaters, levees, canals,
dredging, shoring, rehabilitation and
reactivation of plants, scaffolding,
drilling, blasting, excavating, clearing,
and landscaping. The manufacture or
furnishing of materials, articles, supplies
or equipment (whether or not a Federal
or State agency acquires title to such
materials, articles, supplies, or
equipment during the course of the
manufacture or furnishing, or owns the
materisls from which they are
manufactured or furnished) is not a
"building" or "work" within the meaning
of the regulations In this part unless
conducted in connection with and at the
alte of such s building or work aa Is
described in the foregoing sentence, or
under the United States Honing Act of
1937 and the Housing Act of 1949 is the
construction or development of the
project.
(J) The terms "construction",
"prosecution", "completion", or "repair"
mean all types of work done on a
particular building or work at the site
thereof (or. under the United States
Housing Act of 1937 and the Housing
Act of 1949), all work done in the
construction or development of the
project including without limitation,
altering, remodeling. Installation (where
appropriate) on the site of the work of
items fabricated off-site, painting and
decorating, the transporting of materials
and supplies to or from the building or
work by the employees of the
construction contractor or construction
subcontractor, and the manufacturing or
furnishing of materials, articles, supplies
or equipment on the site of the building
or work (or, under the United States
Housing Act of 1937 and the Housing
Act of 1949, in the construction or
development of the project), by persons
employed by the contractor or
subcontractor.
(k) Hie term "public building" or
"public work" Includes building or work,
the construction, prosecution,
completion, or repair of which, as
defined above, II carried on directly by
authority of or with funds of a Federal
agency to serve the interest of the
general public regardless of whether
title thereof is In a Federal agency.
(I) The term "aita of the work" is
defined as follows:
(1)	The "site of the work" is limited to
the physical place or places where the
construction called for in the contract
will remain when work on it has been
completed and. aa discussed in
paragraph (1)(2) of thia section, other
adjacent or nearby property used by the
contractor or aubcontractor in such
construction which can reasonably be
said to be Included in the "site".
(2)	Except as provided In paragraph
(1)(3) of this section, fabrication plants,
mobile factories, batch planta. borrow
pits, job headquarters, tool yards, etc.,
are part of the "aite of the work"
provided they are dedicated exclusively,
or nearly ao, to performance of the
contract or project, and are so located in
proximity to the actual construction
location that it would be reasonable to
Include them.
(3)	Not included in the "site of the
work" sre permanent home offices,
branch plant establishments, fabrication
plants, and tool yards of a contractor or
subcontractor whose locations and
continuance in operation are determined
wholly without regard to a particular
Federal or federally aaaated contract or
project. In addition, fabrication plants,
batch plants, borrow pits, job
headquarters, tool yards, etc., of a
commercial supplier or materialman
which are established by a supplier of
materials for the project before opening
of bids and not on the project site, are
not included in the "site of the work".
Such permanent, previously established
facilities are not a part of the "site of the
work", even where the operations for a
period of time may be dedicated
exclusively, or nearly so. to the
performance of a contract.
(m),The term "laborer" or "mechanic"
includes at leaat those workers whose
duties are manual or physical in nature
(Including those workers who use tools
or who are performing the work of a
trade), as distinguished from mental or
managerial. The term "laborer" or
"mechanic" Includes spprentices,
trainees, helpers, and. in the case of
contracts subject to the Contract Work
Hours and Safety Standards Act
watchmen or guards. The term does not
apply to workers whose duties are
primarily administrative, executive, or
clerical, rather than manual. Persons
employed in a bona fide executive,
administrative, or professional capacity
as defined in Part 541 of this title are not
deemed to be laborers or mechanics.
Working foremen who devote more than
20 percent of their time during a
workweek to mechanic or laborer
duties, and who do not meet the criteria
of Part Ml. are laborers and mechanics
for the time so spent.
(n) The terms apprentice and trainee
•re defined as follows'
(1)	"Apprentice" mesns (i) a person
employed and individually registered In
a bona fide apprenticeship program
registered with the U.S. Department of
Labor, Employment and Training
Administration, Bureau of
Apprenticeship and Training, or with a
State Apprenticeship Agency recognized
by the Bureau, or (it) a person in the fust
90 days of probationary employment as
an apprentice in such an apprenticeship
program, who is not individually
registered in the program, but who has
been certified by the Bureau of
Apprenticeship and Training or a State
Apprenticeship Agency (where
appropriate) to be eligible for
probationary employment as an
apprentice:
(2)	"Trainee" means s person
registered and receiving on-the-job
training in a construction occupation
under a program which has been
approved in advance by the U.S.
Department of Labor, Employment and
Training Administration, as meeting its
standards for on-the-job training
programs and which has been so
certified by that Administration.
(3)	These provisions do not apply to
"apprentices" and "trainees" employed
on projects subject to 23 U.S.C. 113 who
are enrolled in programs which have
been certified by the Secretary of
Transportation in accordance with 23
U.S.C. 113(c).
(o) Every person performing the duties
of a laborSr or mechanic in the
construction, prosecution, completion, or
repair of a public building or public
work, or building or work financed in
whole or in part by loans, grants, or
guarantees from the United States is
"employed" regardless of any
contractual relationship alleged to exist
between the contractor and such person
(p) The term "wages" means the basic
hourly rate of pay; any contribution
irrevocably made by a contractor or
aubcontractor to a trustee or to a third
person pursuant to a bona fide fnnge
benefit fund, plan, or program, and the
rate of costs to the contractor or
aubcontractor which may be reasonably
anticipated in providing bona fide fringe
benefits to laborers and mechanics
pursuant to an enforceable commitment
to camr out a financially responsible
plan of program, which was
communicated in writing to the laborers
and mechanics affected The fnnge
benefits enumerated in the Davis-Bacon
Appendix 23-D-5
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19544
Federal Register / Vol. 48. No. 84 / Friday, April 20, 1983 / Rules and Regulations
Act include medical or hospital care,
pensions on retirement or death,
compensation for injuries or illness
resulting from occupational activity, or
insurance to provide any of the
foregoing; unemployment benefits; life
insurance, disability insurance, sickness
insurance, or accident insurance,
vacation or holiday pay. defraying costs
of apprenticeship or other similar
programs: or other bona fide fringe
benefits^ringe benefits do not include
benefits'required by other Federal,
State, or local law.
(q) The term "wage determination"
includes the original decision and any
aubsequent decisions modifying,
superseding, correcting, or otherwise
changing the provisions of the original
decision. The application of the wage
determination shall be in accordance
with-the provisions of {1.0 of this title.
H&V&4 (Reserved]
(IS Contract provisions and related
fnittKt.
(a) The Agency heed shall cause or
require the contracting officer to insert
In full in any contract in excess of $2,000
which is entered into for the actual
construction, alteration and/or repair,
including painting and decorating, of a
public building or public work, or
building or work financed in whole or in
part from Federal funds or in
accordance with guarantees of a Federal
agency or financed from funds obtained
by pledge of any contract of a Federal
agency to make a loan, grant or annual
contribution (except where a different
meaning is expressly indicated), and
which is subject to the labor standards
provisions of any of the acts listed in
(5.1, the following clauses (or any
modifications thereof to meet the
particular needs of the agency.
Provided, That such modifications are
first approved by the Department of
Labor):
(1) Minimum wages, (i) All laborers
and mechanics employed or working
upon the site of the work (or under the
United States Housing Act of 1637 or
under the Housing Act of 1949 in the
construction or development of the
project), will be paid unconditionally
and not less often than once a week,
and without subsequent deduction or
rebate on any account (except such
payroll deductions as are permitted by
regulations Issued by the Secretary of
Labor under the Copeland Act (29 CFR
Part 3)), the full amount of wages and
bona fide fringe benefits (or cash
equivalents thereof) due at time of
payment computed at rates not less than
those contained in the wage
determination of the Secretary of Labor
which is attached hereto and made a
part hereof, regardless of any
contractual relationship which may be
alleged to exist between the contractor
and such laborers and mechanics.
Contributions made or costs reasonably
anticipated for bona fide fringe benefits
under section 1(b)(2) of the Davis-Bacon
Act on behalf of laborers or mechanics
are considered wages paid to such
laborers or mechanics. sub|ect to the
provisions of paragraph (a)(l)(iv) of this
section, also, regular contributions made
or costs incurred for more than a weekly
period (but notiess often than quarterly)
under plans, funds, or programs which
cover the particular weekly period, are
deemed to be constructively made or
incurred during such weekly period.
Such laborers and mechanics shall be
paid the appropriate wage rate and
fringe benefits on the wage
determination for the classification of
work actually performed, without regard
to skill, except as provided in S 5.5(a)(4).
Laborers or mechanics performing work
in more than one classification may be
compensated at the rate specified for
each classification for the time actually
worked therein: Provided. That the
employer's payroll records accurately
set forth the time spent in each
classification in which work is
performed. The wage determination
(including any additional classification
and wage rates conformed under
paragraph (a)(l}(li) of this section) and
the Davis-Bacon poster (WH-1321) shall
be posted at all times by the contractor
and its subcontractors at the site of the
work in a prominent and accessible
place where it can be easily seen by the
workers.
(n)(A) The contracting officer shall
require that any class of laborers or
mechanics which is not listed In the
wage determination and which is to be
employed under the contract shall be
classified in conformance with (he wage
determination. The contracting officer
shall approve an additional
classification and wage rate and fringe
benefits therefor only when the
following criteria have been met-
(7) The work to be performed by the
classification requested is not performed
by a classification in the wage
determination; and
[2]	The classification is utilized in the
area by the construction industry, and
(3)	The proposed wage rate, including
any bona fide fringe benefits, bears a
reasonable relationship to the wage
rates contained in the wage
determination.
(B) If the contractor and the laborers
and mechanics to be employed m the
classification (if known), or their
representatives, and the contracting
officer agree on the classification and
wage rate (including the amount
designated for fringe benefits where
appropriate), a report of the action taken
shall be sent by the contracting officer
to the Administrator of the Wage and
Hour Division, Employment Standards
Administration, U.S. Department of
Labor. Washington, D.C. 20210. The
Administrator, or an authorized
representative, will approve, modify, or
disapprove every additional
classification action within 30 days of
receipt and so advise the contracting
officer or will notify the contracting
officer within the 30-day period that
additional time is necessary. (Approved
by the Office of Management and
Budget under OMB control number
1215-0140)
(C)	In the event the contractor, the
laborers or mechanics to be employed in
the classification or their
representatives, and the contracting
officer do not agree on the proposed
classification and wage rate (including
the amount designated for fringe
benefits- where appropriate), the
contracting officer Bhall refer the
questions, including the views of all
interested parties and the
recommendation of the contracting
officer, to the Administrator for
determination. The Administrator, or an
authorized representative, will issue a
determination within 30 days of receipt
and bo advise the contracting officer or
will notify the contracting officer within
the 30-day period that additional time is
necessary (Approved by the Office of
Management and Budget under OMB
control number 1215-0140)
(D)	The wage rate (including fringe
benefits where appropriate) determined
pursuant to subparagraphs (1)(B) or (C)
of this paragraph, shall be paid to all
workers performing work in the
classification under this contract from
the first day on which work is performed
in the classification
(in) Whenever the minimum wage rate
prescribed in the contract for a class of
laborers or mechanics includes a fnnge
benefit which is not expressed as an
hourly rate, the contractor shall either
pay the benefit as stated in the wage
determination or shell pay another bona
fide fringe benefit or an hourly cash
equivalent thereof
(iv) If the contractor does not make
payments to a trustee or other third
person, the contractor may consider as
part of the wages of any laborer or
mechanic the amount of any costs
reasonably anticipated in providing
bona fide fringe benefits under a plan or
program. Provided. That the Secretary of
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Labor ha* found, upon the written
request of the contractor, thai the
applicable standards of the Davis-Bacon
Act have been met. The Secretary of
Labor may require the contractor to set
aside in a separate account assets for
(he meeting of obligations under the
plan or program. (Approved by the
Office of Management and Budget under
OMB control number 1215-0140.)
(f) Withholding. The (write in name of
Federal Agency or the loan or grant
reclpipit) shall upon its own action or
upon written request of an authorized
representative of the Department of
Labor withhold or cause to be withheld
from the contractor under this contract
or any other Federal contract with the
same prime contractor, or any other
Federally-assisted contract subject to
Davis-Bacon prevailing wage
requirements, which is held by the same
prime contractor, so much of the
accrued payments or advances as may
be considered necessary to pay laborers
and mechanics, including apprentices,
trainees, and helpers, employed by the
contractor or any subcontractor the full
amount of wages required by the
contract In the event of failure to pay
any laborer or mechanic, including any
apprentice, trainee, or helper, employed
or working on the site of the work (or
under the United States Housing Act of
1937 or under the Housing Act of IMS in
the construction or development of the
project), all or part of the wages
required by the contract the (Agency)
may, after written notice to the
contractor, sponsor, applicant, or owner,
take such action as may be necessary to
cause the suspension of any further
payment, advance, or guarantee of funds
until such violations have ceased.
(3] Payrolls and basic records, (i)
Payrolls and basic records relating
thereto shall be maintained by the
contractor during the course of the work
and preserved for a period of three
years thereafter for all laborers and
mechanics working at the site of the
work (or under the United States
Housing Act of 1937, or under the
Housing Act of 1949, in the construction
or development of the project). Such
records shall contain the name, address,
and social security number of each such
worker, his or her correct classification,
hourly rates of wages paid (including
rates of contributions or costs
anticipated for bona fide fringe benefits
or cash equivalents thereof of the types
described in section 1(b)(2)(B) of the
Davis-Bacon Act), daily and weekly
number of hours worked, deductions
made and actual wages paid. Whenever
the Secretary of Labor has found under
29 CFR S.5(a)(l)(lv) that the wages of
any laborer or mechanic include the
•mount of any costs reasonably
anticipated In providing benefits under a
plan or program described in section
1(b)(2)(B) of the Davis-Bacon Act the
contractor shall maintain records which
ahow that the commitment to provide
such benefits is enforceable, that the
plan or program is financially
responsible, and that the plan or
program has been communicated in
writing to the laborers or mechanics
affected, and records which show the
costs anticipated or the actual cost
incurred in providing such benefits.
Contractors employing apprentices or
trainees under approved programs (hall
maintain written evidence of the
registration of apprenticeship programs
and certification of trainee programs,
the registration of the apprentices and
trainees, and the ratios and wage rates
prescribed in the applicable programs.
(Approved by the Office of Management
and Budget under OMB control numbers
1215-0140 and 1215-0017.)
(ii)(A) The contractor shall submit
weekly for each week in which any
contract work is performed a copy of all
payrolls to the (write in name of
appropriate Federal agency) if the
agency is a party to the contract but if
the agency Is not such a party, the
contractor will submit the payrolls to
the applicant, sponsor, or owner, as the
case may be, for transmission to the
(wnte in name of agency). The payrolls
submitted shall set out accurately and
completely all of the information
required to be maintained under
I 5.5(a)(3)(i) of Regulations, 28 CFR Part
5. This information may be submitted in
-any form desired. Optional Form WH-
347 is available for this purpose and
may be purchased from the
Superintendent of Documents (Federal
Stock Number 029-005-00014-1). U.S.
Government Printing Office,
Washington. D.C. 20402.1116 prime
contractor is responsible for the
submission of copies of payrolls by all
subcontractors. (Approved by the Office
of Management and Budget under OMB
control number 1215-0149)
(B) Each payroll submitted shall be
accompanied by a "Statement of
Compliance." signed by the contractor
or subcontractor or his or her agent who
pays or supervises the payment of the
persons employed under the contract
and shall certify the following'
(7) That the payroll for the payroll
period contains the information required
to be maintained under | 5.5(e)(3)(i) of
Regulations, 29 CFR Part 5 and that such
information is correct and complete;
(£) That each laborer or mechanic
(including each helper, apprentice, and
trainee) employed on the contract during
the payroll period has been paid the full
weekly wages earned, without rebate,
either directly or indirectly, and that no
deductions have been made cither
directly or indirectly from the hill wages
earned, other than permissible
deductions as set forth in Regulations,
29 CFR Pari 3;
(5) That each laborer or mechanic has
been paid not less than the applicable
wage rates and fringe benefits or cash
equivalents for the classification of
work performed, as specified in the
applicable wage determination
incorporated into the contract
(C)	The weekly submission of a
properly executed certification set forth
on the reverse side of Optional Form
WH-347 shall satisfy the requirement
for submission of the ^Statement of
Compliance" required by paragraph
(a)(3)(ii)(B) of this section
(D)	The falsification of any of the
above certifications may subject the
contractor or subcontractor to civil or
criminal prosecution under Section 1001
of Title 18 and Section 231 of Title 31 of
the United States Code.
(iii) Hie contractor or subcontractor
shall make the records required under
paragraph (a)(3)(i) of this section
available for inspection, copying, or
transcription by authorized
representatives of the (write the name of
the agency] or the Department of Labor,
and shall permit such representatives to
interview employees during working
hours on the job. If the contractor or
subcontractor fails to submit the
required records or to make them
available, the Federal agency may. after
written notice to the contractor, sponsor,
applicant or owner, take such action as
may be necessary to cause the
suspension of any further payment,
advance, or guarantee of hinds
Furthermore, failure to submit the
required records upon request or to
make such records available may be
grounds for debarment action pursuant
to 29 CFR 5.12.
(4) Apprentices and Trainees—(i)
Apprentices. Apprentices will be
permitted to work at less than the
predetermined rate for the work they
performed when they are employed
pursuant to and individually registered
in a bona fide apprenticeship program
registered with the U.S. Department of
Labor, Employment and Training
Administration. Bureau of
Apprenticeship and Training, or with a
State Apprenticeship Agency recognized
by the Bureau, or if a person is
employed in his or her first 90 days of
probationary employment as an
apprentice in such an apprenticeship
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program, who It not individually
registered In the program, but who has
been certified by the Bureau of
Apprenticeship and Training or a State
Apprenticeship Agency (where
appropriate) to be eligible for
probationary employment as en
apprentice. The allowable ratio of
apprentices to journeymen on the fob
site is any craft classification shall not
be greater than the ratio permitted to the
contractpr as to the entire work force
under Lhfe registered program. Any
worker listed on a payroll at an
apprentice wage rate, who is not
registered or otherwise employed as
stated above, shall be paid not less than
the applicable wage rate on the wage
determination for the classification of
work actually performed. In addition,
any apprentice performing work on the
job site in excess of the ratio permitted
under the registered program shall be
paid not less than the applicable wage
rate on the wage determination for the
work actually performed. Where a
contractor is performing construction on
a project in a locality other than that in
which its program is registered, the
ratios and wage rates (expressed in
percentages of the journeyman's hourly
rate) specified in the contractor's or
subcontractor's registered program shall
be observed. Every apprentice must be
paid at not less than the rate specified in
the registered program for the
apprentice's level of progress, expressed
as a percentage of the journeymen
hourly rate specified in the applicable
wage determination. Apprentices shall
be paid fringe benefits in accordance
with the provisions of the
apprenticeship program. If the
apprenticeship program does not specify
fnnge benefits, apprentices must be paid
the full amount of fringe benefits listed
on the wage determination for the
applicable classification. If the
Administrator determines that a
different practice prevails for the
applicable apprentice classification,
fringes shall be paid in accordance with
that determination. In the event the
Bureau of Apprenticeship and Training,
or a State Apprenticeship Agency
recognized by the Bureau, withdraws
approval of an apprenticeship program,
the contractor will no longer be
permitted to utilize apprentices Bt less
than the applicable predetermined rate
for the work performed until an
acceptable program is approved.
(ii) Trainees. Except as provided in 29
CFR 5.16, trainees will not be permitted
to work at less than the predetermined
rate for the work performed unless they
are employed pursuant to and
Individually registered in a program
which has received prior approval,
evidenced by formal certification by the
U.S. Department of Labor. Employment
and Training Administration. The ratio
of trainees to journeymen on the job site
shall not be greater than permitted
under the plan approved by the
Employment and Training
Administration. Every trainee must be
paid at not less than the rate specified in
the approved program for the trainee's
level of progress, expressed as a
percentage of the journeyman hourly
rale specified in the applicable wage
determination. Trainees shall be paid
fringe benefits in accordance with the
provisions of the trainee program. If the
trainee program does not mention fringe
benefits, trainees shall be paid the full
amount of fringe benefits listed on the
wage determination unless the
Administrator of the Wage and Hour
Division determines that there is an
apprenticeship program associated with
the corresponding journeyman wage
rate on the wage determination which
provides for less than full fringe benefits
for apprentices. Any employee listed on
the payroll at a trainee rate who is not
registered and participating in a training
plan approved by the Employment and
Training Administration shall be paid
not less than the applicable wage rate
on the wage determination for the
classification of work actually
performed In addition, any trainee
performing work on the job site in
excess of the ratio permitted under the
registered program shall be paid not less
than the applicable wage rate on the
wage determination for the work
actually performed. In the event the
Employment and Training
Administration withdraws approval of a
training program, the contractor will no
longer be permitted to utilize trainees at
less than the applicable predetermined
rate for the work performed until an
acceptable program it approved.
(in) Equal employment opportunity
The utilization of apprentices, trainees
and journeymen under this part shall be
In conformity with the equal
employment opportunity requirements
of Executive Order 11246. as amended,
and 29 CFR Part 30.
(5)	Compliance with Copeland Act
requirements. The contractor shall
comply with the requirements of 29 CFR
Part 3. which are incorporated by
reference in this contract.
(6)	Subcontracts. The contractor or
subcontractor shall Insert in any
subcontracts the clauses contained in 29
CFR 5.5(a) (1) through (10) and such
other clauses as the (write in the name
of the Federal agency) may by
appropriate instructions require, and
also a clause requiring the
subcontractors to include these clauses
in any lower tier subcontracts The
prime contractor shall be responsible for
the compliance by any subcontractor or
lower tier subcontractor with all the
contract clauses in 29 CFR 5 5
(7)	Contract termination debarment
A breach of the contract clauses in 29
CFR 5 5 may be grounds for termination
of the contract, and for debarment as a
contractor and a subcontractor as
provided in 29 CFR 512
(8)	Compliance with Davis-Bacon and
Related Act requirements All rulings
and interpretations of the Davis-Bacon
and Related Acts contained in 29 CFR
Parts 1,3. and S are herein incorporated
by reference in this contract.
(9)	Disputes concerning labor
standards Disputes arising out of the
labor standards provisions of this
contract shall not be sub|ect to the
general disputes clause of this contract
Such disputes shall be resolved in
accordance with the procedures of the
Department of Labor set forth in 29 CFR
Parts 5,8, and 7. Disputes withip the
meaning of this clause include disputes
between the contractor (or any of its
subcontractors) and the contracting
agency, the U.S. Department of Labor, or
the employees or their representatives.
(10)	Certification of Eligibility (i) By
entering into this contract, the
contractor certifies that neither it (nor
he or she) nor any person or firm who
has an interest in the contractor's firm is
a person or firm ineligible to be awarded
Government contracts by virtue of
section 3(a) of the Davis-Bacon Act or 29
CFR 512(a)(1)
(11)	No part of this contract shall be
subcontracted to any person or firm
ineligible for award of a Government
contract by virtue of section 3(a) of the
Davis-Bacon Act or 29 CFR 5.12(a)(1).
(iii) The penalty for making false
itatements Is prescribed in the U S
Criminal Code, 18 U S.C 1001
(b) Contract Work Hours and Safety
Standards Act The Agency Head shall
cause or require the contracting officer
to insert the following clauses set forth
in paragraphs (b)(1). (2). (3). and (4) of
this section in full in any contract
subject to the overtime provisions of the
Contract Work Hours and Safety
Standards Act. These clauses shall be
inserted in addition to the clauses
required by S 5 5(a) or S 4 8 of Part 4 of
this title. As used in this paragraph, the
terms "laborers" and "mechanics"
include watchmen and guards
(1) Overtime requirements No
contractor or subcontractor contracting
for any part of the contract work which
may require or involve the employment
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18547
of laborer* or mechanics ahall require or
permit any such laborer or mechanic tn
any workweek in which he or she la
employed on such ttark to work in
excess of eight hour* in any calendar
day or in excess of forty hours in such
workweek unless such laborer or
mechanic receives compensation at a
rate not less than one and one-half times
the basic rate of pay for all hours
worked In excess of eight hours in any
calendar day or in excess of forty hours
in such workweek, whichever is grester
(2)	Violation; liability for unpaid
wages; liquidated damages. In the event
of any violation of the clause set forth in
subparagraph (1) of this paragraph, the
contractor and any subcontractor
responsible therefor shall be liable for
the unpaid wages. In addition, such
contractor and subcontractor shall be
liable to the United States (in the case of
work done under contract for the
District of Columbia or a territory, to
such District or to such territory), for
liquidated damages. Such liquidated
damages shall be computed with respect
to each individual la'borer or mechanic,
including watchmen and guards,
employed in violation of the clause set
forth in subparagraph (1) of this
paragraph, in the sum of $10 for each
calendar day or which such individual
was required or permitted to work in
excess of eight hours or in excess of the
standard workweek of forty hours
without payment of the overtime wages
required by the clause set forth in
subparagraph (1) of this paragraph.
(3)	Withholding for unpaid wages and
liquidated damages. The [write in the
name of the Federal agency or the loan
or grant recipient) shall upon its own
action or upon written request of an
authorized representative of the
Department of Labor withhold or cause
to be withheld, from any moneys
payable on account of work performed
by the contractor or subcontractor under
any such contract or any other Federal
contract with the same prime contractor,
or any other Federally-assisted contract
subject to the Contract Work Hours and
Safety Standards Act, which is held by
the same prime contractor, such sums as
may be determined to be necessary to
satisfy any liabilities of such contractor
or subcontractor for unpaid wages and
liquidated damages as provided in the
clause set forth in subparagraph (2) of
this paragraph.
(4)	Subcontracts. The contractor or
subcontractor shall insert in any
subcontracts the clauses set forth in
subparagraph (1) through (4) of this
paragraph and also a clause requiring
the subcontractors to include these
clauses in any lower tier subcontracts.
The prime contractor shall be
responsible for compliance by any
subcontractor or lower tier
subcontractor with the clauses set forth
in subparagraphs (1) through (4) of this
paragraph.
(c) In addition to the clauses
contained in paragraph (b). in any
contract subject only to the Contract
Work Hours and Safety Standards Act
and not to any of the other statutes cited
in 16.1, the Agency Head shall cause or
require the contracting officer to insert a
clause requiring that the contractor or
subcontractor shall maintain payrolls
and basic payroll records during the
course of the work and shall preserve
them for a period of three years from the
completion of the contract for all
laborers and mechanics. Including
guards and watchmen, working on the
contract. Such records shall contain the
name and address of each such
employee, social security number,
correct classifications, hourly rates of
wages paid, daily and weekly number of
hours worked, deductions made, and
actual wages paid. Further, the Agency
Head shall cause or require the
contracting officer to insert in any such
contract a clause providing that the
records to be maintained under this
paragraph shall be made available by
the contractor or subcontractor for
inspection, copying, or transcription by
authorized representatives of the (write
the name of agency) and the Department
of Labor, and the contractor or
subcontractor will permit such
representatives to interview employees
during working hours on the job.
(Approved by the Office of Management
and Budget under OMB control numbers
1215-0140 and 1215-0017.)
15.6 'Enforcement
(a)(1) It shall be the responsibility of
the Federal agency to ascertain whether
the clauses required by I 5.5 have been
Inserted in the contracts subject to the
labor standards provisions of the Acts
contained in ( 51. Agencies which do
not directly enter into such contracts
shall promulgate the necessary
regulations or procedures to require the
recipient of the Federal assistance to
Insert in its contracts the provisions of
| 5.5. No payment, advance, grant, loan,
or guarantee of funds shall be approved
by the Federal agency unless the agency
insures that the clauses required by f 5 5
and the appropriate wage determination
of the Secretary of Labor are contained
In such contracts Furthermore, no
payment, advance, grant, loan, or
guarantee of funds shall be approved by
the Federal agency after the beginning
of construction unless there is on file
with the agency a certification by the
contractor that the contractor and its
subcontractors have complied with the
provisions of | 5.5 or unless there is on
file with the agency a certification by
the contractor that there is a substantial
dispute with respect to the required
provisions.
(2)	Payrolls and Statements of
Compliance submitted pursuant to
I 5 5(a)(3)(u) shall be preserved by the
Federal agency for a period of 3 years
from the date of completion of the
contract and shall be produced at the
request of the Department of Labor at
any time during the 3-year period.
(3)	The Federal egency shall cause
such investigations to be made as may
be necessary to assure compliance with
the labor standards clauses required by
I 5 5 and the applicable statutes lu>ted
in fi 5.1. Investigations shall be made of
all contracts with such frequency as
may be necessary to assure compliance
Such investigations shall include
interviews with employees, which shall
be taken in confidence, and
examinations of payroll data and
evidence of registration and certification
with respect to apprenticeship and
training plans. In making such
examinations, particular care shall be
taken to determine the correctness of
classifications and to determine whether
there is a disproportionate employment
of laborers and of apprentices or
trainees registered in approved
programs. Such investigations shall also
include evidence of fringe benefit plans
and payments thereunder. Complaints of
alleged violations shall be given priority
(4)	In accordance with normal
operating procedures, the contracting
agency may be furnished various
investigatory material from the
investigation files of the Department of
Labor None of the material, other than
computations of back wages and
liquidated damages and the summary of
back wages due. may be disclosed in
any manner to anyone other than
Federal officials charged with
administering the contract or program
providing Federal assistance to the
contract, without requesting (he
permission and views of the Department
of Labor
(5)	It is the policy of the Department of
Labor to protect the identity of its
confidential sources and to prevent an
unwarranted invasion of personal
privacy. Accordingly, the identity of an
employee who makes a written or oral
statement as a complaint or in the
course of an Investigation, as well as
portions of the statement which would
reveal the employee's identity, shall not
be disclosed m any manner to anyone
Appendix 23-D-9
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other than Federal official* without the
prior conaent of the employee.
Disclosure of employe* statements ahall
be governed by the provisions of the
"Ftoedom of Information Act" (8 U.S.C.
532. see 29CFR Part TO) and the
"Privacy Act of 1974" (6 U.S.C. 552a).
(b) The Administrator shall cause to
be made auch investigation! as deemed
necessary. In order to obtain compliance
withlhe labor standards provisions of
the applicable statutes listed in 18.1. or
to afflnD or reject the recommendations
by the Agency Head with respect to
labor standards matters arising under
the statutes listed in 15.1. Federal
agencies, contractors, subcontractors,
sponsors, applicants, or owners shall
cooperate with any authorised
representative of the Department of
Labor In the inspection of records, in
interviews with workers, and in aM other
aspects of the investigations. The
findings of auch an Investigation,
including awownls lovnd due, may not
be altered or reduced without the
approval of the Department of Labor.
Where tha underpayments disclosed by
such an investigation total $1,009 or
more, where there Is reason to believe
that the violation are aggravated or
willful (or. In the case ofthe Davis-
Bacon Act that the contractor has
disregarded its obligations to employees
and subcontractors), or where liquidated
damages may be assessed under the
Contract Work Hours and Safety
Standards Act the Department of Labor
will furnish the Federal agency an
enforcement report detailing the labor
standards violationa disclosed by the
investigation and any action taken by
the contractor to correct the violative
practices, including any payment of
back wages. In other circumstances, the
Federal agency will be furnished a letter
of notification summarizing the findings
of the investigation.
18.7 Reports to the Oecretary of Labor.
(a) Enforcement reports. (1) Where
underpayments by a contractor or
subcontractor total less than $1,000, and
where there is no reason to believe that
the violationa are aggravated or willful
(or, In the case of the Davis-Bacon Act
that the contractor has disregarded its
obligations to employees and
subcontractors), and where restitution
has been effected and future compliance
assured, the Federal agency need not
submit its investigative findings and
recommendations to the Administrator,
unless the investigation was made at the
request of the Department of Labor. In
the latter case, the Federal agency shall
submit a factual summary report
detailing any violations includmg any
data on the amount of restitution paid.
the number of workers who received
restitution, liquidated damages assessed
under the Contract Work Hours and
Safety Standards Act corrective
measures taken (such as letters of
notice"), and any information that may
be necessary to review any
recommendations for an appropriate
adjustment in liquidated damages under
18.8.
(2) Where underpaymenta by a
contractor or subcontractor total $1,000
or more, or where there is reason to
believe that the violations are
aggravated or willful (or, in the case of
the Davis-Bacon Act that the contractor
has disregarded It* obligations to
employees and subcontractors), the
Federal agency shall furnish within 60
days after completion of its
investigation, a detailed enforcement
report to the Administrator.
(b)	Semi-annual enforcement reports.
To assist the Secretary in fulfilling the
responsibilities under Reorganization
Plan No. 14 of 1950, Federal agencies
shall furnish to the Administrator by
April 30 and October 31 of each
calendar year semi-annual reports on
compliance with and enforcement of the
labor standards provisions t>f the Davis-
Bacon Act and its related acts covering
the periods of October 1 through March
31 and Apnl 1 through September 30,
respectively. Such reports shall be
prepared in the manner prescribed in
memoranda issued to Federal agencies
by the Administrator. This report has
been cleared in accordance with FPMR
101-11.11 and assigned interagency
report control number 14S2-DOL-SA.
(c)	Additional information. Upon
request, the Agency Head shall transmit
to the Administrator such information
available to the Agency with respect to
contractors and subcontractors, their
contracts, and the nature of the contract
work as the Administrator may find
necessary for the performance of his or
her duties with respect to the labor
standards provisions referred to in this
part.
(d)	Contract termination. Where a
contract Is terminated by reason of
violations of the labor standards
provisions ofthe statutes listed in { 5.1.
a report shall be submitted promptly to
the Administrator and to the
Comptroller General (if the contract Is
subject to the Davis-Bacon Act), giving
the name and address of the contractor
or subcontractor whose right to proceed
has been terminated, and the name and
address of the contractor or
subcontractor, if any. who is to complete
the work, the amount and number of the
contract and the description of the work
to be performed.
| M Liquidated damogea wider tfta
Contract Work Hours and Safety Standards
ACL
(a)	The Contract Work Hours and
Safety Standards Act requires that
laborers or mechanica shall be paid
wages at a rate not less than one and
one-half times the basic rate of pay for
all hours worked In excess of eight
hours in any calendar day or forty hours
in any workweek. In the event of
violation of this provision, the
contractor and any subcontractor shall
be liable for the unpaid wages and in
addition for liquidated damages,
computed with respect to each laborer
or mechanic employed in violation of
the Act in the amount of $10 for each
calendar day or workweek in which
such individual was required or
permitted to work without payment of
required overtime wages. Any
contractor or subcontractor aggrieved
by the withholding of liquidated
damages shall have the right to appeal
to the lead of the agency of the United
States (or the territory or District of
Columbia, as appropriate) for which the
contract work was performed or for
whldi financial assistance was
provided
(b)	Findings and recommendations of
the Agency Head. The Agency Head has
the authority to review the
administrative determination of
liquidated damages and to issue a final
order affirming the determination. It is
not necessary to seek the concurrence of
the Administrator but the Administrator
shall be advised of the action taken.
Whenever the Agency Head finch that a
sum of liquidated damages
administratively determined to be due is
incorrect or that the contractor or
subcontractor violated inadvertently the
provisions of the Act notwithstanding
the exercise of due care upon the part of
the contractor or subcontractor
involved, and the amount of the
liquidated damages computed for the
contract is in excess of S500, the Agency
Head may make recommendations to
the Secretary that an appropnate
adjustment in liquidated damages be
made or that the contractor or
subcontractor be relieved of liability for
such liquidated damages. Such findings
with respect to liquidated damages shall
Include findings with respect to any
wage underpayments for which the
liquidated damages are determined.
(c)	The recommendations of the
Agency Heed for adjustment or relief
from liquidated damages under
paragraph (a) of this section shall be
reviewed by the Administrator or an
authorized representative who shall
issue an order concurring in the
Appendix 23-D-10
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Federal Beglatcr / Vol. 48. No. M / Friday. April 29. 1983 / Rule» and Regulation!
19549
recommendations, partially concurrina
in the recommendationa. or rejecting the
recommendations, and the reasons
therefor. The order (hall be the final
decltion of the Department of Labor,
unlesa a petition for review is filed
pursuant to Part 7 of this title, and the
Wage Appeals Board in Its discretion
reviews such decision and order; or.
wilt respect to contracts subject to the
Service Contract Act unless petition for
review Js filed pursuant to Part 8 of this
title, and the Board of Service Contract
Appeals in its discretion reviews such
decision and order.
(d] Whenever the Agency Head finds
that a sum of liquidated damages
administratively determined to be due
under section 104(e) of the Contract
Work Hours and Safety Standards Act
for a contract is $500 or less and the
Agency Head finds that the sum of
liquidated damages is incorrect or that
the contractor or subcontractor violated
inadvertently the provisions of the
Contract Work Hours and Safety
Standards Act notwithstanding the
exercise of due care upon the part of the
contractor or subcontractor involved, an
appropriate adjustment may be made in
such liquidated damages or the
contractor or subcontractor may be
relieved of liability for such liquidated
damages without submitting
recommendations to this effect or a
report to the Department of Labor. This
delegation of authority is made under
section 105 of the Contract Work Hours
and Safety Standards Act and has been
found to be necessary and proper In the
public interest to prevent undue
hardship and to avoid serious
impairment of the conduct of
Covernment business.
15.9 Suspension of funds.
In the event of failure or refusal of the
contractor or any subcontractor to
comply with the labor standards clauses
contained in f 5.5 and the applicable
atatutes listed in J 5 1. the Federal
agency, upon its own action or upon
written request of an authorized
representative of the Department of
Labor, shall take such action as may be
necessary to cause the suspension of the
payment, advance or guarantee of funds
until such time as the violations are
discontinued or until sufficient funds ere
withheld to compensate employees for
the wages to which they are entitled and
to cover any liquidated damages which
may be due.
(S.10 Restitution, crtmtnal action.
(a) In cases other than those
forwarded tb the Attorney General of
the United States under paragraph (b).
of this section, where violations of the
labor standards clauses contained in
I S.S and the applicable atatutes listed
in | 5.1 result in underpayment of wages
to employees, the Federal agency or an
authorized repreaentative of the
Department of Labor shall request that
restitution be made to auch employees
or on their behalf to plans, funds, or
programs for any type of bona fide
fringe benefits within the meaning of
section l(b](2] of the Davis-Bacon Act.
(b) In cases where the Agency Head
or the Administrator finds substantial
evidence that auch violations are willful
and in violation of a criminal statute, the
matter shall be forwarded toihe
Attorney General of the United States
for prosecution if the facts wan-ant. In
all such cases the Administrator shall be
informed simultaneously of the action
taken.
{511 Otsputee concerning payment of
wages.
(a)	This section sets forth the
procedure for resolution of disputes of
fact or law concerning payment of
prevailing wage rates, overtime pay, or
proper clessification. The procedures in
this section may be Initiated upon the
Administrator^ own motion, upon
referral of the dispute by a Federal
agency pursuant to ( 5.5(a)(9), or upon
request of the contractor or
subcontractors).
(b)(1)	In the event of a dispute
described in paragraph (a) of this
section in which it appears that relevant
facts are at Issue, the Administrator will
notify the affected contractor and
subcontractors) (if any), by registered
or certified mail to the last known
address, of the investigation findings. If
the Administrator determines that there
is reasonable cause to believe that the
contractor and/or subcontractors)
should also be subject to debarment
under the Davis-Bacon Act or
( 512(a)(1), the letter will so indicate.
(2)	A contractor and/or subcontractor
desiring a hearing concerning the
Administrator's investigative findings
shall request such a hearing by letter
postmarked within 30 days of the date of
the Administrator's letter. The request
shall set forth those findings which are
in dispute and the reasons therefor,
including any affirmative defenses, with
respect to the violations and/or
debarment, as appropriate
(3)	Upon receipt of a timely request
for a hearing, the Administrator shall
refer the case to the Chief
Administrative Law )udge by Order of
Reference, to which shall be attached a
copy of the letter from the Administrator
and response thereto, for designation of
an Administrative Law judge to conduct
such hearings as may be necessary to
resolve the disputed matters The
hearing shall be conducted in
accordance with the procedures set
forth in 29 CFR Part S
(c)(1)	In the event of a dispute
described in paragraph (a) of this
section in which it eppears that there
are no relevant facts at issue, end where
there is not at that time reasonable
cause to institute debarment
proceedings under 15.12. the
Administrator ahall notify the contractor
and aubcontractor(s] (if any), by
registered or certified mail to the last
known address, of the investigation
findings, and shall issue a ruling on any
Issues of law known to be in dispute
(2)(i)	If the contractor and/or
subcontractors) disagree with the
factual findings of the Administrator or
believe that there are relevant facts in
dispute, the contractor or
subcontractors) shall so advise the
Administrator by letter postmarked
within 30 days of the date of the
Administrator's letter. In the response,
the contractor and/or subcontractor(s)
shall explain in detail the facts alleged
to be in dispute and attach any
supporting documentation
(11) Upon receipt of a response under
paragraph (c)(2)(i) of this section
alleging the existence of a factual
dispute, the Administrator shall
examine the information submitted If
the Administrator determines that there
is a relevant issue of fact, the
Administrator shall refer the case to the
Chief Administrative Law judge in
accordance with paragraph (b)(3) of this
section If the Administrator determines
that there is no relevant issue of fact, the
Administrator shall so rule and advise
the contractor and subcontractor(s) (if
any) accordingly.
(3)	If the contractor and/or
subcontractor(s) desire review of the
ruling issued by the Administrator under
paragraph (c)(ll or (2) of this section, the
contractor and/or subcontractor(s) shall
file a petition for review thereof with the
Wage Appeals Board within 30 days of
the date of the ruling with a copy
thereof the Administrator The petition
for review shall be filed in accordance
with Part 7 of this title
(d)	If a timely response to the
Administrator's findings or ruling is not
made or a timely petition for review is
not filed, the Administrator's findings
and/or ruling shall be final except that
with respect to debarment under the
Davis-Bacon Act, the Administrator
ahall advise the Comptroller General of
the Administrator's recommendation in
accordance with { 5 12(a)(1) If a timely
response or petition for review is filed,
the findings and/or ruling of the
APFtendix 23-D-11
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Administrator shall ba In operative
unlet* and until the decision is upheld
by the Administrative Law Judge or the
Wage Appeals Board.
(B.12 Patanwant prwaaitiigs.
(a)(1)	Whenever anv contractor or
subcontractor is found by the Secretary
of Labor to be tn aggravated or willful
violation of the labor standards
provisions of any of the applicable
statutes listed in 15.1 other than the
Davis-Bacon Act such contractor or
subcontractor or any firm, corporation,
partnership, or association in which
such contractor or subcoatractor has a
substantia) Interest shall be ineligible
for a period not to exceed 3 years (from
the date of publication by the
Comptroller General of the name or
names of said contractor or
subcontractor on the ineligible list as
provided below) to receive any
contracts or subcontracts sub|ect to any
of the statutes listed in 15.1.
(2) In cases arising under contracts
covered by the Davis-Bacon Act the
Administrator shaH transmit to the
Comptroller General the names of the
contractors or subcontractors and their
responsible officers, if any (and any
firms in which (he contractors or
subcontractors are known to have on
interest), who have been Iband to have
disregarded their obligations to
employees, and the recommendation of
the Secretary of Labor or authorized
representative regarding debarment. The
Comptroller General will distribute a list
to all Federal agencies giving die names
of such ineligible person or firms, who
shall be ineligible to be awarded any
contract or aubcoatract of the United
States or the District of Columbia and
any contract or subcontract subject to
the labor standards provisions of the
statutes listed in | 5.1.
(b)(1)	In addition to cases under
which debarment action is initiated
pursuant to ( 5.11. whenever as a result
of an Investigation conducted by the
Federal agency or the Department of
Labor, and where the Administrator
finds reasonable cause to believe that a
contractor or subcontractor has
committed willful or aggravated
violations of the labor standards
provisions of any of the statutes listed in
f 5.1 (other than the Davis-Bacon Act),
or has committed violations of the
Davis-Bacon Act which constitute a
disregard of its obligations to employees
or subcontractors under section 3(a)
thereof, the Administrator shall notify
by registered or certified mail to the last
known address, the contractor or
aubcontractor and its responsible
officers, if any (and any firms in which
the contractor or subcontractor are
known to have a substantial interval), of
the finding. The Administrator shall
afford such contractor or subcontractor
and any other parties notified an
opportunity for a hearing as to whether
debarment action should be taken under
paragraph (a)(1) of this section or
section 3(a) of tin Davis-Bacon Act. The
Administrator ahall furnish to those
notified a summary of the investigative
findings. If the contractor or
subcontractor or any other parties
notified wish to request a hearing as to
whether debarment action shonld be
taken, such a request shall be made by
letter postmarked within 90 days of the
date of the letter from the Administrator,
and shall set forth my findings which
are in dispote and the reasons therefor,
including any affirmative defenses to be
raised. Upon receipt of such request for
a hearing, the Administrator shall refer
the case to the Chief Administrative
Law judge by Order of Reference, to
which shall be attached a copy of the
letter from the Administrator and the
response thereto, for designation of an
Administrative Law fudge to conduct
auch hearings as may be necessary to
determine the matters in dispute, ha
considering debarment under any of the
statutes hated in ( 51 other than the
Davis-Bacon Act. the Administrative
Law Judge shall issue an order
concerning whether the contractos or
aubcontractor is to ba debaned in
accordance with paragraph (»Xl) of this
section. In considering debarment under
the Davis-Bacon Act, the Administrative
Law Judge shall Issue a recommendation
as to whether the contractor or
subcontractor should be debarred under
section 3(a) of the Act.
(2) Hearings under this section shall
be conducted in accordance with 29 CFR
Part 6. If no hearing is requested within
30 days of receipt of the letter from the
Administrator, the Administrator's
findings shall be final, except with
respect to recommendations regarding
debarment under the Davia-Bacon Act,
as set forth in paragraph (a)(2) of this
aection.
(c) Any person or firm debarred under
15.12(a)(1) may in writingjequest
removal from the debarment list after
six months from the date of publication
by the Comptroller General of such
person or firm's name on the ineligible
list. Such a request should be directed to
the Administrator of the Wage and Hour
Division, Employment Standards
Administration, U.S. Department of
Labor. Washington, D C. 20210. and
shall contain a full explanation of the
reasons why such person or firm should
be removed from the ineligible list In
cases where the contractor or
subcontractor failed to make full
restitution to aH underpaid employees, a
request for removal will not be
considered until such underpayments
are made. In all other cases, the
Administrator will examine the facts
and circumstances surrounding the
violative practices which caused the
debarment, and issue a decision as to
whether or not such person or firm has
demonstrated a current responsibility to
comply with the labor aiandards
provisions of the statutes listed in 151,
and therefore should be removed from
the ineligible list. Among the factors to
be considered in reaching such a
decision are the severity of the
violations, the contractor or
subcontractor's attitude towards
compliance, and the paat compliance
history of the firm. In no caae-will such
removal be effected unless the
Administrator determines after an
investigation that such person or firm ia
in compliance with the labor standards
provisions applicable to Federal
contracts and Federally assisted
construction work subject to any of the
applicable statutes listed in f 5.1 and
other fabor statutes providing wage
protection, such as the Service Contract
Act, the Wnlah-Healey PuhLc Contracts
Act. and the Fair Labor Standards Act.
If the request far removal is denied, the
person or firm may petition for review
by the Wage Appeals Board pursuant, to
29 CFR Part 7.
(d)(1) Section 3(a) of the Davis-Bacon
Act provides that tor a periodoi three
years from date of publication on the
ineligible list, no contract shall be
awarded to any persona or firm* placed
on the list as a result of a finding by the
Comptroller General that such persons
or firms have disregarded obligations to
employees and subcontractors wider
that Act. and further, that no contract
shell be awarded to "any firm,
corporation, partnership, or association
In which such persons or firms have an
interest." Paragraph (a){l)of this section
similarly provides that for a period not
to exceed three years from date of
publication on the ineligible list. n»
contract subject to any of the statates
listed in | 5.1 shall be awarded to any
contractor or subcontractor op the
ineligible list pursuant to thai paragraph,
or to "any firm, corporation, partnership,
or association" tn which such contractor
or subcontractor has a "substantial
interest." A finding as to whether
persons or firms whose names appear
on the Ineligible Hat have an interest (or
a substantial interest ss appropriate) in
any other firm, corporation, partnership,
or association, may be made through
investigation, hearing, or otherwise
Appendix 23-D-12
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(2)(i) Hit Administrator, on his/bar
own motion or after receipt of • request
for a determination pureuant to
paragraph (d)(3) of wis eectlon may
make a findlna on the Ueue of intern!
(or eubttantial interest, ai appropriate).
(il) If the Adminiatrator determines
that there may be en interest (or
aubstantial interest, as appropriate), but
finds that there is insufficient evidence
to render a final ruling thereon, the
Administrator may refer the issue to the
Chief Administrative Law Judge in
accordance with paragraph (d)(4) of this
section.
(Iii) lfrthe Administrator finds that no
interest'(or substantial interest,/*
appropriate) exists, or that there is not
sufficient information to warrant the
Initiation of en investigation, the
requesting party, if any, will be so
notified ana no further action taken.
(iv)(A) If the Administrator finds that
an Interest (or substantial interest, as
appropriate) exists, the person or firm
affected will be notified of the
Administrator's finding (by certified
mail to the lest known address), which
shall include the reasons therefor, and
such person or firm shall be afforded an
opportunity to request that a hearing be
held to render a decision on the issue
(B)	Such person or firm shall have 20
days bom the date of the
Administrator's ruling to request a
hearing A detailed statement of the
reasons why the Administrator's ruling
is in error..including facts alleged to be
in dispute, if any. shall be submitted
with the request for a hearing
(C)	If no hearing is requested within
the time mentioned in paragraph
(d)(2)(iv)(B) of this section, the
Administrator's finding shall be final
and the Administrator shall so notify the
Comptroller General. If a hearing is
requested, the ruling of the
Administrator shall be inoperative
unless and until the administrative law
|udge or the Wage Appeals Board issues
an order that there is an interest (or
substantial interest, as appropriate).
(3)(i) A request for a determination of
interest (or substantial interest, as
appropriate), may>be made by any
interested party, including contractors
or prospective contractors and
associations of contractor's
representatives of employees, and
interested Government agencies. Such a
request shall be submitted in writing to
the Administrator, Wage and Hour
Division, Employment Standards
Administration. U.S. Department of
Labor, Washington. D.C. 20210. to the
attention of the Office of Government
Contract Wage Standards.
(ii) The request shall include a
statement selling forth in detail why the
petitioner believes that a person or firm
whose name appears on the debarred
bidders list has an interest (or a
aubstantial interest, as appropriate) in
any firm, corporation, partnership, or
association which is seeking or has been
awarded a contract of the United States
or the District of Columbia, or which is
subject to any of the statutes listed in
15.1. No partlculsr form is prescribed
for the submission of a request under
this section.
(4)	Referral to the Chief
Administrative Law fudge. The
Administrator, on his/her own motion
under paragraph (d)(2)(ii) of this section
or upon a request for hearing where the
Administrator determines that relevant
facts are in dispute, will by order refer
the issue to the Chief Administrative
Law Judge, for designation of an
Administrative Law Judge who shall
conduct such hearings as may be
necessary to render a decision solely on
the issue of Interest (or substantial
interest, as appropriate) Such
proceedings shall be conducted in
accordance with the procedures set
forth at 29 CFR Part 6
(5)	Referral to the Wage Appeals
Board. If the person or firm affected
requests a hearing and the
Administrator determines that relevant
fads are not in dispute, the
Administrator will refer the issue and
the record compiled thereon to the
Wage Appeals Board to render a
derision solely on the issue of interest
(or substantial interest, as appropriate)
Such proceeding shall be conducted in
accordance with the procedures set
forth at 29 CFR Part 7.
18.11 Ruttnos and Interpretations.
All questions relating to the
application and interpretation of wage
determinations (including the
classifications therein) issued pursuant
to Part 1 of this subtitle, of the rules
contained in this part and in Parts 1 and
3. and of the labor standards provisions
of any of the statutes listed in S S1 shall
be referred to the Administrator for
appropriate ruling or interpretation The
rulings and interpretations shall be
authoritative and those under the Davis-
Bacon Act may be relied upon as
provided for in section 10 of the Portal-
to-Portal Act of 1947 (29 U.S C. 259)
Requests for such rulings and
Interpretations should be addressed to
the Administrator, Wage and Hour
Division. Employment Standards
Administration, U S. Department of
Labor, Washington, D C. 20210.
| •. 14 Variations, tolerances, and
exemptions from farts 1 and S of thts
subtitle and (Ma part
The Secretary of Labor may make
variations, tolerances, and exemptions
from the regulatory requirements of this
part and those of Parts 1 and 3 of this
subtitle whenever the Secretary finds
that such action is necessary and proper
in the public interest or to prevent
injustice and undue hardship
Variations, tolerances, and exemptions
may not be made from the statutory
requirements of any of the statutes
listed in 15.1 unless the statute
specifically provides such authority
( 5.15 Limitations, variations, tolerances,
and exemptlona under the Contract Work
Hours and Safety Standarda Act
(a)	General Upon his or her own
initiative or upon the request of any
Federal agency, the Secretary of Labor
may provide under section 105 of the
Contract Work Hours and Safety
Standards Act reasonable limitations
and allow variations, tolerances, and
exemptions to and from any or all
proviaions of that Act whenever the
Secretary finds such action to be
necessary and proper in the public
Interest to prevent injustice, or undue
hardship, or to avoid senous impairment
of the conduct of Government business
Any request for such action by the
Secretary shall be submitted in writing,
and shall set forth the reasons for which
the request is made.
(b)	Exemptions. Pursuant to section
105 of the Contract Work Hours and
Safety Standards Act. the following
classes of contracts are found exempt
from all provisions of that Act in order
to prevent injustice, undue hardship, or
serious impairment of Government
business.
(1)	Contracts of S2.000 00 or less
(2)	Purchases and contracts other than
construction contracts in the aggregate
amount of $2,500 00 or less In arriving at
the aggregate amount involved, there
must be included all property and
aervices which would properly be
grouped together in a single transaction
and which would be included in a single
advertisement for bids if the
procurement were being effected by
formal advertising
(3)	Contract work performed in a
workplace within a foreign country or
within territory under the jurisdiction of
the United States other then the
following' A State of the United States
the District of Columbia. Puerto Rico
the Virgin Islands. Outer Continental
Shelf lands defined in the Outer
Continental Shelf Lands Act (ch 345. 67
Stat. 462): American Samoa. Guam.
Appendix 23-D-13
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Fidwl Register / Vol. 48. No. M / Friday. April B, 1963 f Rule* end Regulation*
Wake bland: Enlwelok Atoll; Kwafe*sln
Atoll: and Johnston Uland.
(4)	Agreements entered into by or on
behalf of the Commodity Credit
Corporation providing for the (taring in
or handling by commercial warehouaea
of wheat, corn, oata. barley, rye. grain
sorghums. soybean*, flaxseed, rice,
naval stores, tobacco, peanuta, dry
beans^eeda. cotton, and wool.
(5)	Salea of aurplus power by the
Tennessee Valley AuUiority to States,
counties, municipalities, cooperative
organization of citizens or farmers,
corporations and other individuals
pursuant to section 10 of the Tennessee
Valley Authority Act of 1933 (16 U.S.C.
8311).
(c)	Tolerances. (1) The "basic rate of
pay" under section 102 of the Contract
Work Hours and Safety Standards Act
may be compnted as an hourly
equivalent to the rate on which time-
and-one-half overtime compensation
may be computed and paid under
section 7 of the Fair Labor Standards
Act of 1938, as amended (20 U.S.C. 207),
as interpreted in Part 778 of this title.
This tolerance is found to be necessary
and proper in the public interest in order
to prevent undue hardship.
(2)	Concerning the tolerance provided
in paragraph (c)(1) of this section, the
provisions of section 7(d)(2) of the Fair
Labor Standards Act and { 778.7 of this
title should be noted. Under these
provisions, payments for occasional
periods when no work is performed, due
to vacations, and similar causes are
excludable from the "regular rate" under
the Fair Labor Standards Act. Such
payments, therefore, are also excludable
from the "basic rate" under the Contract
Work Hours and Safety Standards Act,
(3)	See { 5.8(c) providing a tolerance
subdelegating authority to the head9 of
agencies to make appropriate
adjustments in the assessment of
liquidated damages totaling $500 or less
under specified circumstances.
(4)(i)	Time spent in an organized
program of related, supplemental
Instruction by laborers or mechanics
employed under bona fide
apprenticeship or training programs may
be excluded from working time if the
criteria prescribed in paragraphs
(c.)(4)(ii) and (in) of this section are met.
(ii) The apprentice or trainee comes
within the definition contained in
15J(n).
(ill) The time in question does not
involve productive work or performance
of the apprentice's or trainee's regular
dutiea.
(d)	Variations. (1) In order to prevent
undue hardship, a workday consisting of
a fixed and recurring 24-hour period
commencing at the same time on each
calendar day may be used In lieu of the
calendar day In applying the dally
overtime proviaiona of the Act to the
employment of firefighters or fireguarda,
under the following conditions: (i)
Where such employment is under a
platoon system requiring such
employees to remain at or within the
confines of their post of duty in excess
of 8 hours per day in a standby or on-
call status: and (ii) if the use of such
alternate 24-hour day has been agreed
upon between the employer and such
employees or their authorized
representatives before performance of
the work; and (iii) provided that in
determining the daily and the weekly
overtime requirements of the Act in any
particular workweek of any such
employee whose established workweek
begins at an hour of the calendar day
different from the hour when such
agreed 24-hour day commences, the
hours worked in excess of 8 hours in any
such 24-hour day shall be counted in the
established workweek (of 168 hours
commencing at the same time each
week) in which such hours are actually
worked (Approved by the Office of
Management and Budget under OMB
control numbers 1215-0140 and 1215-
0017.)
(J.) In the event of failure or refusal of
the contractor or any subcontractor to
comply with overtime pay requirements
of the Contract Work Hours and Safety
Standards Act, if the funds withheld by
Federal agencies for the violations are
not sufficient to pay fully both the
unpaid wages due laborers and
mechanics and the liquidated damages
due the United States, the available
funds shall be used first to compensate
the laborers and mechanics for the
wages to which they are entitled (or an
equitable portion thereof when the funds
are not adequate for this purpose); and
the balance, if any, shall be used for the
payment of liquidated damages.
(3) In the performance of any contract
entered into pursuant to the provisions
of 38 U.S C 620 to provide nursing home
care of veterans, no contractor or
subcontractor under such contract shall
be deemed in violation of Section 102 of
the Contract Work Hours and Safety
Standards Act by virtue of failure to pay
the overtime wages required by such
section for work in excess of 8 hours in
any calendar day or 40 hours in the
workweek to any individual employed
by an establishment which ia an
institution primarily engaged in the care
of the sick, the aged, or the mentally ill
or defective who reside on the premises
if, pursuant to en agreement or
understanding arrived at between the
employer and the employee before
performance of the work, a work penoci
of 14 consecutive days is accepted in
lieu of the workweek of 7 consecutive
days for the purpose of overtime
compensation and if such Individual
receives compensation for employment
in excess of 8 hours in any workday and
in excess of 80 hours in such 14-day
period at a rate not less than 1 to times
the regular rate at which the Individual
is employed, computed in accordance
with the requirements of the Fair Labor
Standards Act of 1938, as amended.
(Approved by the Office of Management
and Budget under OMB control numbers
1215-0140 and 1215-0017.)
(4) Any contractor or subcontractor
performing on a government contract the
principal purpose of which is the
furnishing of fire fighting or suppression
and related services, shall not be
deemed to be in violation of Section 102
of the Contract Work Hour and Safety
Standards Act for failing to pay the
overtime compensation required by
Section 102 of the Act in accordance
with the basic rate of pay as defined in
subsection (c)(1) of this section, to any
pilot or copilot of a fixed-wing or rotary-
wiag aircraft employed on such contract
if:
(i)	Pursuant to a written employment
agreement between the contractor and
the employee which is arrived at before
performance of the work.
(A)	The employee receives gross
wages of not less than $300 per week
regardless of the total number of hours
worked in any workweek, and
(B)	Within any workweek the total
wages which an employee receives are
not less than the wages to which the
employee would have been entitled in
that workweek if the employee were
paid the minimum hourly wage required
under the contract pursuant to the
provisions of the Service Contract Act of
1965 and any applicable wage
determination issued thereunder for all
hours worked, plus an additional
premium payment of one-half times such
minimum hourly wage for all hours
worked in excess of 8 hours in any
calendar day or 40 hours in the
workweek:
(ii)	The contractor maintains accurate
records of the total daily and weekly
hours of work performed by such
employee on the government contract In
the event these conditions for the
exemption are not met, the requirements
of section 102 of the Contract Work
Hours and Safety Standards Act shall
be applicable to the contract from the
date the contractor or subcontractor
fails to satisfy the conditions until
completion of the contract. (Approved
by the Office of Management and
Appendix 23-D-14
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Budget wider OMB control nambar
lm-ooir.)
ffctt TMntogptana approved or
wcoffltftd by thfl Di^irtMiil d1
prior to August M, ItTfc
(a) Notwithstanding the provisions of
15.9(a)(4)(H) relating to the utilization of
trainee* on Federal and federally
assisted construction, no contractor
ahallbe required to obtain approval of a
training program which, prior to August
20.1975^ was approved by the
Depvtipent of Labor for purposes of the
Davis-Bbcon and Related Acts, was
established by agreement of organized
labor ami management and therefore
recognized by the Department and/or
was recognized by the Department
under Executive Order 11246. as
amended. A copy of the program and
evidence of its prior approval, if
applicable shall be submitted lo the
Employment and Training
Administration, which shall certify such
prior approval or recognition of the
program. In every other respect, the
provisions of | S.5(a)(4){n)—including
those relating to registration of trainees.
psnnlsaible ratio*, and wage rates to be
paid shall apply to these programs.
(b)	Every trains* employed on a
contract executed on and after August
20,1875, in one of the above training
programs must be Individually
registered in the program in accordance
with€mployment and Training
Administration procedures, and must be
!>aid at the rate specified in the program
or the level of progress. Any such
employee listed on the payroll at a
trainee rate who la not registered and
participating in a program certified by
ETA pursuant to this section, or
approved and certified by ETA pursuant
to 15.5(a)(4)(ii). must be paid the wage
rate determined by the Secretary of
Labor for the classification of work
actually performed. The ratio of trainees
lo journeymen shall not be greater than
permitted by the terms of the program.
(c)	In the event a program which was
recognized or approved prior to August
20.1975. is modified, revised, extended,
or renewed, the changes in the program
or its renewal must be approved by the
Employment and Training
Adminlatrstion before they may be
pieced into effect.
18.17 
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CHAPTER 24 - SMALL, WOMEN'S AND MINORITY BUSINESS UTILIZATION
Table of Contents
PARAGRAPH	PARAGRAPH
TITLES	NUMBERS
General		1
Policy		2
Fair Share		3
Affirmative Steps		4
Certification		5
Management and Technical Assistance		6
Responsibility		7
Special Conditions		8
Reporting Requiranents		9
Use of Snail and Disadvantaged Ehtities Not Covered by
40 CFR Part §33-240	 10
Source of Further Information and Assistance	 11
FIGURE	FIGURE
TITT.F.q	NUMBERS
EPA Form 6005-1, "Recipient Report on U.S. EPA Minority
and Women's Business Utilization	 24-1
EPA Form 6005-2, "Quarterly MBE/WBE Consolidated Report	 24-2
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ASSISTANCE ADMINISTRATION	12/3/84
CHAPTER 24 - SMALL, MINORITY AND WOMEN'S BUSINESS UTILIZATION
1.	GENERAL. The Office of Snail and Disadvantaged Business Utilization (OSDBU)
is responsible for establishing policy and providing procedural guidance for
small, minority and women-owned business applications in the Agency's financial
assistance programs. Readers should exercise care when canplying with the
requirements of this Chapter since certain guidance that relates to minority
and women's business does not apply to small business. An example of such
would be in the reporting structure wherein minority and women's business
utilization are reportable items and small business utilization is not. This
particular exclusion was directed by the Office of Management and Budget
inasmuch as no Federal statute or Executive Order had been established
for the gathering of this data whereas Executive Orders for minority and
women's business requires the ccmpilation and reporting of data relative to
these business entities.
2.	POLICY. It is EPA policy (40 CFR §33.240) that recipients of EPA
financial assistance through grants and cooperative agreements award a fair
share of subagreements to small, minority, and women's businesses. This
policy applies to all contracting out for supplies, construction, or
services under any EPA grant agreement or cooperative agreement. (See
40 CFR §33•815(f) for the provisions which apply to institutions of higher
education and other nonprofit organizations).
3.	FAIR SHARE. EPA interprets fair share to mean a reasonable commitment
of subagreement funds to small, minority and women-owned businesses
commensurate with the total project funding. A fair share objective
shall be established for both minority business and women's business
depending on local demographics, the availability of minority and women's
businesses and other relevant factors. In those cases vtoere there is a
State or local executive directive, ordinance, or statute prescribing
goals for minority and women's business enterprise participation, those
goals may constitute the fair share, subject to the State's approval.
If a fair share objective has been established for a particular project
but is not achieved, the mere fact of non-achievement does not preclude
an award of a subagreement provided the recipient can demonstrate that the
affirmative steps discussed below were followed.
4.	AFFIRMATIVE STEPS. When contracting under an EPA grant or cooperative
agreement, recipients and their contractors must attempt to make awards to
small, women's and minority businesses. The objective is to assure that each
of these three different ownership groupings is given the opportunity to
participate in subagreement awards under EPA financial assistance agreanents.
Hie utilization of one business segment to the exclusion of the others does
not fulfill this requirement. Each business segment, i.e., small, minority
and women must be afforded the same opportunities.
a. State and local governments receiving Fsderal financial assistance must
take affirmative steps Including those set forth in 40 CFR §33.240 to assure the
use of small, minority and women's business when possible. Recipients are not
required to follow the six steps in the event no work is to be performed by
any external source, i.e., A & E firms, contractors, suppliers, etc.
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ASSISTANCE ADMINISTRATION
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b.	If the recipient elects to have work performed by external sources, the
affirmative steps must be carried out by the recipient and the prime contractor
on any subcontracts or purchases awarded.
c.	The provisions of 40 CFR §33.240 do not apply to institutions of
higher education and other non-profit organizations. However, those recipients
are required to make positive efforts to use small and minority-owned businesses
as sources of supplies and services (40 CFR §33.815 (f)).
d.	EPA encourages all recipients and contractors to procure supplies and
services frcm businesses in Labor Surplus Areas. The Department of labor (DOL)
publishes an annual Labor Surplus Area Directory. Copies are available frcm
local DOL offices.
5.	CERTIFICATION.
a.	In order to be deemed a bona fide Minority Business Enterprise (MEE) or
Women's Business Ehterprlse (WBE) a firm must meet the criteria stated in the
appropriate definition at 40 CFR §33-005. That is, it must be:
(1)	Certified by the 3nall Business Administration (SBA), other Federal
agency or State, or
(2)	Be an independent business concern which is at least 51 percent
owned and controlled by minority group members or women.
b.	EPA will recognize a certification by the SBA, other Federal agency, or
a State regardless of the criteria used or location of the certifying entity.
Such certified firms will not be required to submit information concerning the
firm's ownership, control and finances unless there is reasonable cause to
question whether such firm is a bona fide MBE/WBE.
c.	A recipient of EPA financial assistance may require any firm representing
itself to be an MBE/WBE to submit a sworn statement with content stating that:
(1) the firm is an independent business concern which is at least 51 percent
owned and controlled by minority group members or women; (2) it understands
that a Federal Agency including EPA may rely upon the certification and sworn
statement in making Federal Assistance payments; and (3) it understands that
making a false statement to the government is punishable under 18 U.S.C. §1001.
6.	MANAGEMENT AND TECHNICAL ASSISTANCE.
a.	EPA intends to encourage all personnel involved in the award and admin-
istration of grants and cooperative agreements to provide small, minority and
women-owned business entrepreneurs management and technical assistance.
b.	In order to further this Intention, EPA has entered into an agreement
with the Minority Business Development Agency to provide assistance to recipients,
prime contractors and minority business enterprises. Agency MBE Coordinators
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ASSISTANCE ADMINISTRATION
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should, to the extent practicable, enter into comprehensive prograns which will
utilize these resources.
7. RESPONSIBILITY.
a. Office of Small and Disadvantaged Business Utilization (OSDBU).
(1)	The Director, OSDBU, has the principal responsibility for developing
and promulgating the Agency's policies to assure reasonable participation by
small, minority, and wanen's businesses in performing activities under EPA's
financial assistance agreements. The Director, OSDBU, will provide guidance
and training to EPA Headquarters and Regional staff, to State personnel performing
activities under delegation agreements with EPA, and to major local recipients.
(2)	The Director, OSDBU, will prepare an annual plan in consultation
with the Regional Offices for submission to the Deputy Administrator for approval
and signature. Such plan will encompass the projections for minority and wcnen's
utilization in activities assisted by EPA grants and cooperative agreements.
(3)	The Director, OSDBU, will prepare a quarterly report which
will be a consolidation of all reports from Headquarters and the Regions.
b. Assistant Administrators and Regional Administrators.
(1)	In the Construction Grants for Wastewater Treatment(WWT) Works
program, the Regional Administrator will negotiate an overall fair share with
each delegated State. The delegated State may allocate its fair share to
particular WWT construction grant projects as it sees fit. The delegated
State will determine whether and to what extent a fair share should be
established for each project. A fair share for each project is not required.
(2)	For other EPA financial assistance programs, the Assistant
Administrator, Regional Administrator, or other designated EPA official, as
appropriate, will conduct fair share negotiations directly with recipients.
c.	Award Official. The appropriate EPA Award Official is responsible for
seeing that project officers, other staff, delegated States, and other recipients
comply with EPA's policy of awarding a fair share of subagreements to small,
minority, and wanen's business enterprises, when applicable.
d.	Recipients. Recipients of EPA financial assistance are responsible
for assuring that the fair share principle is carried out.
(1) State and Local Government. These recipients must:
(a)	Comply with the small, minority, and wanen's business enterprise-
related requirements in 40 CFR §33.240.
(b)	Ensure that each contractor awarding subagreements carries
out the affinitive steps required by the regulations.
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ASSISTANCE ADMINISTRATION	12/3/84
(2) Institutions of Higher Education and Other Nonprofit Organizations.
These recipients must make positive efforts to use small businesses and minority
owned businesses as sources of supplies and services.
8. SPECIAL CONDITIONS. Until EPA revises 40 CFR Part 33 to Include the reporting
requirements discussed below, Award Officials must use the apropriate following
special condition(s) in all awards after April 1, 1984, for:
a.	Step 2+3 grant agreements for the combined design and building of a
treatment works and building-related services and supplies under 40 CFR Part
35, Subpart I. All step 2+3 grant agreements must contain the following special
conditions:
"The recipient agrees to submit to the Award Official a canpleted
EPA Form 6005-1 within 30 days after the date the recipient
begins building the project (see 40 CFR §35-2202). This 6005-1
will contain the information on subagreement awards to minority
and women's businesses durirg the design phase of the project."
"The recipient agrees to submit to the Award Official a ccmpleted
Form 6005-1 within 15 days after the end of each Federal fiscal
quarter during which the recipient or Its contractors award any
subagreements to a minority or women's business for building and
building-related services and supplies."
b.	Step 3 grant agreements for the construction of a treatment works and
building-related services and supplies under 40 CFR Part 35, Subpart I. All
Step 3 grant agreements must contain the following special
condition:
"The recipient agrees to submit to the Award Official a ccmpleted
EPA Form 6005-1 within 15 days after the end of each Federal fiscal
quarter during which the recipient or its contractors award any
subagreements to a minority or women's business for building and
building-related services and supplies."
c.	Emergency and Remedial Response (Superfund) Cooperative Agreements.
Superfund cooperative agreements must use one of the two special conditions
stated below to encourage the State to negotiate a fair share dollar objective.
(1)	"The recipient agrees that it will not award any subagreanents
until the recipient has negotiated a fair share objective with
EPA. The recipient agrees to submit to the Award Official a
canpleted EPA Form 6005-1 within 15 days after the end of each
Federal fiscal quarter during which the recipient or its contractors
award any subagreements to minority or women's businesses."
(2)	"The recipient agrees to $	 as the fair share dollar
objective for proposed subagreement work under this cooperative
agreement. The recipient agrees to submit to the Award Official
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ASSISTANCE ADMINISTRATION
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a completed EPA Form 6005-1 within 15 days after the end of each
Federal fiscal quarter during which the recipient or its contractors
award any subagreements to minority or women's businesses."
d. All Other EPA Assistance Agreements. Assistance agreements other than WWT
construction grants and superfund cooperative agreements must contain the
following special condition:
"The recipient agrees to submit to the Award Official a completed EPA Form
6005-1 within 15 days after the end of each Federal fiscal quarter during
which the recipient or its contractors award any subagreements to minority
or women's businesses."
9. REPORTING REQUIREMENTS In order to obtain Information concerning the use
of MBE/WBE firms, EPA requires assistance recipients to file quarterly reports.
EPA Form 6005-1, "U.S. Environmental Protection Agency Recipient Report on
Minority and Women's Business Utilization" is to be completed b,y the recipient
at the end of each quarter during which a subagreement to a minority or women's
business enterprise has been made. All recipients' reports will be summarized
on EPA Form 6005-2, "Quarterly MBE/WBE Consolidated Report" by appropriate EPA
Headquarters and Regional staff.
a.	EPA Form 6005-1, "U.S. Environmental Protection Agency Recipient
Report on Minority and Women's Business Utilization" (Figure 24-1).
(1)	Recipients must submit a properly completed EPA Form 6005-1 to the
Award Official in every Federal fiscal quarter that the recipient or its contrac-
tor (s) awards a subagreement(s) to a minority or women's business enterprise
(MBE/WBE). Reports are due on January 15, April 15, July 15, and October 15.
(2)	Until such time as EPA revises 40 CFR Part 33 to require negative
reporting or includes a special condition in an assistance agreement to require
negative reporting, a recipient is not required to submit a report on EPA Form
6005-1 for those quarters during which the recipient or its contractors)
do not award a subagreement(s) to an MBE or WBE.
(3)	Applicants for a Step 2+3 grant must submit a completed EPA Form
6005-1 indicating the level of MBE/WBE participation during the planning phase
of the project (See 40 CFR §35-2104). The report must be submitted within 30
days after the date the applicant begins building the project.
(4)	Applicants for a Step 3 grant must include a completed EPA Form
6005-1 with their application indicating the level of MBE/WBE participation
during the planning and design phases of the project.
b.	EPA Form 6005-2, Quarterly MBE/WBE Consolidated Report" Figure 24-2.
Individuals designated by Assistant Administrators and Regional Administrators
in the various program and Regional offices will collect, collate, and monitor
the reports submitted by recipients. They will compile the data on an EPA
Form 6005-2 and then submit the report to either the Regional MBE Coordinator
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ASSISTANCE ADMINISTRATION
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or the Director, OSDBU Headquarters, as the case may warrant, i.e., awards
made by Regions will be transmitted to the Regional MBE Coordinator and awards
made by Headquarters will be forwarded to the Director, OSDBU. In either case,
the EPA Form 6005-2 must reach OSDBU Headquarters not later than January 31,
April 30, July 31, and October 31. Negative reports are required if no awards
are made during a particular quarter.
c. MBDA-91 Form, "Minority Business Development Agency's Performance
Report."
(1)	The MBDA-91 report form serves a dual purpose. At the beginning
of each Federal fiscal year, the form is used to establish and document minority
enterprise development objectives. This constitutes the annual plan.
(2)	Regional input will consist of fair share negotiations, estimates
of dollar amounts to be expended for management and technical assistance, and
estimates for the numbers of businesses counselled, trained, or provided other
technical and management assistance.
(3)	Quarterly MBDA-91 reports will be submitted on the same dates as
the EPA Form 6005-2. A consolidated MBDA-91 report will be prepared by Headquarters
OSDBU the 45th day following the end of the Federal fiscal year quarter.
The OSDBU will prepare the MBDA Form 91 for the Deputy Administrator's signature
and transmit it to the Director, Minority Business Development Agency, U.S.
Department of Commerce.
10.	USE OF SMALL AND DISADVANTAGED ENTITIES NOT COVERED BY 40 CFR PART §33.240.
It is EPA's policy to encourage recipients to use the following:
a.	Minority Bank Deposit Program (MBDP). Recipients should use minority
financial institutions to the maximum extent practicable. Recipients are
encouraged to seek out and use these institutions whenever and wherever possible.
b.	Historically Black Colleges (HBC) and Universities Program. The need
for providing assistance to the lIBC'b ^ essential in order to strengthen thier
capacity to provide quality education. Since the program is designed to increase
black college participation in Federal programs, consideration should be given
to assuring that HBC's participate in the Agency's university and higher education
assistance program. Although this policy applies to F'ederal agencies, the
program seeks to involve private sector institutions in strengthening HBC's.
11.	SOURCE OF FURTHER INFORMATION AND ASSISTANCE. For any additional information
or assistance regarding the utilization of small, minority and women's business
enterprise and labor surplus area firms, or for more information on the MBDP
or the HBC Program, contact the RPA Headquarters Assistance Administration Unit
(Grants Operation Branch), the Office of .Shall and Disadvantaged Business
Utilization, or the appropriate Regional Minority Business Enterprise Coordinator.
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REPORTING REQUIREMENTS ON MINORITY AND WOMEN'S
BUSINESS ENTERPRISE UTILIZATION
These instructions apply to reporting on the utilization of
minority and women's business enterprises (MBEs/
WBEs) under assistance agreements awarded by the
Environmental Protection Agency (EPA). They are in-
tended to provide guidance to EPA financial assistance
recipients in filling out the MBE/WBE utilization form
Reporting on MBEs and WBEs is based on Executive
Orders 11625,12138, and 12432, and a Memorandum of
Understanding between EPA and the Department of
Commerce. The reporting requirement applies to all EPA
assistance agreements awarded after April 1,1984
Each assistance agreement recipient must submit quar-
terly an EPA Form 6005-1 on MBE/WBE utilization for
each grant or cooperative agreement for which the
recipient or its contractor(s) awards a subagreement
Recipients must submit the forms to the EPA award
official within 15 days following the close of each fiscal
year quarter (i.e , January 15, April 15, July 15, and
October 15) during which the recipient or its contrac-
tors) awards a subagreement(s) Additionally, appli-
cants for a Step 2+3 wastewater treatment construction
grant which includes an allowance for facilities plan-
ning must submit an EPA Form 6005-1 to the award
official prior to grant award, indicating the level of
MBE/WBE participation during facilities planning Appli-
cants for a Step 3 wastewater treatment construction
grant that includes an allowance for facilities planning
and/or design must submit an EPA Form 6005-1 to the
award official prior to grant award, indicating the level of
MBE/WBE participation during the allowance period
Recipients are advised to contact the regional office if
there are any questions concerning these instructions
INSTRUCTIONS FOR FILLING OUT BUSINESS
UTILIZATION REPORT
I. The name and address of recipient organization to
which EPA made the award (sewer or water authority,
state or state agency, etc )
2 Name of the official representing the recipient
3. (a) Self-explanatory, and (b) grant activity (e.g., air,
public water supply, wastewater construction, etc )
4	Assistance agreement identification number as-
signed by EPA
5	Self-explanatory
6	Total amount of EPA award
7.	Indicate EPA region in which work is being performed
8.	Date that the assistance agreement was made.
9.	Indicate MBE and WBE goals or standards, including,
where applicable, a fair share estimate
Wastewater Construction Grant Awards The Regional
Administrator will negotiate an overall fair share with
delegated States The delegated State and not EPA may
determine whether and to what extent a fair share
should be established for each project. A fair share for
each project is not required
All Other Applicable Assistance Agreements When the
assistance agreement includes procurement, the Assis-
tant Administrator or Regional Administrator, or other
designated EPA official, as appropriate, will conductfair
share negotiations directly with assistance recipients
10	Recipients of wastewater construction grant awards
who received an allowance for planning and design
activities (Steps I and 2) must indicate the level of MBE
and WBE participation during the allowance period by
(a) A/E award(s), and (b) other award(s)
11	Recipients of assistance awards, including Step 2+3
and Step 3 wastewater construction grant recipients
awarding subagreementsfor building, must indicate the
levels of MBE and WBE participation in all subagree-
ments by (a) A/E award(s), and (b) other award(s)
12	Person signing must be the authorized representa-
tive of the recipient organization
13	Additional comments or explanations Refer to the
specific item number on the form, if applicable
EPA Form 6005-1 (4-84)
Figure 24-1
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ASSISTANCE ADMINISTRATION	12/3/84
US ENVIRONMENTAL PROTECTION AGENCY
OFFICE OF SMALL AND DISADVANTAGED BUSINESS UTILIZATION
A WASHINGTON. DC 20460
^>EPA RECIPIENT'S REPORT
Form Approved
0MB No 2090-0006
Expires 10-31-86
NOTE Please Read Instructions Before Completing Form
1 RECIPIENT NAME AND ADDRESS
2 AUTHORIZED REPRESENTATIVE
3 TYPE OF ASSISTANCE AGREEMENT
a Check one C Grant Cooperative Agreement
b Grant Activity
4 ASSISTANCE AGREEMENT ID NUMBER
5 PROJECT TITLE
6 ASSISTANCE AMOUNT 7 REGION 8 DATE OF ASSISTANCE AWARD
$
9 RECIPIENT'S GOAL. STATE GOAL OR OTHER STANDARDS (if any)

Dollar Amount
Percentage of Assistance Amount
MBE
$
%
WBE
$
%
10(a) A/E SUBAGREEMENT AWARDS MADE DURING THE ALLOWANCE PHASE (Planning and Design) OF A WASTEWATER TREATMENT
CONSTRUCTION GRANT PROJECT
Name, Address, and Telephone Number
(1)
MBE
WBE
Type of Services Procured
Subagreement Number
Subagreement Amount
$
Date of Award
Name, Address, and Telephone Number
(2)
MBE
WBE
Type of Services Procured
Subagreement Number
Subagreement Amount
$
Date of Award
Name, Address, and Telephone Number
(3)
MBE
WBE
Type of Services Procured
Subagreement Number
Subagreement Amount
$
Date of Award
10(b) OTHER SUBAGREEMENT AWARDS MADE DURING THE ALLOWANCE PHASE (Planning and Design) OF A WASTEWATER TREATMENT
CONSTRUCTION GRANT PROJECT
Name. Address, and Telephone Number
(1)
MBE
WBE
Type of Services Procured
Subagreement Number
Subagreement Amount
$
Date of Award
Name, Address, and Telephone Number
(2)
MBE
WBE
Type of Services Procured
Subagreement Number
Subagreement Amount
$
Date of Award
Name, Address, and Telephone Number
(3)
MBE
WBE
Type of Services Procured
Subagreement Number
Subagreement Amount
$
Date of Award
EPA Form 6005-1 (4-84)	figure 1 A	Page 1 of 2
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11(a) A/E SUBAGREEMENT AWARDS MADE UNDER GRANTS/COOPERATIVE AGREEMENTS
Name, Address, and Telephone Number
(1)

MBE
WBE
Type of Services Procured




Subagreement Number




Subagreement Amount
$
Date of Award
Name, Address, and Telephone Number
(2)

MBE
WBE
Type of Services Procured




Subagreement Number




Subagreement Amount
$
Date of Award
Name. Address, and Telephone Number
(3)

MBE
WBE
Type of Services Procured




Subagreement Number




Subagreement Amount
$
Date of Award
11(b) OTHER SUBAGREEMENT AWARDS MADE UNDER GRANTS/COOPERATIVE AGREEMENTS
Name, Address, and Telephone Number
(1)

MBE
WBE
Type of Services Procured




Subagreement Number




Subagreement Amount
$
Date of Award
Name, Address, and Telephone Number
(2)

MBE
WBE
Type of Services Procured




Subagreement Number




Subagreement Amount
$
Date of Award
Name, Address, and Telephone Number
(3)

MBE
WBE
Type of Services Procured




Subagreement Number




Subagreement Amount
$
Date of Award
12(a) NAME & TITLE OF AUTHORIZED REPRESENTATIVE
(b) SIGNATURE
(c) DATE
13 SPACE PROVIDED FOR ADDITIONAL COMMENTS. EXPLANATIONS, OR ADDITIONAL SUBAGREEMENT AWARDS
EPA Form 6005-1 (4-84)	Page 2 of 2
Figure 24-1-B
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US ENVIRONMENTAL PROTECTION AGENCY
OFFICE OF SMALL AND DISADVANTAGED BUSINESS UTILIZATION
WASHINGTON. DC 20460
OE PA QUARTERLY MBE/WBE CONSOLIDATION REPORT
FISCAL YEAR
REGION
REGIONAL FAIR
SHARE
PREPARED BY
DATE

1st Federal
FY Quarter
2d Federal
FY Quarter
3d Federal
FY Quarter
4th Federal
FY Quarter
"Quarterly
Cumulative
Total Grant or Cooperative Agreement
Subagreement Dollars Awarded*
$
$
$
$
$
Total Subagreement Dollars
Awarded to MBEs
$
$
$
$
$

%
%
%
%

Total Subagreement Dollars
Awarded to WBEs
$
$
$
$
$

%
%
%
%

•GRANT/COOPERATIVE AGREEMENT ACTIVITY
FISCAL YEAR QUARTER

MBE
STATE(S)
WBE
STATE(S)
Air (Section 105)
$

$

Water fSection 106)




Drinking Water (PWSS)




Operator Training




Underground Injection Control (UIC)




Hazardous Waste




Pesticides Enforcement




Pesticides Certification and Training




Rural Water Association




Clean Lakes




Research and Development




Superfund (State)




WWT Construction Grants




Other
$

$

**This figure reflects the accumulation of fiscal year cumulative reporting (eg. quarterly cumulative will
be a cumulation of quarters 1 and 2, etc )
EPA Form 6005-2 (4-84)
Figure 2^4-2
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CHAPTER 25 - PROGRAM INCOME
Table of Contents
PARAGRAPH	PARAGRAPH
TITLES	NUMBERS
General		1
EPA's Management of Program Income		2
Recipient's Management of Program Income		3
Other Inccnte		4
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CHAPTER 25 - PROGRAM INCOME
1.	GENERAL.
a.	Program income is the gross income the recipient earns frcm charges
for the project during the project period. Examples of program inccme are
income frati service fees, sale of commodities, trade-in allowances, or usage
or rental fees. Pees frcm royalties are program income only if the assistance
agreement identifies them as program income. Revenue generated under the
governing powers of a State or local government which the State or local government
could, have generated without an EPA award is not considered progran inccme
unless the assistance agreement identifies it as program inccme. Such revenues
include fines or penalties levied under judicial or penal power and used as a
means to enforce laws; license or permit fees used to regulate users; special
assessments to abate nuisances and public irritations; and inspection fees and
taxes. Also, revenue from wastewater treatment construction grant projects
under Title II of the Clean Water Act, as amended, is not program incane, but
must be used for operation and maintenance costs of the recipient's wastewater
facilities.
b.	The Project Officer may request the Director, Grants Administration
Division to approve a deviation fran the requirement that recipients account
for program income if the amount of the program income will not exceed $200
or if the recipient's administrative costs would exceed anticipated receipts.
2.	EPA'S MANAGEMENT OF PROGRAM INCOME.
a.	The Award Official is to direct the recipient in the assistance
agreement on how the recipient is to use prog rati income. Program inccme is to
be:
(1)	Added to the funds committed to the project and used to support
additional eligible project activities; or
(2)	Used to finance the non-Federal share of the project, if approved
by the Award Official.
(3)	If you do not use the program incane to fund additional eligible
activities or you are not permitted to use program income to meet your non-
Pederal share of the project costs, EPA will subtract the income from the total
allowable project cost to determine the net cost on which the Federal share
will be based.
b.	Normally, EPA accounts for program inccme other than the types cited
in paragraph 4 of this Chapter vdien EPA closes out the project (see 40 CFR
Part 30, Subpart H). However, if before EPA closes out the project, the Project
Officer determines that the program inccme is significant, the Project Officer
must recommend that the Assistance Administration Unit (AAU) prepare an assistance
amendment to adjust the total project cost.
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c. The following illustrates how EPA must handle program incatte if it is
not used for the recipient's share of the project cost. In these examples,
the total approved project cost is $2,000,000. The EPA share is $1,200,000,
and the recipient's natching share is $800,000. These calculations are based
on a program income of $500,000.
$2,000,000- Original
Project
$ 800,000- Recipient
1,200,000- EPA
Example 1
Progran Income
Example 2
Recipient share
$800,000
(40%)
EPA share
$1,200,000
(60%)
Progran
Income
$500,000
Tbtal
Project = $2,000,000
Progran Income
Deducted Fran
Tbtal Project
Recipient
share
$600,000
EPA share
$900,000
Program Income
$500,000
$2,000,000
Program Income
Added to Project
Recipient share
$800,000
EPA share
$1,200,000
Prog ran Incane
$500,000
$2,500,000
d.	In Example 1, there is no change in the total project cost, but EPA
must adjust its payment to the recipient. In Example 2, the Project Officer
must recanmend that the AAU prepare an assistance amendment to reflect an
increase in the project cost, but no adjustment in EPA payments to the recipient
is necessary. In either case, the recipient must report program income on
SF 269, "Financial Status Report," at the errl of the project period.
e.	In no case will EPA pay more than the amount of EPA's original contribution
to the project.
3. RECIPIENT'S MANAGEMENT OF PROGRAM INCOME
a. EPA's recipients must record the receipt and expenditure of program
incane as a project transaction in their accounting books.
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b. Reasonable expense incurred by the recipient to administer pgrogran
income is an allowable cost. Such expenses are to be deducted frcra the
gross amount of the program incane.
4. OTHER INCOME. The following types of inccme are treated differently from
the procedures for program income in paragraph 2.
a.	Interest Earned on Assistance Funds. Interest earned on an EPA advance
must be returned to EPA unless the recipient is:
(1)	A State, or State agency as defined under Section 203 of the
Intergovernmental Cooperation Act of 1968 (42 U.S.C. 4213); or
(2)	A tribal organization as defined under Sections 102, 103, or
104 of the Indian Self Determination Act (25 U.S.C. 450f, 450g, and 450h).
b.	Assistance Related Royalties Received frcm Copyrights and Patents.
Unless identified as program income in the assistance agreement, the recipient
has no obligation to EPA for royalties received as a result of copyrights or
patents produced under the assistance agreement. However, this does not affect
the Federal Government's rights as stated in 40 CFR Part 30, Appendix B -
Patents and Inventions, or 40 CFR Part 30, Appendix C - Rights in Data and
Copyrights.
c.	Proceeds from the Sale of Real or Personal Property.
(1) Generally, EPA must be reimbursed for its proportionate share of
the inccme, less the recipient's cost to sell the property, derived from the
sale of real or personal property purchased in whole or in part with EPA funds.
(See Chapter 26, "Property Management"). If the recipient sells the property,
the Award Official must instruct the recipient to reimburse EPA by check made
payable to the U.S. Environmental Protection Agency. (See the EPA Financial
Managanent Manual on how to handle funds returned to EPA.)
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CHAPTER 26 - PROPERTY MANAGEMENT
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Table of Contents
PARAGRAPH	PARAGRAPH
TITLES	NUMBERS
General Policy for the Purchase, Use and Disposition
of Personal and Real Property		1
Management Standards		2
Disposition		3
Real Property		4
Intangible Property		5
Use of Recipient-Owned Property - Depreciation and
Use Allowances		6
Use of Federally-Owned Property		7
General Records Requirements - Personal and Real
Property		8
Shared Use		9
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CHAPTER 26 - PROPERTY MANAGEMENT
1. GENERAL POLICY FOR THE PURCHASE, USE AND DISPOSITION OP PERSONAL AND REAL
PROPERTY.
a.	All Recipients.
(1)	If authorized to do so in the assistance agreement, recipients may
claim as program costs funds used to purchase property required for use in the
assisted program(s).
(2)	Purchases of personal property must be made during the approved
budget/project period and charged as direct costs to the project. Title to such
property is vested in the recipient subject to conditions stated in 40 CFR 30.530.
(3)	Recipients may not use GSA sources of supplies and services;
neither may they use excess goverrment property.
(4)	Purchases costing $10,000 or more must be approved in advance by
the Award Official (all capital expenditures must receive prior approval). If
the proposed purchase is identified in the award document no further approval
is necessary.
(5)	The use of Federally owned property must be negotiated with the
Award Official and be the subject of a formal lease agreement.
(6)	Any Assistance Agreement/Amendment that authorizes the purchase
of personal property to which title will be vested in other than the recipient
should state in whom (EPA or contractor) title to that property will vest.
b.	Certain Nonprofit Organizations. Title to personal property purchased
by a nonprofit institution of higher education, or other nonprofit organization
whose primary purpose is the conduct of scientific research, for use on an EPA
supported project for basic or applied research will be vested in that organiza-
tion. However, EPA may reserve the right to transfer title for property having
a unit acquisition cost of $1,000 or more to the Federal Goverrment or a third
party, within 120 days after the end of the project period. EPA must establish
its right of transfer by identifying such property in the assistance agreement,
or by notifying the recipient in writing. If EPA does not reserve the right
to transfer the title, the nonprofit recipient has no obligation or accountability
to EPA for any property purchased.
c.	Recipients Other Than Certain Nonprofit Organizations.
(1)	The recipient must use the property in furtherance of the EPA
assisted project for which it was acquired as long as needed.
(2)	EPA's Interest (EPA's cost share percentage) in all nonexpend-
able personal property having a unit acquisition cost of $10,000 or more must
be protected in compliance with all recordation or registration requirements
of the Uniform Commercial Code or other applicable local laws relating to such
property.
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(3)	EPA may reserve the right to transfer title to such property
having a unit acquisition cost of $1,000 or ncre to the Federal Government or
to a third party (when otherwise eligible) when not needed by the recipient
after canpletion of the project. EPA's rights and intentions relating to such
property must be specified in the assistance agresnent or other appropriate
communication and must be exercised within 120 days after project canpletion.
(4)	If the recipient's contractor acquires personal property with
EPA funds, and the subagreement states that title is vested in either the
assistance recipient or EPA, the contractor must comply with EPA's property
policies (see 40 CFR 30.537).
(5)	The property management standards and requirements for final
disposition outlined in paragraphs 2 and 3 below must be followed.
2. MANAGEMENT STANDARDS.
a.	Nonprofit Organizations. These standards do not apply to those nonprofit
organizations identified in subparagraph lb above unless EPA has reserved the
right to transfer title.
b.	All Other Recipients.
(1) If nonexpendable personal property is purchased with EPA funds,
the recipient must maintain accurate records reflecting the following:
(a)	A complete description of the property;
(b)	Manufacturer's serial number, model or identification number
of the item;
number;
(c)	Source of the property, including the assistance identification
(d)	Whether title is vested in the recipient or the Federal Government;
(e)	Acquisition date and unit acquisition cost of the property;
(f)	Federal share of the cost expressed as a percentage;
(g)	Location, use and condition of the property; and
(h)	Data on disposition, includlrig the sale price or, if the recip-
ient is required or intends to compensate EPA for the Federal share, Information
on the method used to determine the fair market value of the property.
(2) Recipients must also maintain records of the required biennial
physical inventory of the property which verifies the current use and continued
need for the property. The recipient must also have an adequate system to
control loss, damage and theft; and must maintain the property in good condition.
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All Federally owned property must be clearly identified as such. Sales procedures
must provide for competition resulting in the highest possible return.
c. Contractors to Recipients. Assistance Administration Units are
cautioned to assure that any assistance agreement or amendment that authorizes
the acquisition of personal property to which title will be vested in EPA or a
contractor, rather than the recipient, should state appropriate provisions for
that vesting. A contractor acquiring personal property authorized under an
EPA assisted subagreement must canply with EPA's property mangement standards
if the agreement or amendment provides for title to the property to vest in
EPA or the recipient (see 40 CPR 30.537). Otherwise, the contractor is not
required to comply with those standards.
3.	DISPOSITION. When personal property purchased with EPA funds is no longer
needed for the original purpose, recipients may use it on other EPA or Federally
supported projects. Complete records reflecting the ultimate disposition of
personal property must be maintained. If such property is to be sold or used
in non-Federal activities, the following requirements are applicable:
a.	Nonprofit organizations may keep or sell nonexpendable personal property
having an original cost of less than $1,000. If the property is sold, the
proceeds from the sale may be kept.
b.	Profit-making organizations may keep or sell nonexpendable personal
property only if EPA is reimbursed for its proportionate share of the current
fair market value of the property.
c.	Nonexpendable personal property having a value of $1,000 or more may
be kept by the recipient if EPA does not exercise its right to transfer title
and EPA is reimbursed for its proportionate share of the current fair market
value of the item(s). If neither the recipient nor EPA has a need for such
property, EPA must report the fact to the General Services Administration to
determine whether a need exists in another Federal Agency. If a need exists
elsewhere, the recipient will be instructed where to ship the property and
will be reimbursed for its proportionate share of the fair market value of the
property, plus reasonable shipping and storage costs. If the property is not
needed elsewhere, the recipient must sell it and reimburse EPA for its propor-
tionate share of the sales proceeds. In this case the recipient may retain
$100 or ten percent of the proceeds, whichever is greater, to cover handling
expenses.
d.	Expendable personal property having a total aggregate fair market
value of $1,000 or more may be kept for use on other Federal projects. It may
also be used on non-Federal projects or sold if EPA is reimbursed for its propor-
tionate share of the current fair market value of the property.
4.	REAL PROPERTY. All real property purchased with EPA funds is subject to
the following conditions:
a. The purchase of all real property must be approved by the EPA Award
Official and be identified in the assistance agreement or an amendment thereto.
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b.	Real property may be used only for the purpose for which it was purchased.
c.	Such purchases are subject to the provisions of 40 CFR Part 4 which
relates to the implementation of the Uniform Relocation Assistance and Real
Property Acquisition Policies Act of 1970. Details of these requirements may
be found in Chapters 27 and 28 of this Manual. These requirements also apply
to land eligible for Federal participation under the Construction Grants
Program (see 40 CPR Part 35, Subpart I, Appendix A, Paragraph D).
d.	EPA's Interest in all real property must be adequately reflected in
the recipient's records and protected in accordance with all local laws relating
to recordation and/or registration of real property.
e.	When real property is no longer needed for the original purpose, the
recipient may use it in other Federally supported projects or programs if
prior EPA approval is received.
f.	The recipient may also be allowed to retain title to or sell the property
if EPA is compensated for its share of the fair market value of the property.
Such an arrangement should be stipulated in the assistance agreement.
g.	EPA may direct the recipient to transfer title to the property to the
Federal Government. In such cases the recipient must be compensated on the
basis of its percentage share of the original cost of the project applied to
the current fair market value of the property.
5.	INTANGIBLE PROPERTY. If the recipient produces patentable items, processes
or inventions, or obtains patent rights on same during the course of the EPA
assisted project/program, a full report of the fact must be made to the Agency.
In the absence of any prior agreements relating to the disposition of such
items/results, EPA shall determine:
a.	Whether protection of the invention or discovery shall be sought.
b.	How any rights shall be allocated and administered so as to protect
the public interest (See Chapter 29 of this Manual).
Depending on the terms and conditions of the assistance agreement, authors or
recipient organizations are free to obtain copyrights to books, publications, etc.
developed during the course of the project. However, EPA shall enjoy a royalty-
free and irrevocable right to use (or allow others to use) the material for
official government purposes.
6.	USE OF RECIPIENT-OWNED PROPERTY - DEPRECIATION AND USE ALLOWANCES. If an
assistance recipient uses its own buildings, capital improvements and/or equip-
ment during the course of the project/program, it may be ccmpensated for that
use by means of either a depreciation or use allowance. Depreciation or use
allowances must be computed in accordance with the applicable cost principles
in 40 CFR 30.410.
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a.	Both the depreciation and use allowance shall be based on the original
acquisition cost. If the actual cost is not known, a reasonable estimate of the
original cost (if approved by EPA) may be used In the computation.
b.	Any portion of the cost of such property which was donated or borne,
either directly or indirectly, by the Federal Goverrment must be excluded frcm
the computation.
c.	Land costs and the cost of excess or unused property must also be
excluded from the computation.
d.	Depreciation allowances must be based on adequate property records.
e.	Any generally accepted method of computing depreciation allowances may
be used.
f.	Use allowances for buildings and improvements shall be computed on the
basis of an annual rate not greater than two percent {2%) of the original
acquisition cost.
g.	Hie annual use allowance for equipment shall be based on a factor not
to exceed six and two-thirds percent (6—2/3%) of the acquisition cost.
h.	Recipients may not be compensated for the use of fully depreciated
property unless provided for In the assistance agreement.
7. USE OF FEDERALLY-OWNED PROPERTY. Recipients may use Federally-owned
property with the consent of the Award Official. Such property may be made
available to a non-Federal entity for use on an EPA supported project (for a
period not to exceed the project period) by means of a lease. In such cases,
program personnel are to submit a memorandum to the Management Division Director
(or equivalent property management official) covering the following information:
(See Property Management Regulation 2-27 for additional details.)
a.	Complete name and address of the requesting organization;
b.	Name and title of the official authorized to sign for that organization;
c.	The period of use by the organization (no longer than the project
period);
d.	The purpose for which the property will be used;
e.	A full description of the property, including the EPA Identification
number, serial and model number, manufacturers name, acquisition cost, and
present condition of the property;
f.	The tangible benefits to be derived by the goverrment;
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g.	Certification that:
(1)	The property is not presently needed to carry out the responsibilities
of the owner program,
(2)	Property is not excess to the requirements of the program,
(3)	Use of the property has been programmed and that a review of further
requiranents will be made within 12 months, and
(4)	The loan will be of major benefit to EPA.
h.	The party responsible for transportation expenses;
1. Party responsible for maintenance, repair and restoration costs;
j. The signature concurrence of the authorized official of the recipient
organization; and
k. The recipient must also submit to the appropriate EPA Property Management
Officer:
(1)	An annual inventory of Federally-owned property used on the project/
program; and
(2)	At the end of the project period; a final inventory listing the
present condition of each Federally-owned item used in the project and a request
for instructions for disposition thereof.
8.	GENERAL RECORDS REQUIREMENTS - PERSONAL AND REAL PROPERTY. With regard to
property purchased with Federal funds, the recipient must:
a.	Maintain all records relating to the purchase of real property and
non-expendable personal property for three years following the date of final
disposition of the property;
b.	Allow any official EPA representative (including the authorized repre-
sentatives of delegated States) full access to all program related records
as long as such records are retained, even if kept longer than the required
retention period; and
c.	Include provisions for control of and accounting for such property in
its financial management system.
9.	SHARED USE. Nonexpendable personal property held by the recipient for use
on the project or program may be made available for use on other projects or
programs if such use will not interfere with work on the project or program
for which it was originally acquired. A charge for its use may be appropri-
ate (see CMB Circular A-102, Attachment N, paragraph 6 b(2)).
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CHAPTER 27 - REAL PROPERTY ACQUISITION
Table of Contents
PARAGRAPH	PARAGRAPH
TITT.ES	NUMBERS
General		1
Acquisition Guidelines		2
Procedures		3
Administration		4
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CHAPTER 27 - REAL PROPERTY ACQUISITION
1. GENERAL.
a.	Definitions.
(1)	Acquiring Agency. The agency acquiring real property, either EPA
or a State agency receiving EPA financial assistance.
(2)	The Act. The Uniform Relocation Assistance and Real Prcperty
Acquisition EOlicies Act of 1970, Public Law 91-646.
(3)	Initiation of Negotiations. The date on which the acquiring agency
makes the first personal contact with the property owner or his representative
and furnishes him with a written offer to purchase real property.
(4)	Law of Eminent Domain. The right of a government to take or to
authorize the taking of private property for public use with just compensation
being given to the owner.
(5)	Real Prcperty. Except as otherwise defined by State law, land or
any improvements to land, including structures, fixtures and appurtenances
thereto, but excluding movable machinery and equipment.
(6)	State Agency. The National Capital Housing Authority, the District
of Columbia Redevelopment Land Ajency, and arty department, agency or instrumen-
tality of a State or of a political subdivision of a State, or any department,
agency or instrumentality of two or more States or of two or more political
subdivision of a State or States.
b.	Background. The Uniform Relocation Assistance and Real Property Acquisition
Etilicies Act of 1970 governs relocation assistance and real property acquisition
under Federal and Federally-assisted programs. Title III of the Act governs
acquisition. EPA's regulations implementing Title III of the Act appear in 40
CFR Part 4, Subpart F. This Chapter provides policies and procedures governing
the acquisition of real property.
c.	Purpose. The purpose of this Chapter is to review policy and disseminate
procedures for applying Title III of the Act to the administration of the Agency's
assistance and other programs.
d.	Applicability.
(1)	The provisions of this Chapter pertain to assistance related acqui-
sition of real property and not to relocation assistance which is covered in
Chapter 28 "Relocation Assistance".
(2)	The provisions of the Act apply to EPA projects and to EPA-assisted
projects of State agencies. The policies and procedures contained in this Chapter
are applicable to any interest in real property acquired after January 1, 1971,
for purposes of an EPA project or EPA-assisted program. This includes permanent
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easements and leases, where the term of the lease Is 50 years or more, including
options for extension.
(3) Although the Act does not apply to assistance for projects of non-
governmental entities, i .e., recipients who are not State agencies, it is EPA
policy to encourage all recipients who acquire real property as the result of an
EPA supported project to be guided to the fullest extent practicable by the
policies of the Act.
e.	Policy. It is EPA policy:
(1)	To encourage and expedite the acquisition of real property by nego-
tiation rather than condemnation.
(2)	To encourage public confidence in EPA real property acquisition
practices by fair treatment and the protection of the rights of those whose real
property is acquired for an EPA supported project.
f.	Required Assurances. No assistance may be approved without assurances
that the applicant has complied or will comply with the Act. The applicant
will assure that:
(1)	It will comply with the policies and guidelines outlined in Title
III of the Act (see 40 CPR Part 4, Subpart F).
(2)	In acquiring real property it will be guided, to the greatest extent
practicable under State law, by the land acquisition policies in Section 301 of
the Act, and the provisions of Section 302, and that property owners will be
paid or reimbursed for necessary expenses as specified in Section 303 and 304.
If State law precludes compliance, a statement from the Chief Legal Officer
specifying which assurance cannot be complied with must be furnished to the EPA
project officer.
(3)	The following documentation is provided if land or rights to land
have already been acquired and the acquisition did not conform to the requirements
of the Act:
(a)	A statanent that the provision of the Act have been applied
retroactively to the extent practicable;
(b)	The seller and other affected parties have been furnished
copies of the Act, and the applicable EPA regulations (40 CFR Part 4); and
(c)	The seller and other affected parties have been fully informed
of their rights under the Act, and such parties have:
_1 been provided just compensation retroactively, or
2 knowingly waived any rights available to them under the
Act.
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2. ACQUISITION GUIDELINES.
a. GENERAL. In acquiring real property for a project supported in whole
or in part by EPA funds, EPA or assistance recipients shall adhere to the
following:
(1)	The public shall be informed of the acquisition policies, require-
ment, and payments which apply to the project;
(2)	Every reasonable effort shall be made to acquire the property
through negotiation;
(3)	The property being acquired shall be appraised before the initia-
tion of negotiations, and the owner, or his designated representative, shall be
given the opportunity to accompany the appraiser during the property inspection;
(4)	Before the initiation of negotiations, the Agency shall establish
an amount which it believes is just compensation for the real property. The
amount shall not be less than the approved appraisal of the fair market value,
including damages or benefits to the remaining property. Promptly thereafter
the Agency shall make a written offer to the owner to acquire the property for
the full amount believed to be just compensation.
(5)	At the time the offer to purchase is made, the acquiring agency
must provide the owner with a written statement of the basis for the determina-
tion of just compensation.
(6)	No owner shall be required to surrender possession of real property
until one of the following events occurs:
(a)	EPA or the assistance recipient pays the agreed purchase price;
(b)	An amount not less than the approved appraisal of the fair
market value of such property is deposited with the court having appropriate
jurisdiction; or
(c)	The amount of compensation awarded in condemnation proceedings
for such property is deposited with the court;
(7)	Construction or development of a public improvement shall be scheduled
so that, to the greatest extent practicable, no person lawfully occupying real
property shall be required to move from his dwelling or to move his business or
farm operation without ninety days written notice of the earliest date by
which he may be required to move.
(8)	If property is to be acquired through use of aninent dcmain, the
recipient shall institute formal condemnation proceedings, and the owner shall
not be forced to institute legal proceedings to prcve the taking of his real
property;
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(9)	If the acquisition of part of a property would leave its owner with
an uneconomic rennant, i.e., a property with little or no utility to the owner,
an offer shall be made to include that remnant in the acquisition; and
(10)	In acquiring any interest in real property, an equal interest must
also be acquired in all buildings, structures, or other improvements located upon
the real property which will be removed or adversely affected by the real prop-
erty's use.
b.	Compensation.
(1)	After appraisal of the real property, the acquiring agency shall
offer the owner an amount not less than that determined and approved to be just
compensation at the time of the valuation. A written statement sumnarizing the
basis for the amount offered shall also be provided to the owner. Wiere applicable,
a separate statement regarding compensation for real property owned by tenants
shall be provided.
(2)	The following factors must be disregarded when determining just
compensation to be offered for the purchase of real property:
(a)	Any decrease or increase before the date of valuation caused by
the public improvement for which such property is acquired;
(b)	Any decrease or increase caused by the likelihood of public
improvement; or
(c)	Any decrease caused by physical deterioration not within
reasonable control of the owner.
(3)	If, after acquisition of real property, the recipient permits the
property's former owners or tenants to remain on the property, the amount of rent
required shall not exceed the fair rental value of the property for the term of
the lease. In determining fair rental value, the recipient should consult with
the local board of realtors, real estate agents, newspaper and other listing, or
other appropriate sources or information. Evidence of this consultation should
be made a part of the real property acquisition transaction.
(4) The recipient shall not defer negotiations, delay payment or deposit
of funds, use the threat of condemnation proceedings coercively, or take any
action to compel an agreement on price.
c.	Easements. If an easement is obtained, the recipient has then obtained
rights in the lands of another. Accordingly, the estate from which those rights
were derived is lesser by reason of the easement. The owner of the lessened
estate must be compensated for its diminution by the easement, i.e., the difference
between the fair market value immediately before and immediately after imposition
of the easement. Full consideration should be given and allovrance made for the
substantial enjoyment and beneficial ownership remaining to the owner as well as
to the interference occasioned by the acquisition and exercising of the easement.
(See paragrah 3b(6) regarding appraisals.)
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3. PROCEDURES.
a.	Initiation of Negotiations.
(1)	When EPA or an assistance recipient determines that it will acquire
real property for a project, it must inform the owner of its intentions and of
the owner's rights under the Act. This notification should be accomplished
through personal contact, or by certified mail, return receipt requested, with
the property owner or his/her representative. The acquiring agency should inform
the owner that:
(a)	The purchase price will be based on the agency's determination
of just compensation for the real property;
(b)	The cwner is entitled to accanpany the appraiser during the
evaluation of the property; and
(c)	A mutually agreeable time of appraisal will be scheduled at the
earliest practicable date.
(2)	Negotiations will be initated when the acquiring agency provides
the property owier or his/her representative a written offer to purchase the
property at a specified price. This offer to purchase should be incorporated in
a STATEMENT OF JUST COMPENSATION as indicated in paragraph 3 of this Chapter.
b.	Appraisal. To determine just compensation for the acquisition of real
property, an approved appraisal of the fair market value of such property must
be obtained before the initiation of negotiations. The following EPA guidelines
must be followed:
(1)	Normally, a licensed or certified, professional appraiser should be
employed. If the property interest to be acquired, however, is of obvious nominal
value (for example, a sewer easement of less than $100) and the owner agrees, an
employee of the recipient who has experience in evaluating such interests may make
the appraisal.
(2)	Normally, only one appraised need be obtained. Circumstances (owner
dissatisfaction or substantial property value involved), however, may make an
additional appraisal advisable. Where two or more appraisals are made, the offer
must be based on the higher one unless it can be shown to be unreasonable or in
error.
(3)	Real property acquisition records must show that the cwner or his/her
designated representative was afforded the cpporunity to accompany the appraiser
during the inspection of the property.
(4)	Standards for appraisal used in EPA and EPA-assisted programs must
be consistent with the current Uniform Appraisal Standards for Federal Land
Acquisition published by the Interagency Land Acquisition Conference, and available
from the U.S. Goverrment Rrinting Office, W&shington, DC.
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(5)	Where adequate market data is available and a value conclusion can
be reasonably deduced frcm comparable sales, an abbreviated appraisal report may
be substituted in place of a formal appraisal.
(6)	No action maybe taken to compel a property owner to waive the right
to an appraisal. However, the appraisal requirement will be considered to be met
if the property owner is informed of the right to an appraisal and waives that
right in writing.
c. Just Compensation. Following appraisal, review of appraisal, and
determination of just compensation, the acquiring agency must provide the owner
or his/her representative a written offer to purchase the real property. The
amount offered must not be less than the appraised fair market value. The offer
is to be accompanied by a STATEMENT OF JUST COMPENSATION, which must include:
(1)	An identification of the real property and the interest therein
being acquired;
(2)	A certification, where applicable, that any separately held interest
in the real property is not being aoquired in whole or in part;
(3)	An identification of buildings, structures, and other improvements,
including fixtures, removable building equipment, and any trade fixtures which
are considered to be part of the real property for which the offer of just
compensation is made;
(4)	An identification of any real property improvements, including
fixtures, not owned by the owner of the property;
(5)	An identification of the types and approximate quantity of personal
property located on the premises that is not being aoquired;
(6)	A declaration that the agency's determination of just compensation:
(a)	is based on the fair market value of the property or interest
therein being aoquired;
(b)	Is not less than the approved appraised value of the property,
or interest therein;
(c)	Disregards any decrease or increase in the fair market value
of the property due to the contemplated project;
(d)	In the case of separately held interests in the real property,
includes an apportionment of the total just compensation for each of those
interests; and
(7) The estimated amount of damages, if arty, to any remaining property
in the event the acquisition is less than a fee simple taking, as well as
consideration of any offsetting benefits.
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d.	Notices.
(1)	Ninety-day Notice. No person lawfully occupying real property may
be required to move from his dwellirg or to move his business or farm operation
without at least 90 days written notice of the earliest date by >Mch he may be
required to move.
(2)	Other Notices. EPA and Its assistance recipients shall adhere to the
following notification guideline when acquiring real property:
(a)	A notice to vacate must not be given until the acquiring agency
actually owns or controls the real property;
(b)	A notice to vacate must give a firm and specific date; and
(c)	Promptly following the determination to acquire the property,
the acquiring agency shall furnish the owner, in writing, an explanation of his
rights under the Act. Each owner must be presented a copy of the Act, the EPA
regulations (40 CFR Part 4) and a statenent indicating his rights to:
_1 Moving and related expenses;
2 Decent, safe, sanitary and comparable replacement housing
prior to displacement, if he/she is an owner-occupant; and
3^ Other benefits as a displaced person under Title II of the
Act.
(3)	Notice to Tenants. Within 15 days following the initiation of nego-
tiations or the issuuance of a written notice of intent to acquire, affected
tenants must be informed in writing of the initiation of negotiations and shall
be furnished written notice of their rights under the Act. Each tenant family
must be presented a copy of the Act, the EPA regulations (40 CPTJ Part 4) and a
statement indicating rights to:
(a)	Moving and related expenses;
(b)	Decent, safe, sanitary and comparable housing before displacement
(note that entitlement of replacement housing depends on occupancy of at least 90
days before the initiation of negotiations); and
(c)	Other benefits as a displaced person under Title II of the Act.
e.	Tenant-owned Improvements.
(1) The acquiring agency must pay just compensation for a building, struc-
ture, or other improvement owned by a tenant. Just compensation is considered the
larger of:
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(a)	Hie fair market value of the Improvement, assuming its removal
from the property; or
(b)	The Increase in the fair market value of the property resulting
from the improvement.
(2)	Just compensation for acquisition of improvements may not be made
unless:
(a)	All rights, title, and interest in the Improvement are
surrendered by the tenant in consideration for the payment;
(b)	The owner of the real property involved disclaims all interest
in the improvement; and
(c)	The payment is not duplicated by any payment otherwise authorized
by law.
(3)	The authority to make payment for improvements is not intended to
deprive the tenant of the right either to reject such payment or to obtain payment
of the property interests as otherwise provided by law.
f. Land Acquisition Costs.
(1) Allowable Costs. rIhe following are allowable costs (also see sub-
paragraph 3f(3) for WWT construction grants):
(a)	Appraisal costs for real property acquisition, and other
costs of complying with the Act;
(b)	The following expenses pertaining to transfer of title:
1_ Recording fees, transfer taxes, and similar expenses
incidental to conveying the real property to the recipient;
2 Penalty costs for prepayment of any preexisting recorded
mortgage entered into in good faith encumbering such real property; and
3^ The pro rata portion of real property taxes paid which are
allocable to a period subsequent to the vesting of title in the acquiring agency,
or the effective date of its possession, whichever is earlier; and
(c)	In condemnation procedings, the agency must reimburse the
owner for actual, reasonable expenses (including reasonable attorney appraisal
and engineering fees) incurred where:
_1 The court determines that condemnation was unauthorized;
2 Ihe recipient abandons a condemnation; or
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3 The property owner receives an award of compensation in
an inverse condemnation proceeding.
(2)	Unallowable Costs.
(a)	EPA financial assistance may not be used for any payment which
is:
_1 Deemed to be dual compensation as defined in 40 CFR 4.503;
2 Included as a project cost for which financial assistance
is otherwise available.
(b)	Contracts or options to purchase real property shall not
incorporate provisions for making payment for relocation costs and related items
in Title II of the Act (see Chapter 28, "Relocation Assistance").
(3)	Cost Allowable, if approved. For WWT construction grants, land
acquisition costs are allowable only pursuant to 40 CFR 35 Subpart I, Appendix
A, Paragraph D and applicable guidance memoranda issued thereto.
4. ADMINISTRATION.
a. Records.
(1)	EPA shall retain as part of the official file, the recipient's
assurances of compliance with Title III, any pertinent correspondence, and
documentation of Federally-shared, acquisition-related costs for each EPA or
EPA-assisted project for which land has been (since January 1, 1971) or will
be acquired.
(2)	The acquiring agency shall maintain a record of the following
information concerning each acquisition of any interest in real property used
for any EPA supported projects.
(a)	Project identification and purpose;
(b)	Identification of the real property acquired and the estate
or interests therein;
(c)	Identification of owners and/or occupants;
(d)	The appraisal;
(e)	The offer;
(f)	The date and method of acquisition; and
(g)	The date, amount, and purpose(s) of payment to owners and
others.
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b. Monitoring.
(1)	The recipient's compliance with the provisions of Title III of the
Act and the implementing regulations must be monitored in the same manner as
other project requirements.
(2)	Acquisition records must be routinely reviewed as a part of pre-
award processing where land has been acquired before award and as a part of
on-site project review where the acquisition is subsequent to award.
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CHAPTER 28 - RELOCATION ASSISTANCE
Table of Contents
PARAGRAPH	PARAGRAPH
TITLES	NUMBERS
Definitions		1
Basis and Policy		2
Relocation Assistance Services and Administration		3
Benefits-Moving and Related Expenses		4
Benefits-Replacement Housing		5
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CHAPTER 28 - RELOCATION ASSISTANCE
1. DEFINITIONS.
a.	The Act. The Uniform Relocation Assistance and Real Property Acquisition
Policies Act of 1970, Public Law 91-646.
b.	Business. Any lawful activity, except a farm operation, conducted
primarily:
(1)	For the purchase, sale, lease and rental of personal and real property,
and for the manufacture, processing, or marketing of products, commodities, or
any other personal property;
(2)	For the sale of services to the public;
(3)	Sy a nonprofit organization; or
(4)	Solely for the purposes of Section 202(a) of the Act, for assisting
in the purchase, sale, resale, manufacture, processing or marketing of products,
ccmmodlties, personal property, or services by the erection and maintenance of
an outdoor advertising display or displays, whether or not such display or
displays are located on the prsnises on which any of the above activities are
conducted.
c.	Displaced Person. Any person who, on or after January 1, 1971» moves from
real property, or moves his/her personal property from real property, as a result
of the acquisition of such real property, in whole or in part, or as the result
of the written order to vacate real property, for a program or project undertaken
by EPA, or with EPA financial assistance; and solely for the purposes of Section
202(a) and (b) and 205 of the Act as a result of the acquisition of or as the
result of the written order of the acquiring agency to vacate other real property,
on which such person conducts a business or farm operation, for such program
or project.
d.	Displacing Agency. The State agency or its agent receiving financial
assistance. See State Agency.
e.	Farm Operation. Any activity conducted solely or primarily for the
production of one or rrore agricultural products or commodities, including
timber, for sale or home use, and customarily producing such products or commod-
ities in sufficient quantity to be capable of contributing materially to the
operator's support.
f.	Personal Property. Except as otherwise defined by State law, tangible
property of any kind except real property.
g.	Person. Any individual, partnership, corporation, or association.
h.	State Agency. The National Capital Housing Authority, the District of
Columbia Redevelopment land Agency, and any department, agency or instrumentality
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of a State or of a political subdivision of
or instrumentality of two or more States or
of a State or States.
2. BASIS AND POLICY.
a State, or any department, agency
of two or more political subdivisions
a.	Background. Bie Lhifonn Relocation Assistance and Real Property Acquisition
Policies Act of 1970, P.L. 91-646, governs: (1) relocation assistance (Title II),
and (2) real property acquisition (Title III). Title III of the Act is addressed
in Chapter 27 of this Manual, "Real Property Acquisition". This Chapter supplements
EPA regulations 40 CFR Part 4 In providing instructions for Implementing Title
II of the Act as it applies to EPA and EPA-assisted projects.
b.	Purpose. The purpose of this Chapter is to review policy and
disseminate procedures for applyiirg Title II of the Act to the administration
of the Agency's assistance and other programs.
c.	Policy. Although the Act does not apply to assistance for projects of
non-governmental agencies, It is the policy of the EPA to encourage all recipients
who acquire real property or displace people as the result of an EPA-supported
project, to be guided to the fullest extent practicable by the policies of the
Act.
d.	Applicability. This Chapter is applicable to any EPA or EPA-assisted
project which:
(1)	Is or will be the project of a State agency,
(2)	Required, or will require the acquisition of real property, and
(3)	Resulted or will result in there being a displaced person.
It is Imraterial when the property was acquired, by whom acquired, or whether
Federal funds were used to acquire the real property. The controlling point
is whether real property was, is being, or will be acquired for a program or
project receiving Federal financial assistance. However, this condition Is
applicable only to the acquisition of property and not to relocation prior to
January 1, 1971.
e.	Required Assurances. The Jlnvironmental Protection Agency shall not
approve any grant to a State agency, under which Federal financial assistance
will be available to pay all or part of the cost of any program or project
which will result in the displacement of any person on or after January 1,
1971, unless such State agency provides satisfactory assurances that:
(1) Fair and reasonable relocation payments and assistance shall be
provided to or for displaced persons for:
(a) Moving and related expenses;
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(b)	Replacement housing for home-owners; and
(c)	Replacement housing for tenants and certain others (see 40 CFR
Part 4);
(2)	Relocation assistance advisory services shall be provided such displaced
persons; and
(3)	Decent, safe, and sanitary replacement housing will be available to
displaced persons within a reasonable period of time prior to displacement.
3. RELOCATION ASSISTANCE SERVICES AND ADMINISTRATION.
a.	EPA Contact. Displacing agencies may contact the EPA Relocation
Representative in Headquarters (Grants Administration Division, Grants Policy
and Procedures Branch) or the appropriate Regional office for assistance
in administering the relocation program under EPA assistance prograns.
b.	Advisory Services Requirements. The displacing agency must have a relocation
assistance advisory program which, at a minimum, will :
(1)	Explain to displaced persons the relocation assistance and payments
that are available as well as eligibility requiranents;
(2)	Assist displaced persons with completing applications required for
payments;
(3)	Determine the needs of displaced persons for relocation assistance;
(4)	Inform displaced persons of the availability and cost of comparable
replacement dwellings and comparable locations for displaced business and fanri
operations;
(5)	Assist each person displaced frcm a dwelling to move to a comparable
replacement dwelling;
(6)	Inform displaced persons as to Federal and State housing prograns;
and
(7)	Provide counsel and advice to displaced persons that will minimize
the hardships associated with moving and adjusting to a new location.
c.	Relocation Payments.
(1) General.
(a) Relocation payments shall be made to all eligible families,
individuals, business concerns, nonprofit organizations, and farm operations
in accordance with EPA regulations and the procedures in this Chapter.
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(b) All persons who may be displaced or otherwise affected by
project activities will be so notified by the local displacing agency at the
earliest possible date. The notification will discuss the availability of
relocation payments, the dates governing eligibility for payments, and the
office where detailed information about payments may be obtained.
(2)	Processing of Claims by Displacing Agency.
(a)	Claim forms shall be developed, published, and supplied by the
local displacing agency.
(b)	Upon request of a claimant, the local displacing agency shall
provide assistance in the preparation of claims for relocation payments.
(c)	A claim for a relocation payment shall be submitted to the local
displacing agency within 12 months after the date of acquisition of the real
property or vacating of the premises, whichever is later.
(d)	The local displacing agency is responsible for determining the
eligibility of the claim, the accuracy of the amount of the claim, and payment
of the claim in accordance with EPA regulations and procedures. Once a final
determination has been made, there shall be no adjustment in the amount unless
an error is detected or the agency is directed by EPA or a court to make an
adjustment as a result of a claimant's grievance. Claimants shall be given a
written notice of the reasons for rejection of a claim by the local agency.
(e)	The displacing agency shall maintain in its files canpleted
and proper documentation supporting the determination which has been made with
respect to each claim.
(3)	Payment of Claims.
(a)	A payment shall be made by the local displacing agency as
promptly as possible after a person's eligibility has been determined. Advance
payments may be made in documented hardship cases, but only if the local agency
determines that such advance is appropriate.
(b)	The local displacing agency may not reduce the dislocation
allowance or moving expense because of an unpaid financial obligation to the
agency arising out of the use of the real property, e.g., delinquent rent.
The local agency may claim a direct loss as a result of non-collection of rent
as an administrative expense only after clearly documenting the steps which
were taken to collect delinquent rent.
(4)	Duplicate Payments.
(a) In some States, payments under the State law of eminent danain
include relocation payments which may be determined by EPA to have the same
purpose or effect as a payment under Federal relocation regulations. A person
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who receives such a State funded relocation payment shall not receive duplicate
relocation payment under the Act.
(b)	Relocation payments under the Act may be made in an amount equal
to the difference between the full amount of eligibility and the actual amount
received from the State. It shall be the responsibility of the local displacing
agency to determine the amount of eligible payment.
(c)	In order to make it clear that no claim is made for a duplicate
payment, the local displacing agency shall in all cases require claimants to
execute a release, which recites that the sum received constituted full payment
for all claims for relocation payments under both State and Federal law.
d.	Records.
(1)	The displacing agency is responsible for keeping up-to-date records
on the relocation of all site occupants. These records shall be retained for a
period of three years following conpletion of the project or the completion of
relocation payments, whichever is later (see also Chapter 41, "Records Retention").
(2)	The relocation record should begin with information secured during
the first interview. A separate record should be prepared for each family, even
though the family may not be maintaining a separate household, and each business
concern, nonprofit organization, and farm operation. The record should contain
all data relating to the displaced person, including the nature and dates of
relocation services which were provided, the type and amount of relocation
payments which were made, and the location to which the displaced persons were
relocated, including a description of the accommodations.
e.	Program Evaluation. The EPA Headquarters and Regional Offices will
continually evaluate the quality and quantity of the relocation services provided
by the displacing agency. The following factors are amorg tliose which should
be considered in the evaluation of the relocation program:
(1)	The effectiveness of the relocation program in maintaining comparable
housing and overall environmental conditions for displaced persons:
(2)	The methods for identifying significant problem areas and procedures
utilized in obtaining solutions;
(3)	The effectiveness of counseling services In assisting residents to
adjust to relocation;
(4)	The effectiveness of relocation services which are provided to business
concerns, including counseling services and working with the Snail Business
Administration to aid in their reestabllshment;
(5)	The satisfaction of relocated persons and business concerns in their
new locations;
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(6)	The promptness of processing claims and the making of payments;
(7)	The effectiveness of grievance procedures;
(8)	The extent to which self-moves to substandard housing have been
minimized; and
(9)	The extent to which innovative methods and procedures are developed
to resolve unique problems and improve the relocation process.
4. BENEFITS-M3VING AND RELATED EXPENSES.
a.	General. Any displaced person, including one who conducts a business or
farm operation, is eligible to receive a payment for moving and related expenses.
A displaced person may elect to receive actual reasonable moving and related
expenses or a fixed moving expense allowance.
b.	Provisions for Families and Individuals.
(1)	Coverage. Payments for moving and related expenses are intended to
cover expenditures which families and individuals incur in moving themselves and
their personal property. Unlike business concerns and fann operations, families
and individuals are not entitled to payments for actual direct loss of property.
It is assumed that all of a family's personal property can reasonably be moved.
(2)	Actual Cost Provisions.
(a) Allowable Moving Expense. A family or individual who elects
to receive a relocation payment for actual moving and related expenses shall
be paid the full amount of the actual reasonable costs incurred in moving,
including expenses for:
_1 The cost of transporting persons or personal property fran
the acquired site to the replacement site. Transportation costs beyond 50
miles are not eligible except when the displacing agency determines that a
move in excess of 50 miles is justified and reasonable because of greater
proximity to snployment, business, education, or other factors. The local
agency's records must document the basis for making an exception to the moving
distance limitation;
2	Packing and crating of personal property;
3	Obtaining of bids or estimates for transportation, packing
and crating;
exceed six months;
£ Storage of personal property, for a period generally not to
5_ Insurance premiums covering loss and/or damage of personal
property while in storage or transit;
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6	Disconnecting, dismantling, ranoving, reassembling, recon-
necting, and reinstalling appliances, equipment, and personal property; and
7	Property lost, stolen, or damaged NOT THROUGH THE FAULT OR
NEGLIGENCE CF THE DISPLACED PERSON IN THE PROCESS OP MOVING WHERE INSURANCE TO
COVER SUCH LOSS CR DAMAGE IS NOT AVAILABLE.
(b) Non-Allowable Moving Expenses. Nbn-allowable moving expenses
include the following:
property:
location; or
1	The cost of moving structures, improvements, or other real
2	Interest on loans to cover moving expenses;
3	Personal inj ury •
Cost of preparing the claim for moving expenses;
5 Additional expenses incurred because of living in a new
6 Cost of searching for a replacanent dwelling.
(c) Procedure and Limitations.
^ If a person to be displaced decides to move himself the
amount of the relocation payment for the self-move shall not exceed the estimated
cost of accomplishing the move if it were performed by a commercial mover or
contractor.
2_ A claim for payment for actual moving expenses shall be
supported by a bill or other evidence of the actual expenses incurred.
3^ By prearrangement between the local relocation agency, the
displaced person, and the mover, either the displaced person or the mover may
present an unpaid moving bill to the local agency, and the agency may pay the
mover directly. The local agency has the obligation to assure that the mover
has fulfilled all contractual arrangements prior to malting the payment directly
to the mover.
(3) Fixed Moving Expense Provision. A family or individual may elect
to receive a fixed payment in place of actual reasonable moving expenses. This
payment is composed of:
(a)	A $200 dislocation allowance, and
(b)	A moving expense allowance, not to exceed $300, determined in
accordance with the latest approved Federal Highway Administration schedule for
the State in which the displacement occurs.
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(4) Payments for Joint Occupants. If several individuals, not in the
sane family, are joint occupants of a singlefanily dwelling, each eligible
claimant is entitled to actual moving expenses. However, if the individuals
elect to receive a fixed payment, and more than one claim is submitted, the
dislocation allowance must be prorated anong the claimants.
c. Provisions for Business or Farm Operations.
(1) Actual Moving and Related Expenses. A business that meets the
basic eligibility requirements as set forth in this Chapter is eligible to
receive a payment to cover actual, reasonable moving and related expenses,
including the following:
(a)	Transportation of personal property. Transportation costs for
a distance beyond 50 miles are not eligible, unless the Agency determines that
relocation beyond 50 miles is justified;
(b)	Packing, crating, unpacking, and uncrating of the personal
property;
(c)	Disconnecting, dismantling, removing, reassembling, and rein-
stalling relocated machinery, equipment, and other personal property, and
substitute personal property (see subparagraph c(l)(k) below). This includes
connection to utilities available nearby. It also includes modifications to
the personal property necessary to adapt it to the replacanent structure, the
replacement site, or the utilities at the replacanent site; and, modifications
necessary to adapt the utilities at the replacement site to the personal property.
(Expenses for providing utilities from the right-of-way to the building or
improvement are excluded.);
(d)	Storage of the personal property not to exceed 12 months unless
the ^jency determines that a longer period is necessary;
(e)	Insurance for the replacement value of the personal property in
connection with the move and necessary storage;
(f)	Any license, permit, or certification required of the displaced
person at the replacement location. However, the payment may be prorated
based on the renaining useful life of the existing license, permit, or certifi-
cation;
(g)	The replacement value of property lost, stolen, or damaged in
the process of moving (not through the fault or negligence of the displaced
person, his or her agent, or anployee) where insurance covering such loss,
theft, or damage is not reasonably available;
(h)	Professional services necessary for (1) planning the move of
the personal property, (2) moving the personal property, and (3) installing the
relocated personal property at the replacement location;
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(i) Relettering signs and replacing stationery Which are on hand
at the time of displacement and which are made obsolete as a result of the move;
(j) Actual direct loss of tangible personal property incurred as a
result of moving or discontinuing the business or farm operation. The payment
shall consist of the reasonable costs incurred in attempting to sell the item
plus the lesser of:
_1 The fair market value of the itan for continued use at the
displacement site, less the proceeds from its sale. (To be eligible for payment,
the claimant must make a good faith effort to sell the personal property, unless
the Agency determines that such effort is not necessary. When payment for
property loss is claimed for goods held for sale, the fair market value shall
be based on the cost of the goods to the business, not the potential selling
price.); or
2 The estimated cost of moving the itan, but with no allowance
for storage. (If the business or farm operation is discontinued, the estimated
cost shall be based on a moving distance of 50 miles):
(k) Purchase of substitute personal property. If an itan of personal
property which is used as part of a business or farm operation is not moved but
is promptly replaced with a substitute itan that performs a comparable function
at the replacanent site, the displaced person is entitled to payment of the
lesser of:
1^ The cost of the substitute itan, including installation
costs at the replacement site, minus any proceeds fron the sale or the trade-in
of the replaced item: or
2_ The estimated cost of moving and reinstalling the replaced
item, based on the lowest acceptable bid or estimate obtained by the Agency
for eligible moving and related expenses, but with no allowance for storage:
(1) Searching for a replacement location. A displaced business or
farm operation is entitled to reimbursement for actual expenses, not to exceed
$500, as the Agency determines to be reasonable, which are incurred in
searching for a replacanent location including:
2	Transportation expenses within a 50 mile radius, at a mileage
rate normally paid by the local agency for staff travel:
2_ Meals and lodging while away fron home;
3	Reimbursement for reasonable time spent in searching based
upon an hourly wage rate, but not to exceed $10.00 per hour; and
Reasonable fees paid to a real estate agent or broker to
locate a replacement site or operation.
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(m) Other moving related expenses not listed as ineligible under
subparagraph c(2) below which the Agency determines to be reasonable and necessary.
(2)	Ineligible Costs. The following are not eligible actual
moving and related expense costs:
(a)	The cost of moving structures or other real property in
which the displaced person reserved ownership;
(b)	Interest on loans to cover moving expenses;
(c)	Loss of good will;
(d)	Loss of profits;
(e)	Loss of trained employees;
(f)	Personal injury; and
(h)	Modification of personal property to adapt it to the replace-
ment site, except	vdien required by law.
(3)	Notice Requirements. Business concerns to be displaced shall be
provided with a written notice of the requirement that they must notify the
local agency of a notice of their intention bo move and provide estimates of
moving and related expenses. The business concern's notification to the local
relocation agency shall be in writing and should generally include the following:
(a)	A statement 30-90 days before the moving date of its intention
to begin the move and the date of the intended move;
(b)	An estimate of the moving and related expenses, supported by an
explanation of the basis of the estimate;
(c)	A list of personal property which is estimated to be the basis
for a claim for direct loss of property; and
(d)	If applicable, a statement indicating the intention to make a
self-move.
(4)	Special Procedures and Limitations.
(a)	If the local displacing agency concurs, the anount of wages
for working foremen or group leaders, regularly employed by the business, and
who provide supervisory services in connection with the move, may be included
as a moving expense.
(b)	If the local displacing agency concurs and in order to avoid
or minimize disruption of normal business activities, a business concern conducts
its move at times requiring the payment of overtime rates, these costs may be
compensated.
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(c)	A relocation payment may include an anount equal to inspection
fees required by local law or ordinance and licenses and permits required to
permit the operation of the business at the new location.
(d)	A relocation payment may include actual reasonable storage
costs incurred by a business concern that either cannot complete its move
until a total required space bee ones available or does not immediately reestablish
at its new location. Storage costs generally will be limited to a period of 6
months.
(e)	A relocation payment may include necessary expenditures for
reconnecting utility services to relocated equipment, machinery or trade fixtures
to the extent that these services were required at the old location. Similarly,
expenditures made to adapt or convert relocated equipment to the use of a
different type of utility or power supply may be compensated.
(f)	In sane cases, personal property may be of low value, or
high bulk or volume, e.g., auto junkyards, gravel stockpiles, etc. If the
local agency determines that the estimated costs of moving such property would
be disproportionate in relation to its value, a relocation payment may be
made in an amount not to exceed the difference between the cost of replacing
the property with canparable property and the amount vihich would have been
received for liquidating the personal property in place. The local agency's
determination will be based on an appraisal and estimated cost of moving.
(g)	A relocation payment may include the cost of disconnecting
and reinstalling leased equipment, e.g., burglar and fire alarm systems.
(h)	If the cost of the move is estimated to exceed $500, the
business concern must obtain a bid from three reputable movers. If the total
cost of a move is estimated to cost $2,000 or more, the sealed-bid procedure
must be followed.
(2) Fixed Moving Expense Provision.
(a)	General. In place of actual reasonable moving and related
expenses, a business may receive a payment based on its average annual net
incane (computed in accordance with 40 CFR 4.206). This payment may be not
less than $2,500 nor more than $10,000. (In addition, a person whose business
is displaced may also be riigible for moving and related expenses and relocation
assistance in connection with a related move from his dwelling.)
(b)	Eligibility. In order to be eligible for a payment in lieu of
moving and related expenses a displaced business must meet the following require-
ments:
_1 The business cannot be relocated without a substantial loss
of existing patronage (or, in the case of a non-profit organization, a substantial
loss of membership of clientele).
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2 The business is not part of a commercial enterprise, having
another establishment doing the same or similar business, which is not being
acquired for the project.
2 The business contributes materially to the income of the
displaced owier.
5. BENEFITS-REPLACEMENT HOUSING.
a.	General. Any person who is displaced from a dwelling as a result of an
EPA or EPA-assisted progran or project is eligible to receive replacement
housing benefits, if he or she purchases and occupies or rents and occupies a
decent, safe and sanitary dwelling within one year after the date he or she is
displaced or the date he or she received his or her final acquisition payment,
whichever is later.
b.	Provisions for Homeowners.
(1)	Coverage.
(a)	The purpose of the Replacement Housing Payment for Ffcmeowners
is to provide assistance to displaced owner-occupants to purchase and occupy
comparable replacenent dwellings.
(b)	A Replacement Housing payment for homeowners may not exceed
$15,000. The payment may include: a differential payment, compensation for
the loss of favorable mortgage finances, and an incidental expense payment.
(2)	Applicability. A family or individual may receive a Replacement
Housing Payment for Homeowners if the following requiranents are met:
(a)	The fanily or individual is displaced from a dwelling acquired
in connection with an EPA or EPA-assisted project;
(b)	The family or individual owned and occupied the dwelling for
not less than 180 days prior to the initiation of negotiations for acquisition;
and
(c)	The family or individual purchases and occupies a decent, safe,
and sanitary replacement dwelling within twelve months after the date on which
the final payment was received fran the local agency for the cost of the acquired
dwelling or the date of the move from the acquired dwelling, whichever is later.
(3)	Limitations and Procedures.
(a) If comparable replacenent housing requires the construction,
rehabilitation, or relocation of a replacement init, the date of occupancy
shall be the date the displaced person enters into a contract for such construc-
tion, rehabilitation, or relocation, or for the purchase upon completion, of
the dwelling. As a follcw-up, it is the responsibility of the local displacing
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agency to assure that the displaced person did, in fact, occupy the replacanent
dwelling.
(b)	If a displaced person voluntarily moves to housing that does
not meet the enviromental or comparability standard, his or her eligibility for a
payment is not affected as long as the replacanent is decent, safe, and sanitary.
(c)	If individuals not constituting a family jointly occupy an
acquired single family dwelling unit, each eligible claimant shall be paid a
pro rata share of the total payment applicable to a single individual.
(d)	The differential payment is the amount which, when added to
the acquisition payment for the dwelling unit acquired, equals either the
reasonable cost of a canparable replacement dwelling or the cost of the dwelling
actually purchased by the displaced homeowner, whichever is less.
_1 The reasonable cost of a canparable dwelling serves as the
basis for computing the upper limit of the differential payment. Generally,
two basic methods may be used to establish the reasonable cost with the displaced
person having the right to elect the method utilized. The local agency shall
fully inform the displaced person concerning the two methods frcm vrtiich he may
choose.
a The local displacing agency may use a schedule of average
prices of comparable housing sales in the locality where the replacement dwelling
is located. Ttie local agency shall adept a schedule for use as a benchmark for
determining the reasonableness of the cost of replacement housing, taking care
that the schedule is updated to keep pace with actual costs in the market, or;
b The cost of a comparable replacement dwelling may be
determined on a case-by-case basis, through the use of the sales price of one
or more dwellings determined to be most representative of the comparable replace-
ment dwelling. In the comparable method, the canparable, replacement dwellings
may be selected by the local agency or by the displaced person with the approval
of the local agency.
2^ In the determination of the differential payment, the following
limitation will apply:
a If the claimant owned a structure which included space
for nonresidential purposes, i.e., mixed-use property, the differential payment
shall be determined by using as the acquisition payment that part of the total
payment which related to the value of the residential-use portion only.
b Similarly, if the claimant purchases a mixed-use property,
the differential payment shall be determined by using as the replacement cost
that part of the total payment which relates to the value of the residential-use
portion only.
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(e)	The Interest payment is an amount to compensate the displaced
hcmeowner for the present value of any increase in interest costs due to the
loss of favorable mortgage financing resulting frcm his or her displacement. "Die
present value is based upon the prevailing interest rate paid on savings deposits
by commercial banks. Interest payment entitlement is valid only if the dwelling
acquired was encumbered by a bona fide mortgage. Generally, the interest payment
equals the sum of the following:
_1 Debt service costs such as points paid which are not an
incidental expense, plus
2 A payment based on the unpaid mortgage balance on the dis-
placement dwelling or the new mortgage amount, whichever is less, and the
ronaining term on the old mortgage or the actual term of the new mortgage, which-
ever is less.
The interest rate used in computing this payment may not exceed the prevailing
mortgage interest rate in the area.
(f)	The incidental expense payment is an amount to compensate the
displaced homeowner for expenses incurred incidental to the purchase of the
replacement dwelling. Generally, incidental expenses are limited to reasonable
costs of legal, closing, title search and insurance, surveys, and related costs.
(g)	Processing claims for payment shall commence upon the receipt
of a claim submitted by any owner-occupant of residential property which is to
be acquired. When the local agency has determined that the amount of the re-
placement housing payment is correct and has verified that the claimant has
contracted to purchase a replacanent dwelling, a check shall be drawn in the
name of the claimant. Whenever possible, and if so requested by the claimant,
payment should be made on the date and at the place of closing on the replacement
housing.
(h)	Any person who has owned and occupied a duelling for 180 days
or more prior to the initiation of negotiations is eligible for a replacanent
housing payment even if such person rents instead of purchases a replacanent
dwelling not later than the one year period beginning either: (1) on the date
such person receives final payment for the acquired dwelling, or (2) on the
date such person moves frcm the acquired dwelling, whichever is later.
c. Provisions for Tenants and Certain Others.
(1) Coverage.
(a) The purpose of the replacement housing payment for tenants and
certain others is to provide assistance to displaced families and individuals
in renting or purchasing comparable replacanent housing.
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(b) A payment may not exceed $4,000 and may be either:
2. A payment to assist a displaced person in the rental of a
replacanent housing unit for a period not to exceed four years; or
2 A payment to assist a displaced person in making a downpayment
toward the purchase of a replacanent housing unit.
(2)	Applicability. A fanily or individual who meets the basic eligi-
bility requirements set forth in this chapter may be eligible for a replacement
housing payment for tenants and certain others if either of the following require-
ments are met:
(a)	The family or individual is displaced fran a rental unit which
he or she lawfully occupied for a period of not less than 90 days prior to the
initiation of negotiations for acquisition of the dwelling; or
(b)	The fanily or individual is displaced frcm a dwelling which
he or she owned and occupied for a period of more than 90 but less than 180 days
prior to the initiation of negotiations for acquisition of the dwelling.
(3)	Limitations and Procedures.
(a)	If individuals, not a family, are joint occupants of a rental
dwelling unit vrtiich is acquired, each eligible claimant shall be paid a pro rata
share of the total payment applicable to a single individual. In any case, the
payment may not exceed $4,000.
(b)	If a claimant is eligible for a replacement housing payment
but elects to rent rather than purchase a dwelling, the anoint of rental assistance
payment may not exceed the amount of the replacement -housing payment to which
each would have been entitled.
(c)	The rental assistance payment shall be computed by determining
the difference between the base monthly rental (see subparagraph 5c(3)(cU
below) previously paid and the monthly rental for a catiparable replacanent
dwelling and multiplying that difference by 48. If the arooint exceeds $4,000,
it must be reduced to $4,000.
1_ The base monthly rental shall be the average monthly rent,
including utilities, paid by the displaced person, for the three-month period
prior to the initiation of negotiations for acquisition of the structure.
However, if the local displacing agency finds that the rent actually paid was
lower than the rent for similar dwellings in the area (i.e., the economic
rent), the economic rent shall be used as the base monthly rental.
2^ The monthly rental for a comparable in it may be computed
by either of the two methods described below. The displaced person shall have
the right to select either method. The local agency shall fully inform the
displaced person about the two methods from which to choose.
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a Schedule Method. The local agency may adept a schedule
of average rentals for various types of replacement dwellings available on the
private market. The schedule should reflect the monthly rental for canparable
decent, safe, and sanitary dwellings in areas not generally less desirable
than the dwelling units acquired arri should represent a current analysis of an
average rental for each type of dwelling acquired.
b Comparable Method. The cost of a comparable unit may be
determined on a case-by-case basis, by using the average month's rent for one
or more comparable dwelling units compared to that of the acquired unit. The
canparable dwelling init or units may be selected either by the local agency
or the displaced person, with the approval of the local agency.
(d)	The local agency shall inspect the dwelling init to which the
claimant moves to determine that it meets applicable standards. If the rental
assistance payment is being made in annual installments, the local agency
shall inspect the claimant's dwelling prior to making each installment payment.
If it is impractical for the local agency to complete an inspection, due to
distance for example, the local agency may accept a claimant's report of self-
inspection for purposes of supporting the annual installment of rental assistance
payment; however, the local agency retains responsibility for ascertaining
that EPA procedures are complied with.
(e)	If a displaced person elects to purchase a replacement dwelling
unit instead of renting, he may receive a payment of up to $4,000 for a downpay-
ment. The payment shall be an amount vdiich would be required for a conventional
loan downpaynent INCLUDING the reasonable cost of incidental expenses and is
subject to the following:
1_ If the claim is for more than $2,000, then the claimant
must match dollar for dollar the anount in excess of-$2,000 up to a maximum
payment of $4,000.
2 The full anount of the payment must be applied to the pur-
chase price and such payment, including incidental expenses, must be shown on
the closing statement.
2 The amount of any rental assistance payment already received
by the claimant must be deducted from the anoint of downpayment assistance.
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CHAPTER 29 ~ PATENTS, INVENTIONS, DATA AND COPYRIGHTS
Table of Contents
PARAGRAPH	PARAGRAPH
TITLES	NUMBERS
Patents and Inventions		1
Procedures for Disclosure of Recipient's Inventions		2
Processing Invention Disclosures		3
Data and Copyrights		H
Deviations frcm Patents, Inventions, Data and
Copyright Provisions	 5
FIGURE	¦	FIGURE
TITLES	NUMBERS
EPA Form 33*10-3, "Contractor's or Assistance Recipient's
Invention Disclosure"	 (29-1) (Reserved)
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1. PATENTS AND INVENTIONS.
a.	Applicability.
(1)	EPA Assistance Agreements. All EPA assistance agreanents Involving
experimentation, development, special investigations, surveys, studies, or
research, except Construction Grants for Wastewater Treatment Works (WWT)
awarded under Title II of the Clean Water Act, as amended, are subject to the
EPA patent rules.
(2)	Subagreements Under EPA Assistance Agreanents. EPA patent rules
apply to subagreements Involving experimentation, development, special inves-
tigations, surveys, studies, or research, and recipients must include the
appropriate patent rights clause in their subagreements.
b.	Definitions. A "Subject Invention" is an invention conceived or first
actually reduced to practice in performance of work under an EPA grant or
cooperative agreement or a subagreanent thereunder. Subject Invention includes,
but is not limited to, improvements or discoveries, including innovations that
affect (or provide a new use of) a process, art or method, machine, or the man-
ufacture, design, or composition of matter. Other terms used in this Chapter
are as defined in CMB Circular A-124, "Patents - Snail Business Firms and
Nonprofit Organizations", and Attachment A thereto.
c.	Patent Laws and Policies.
(1) The following patent laws and policies govern agreements and sub-
agreements awarded under EPA financial assistance programs except WWT Construction
Grants:
(a)	0MB Circular A-124 (awards after March 1, 1982);
(b)	40 CFR Part 30, Subpart K and Appendix B;
(c)	Sinall business firms and nonprofit organizations, including
educational Institutions, are entitled to the benefits of, and must comply
with, P.L. 96-517 (35 U.S.C. Chapter 18);
(d)	Profitmaking firms that are not defined as small business firms
and whose assistance agreement is funded under section 6914 of the Resource
Conservation and Recovery Act (RCRA), must canply with section 6981(c) of RCRA.
Under this section, EPA normally obtains title to any inventions; and
(e)	Firms, other than those funded under section 6914 of RCRA,
that are neither a small business firm nor a profitmaking firm are subject to
the guidelines in the President's Memorandum on Government F&tent fblicy
issued on February 18, 1983 (Weekly Compilation of Presidential Documents,
vol. 19, no. 7, page 252), and therefore, must canply with P.L. 96-517, 35
U.S.C. Chapter 18.
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(2) Subagresments.
(a)	All business firms and nonprofit organi ations awarded sub-
agreements are entitled to the benefits and must comply with Public Law 96-517,
35 U.S.C. Chapter 18 and/or the President's Memorandum of Government Patent
Palicy of February 13, 1983, except that a party to a subagreement awarded
under section 6914 of RCRA that is a profitmaking firm not defined as a small
business firm, is subject to §30.1101(b).
(b)	Subagreorients must be in compliance with the "Patent and data
and copyright clause" in 40 CFR Part 33, and generally must contain the same
patent rights clause as contained in the assistance agreement.
d. Policies.
(1)	General.
(a)	Recipients must report each Subject Invention made under an
EPA grant or cooperative agreement, or subagreement under an agreement, to the
Project Officer. The recipient has the right bo retain ownership of any Subject
Invention unless EPA, by the terms of the assistance agreement, elected to keep
the first option to obtain title.
(b)	The patent rights clause in the assistance agreement estab-
lishes the time limits for reporting the invention, and electing whether to
retain title. The recipient must decide whether it wishes to retain domestic
and/or foreign rights to the invention and notify EPA of that decision within
the time period specified in the patent rights clause included in the assistance
agreement.
(c)	EPA may acquire title if the recipient fails to decide to
retain rights to the invention within the time specified. If the recipient
retains title, EPA acquires a royalty-free, irrevocable license to use the
invention throughout the world by and on behalf of the Federal Government.
(d)	Ordinarily, all danestic arri foreign rights in a Subject
Invention will be left with the recipient if the recipient elects to retain
these rights. However, under certain circumstances the Government may acquire
title to these inventions. The circumstances are set forth -in detail in the
patent rights clause (see subparagraph ld(4) belcw).
(e)	The Project Officer and recipient should be alert to possible
Subject Inventions resulting from EPA awards. While it is clearly the respon-
sibility of the recipient to initiate invention disclosure procedures, it is
also the responsibility of the Project Officer to assure that those procedures
are instituted when appropriate.
(2)	Inclusion of Patent Rights Clause in Application Kits. The appro-
priate Assistance Administration Unit (AAU) shall provide a copy of the patent
rights clause of Attachment A to CMB Circular A-124 (suitably amended), in the
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application kits provided to applicants for financial assistance other than
WT construction grants. The Award Official must include the clause, or incor-
porate it by reference (40 CFR Part 30, Subpart K), in any assistance agreement
(except for a WWT construction grant) which calls for or may involve experimental,
developmental, demonstration, or research work.
(3)	Inclusion of Notice and Assistance Clause in Assistance Agreements.
The Award Official must have the "Notice and Assistance Clause"	and the "Authorization
and Consent Clause" in Appendix B to the EPA General Regulation	for Assistance
Programs (40 CFR Part 30) inserted in all assistance agreements	except those
for WWT construction grants.
(4)	Government's Option to Obtain Title to a Subject Invention. Under
exceptional circumstances, in accordance with 35 U.S.C. §§200-211 and 0MB
Circular A-124, the Goverrment may elect at the time of award to use a patent
rights clause under which the Government has the first option to obtain title to
Subject Inventions. The Project Officer should determine whether to recommend
the use of a patent clause that would give the Government the first option to
obtain title. If the determination Is positive, the Project Officer should
discuss the matter with the EPA Patent Counsel. Such a clause may be used
only with the concurrence of the EPA Patent Counsel. If EPA elects to use a
clause giving the Government the first option to obtain title, the Patent
Counsel must write a special determination for the signature of the Director,
Grants Administration Division (GAD). The EPA Patent Counsel will identify
which Federal agencies must be provided a copy of the determination.
(5)	Background Patents and Licenses (40 CFR 30.1108). Background Patents
are those held by the recipient which dominate Subject Inventions made under
the award (or subagreement thereunder) or the work objectives of the award.
Ordinarily, the Award Official will not include a clause requiring licensing
of background patents in an EPA grant or cooperative agreement. However, if
such provisions are deemed desirable by the Approval Official or Award Offical,
the matter should be discussed with the EPA Patent Counsel. Background licensing
provisions can be included in the assistance agreement in the case of an award
to a small business firm or a nonprofit organization, under exceptional circum-
stances with the prior approval of the Administrator. Under 35 U.S.C. § 202(f)(1),
which governs rights left with small business firms and nonprofit organizations,
the Administrator ma,y not delegate this approval authority.
(6)	Subagreements. A subagreement which involves experimentation,
development, special investigations, surveys, studies or research under an
award must ordinarily include the same patent rights clause required for the
assistance agreement under which the subagreement is entered. A refusal by
the recipient of a subagreement to accept the clause shall be brought to the
attention of the Assistance Specialist who shall resolve the matter In consul-
tation with the EPA F&tent Counsel, Office of General Counsel.
(7)	Petition to Retain Rights to Identified Inventions. A recipient
of an award made before EPA incorporated the CMB Circular A-124 clause in EPA
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assistance agreements, may petition to retain title to a reported Subject
Invention pursuant to the terms of the patent rights clause in that award.
The petition should be submitted through the Project Officer to the Director,
GAD for approval. The Director should submit such requests to the Patent
Counsel for review and written recommendation. The Director, GAD or his
designee will consider the petition and will advise the petitioner whether the
petition is approved or denied.
(8) Reporting Reminder. At the time of project closeout, the servicing
AAU must remind the recipient to report any unreported Subject Inventions.
Negative reports are not required.
2.	PROCEDURES FOR DISCLOSURE OF RECIPIENT'S INVENTIONS.
a.	The recipient must report a Subject Invention, supported by suitable
documentation, to the Project Officer as soon as the recipient can convey a
clear understanding of the invention. Such reports, submitted on EPA Form
33^0-3, "Contractor's or Assistance Recipient's Invention Disclosure" (figure
29-1), should be made to the Project Officer no later than the time period set
forth in the patent rights clause in the assistance agreement and preferably
before either publication or operational use of the Invention.
b.	The recipient is required to make an election whether it wishes to
retain title to the Invention within the time period prescribed in the patent
rights clause.
c.	Failure to report an invention promptly may result in loss of rights
to both the Government and the recipient.
3.	PROCESSING INVENTION DISCLOSURES.
a.	Project Officer. Within five working days of receipt of a report of
Invention the Project Officer must furnish:
(1)	The original report and any covering correspondence to the EPA
Patent Counsel; and
(2)	A copy of the report and correspondence to the appropriate Assistance
Administration Unit (AAU) for inclusion in the official file of the assistance
agreement.
b.	Assistance Administration Unit (AAU). The servicing AAU shall update
the official file and provide assistance management advice and support to both
the EPA Patent Counsel and the Project Officer.
c.	Office of General Counsel (Patents). The EPA Patent Counsel will review
the invention disclosure and if necessary request additional information from
the Project Officer and/or recipient. Processing of the disclosure includes
assigning the disclosure an EPA case number and keeping track whether the
recipient complies with the time table set by the patent rights clause. In
those cases when the Goverrment takes title to a Subject Invention, the Patent
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Counsel will have the invention evaluated and determine whether to file a
patent application. The Patent Counsel will advise the Project Officer and
the appropriate Award Official of significant events in connection with the
processing of the report of invention.
4.	DATA AND COPYRIGHTS.
a.	Governing Policies. All assistance agreements and subagreements are
subject to 40 CFR Part 30, Appendix C, "Rights in Data and Copyrights" of EPA's
"General Rsgulation for Assistance Programs." Every EPA assistance agreement
shall include the Rights in Data provisions set forth in Appendix C.
b.	General. Subject to EPA publication review procedures (see 40 CFR
30.518), the author of publications, films, or similar materials that are
developed directly or indirectly fran work supported by EPA may arrange for
copyright without approval, unless such arrangements are prohibited by condi-
tions of the assistance agreement. These materials must include acknowledgement
of financial assistance fran EPA. Any such copyrighted material is subject to
a royalty-free, nonexclusive and irrevocable license to the Government and its
officers, agents, and employees acting within the scope of their official
duties, to reproduce, translate, publish, use, and dispose of the material,
and to authorize others to do so.
c.	Duplication, Use, and Disclosure. The Government has an unrestricted
right to use any data or information generated using assistance funds or
specified to be delivered to EPA in the assistance agreement. Unless otherwise
stated in the assistance agreement, the Government may, without additional
compensation to the recipient, duplicate, use, and disclose in any manner and
for any purpose whatsoever and have others do so, all data or copyrightable
material derived fran the project. This does not include financial reports,
cost analyses, and other information incidental to assistance administration.
d.	Specifications of Data Requirements in Assistance Agreements. Progran
officials who are recommending the award of an assistance agreement, except
WWT construction grants, must provide the Award Official with a statement of
the reports and other data to be required of the recipient 90 that a listing
of those requiranents may be included in the terms of the agreenent. It is
especially important to list any deliverable computer software such as programs,
data bases, source codes and other related material, and the format in which
they are to be delivered.
e.	EPA Access. Upon request of the Project Officer, the recipient shall
provide the Project Officer or designee with access to data accumulated by the
recipient or a party to a subagreement.
5.	DEVIATIONS FROM PATENTS, INVENTIONS, DATA AND COPYRIGHT PROVISIONS.
a. Request for Deviation. EPA will consider an applicant's written request
to deviate from the Patents and Inventions and the Rights in Data and Copyright
clauses that do not implement specific requirements of a statute or Executive
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Order. Applicants should address such requests to the Director, Grants
Administration Division, and submit them to the appropriate Award Official
with their application for financial assistance (see 40 CFR Part 30, Subpart J).
b.	Processing Deviation Requests.
(1) The receiving Assistance Administration Unit shall process a
request for deviation from a patent, invention, data, or copyright clause as
follows:
(a)	The AAU should forward the request for deviation to the appro-
priate Regional or Headquarters program staff along with the application. The
AAU should forward the deviation request and application with a covering memo-
randum advising that if the Program recommends funding of the application, the
AAU will submit the request for deviation to the Director, Grants Administration
Division for approval in accordance with established deviation review and
approval procedures (see Chapter 36 and 40 CFR Part 30, Subpart J).
(b)	Upon receipt of the Approval Official's recommendation to
fund a project for which deviation has been requested, the AAU will submit the
request for deviation to the Director, Grants Administration Division supported
with:
_1 The applicant's request;
2	The Approval Official's (program office's) ccmments and
recommendation for approval or disapproval; and
3	The Award Official's reccmmendatlon for approval or disapproval.
c.	Approval/Pi sappro Veil.
(1)	Award Officials must forward all requests for deviation frcm a
patent rights clause to the Director, Grants Administration Division for review
and decision. The GAD must submit each request to the EPA Patent Counsel, Office
of General Counsel (Patents) for the counsel's review and written camrent,
recommendation and/or concurrence with a proposed course of action. The EPA
Patent Counsel will coordinate any proceedings in connection with such a request
and provide the Director, GAD with a recommendation whether the request should
be granted. A recommended determination, drafted for the signature of the
Director, may be prepared by the Office of General Counsel. The GAD will also
submit each request to the appropriate Headquarters Program Office for review,
comment, and/or concurrence. The comments and recommendation of the Office of
General Counsel (Patents) and the appropriate Program Office must be obtained
prior to the Director's decision approving or disapproving the requested deviation.
(2)	The GAD (Grants Policy and Procedures Branch) will prepare a
decision package for the Director, GAD with a recommendation for approval or
disapproval of the request. The recommendations and/or concurrences of the EPA
Patent Counsel and Program must accompany the recommended response to the
requestor.
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d. Deferral of Assistance Award Pending Decision on a Deviation Request.
All actions on a request for deviation from the Patents and Inventions and the
Rights in Data and Copyright clauses that is received with an assistance appli-
cation must be completed prior to execution of an award. The Director, GAD
will forward the determination (decision) to the petitioner for acceptance and
return. Upon receipt the acceptance or rejection will be delivered to the
appropriate Award Official for notification of the program official and retention
in the official assistance file.
6. The Office of Qeneral Counsel and the Grants Administration Division may
modify these processing procedures as may prove necessary and agreeable.
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CHAPTER 30 - PRINTING AND PUBLICATIONS
Table of Oontents
PARftGRAFfl	PARAGRAPH
TITLES	NUMBERS
Printing		1
Publications		2
Surveys and Questionnaires		3
EPA Project Identification Signs		4
FIGURE	FIGURE
TITLES	NUMBERS
"Project Sign Details"	 30-1
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CHAPTER 30 ~ PRINTING AND PUBLICATIONS
1.	PRINTING.
a.	Definition. The term "printing" shall be construed to include and
apply to the process of composition, platemaking, presswork, binding, and
microform: the equipment as classified in the tables in Title II of the Goverrment
Printing and Binding Regulation, published by the Joint Committee on Printing,
Congress of the United States, and as used in such processes: or the end items
produced by such processes and equipment.
b.	Limitations.
(1)	Pursuant to the Government Printing and Binding Regulation, no
assistance nay be awarded primarily or substantially for the purpose of having
material printed for EPA. The Government Printing and Binding Regulation
allows:
(a)	The issuance of assistance for the support of nongovernment
publications, provided such assistance was issued pursuant to an authori2ation
of law and was not made primarily or substantially for the purpose of having
material printed for EPA;
(b)	The publication of findings by an assistance recipient
within the terms of an award, provided that such publication is not primarily
or substantially for the purpose of having such findings printed for EPA: or
(c)	The assistance recipient to provide itself or to obtain
services such as writing, editing, preparation of manuscript copy or illustrated
material in order to meet the internal requirements of the recipient necessary
for compliance with the terms of the award (e.g., Operation and Maintenance
manuals). However, the printing of such material for the Government must be
accomplished In accordance with printing laws and regulations.
(2)	A requirement for an assistance recipient to duplicate less
than 55000 units of one page, or less than 25,000 units in the aggregate of
multiple pages of its findings for EPA will not be deemed to be printing primarily
or substantially for EPA (e.g., 5j000 copies of one page, 500 copies of 50
pages, etc.). Fbr the purpose of this paragraph, such pages nay not exceed a
maximum image size of 10 3/^ by 1^ 1/H inches.
(3)	A requirement for an assistance recipient to produce or procure
less than 250 duplicates from original microform will not be deemed to be
printing primarily or substantially for EPA. Microform is defined as one roll
of microfilm 100 feet in length or one microfiche.
2.	PUBLICATIONS.
a. It is EPA policy to encourage the publication of the results of its
assistance programs. However, before an assistance recipient may publish
these results as an EPA product, it must comply with EPA's publication review
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process. These requirements are stated In EPA Order 2200.4a. The purpose of
this process is to protect the technical and scientific quality of such materials
when distributed by EPA and to ensure that they are based on the best scientific
and technical evidence available. In order to do so, the following steps
must be canpleted:
(1)	The recipient submits three copies of the material it intends
to publish to the EPA Project Officer.
(2)	EPA reviews the material and provides the recipient, in writing,
with any changes it wishes to suggest.
(3)	The recipient prepares a revised draft. In so doing, the recipient
should make every effort to accommodate the suggestions provided by the EPA
review. The recipient also should inform the EPA reviewer of suggestions which
it has chosen not to accept and of any changes contained in the revised draft.
(4)	EPA and the recipient discuss the revised draft and attempt to
resolve their differences, if any.
(5)	If EPA agrees that the material is appropriate for publication
as an EPA document, the recipient must include the following statement:
The information in this document has been funded wholly or in part by
the United States Environmental Protection Agency under assistance agreement
(number) to (recipient). It has been subjected to the Agency's publications
review process and has been approved for publication as an EPA document.
Mention of trade names or commercial products does not constitute endorsement
or recommendation for use.
(6)	If EPA does not agree that the material is appropriate for
publication as an EPA document, the recipient may publish the material for its
own use if it includes with the published material the following statement:
Although the information in this document has been funded wholly or
in part by the United States Ehviromental Protection Agency under assist-
ance agreement (number) to (recipient), it may not necessarily reflect
the views of the Agency and no official endorsement should be inferred.
b. EPA also encourages recipients to publish reports independently in refereed
journals at any time. (A refereed journal is one which subjects material to
review by a panel of experts before publication.) In order to do so, recipients
must meet the following requirements:
(1)	Submit a copy of the material to be published to the EPA Project
Officer at the time it is submitted to the journal for publication.
(2)	After publication, submit three copies of the published material
to the EPA Project Officer.
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(3) Include the following statement in the published material:
Although the information in this document has been funded wholly or
in part by the United States Bivirormental Protection Agency under assist-
ance agreement (number) to (recipient), it has not been subjected to the
Agency's publications review process and therefore, may not necessarily
reflect the views of the Agency and no official endorsement should be
inferred.
c. Certain materials are not subject to EPA's publication review process.
These include documents which are part of the recipient's regular pollution
control activities and are not intended for release to the public as EPA publi-
cations. Examples of such documents are pollution control agency newsletters,
manuals for operating and maintaining wastewater treatment plants, and similar
documents. If a recipient does publish such documents, the following statement
must be included:
This project has been funded wholly or in part by the United States
Environmental Protection Agency under assistance agreement (number) to
(recipient). The contents of this document do not necessarily reflect
the views and policies of the Environmental Protection Agency, nor does
mention of trade names or commercial products constitute endorsement or
recommendation for use.
3.	SURVEYS AND QUESTIONNAIRES. An assistance recipient (or a party to a
subagreement) collecting information from the public on its own initiative may
not represent, without prior Agency approval, that the information is being
collected by or for EPA. The recipient must obtain approval from the EPA
Project Officer if it:
a.	Lists EPA as a recipient of the information being collected on a
survey or questionnaire; or
b.	Wishes to use EPA funds to cover the cost of data collection, where
the survey or questionnaire indicates that the data Is being collected for the
Federal government. In order to comply with the Paperwork Reduction Act of
1980, Public Law 96-511 (44 USC 3501 et seq), which governs information collection
activities calling for answers from ten or more respondents to questions posed
by a Federal agency, the EPA Project Officer must obtain the approval of the Head-
quarters Reports Management Officer (Information Management Branch, PM-223)
before approving the use of EPA funds.
4.	EPA PROJECT IDENTIFICATION SIGNS.
a. General. In accordance with 40 CFR §30.515(a) and EPA Order 1015.1A,
recipients of EPA financial assistance must display an EPA project identifica-
tion sign in a prominent location at each publicly visible construction site
and demonstration project sponsored or operated by EPA. The cost of preparing
and erecting these signs is an allowable cost. The basic design of the sign
shall be as illustrated in figure 30-1. With the exception of (1) through (3)
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below, variations in the basic design shall be at the discretion of the Award
Official.
(1)	The only Federal Government participant indicated shall be EPA.
Names of program offices shall not appear.
(2)	Standardized coloring for all signs shall be as shown in figure 30-1.
(3)	Identification signs at EPA-funded construction projects shall
include prominent display of the pertinent EPA Assistance Identification Number;
e.g., C-0123^5-03 (Program Code - Six digit Assistance Serial - TV© Digit Project
Sequence Number) and shall Include the statement, "An Equal Employment Opportunity
Project" as shown in figure 30-1.
b. Notification. Assistance award officials, project officers, and States
administering Construction Grants for Wastewater Treatment Works program activ-
ities under delegation agreements are responsible for assuring that recipients,
their consulting engineers, and other concerned parties are notified of this
requirement.
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Figure 30-1
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FROJECT ADMINISTRATION
CHAPTER	CHAPTER
TITLES	NUMBERS
PAYMENT PROCEDURES		33
PROJECT CHANGES		34
DISPUTES RESOLUTION		35
DEVIATIONS		36
RECIPIENT REPORTING		37
AUDIT		38
DEALING WITH NONCOMPLIANCE AND HIGH RISK PARTICIPANTS		39
CLOSEOUT OP ASSISTANCE AGREEMENTS		40
RECORDS RETENTION		41
(RESERVED)		42
(RESERVED)		43
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CHAPTER 33 - PAYMENT PROCEDURES
Table of Contents
PARAGRAPH	PARAGRAPH
TITLES	NUMBERS
Background		1
General		2
Selection of F&yment Method		3
Advance Payment		4
Reimbursement F&yment		5
Payment Limitations		6
Monitoring the Agreanent		7
FIGURE	FIGURE
TTTr.RS	NUMBERS
SF 270, "Request for Advance or Reimbursement"	 33-l
SF 271, "Outlay Report and Request for Reimbursement
for Construction Programs"	 33~2
SF 269, "Financial Status Report"	 33—3
SF 272, "Federal Cash Transaction Report"	 33-4
TFS 5401, "Payment Voucher on letter of Credit"	 33~5
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CHAPTER 33 - PAYMENT PROCEDURES
1.	BACKGROUND. Federal requirements covering assistance payments and financial
reporting are documented in the Department of the Treasury Financial Manual,
Part 6, Chapters 1000 and 2000; CMB Circular A-102, "Uniform Requirements for
Assistance to State and local Goverrments;" CMB Circular A-110, "Grants and
Agreements with Institutions of Higher Education, Hospitals, and Other Nonprofit
Organizations." General EPA policy regarding payment methods is covered in 40
CFR Part 30, Subpart D and EPA's Financial Management Manual. Hie Agency's
Accounting Manual provides greater detail.
2.	GENERAL. Assistance agreements will provide for payment by either of two
methods, payment in advance of performance or reimbursement after performance.
a.	Advance Payment. The Award Official may authorize advance payment to
recipients under EPA's assistance programs when the recipient indicates need
for advance financing, except for Construction Grants for W&stewater Treatment
Wbrks (WWT). Advance payment will be made by issuance of a letter of credit
or Treasury checks.
(1)	Letter of Credit. Recipients may be authorized to obtain funds
under a letter of credit by either of two methods. Both methods delay cash
transfers fran the Department of the Treasury until needed for disbursement.
(a)	The recipient may be authorized to draw funds fran Treasury
through a commercial bank by executing payment vouchers against the letter of
credit and presenting them to the bank for the funds.
(b)	The recipient's bank may submit a recipient's request for
funds to EPA through Treasury using Treasury's electronic funds transfer network.
Approved payments are transmitted electronically to the bank for credit to the
recipient's account.
(c)	The letter of credit limits the advance of Federal cash to
the minimum amount needed to meet actual and immediate cash requirements of
the approved program or project. The letter of credit method is not intended
to apply to disbursements made to reimburse an organization for work already
performed and that has been financed with the organization's own working capital.
(2)	Direct Treasury Check. Payment is made to the recipient by
Treasury check upon request in an amount necessary to meet immediate cash
requirements or as stipulated in a predetermined payment schedule.
b.	Reimbursement Payment. Payment by Treasury check is made after the
recipient submits a request for reimbursement of EPA's share of expenditures
incurred for EPA assisted project purposes. Requests for reimbursement will
be sutmitted on Standard Form 270 (SF 270), "Request for Ajvance or Reimbursement"
(see figure 33-1), or Standard Form 271 (SF 271), "Outlay Report and Request for
Reimbursement for Construction Programs" (see figure 33-2).
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3. SELECTION OF PAYMENT METHOD.
a.	Advance for Reimbursement. Advance financing is legally authorized
for payments under most of EPA's financial assistance prograns. Construction
Grants for Wastewater Treatment Works and those individual projects involving
construction under other programs must be paid on a reimbursable basis.
However, States may be paid in advance for Clean Water Act §205(g), §205(j),
and "advance of allowance" §203(a) payments to small communities. The Award
Official authorizes advance payment to the'recipient when the need exists.
b.	Type of Advance Funding. Once advance financing is approved, the
servicing Financial Management Officer (FMO) will apply Treasury Department
criteria to determine whether advance payment will be made by Treasury check
or by letter of credit.
c.	The FMO must monitor the recipient's compliance with advance funding
policies and recommend that the Award Official amend the assistance agreement
to change the payment method to the reimbursement method if a recipient does
not comply.
4. ADVANCE PAYMENT.
a.	Policy. Advance payments by check or letter of credit shall be limited
to the minimum amount needed by the recipient and shall be timed to meet the
actual cash requirements necessary to carry out the purpose of the approved
assistance project. The timing and amount of cash advances shall be as close
as is administratively feasible to the recipient's actual disbursements for
direct project costs and the proportionate share of any allowable indirect
costs. The Award Official may terminate advance funding for a recipient who
does not comply with this requirement.
b.	Interest Earned on Advance Payments. Advance payments are to meet
immediate needs only. Recipients, other than States or State Agencies or
tribal organizations (see 40 CFR 30.526) must return to EPA any interest earned
on an advance of Federal funds.
c.	Treasury Check.
(1) Initial Advance.
(a)	Recipients must request the initial advance payment on SF 270,
"Request for Advance or Reimbursement" (see figure 33-1). The SF 270 must be sub-
mitted to the servicing FMO. EPA must make no payment to the recipient until
after both parties execute the assistance agreement.
(b)	The FMO will base the amount of the initial advance on the
recipient's projected short term cash requirements. The FMO should obtain
concurrence from the EPA Project Officer on the amount requested for the initial
advance.
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(2) Interim Payments.
(a)	After the initial advance, recipients must submit SF 270's
to the servicing EPA Financial Management Office at least quarterly as costs
are incurred on a project. These requests must report cumulative expenditures
under the agreement and the recipient's projected cash requirements for the
coming period. Recipients may request payment as frequently as monthly if
necessary.
(b)	Upon receipt of a request for advance or reimbursement, the
FMO will generally forward a copy of the request (SF 270) to the EPA Project
Officer for concurrence. Upon concurrence of the Project Officer, the FMO
will disburse to the recipient the EPA share of the amount spent by the recipient
since the last request, less the amount of the last advance, plus the recipient's
projected cash requirement for the next advance period. Cash disbursed during
a given budget period will not exceed the approved award anount. The approved
award amount is the sun of the new funds obligated for the budget period plus
any authorized carryover of unexpended Federal funds fran preceding budget
periods that were within the project period. Unless the assistance agreement
specifies otherwise, this procedure will be followed until the full anount, or
the required amount if less than the full amount, of the award is disbursed.
EPA will not pay an advance under any circumstances after the budget period
has ended.
(c)	Recipients must liquidate all outstanding advances at the end
of the budget (and project) period. The recipient can accomplish this by sub-
mitting a final "Financial Status Report", SF 269 (see figure 33-3), if no addi-
tional funds are required, or by submitting a "Request for Advance or Reimbursement",
SF 270, as appropriate, showing the advance used for expenditures and/or submit-
ting a refund check for any unused advance. All refund checks must be payable
to U.S. Qwirorniental Protection Agency and sent to the servicing Financial
Management Office. The Assistance Administration Unit (AAU) may review the
request any time after payment to determine the need for any adjustments to
subsequent payments. Review should determine whether the:
JL Budget period has ended;
2^ Expenditure rate compares favorably with the quarterly
expenditure schedule presented in the agreement; and
2 Non-Federal share is consistent with matching requirenents.
d. Letter of Credit.
(1) Pol icy. EPA will use the letter of credit method of advance finan-
cing whenever practical. Ttiis method minimizes the impact of advances made under
Federal assistance agreements on the public debt and financing costs. The letter
of credit method will ordinarily be used when the recipient meets the criteria
set by the Treasury Department for cash management of assistance programs. It
will not ordinarily be used if the recipient requests payments on a reimbursement
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basis or the assistance agreement requires funding on a reimbursment basis.
EPA requires that cash advances to a recipient be limited to the actual, Immediate
cash requirements of the recipient in carrying out the purpose of the approved
program and project. The timing and amount of drawdowns under letter of credit
are to be as close as is administratively feasible to the actual disbursement
by the recipient organization for direct program costs and the proportionate
share of any allowable indirect costs. Hie Award Official may terminate advance
funding where a recipient fails to observe this requirement by drawing down
funds prematurely or in excess of needs.
(2) Responsibilities.
(a)	FMO. The servicing MO will determine whether to use letter
of credit or advance payment by Treasury check within statutory/regulatory
constraints by applying the following criteria to assure that:
_1 Advance letter of credit financing is legally authorized
for use in the assistance program;
The assistance agreement provides for advance funding;
_3 The annual dollar amount of advances to the recipient are
expected to total at least $120,000;
4_ EPA will have a continuing relationship with the recipient
for at least 12 months; and
_5 EPA is reasonably sure that the recipient can provide
necessary accounting support to obtain and protect the funds, account for
expenditures, and fulfill reporting requirements.
If the criteria for the letter of credit method are met, the FMO will initiate
the letter of credit with the recipient and thereafter:
_1 Process payment requests;
2	Perform required accounting;
3	Monitor cash management practices of recipients; and
<4 Comply with reporting requirements of the Department of
the Treasury.
(b)	Assistance Administration Unit (AAU). (Reserved.)
(c)	EPA Project Officer. The Project Officer has a key role
in ensuring that funds are made available to the recipient in a timely manner
and that the payments are proper. Project Officers should ensure that each of
their projects progress satisfactorily and that the conditions of the grant or
cooperative agreement are being met. Project Officers believing that a recipient's
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requests for payment should not be honored, or having other such concerns,
should discuss those concerns with the supportlrg AAU staff. The AAU will
coordinate with the appropriate FMO and the Project Officer to assist in
resolving matters with the recipient.
(3) Procedures.
(a)	EPA provides a " Letter of Credit Users Manual" to assist
each recipient who is subject to advance financing procedures under the Letter
of Credit Federal Reserve Bank System. EPA has published a separate manual,
"Recipient's Manual - Letter of Credit - Treasury Financial Communications
System (LOC-TFCS)" to provide procedures for requesting funds frcm EPA through
Treasury's electronic funds transfer network.
(b)	Letter of Credit - Federal Reserve Bank System. The Federal
Reserve Bank (FRB) Letter of Credit financing method authorizes the recipient
drawing rights through a ccmmercial bank to meet cash needs under the assistance
agreement as they arise. The recipient organization presents a voucher, "Payment
Voucher on letter of Credit", Treasury Form TPS 5^01 (figure 33-5) to the bank
which then transfers funds to meet payment of Immediate disbursement requirements.
This delays cash transfers from Treasury until needed for disbursement by the
recipient.
(c)	Letter of Credit - Treasury Financial Ccnmunlcatlons System
(TFCS). This is another method of letter of credit financing. The TFCS provides
for electronic transmission of a request for funds frcm a recipient's financial
institution to EPA via Treasury and for a return transmission that provides the
bank an electronic transfer of funds or a message rejecting the request.
(d)	Process.
1	Upon determining that a project will be funded through the
letter of credit method, the servicing FMO will obtain information from the
recipient that will permit evaluation of the recipient's accounting competency.
2	The FMO will inform the Assistance Administration Unit (AAU)
of each new letter of credit recipient.
3	The AAU will insert a clause in the assistance agreement
that specifies letter of credit financing for that award and will require that
the recipient organization:
a Initiate cash draw downs only when actually needed for
disbursements;
b Report cash disbursements and balances in a timely mariner
as required by the guidance in the EPA "Letter of Credit Users Manual" or the
"Recipient's Manual - Letter of Credit - Treasury Financial Ccminunications
System (LOC - TFCS)" (available from the servicing FMO); and
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c Impose the same standards of timing and reporting on
secondary recipients (e.g., contractors under a subagreement).
£ The Award Official will stipulate in the assistance agreement
that failure to ccmply with these requirements may cause EPA to revoke the
unexpended portion of the letter of credit and to change the financing method
to the reimbursement method. The Award Official must forward a copy of the
completed agreement directly to the FMD.
5	The recipient will select a commercial bank and provide
information concerning the selected bank to the servicing FMO. Recipients are
encouraged to utilize the services of minority owned banks. (See Chapter 24,
"Small, Women's and Minority Business Utilization.")
6	The recipient will designate the employees who are author-
ized to draw down funds against the letter of credit and will certify their
signatures to the FMD on a signature card.
1_ The FMO will certify the signatures appearing on the signature
card to the Department of the Treasury.
£ The FMO will prepare a letter of credit and provide ccpies to
the Department of the Treasury and to the recipient organization.
9_ The FMD will report the disbursement under the letter of credit
procedures to the Department of the Treasury.
(4) Special Requirements for Recipients Under Superfund. (Also see
Chapter 12, EPA Financial Management Manual.)
(a)	The Comprehensive Environmental Response, Compensation, and
Liability Act authorizes the use of a cooperative agreement to fund remedial
investigations, feasibility studies, designs and remedial clean-ups of abandoned
hazardous waste sites through Superfund. Clean-up costs must be accounted for
by site and activity to support Federal enforcement cases against responsible
parties and to determine State cost shares for those activities that require
cost sharing (§104(c)(3) of CERCLA). Financial management and reporting under
Superfund, therefore, requires more detailed accounting policies and procedures
than other EPA programs. In addition to the relevant policies and procedures
prescribed above, the following requirements apply to recipients under Superfund:
(b)	The cooperative agreement will provide a special account num-
ber to identify the specific activities that the recipient has agreed to perform
and the site at which they will be performed. The recipient must account for
and draw funds separately for each activity by citing the last four digits of
the special account number.
(c)	The funds must be totally segregated. This segregation will
be maintained as follows:
33-6
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ASSISTANCE ADMINISTRATION
5700
12/3/84
1	The recipient can draw funds on a letter of credit only
for the site activities authorized in the cooperative agreement;
2	If the recipient uses all funds obligated for a specific
site and activity and the activity has not been completed, it cannot draw
against another account number to complete this activity without receiving
a formal amendment of the cooperative agreement from EPA; and
3	If the recipient has funds remaining on the project under
the letter of credit after the activity is completed, the funds cannot be used
for work performed under another activity. In this case, the unexpended balance
will be used in one of two ways. Either EPA will withdraw the unexpended
amount for the completed activity or EPA will authorize transfer of the amount
to another activity. To withdraw the unexpended anount, the Award Official will
have the cooperative agreorient amended to decrease the unexpended amount. If
EPA approves the recipient's request that a transfer be made, the Award Official
will amend the cooperative agreement to transfer the unexpended amount and will
inform the FMO by ccpy.
(5) Advances of Allowance of WWT Construction Grant Funds to Small
Canmunities for Facilities Planning and Project Design (see 40 CFR 35.2025).
A State may provide an advance of allowance frcm their Reserve for Mvances of
Allowance to a potential grant applicant that is a snail canmunity which the
State judges to be otherwise unable to undertake planning and design activities
leading an application for a Step 3 or Step 2+3 WWT construction grant. The
State may request EPA to assign the right to receive the advance payments
under the grant to the grant applicant. The State shall provide the servicing
FMO with financial reports of the monies advanced including those advances
assigned to an applicant at the State's request.
5. REIMBURSEMENT PAYMENT.
a.	Policy. Recipients that do not qualify for advance payments, or that
qualify for letter of credit but decline the use of letter of credit for payments,
will be paid by the reimbursement method. All recipients of WWT construction
grants must be paid by the reimbursement method.
b.	Procedures.
(1) Payment Request Submission. Recipients will sufcmit either an SF
270 (see figure 33-1) or an SF 271 (see figure 33-2) to request payment as stated
below.
(a) Regionally Administered Agreements.
1 WWT Construction Grant Agreements. Each grant agreement
will instruct the recipient to submit a request for payment at least each quarter,
preferably each month, using an "Outlay Report and Request for Reimbursement for
Construction Prograns", SF 271. Recipients will address payment requests for
33-7
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ASSISTANCE ADMINISTRATION
5700
12/3/84
approval directly to the servicing FMO or to the delegated State according to
the Region's policy and provide a copy as may be applicable to:
a The Project Officer in those States that administer
projects under delegation agreements; or
b The appropriate Office of the Corps of Engineers.
2 Superfund Cooperative Agreements (Reserved).
3^ Other Agreements. Recipients shall submit a "Request for
Advance or Reimbursement", SF 270, to the servicing FMO or AAU identified in
the assistance agreement as costs are incurred.
(b) Headquarters Administered Agreements. Recipients will submit
a Request for Advance or Reimbursement to the servicing FMO (Financial Management
Center, las Vegas). The FMO will record the request as an accounts payable,
forward it to the Project Officer for review and concurrence, and pranpt return
to the FMO for approval and payment. Within five workdays of receipt, the Project
Officer is expected to return the approved SF 270 to the FMO for payment.
(2) Payment Request Processing.
(a) Regionally Administered Agreements.
1^ WWT Construction Grants.
a upon receipt of the payment request, the servicing FMO
will date stamp the request and establish an appropriate record of the related
account payable and schedule the voucher for payment. If received directly
frcm the recipient, the FMO will immediately forward a copy of the request
with supporting documentation to the Project Officer, the Office of the Corps
of Engineers, and/or the Assistance Administration Uhit, as appropriate for
that Region and State.
b Routine payment requests for WWT construction grants will
be processed without awaiting the Project Officer's concurrence. All requests
for payment will be considered routine except the first and final payments on
Step 1, 2, 3 and 2+3 projects; the 50%, 80%, and 90% payments on Step 3 and
2+3 projects; and any other specific interim payment points established in the
grant agreement.
c The Project Officer or the AAU must review all non-routine
payment requests to determine that conditions of the agreement have been met
before they are processed for payment. Payment requests submitted to the Project
Officer or assistance administration staff for review must be returned to the
FMO within ten work days. Payment of non-routine requests will not be made by
the FMO before obtaining concurrence of the Project Officer or AAU as appropriate.
33-8
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ASSISTANCE ADMINISTRATION
5700
12/3/84
d All payment requests are to be processed for payment
within 2 calendar days of their return to the FMO unless the Project Officer or
AAU indicates otherwise and states the reasons why payment is not to be made.
e The FMO will make payments to the recipient in accordance
with retalnage limitations set forth in the assistance agreanent. The recipient
should bill EPA for the retained amount on a subsequent voucher at such time as
the recipient beccmes obligated to pay the retained amount.
f The FMO maintains cash control registers to prevent
disbursements in excess of the liquidation authority available to the funding
program or Regional Office. The FMO will provide the AAU with periodic reports
of outlays on a proj ect by proj ect basis.
g Before final payment for WWT construction grants, the
Project Officer must certify that performance under the agreement has been ade-
quate and that final payment may be made. The certification is made to the
appropriate assistance administration staff which will authorize final payment
to the recipient by the FMO. (See Chapter 40, "Closeout of Assistance Agreements.")
2	Superfund Cooperative Agreements. (Reserved.)
3	Other Regional Agreements. (Reserved.)
(b) Headquarters Administered Agreements.
1_ Project-type Agreements (Research, Development, Surveys,
Demonstration, Studies, etc.).
a The servicing FMO will review the request for reimbursement,
SF 270, to determine compliance with the terms of the agreement, i.e., cost
sharing requiranents, valid budget period, or any outstanding advances. At
this time the FMO will establish an accounts payable in the financial management
system and mail the payment request (within 2 business days of receipt) to the
Project Officer for review and concurrence and prompt return to the FMO for
payment.
b Within five work days following receipt of a payment request,
the Project Officer will:
(_1) Certify and approve the request for payment if the
project is underway and is progressing satisfactorily, and forward it to the
FT©, or
(2) Disapprove the request for payment if the status of
project work is not satisfactory, note the reason(s), forward the request to
the AAU for resolution, and notify the FMO of such action. The AAU and the
Project Officer must determine the appropriate corrective action.
£ Once an approved payment request is received, the FMO
will initiate payment to the recipient within two work days.
33-9
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ASSISTANCE ADMINISTRATION
5700
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6.	PAYMENT LIMITATIONS.
a.	Preaward Costs. A recipient may not be reimbursed for costs incurred
before the execution of the original agreement by both parties unless such
reimbursement has been specifically authorized by the agreement or by approved
deviation and amendment. However, EPA will reimburse a recipient for costs
incurred between the end of a budget period and the date of award for the next
budget period under a continuation agreement provided that the application for
continuation was submitted before the end of the expiring budget period.
b.	Excessive Payments. Payments cannot exceed awards authorized for an
approved budget period.
c.	Withholding of Payment.
(1)	EPA may withhold payments for proper charges made by a recipient
at any time during the project period if:
(a)	The recipient has failed to adhere to the program objectives,
assistance agreement conditions, Federal reporting requirements; or
(b)	The recipient is indebted to the United States and collection
of the indebtedness will not impair accomplishment of the objectives of any
assistance program sponsored by the united States.
(2)	ERA must not withhold payments retroactively. Rather, withholding
may only be imposed prospectively after the Award Official has provided the
recipient reasonable notice by proper notification in writing (and expeditious
delivery). The notification must advise the recipient of the explicit reason(s)
for the action and how the problem may be remedied. The Award Official may
inform the recipient that, after a specified date, payments will not be made
for obligations incurred until the cautee of the withholding is removed. EFA must
limit any such witholding to that amount necessary to assure compliance.
d.	Prohibition of Assignment of Payment. EPA will make payments only to
the payee identified in the assistance agreement except in response to a State's
request for direct paynent under the State's grant of WWT construction funds
for advances of allowance to are 11 communities (see subparagraph 4c(5) above).
In that instance, the State may request direct(payment to a "small community"
that is a prospective applicant for a Step 3 or Step 2+3 WWT construction grant.
7.	MONITORING THE AGREEMENT.
a. Active Agreements (during the project period). EPA Project Officers
are responsible for overall monitoring of projects. The FMO's are respon-
sible for monitoring the cash flow and assuring that the recipient complies
with Federal requirements regarding use and timing of Federal advances. If
unallowable or ineligible costs are evident in the reimbursement requests or if
notified of such by the Project Officer, the FMO will inform the recipient
of the problem. The FMD will either return the questionable request to the
recipient or correct it if asked to do so by the recipient.
33-10
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ASSISTANCE ADMINISTRATION
5700
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b. Inactive Agreements (after the project period). Because Federal require-
ments (CMB Circulars A-102 and A-110) provide for theuse of standard form pay-
ment vouchers, the determination of eligibility and allowability of claims depends
largely on final audit of the recipient's records. Any recovery frcm recipients
will be effected following receipt of an accceptable final financial status
report, payment request, or final audit of the agreement, including the resolution
and recovery of any disallowed costs (see Chapter 38, "Audit").
33-11
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ASSISTANCE ADMINISTRATION
5700
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REOUEST FOR ADVANCE
OR REIMBURSEMENT
(Se* xnatructvmM on bock)
Approved by Office of Management and pace of
Budget No 80-R01B3
PAGES
1
TYPE OF
PAYMENT
REQUESTED
• "X" tM «r Mi kMU
i-i /-< REIMBURSE
I—I ADVANCE L-J MENT
b. "*~ tU mpfhembU im
Q FINAL Q PARTIAL
2. BASIS OF REQUEST
D CASH
G ACCRUAL
S. FEDERAL SPONSORING AGENCY ANO ORGANIZATIONAL ELEMENT TO
WHICH THIS REPORT IS SUBMITTED
4 FEDERAL GRAMT OR OTHER fi. PARTIAL PAYMENT REQUEST
IDENTIFYING NUMBER ASSIGNED NUMBER FOR THIS REQUEST
BY FEDERAL AGENCY
L EMPLOYER IDENTIFICATION
NUMBER
7 RECIPIENTS ACCOUNT NUMBER
OR IDENTIFYING NUMBER
8. PERIOO COVERED BY THIS REQUEST
FROM lnnJi 4m r«v)
TO lm»mtk.dn Mr)
9 RECIPIENT ORGANIZATION
Smm*
«a4 Strict
Ctt* 8m»
mnd TIP C*im
ICL PAYEE flTMr* dUett* to !*«¦*)
«d Sti ««t
Cup Slat*
XtP Cod*
COMPUTATION OF AMOUNT OF REIMBURSEMENTS/ADVANCES REQUESTED
PROGRAMS/FUNCTIONS/ACTTYITIES I
(fr)
(e)
a Total program
outlays to date
(At of datt)
b Lau Cumulative program Income
c Net program outlays (tnu a moitu
llM b)	
d Estimated net cash outlays for advance
period	
a Total (Suw 0/{nut e<$ d)	
f Non Federal share of amount on line e
g Federal share of amount on line e
h Federal payments prevfously requested
I Federal share now requested (ttu g
TWinitf fane h)	
| Advances required by
month when requested
by Federal grantor agency
for use in making pre*
scheduled advances
ALTERNATE COMPUTATION FOR ADVANCES ONLY
a Estimated Federal cash outlays that will be made during period covered by the advance
S
b £#«•» Estimated balance of Fedeial cash on hand as of beginning of advance period

c Amount requested {Lnuomttiueima A)
$
CERTIFICATION
I certify that to the best of my knowledge
and belief the data above are correct and
(hat an outlays were made in accordance
with Ute grant conditions or other agree
meift end that payment is due and has not
been previously requested
SIGNATURE Of AUTHORIZED CERTIFYING OFFICIAL
TV PCD OR PRINTEO NAME AMO TITLE
TELEPHONE
DATE REQUEST
SUBMITTED
This space for agency use
STAJUMAD nm DO (7-7S)
htMribtd by OAc* of M«n—m»rt •
CJr No. ^110
Figure 33-1
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ASSISTANCE ADMINISTRATION
5700
12/3/84
INSTRUCTIONS
Please type or print legibly Items 1, 3, 5, 9, 10, 1 lc, lie, 1 If, llg, lli, 12 and 13 are self-explanatory;
specific instructions for other items are as follows:
Item	Entry
2 Indicate whether request is prepared on cash or ac-
crued expenditure basis All requests for advances
shall be prepared on a cash basis
4 Enter the Federal grant number, or other identifying
number assigned by the Federal sponsoring agency. If
the advance or reimbursement is for more than one
grant or other agreement, insert N/A, then, show the
aggregate amounts On a separate sheet, list each
grant or agreement number and the Federal share of
outlays made against the grant or agreement
6	Enter the employer identification number assigned by
the U S Internal Revenue Service, or the FICE (institu-
tion) code if requested by the Federal agency
7	This space is reserved for an account number or other
identifying number that may be assigned by the
recipient
8	Enter the month, day, and year for the beginning and
ending of the period covered in this request If the re-
quest is for an advance or for both an advance and re-
imbursement, show the period that the advance will
cover If the request is for reimbursement, show the
period for which the reimbursement is requested
Note. The Federal sponsoring agencies have the option of
requiring recipients to complete items 11 or 12, but not
both Item 12 should be used when only a minimum
amount of information is needed to make an advance
and outlay information contained in item 11 can be
obtained in a timely manner from other reports
11 The purpose of the vertical columns (a), (b), and (c), is
to provide space for separate cost breakdowns when a
project has been planned and budgeted by program,
function, or activity If additional columns are needed,
Item.	Entry
use as many additional forms as needed and indicate
page number in space provided in upper right; how-
ever, the summary totals of all programs, functions,
or activities should be shown in the "total" column on
the first page
11a Enter in "as of date", the month, day, and year of the
ending of the accounting period to which this amount
applies Enter program outlays to date (net of refunds,
rebates, and discounts), in the appropriate columns
For requests prepared on a cash basis, outlays are the
sum of actual cash disbursements for goods and serv-
ices, the amount of indirect expenses charged, the
value of in-kind contributions applied, and the amount
of cash advances and payments made to subcontrac-
tors and subrecipients For requests prepared on an
accrued expenditure basis, outlays are the sum of the
actual cash disbursements, the amount of indirect ex-
penses incurred, and the net increase (or decrease) in
the amounts owed by the recipient for goods and other
property received and for services performed by em-
ployees, contracts, subgrantees and other payees
lib Enter the cumulative cash income received to date, if
requests are prepared on a cash basis For requests
prepared on an accrued expenditure basis, enter the
cumulative income earned to date Under either basis,
enter only the amount applicable to program income
that was required to be used for the project or pro-
gram by the terms of the grant or other agreement
lid Only when making requests for advance payments,
enter the total estimated amount of cash outlays that
will be made during the period covered by the advance
13 Complete the certification before submitting this
request
STANOARD FORM 270 BACK (7-76)
GPO 1976 O - 219-370
Figure 33-1-A
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ASSISTANCE ADMINISTRATION
5700
12/3/84
> Approved by OfRee of Management and
OUTLAY REPORT AND REQUEST FOR REIMBURSE- Budget f*o 80-R0181
MENT FOR CONSTRUCTION PROGRAMS
(*>ft runt ruffian* an )
i tvn or mquut
—i
	 FINAL 	 MftTIAL
f_UIII or RC0UC5T
_! CASH _ ACCRUAL
l PIOUUL IMMC5OBIM0 AOINCT AN{
WHICH THIS WOBT IS SUtMITTCO
> OMQANIZATTONAl CLIUCHT TO 4 rCPCDAL CKAM1 Oft OTHCK
lOCHTirviHO KUKBIR AUICNCO
i Br Fto (JUL AGtHCT
1. PARTIAL MYWtNT HCQUEST NO
t tunoro lOomncAnoN ' ?
ncifiCNT account o* otmcw m amma * im mrmr

moat <«#•**. Mri
TO |««aa ot)
S. RSCinCNT 0H0ANIZAT1ON
Vas*
l MVS I WAfit rkrrk tkmM W «nl i/Af«rn| ||« i(n I)
Cil«
IWf
I c.i,
Sl"*l «W
xir
II
STATUS OF FUNDS
PROGRAMS—FL NOTIONS—ACTIVITIES
TOTAL
CLASSIFICATION
(a)

U)
a Adfmnistrsirve expense
$
s
I ; $
b PreltmjJiiry *KpertsB

1 !
i
c Land (twenties ngtit-of way
1
I
d Architectural engineering bnt fees
1
1
• Other arttiitactural engineenng f««s j \

t Project inspection feet



g Land d—etopmsnt



h Relocation expense


i
i
i ftetocatm payments to individual and
businesses




j Demolition and nmtwtl




k Construction and project »mpcw«metit
cost




1 Equipment




m Miscellaneous cost




n Total cumulative to date (sum of bees
• thru  mwt aho tttu
TUXmONC (Ar«a ad*,
¦¦¦Ify itinmi
b. Representative
stOHATVKe or authosizcd comrriHC
omerAL
OATC SIQNEO
and all wor* a m accordance witn the ; 	
terns of the ewstd {
TTPCO OR firiNTCO NAME AHO TTTIC
TCLimONI M«M rwdt
mmmtf *ad oU«in)
271.101 ITANDAPD FOMfl 771 <7-TS»
Ptmc>iM4 by 0*He* *1 and Sw«f*t
Or fM. A-110
Figure 33-2
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5700
ASSISTANCE ADMINISTRATION	12/3/84
INSTRUCTIONS
Please type or print legibly. Items 3, 4, 5, 8, 9, 10, 1 Is, and 1 lv are self-explanatory; specific instructions
for other items are as follows:
[tern	Entry	Item 	 Entry
1	Mark the appropriate box If the request is final, the
amounts billed should represent the final cost of the
protect.
2	Show wtiether amounts are computed on an accrued
expenditure or cash disbursement basis.
6	Enter the employer identification number assigned by
the U.S Internal Revenue Service (or FICE (institution)
code if requested by the Federal agency].
7	This space is reserved for an account number or other
identifying number that may be assigned by the
recipient
lit Enter gross salaries and tinges of employees of the
recipient and payments to third party contractors di-
rectly engaged'in performing demolition or removal of
structures from developed land. All proceeds from the
sale of salvage or the removal of structures should be
credited to this account; thereby reflecting net
amounts if required by the Federal agency.
Ilk Enter those amounts associated with the actual con-
struction of, addition to, or restoration of a facility
Also, include in this category, the amounts for protect
improvements such as sewers, streets, landscaping,
and lighting.
11 The purpose of vertical columns (a) through (e) is to
provide space for separate cost breakdowns when a
large proiect has been planned and budgeted by pro-
gram. function or activity If additional columns are
needed, use as many additional forms as needed and
indicate page number in space provided in upper_ right;
however, the summary totals of all programs,* func-
tions, or activities should be shown in the "total"
column on the first page. All amounts are reported on
a cumulative basis.
1 la Enter amounts expended for such items as travel, legal
fees, rental, of vehicles and any other administrative
expenses Include the amount of interest expense
when authorized by program legislation Also show
ttie amount of interest expense on a separate sheet
lib Enter amounts pertaining to the work of locating and
designing, making surveys and maps, sinking test
holes, and all other work required prior to actual
construction.
11c Enter all amounts directly associated with the acquisi-
tion of land, existing structures and related right-of-
way.
lid Ener basic fees for services of architectural engineers.
lie Enter other architectural engineering services Oo not
include any amounts shown on line d.
1II Enter amounts for alt equipment, both fixed and mov-
able. exclusive of equipment used for construction. For
example, permanently attached laboratory tables, built-
in audio visual systems, movable desks, chairs, and
laboratory equipment.
11m Enter the amounts for all items not specifically men-
tioned above.
11 n Enter the total cumulative amount to date which
should be the sum of lines a through m.
Ho Enter the total amount of program income applied to
the grant or contract agreement except income in-
cluded on line j Identify on a separate sheet of paper
the sources and types of the income
lip Enter the net cumulative amount to date which should
be ttie amount shown on line n minus the amount
on line o.
1 lq Enter the Federal share of the amount shown on line p.
llr Enter the amount of rehabilitation grant payments
made to individuals whan program legislation provide*
100 percent payment by the Federal agency.
11 f Enter inspection and audit fees of construction and
related programs.
llg Enter all amounts associated with the development of
land where the pnmary purpose of the grant is land
improvement The amount pertaining to land develop-
ment normally associated with ma|or construction
should be excluded from this category and entered on
line k.
lit Enter the total amount of Federal payments previously
requested, if this form is used for requesting reim-
bursement.
1 lu Enter the amount now being requested for reimburse-
ment This amount should be the difference between
the amounts shown on lines s and t If different, ex-
plain on a separate sheet
11 h Enter the dollar amounts used to provide relocation
advisory assistance and net costs of replacement hous-
ing (last resort) Oo not include amounts needed for
relocation administrative expenses; these amounts
should be included in amounts shown on line a.
Hi Enter the amount of relocation payments made by the
recipient to displaced persons, farms, business con-
cerns, and nonprofit oi®anizations.
12a To be completed by the recipient official who is re-
sponsible for the operation of the program The date
should be the actual date the form is submitted to the
Federal agency.
12b To be completed by the official representative who
is certifying to the percent of project completion as
provided fOr in the terms of the grant or agreement.
STANDARD FOMI Z71 {T-TW
Figure 33-2-A
-------
FINANCIAL STATUS REPORT
(Follow \n*truct\ona on the back)
1 FEDERAL AQEMCT AND ORGANIZATIONAL ELEMENT TO WHICH REPORT IS SUBMITTED
2 FEDERAL GRANT OR OTHER IDENTIFYING
NUMBER
0MB Approved
No 8O-RO180
PAGE OP
| PAGES
J RECIPIENT ORGANIZATION {Nam* and eompitt, tmtlmdxng ZIP eU*)
4 EMPLOYER IDENTIFICATION NUMBER
S RECIPIENT ACCOUNT NUMBER OR IDENTIFYING NUMBER
6- FINAL REPORT
~ YES ~ MO
7 BASIS
(~~] CASH Q] ACCRUAL
S PROJECT/GRANT PCRIOO |5n lulrvntaa)
9 PCRIOO COVERED BY THIS REPORT
FROM (Me*iA day tn**r) TO (Nttlk day VM')
FROM (N«rU day year)
TO day year)
10
STATUS OF FUNDS
PROGRAMS/FUNCTIONS/ACTIVITIES ~
(a)
(b>
(c)
(d)
(«>
(t)
TOTAL
<0)
a Net outlays previously reported
%
%
$
$
$
$
s
b Total outlays this report period







c Lest Program income credits







d Net otftlays this report period
(Line b mmui find c)







e Net outlay* to date
(Line a plus Itne d)







f Lest Non Federal share of outlays







g Total Federal share of outlays
fLtn« e nunut fine f)







h Total unliquidated obligations







i Less Non Federbl share of unliquidated
obligations shown on line h







1 Federal share ol unliquidated obligations







k Total Federal share of outlays and
unliquidated obligations







1 'Total cumulative amount of Federal funds
authorized







m Unobligated balance of Federal funds







oo
M
8
z
a
i-3
O
(£"
OJ
LO
I
UO
INOJRCCT
EXPENSE
TYPE OF RATE
(Place "X" in appropncte box)
~ PROVISIONAL ~ PREDETERMINED 0 FINAL Q FIXED
12 REMARKS. Attack a«y nplintwii	<
0OMT« 1*0 Uffuiaftm
d TOTAL AMOUNT
• FE0ERAL SHARE
******v or n/*rMiM rifwrW fry F*d*»*J «po«wniip
13 CERTIFICATION
I certify to the best of my knowledge and be-
lief that this report it correct and complete and
that all outlays and unliquidated obligations
are tor the purposes set forth In the award
documents
SIGNATURE OF AUTHORIZED CERTIFYING
OFFICIAL
TYPED OR PRINTED NAME AND TITLE
DATE REPORT
SUBMITTED
TELEPHONE (Area coda,
number and extension)
STANDARD FORM 269 (7-76)
Prescribed by Office of	and Budget
C4r No A-110
r\>
\
UO VJ1
OO o
•£r o
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ASSISTANCE ADMINISTRATION
5700
12/3/84
INSTRUCTIONS
Please type or print legibly. Items 1, 2,3, 6, 7,9, 10d, lOe, lOg, lOi, 101, 11a, and 12 are self-explanatory,
specific instructions for other items are as follows:
Hem
Entry
Item
Entry
4	Enter the employer identification number assigned by
the U.S Internal Revenue Service or FICE (institution)
code, tf required by the Federal sponsoring agency
5	This space is reserved for an account number or other
identifying numbers that may be assigned by the
recipient
8 Enter the month, day, and year of the beginning and
ending of this project period For formula grants that
are not awarded on a project basis, show the grant
period
10 The purpose of vertical columns (a) through (f) is to
provide financial data for each program, function, and
activity in the budget as approved by the Federal spon-
soring agency If additional columns are needed, use as
many additional forms as needed and indicate page
number in space provided in upper right; however, the
totals of all programs, functions or activities should be
shown in column (g) of the first page For agreements
pertaining to several Catalog of Federal Domestic
Assistance programs that do not require a further
functional or activity classification breakdown, enter
under columns (a) through (0 the title of the program
For grants or other assistance agreements containing
multiple programs where one or more programs require
a further breakdown by function or activity, use a
separate form for each program showing the applicable
functions or activities in the separate columns For
grants or other assistance agreements containing sev-
eral functions or activities which are funded from
several programs, prepare a separate form for each
activity or function when requested by the Federal
sponsoring agency
10a Enter the net outlay. This amount should be the same
as the amount reported in Line lOe of the last report
If there has been an adjustment to the amount shown
previously, please attach explanation. Show zero if this
is the initial report
10b Enter the total gross program outlays (less rebates,
refunds, and other discounts) for this report period,
including disbursements of cash realized as program
income For reports that are prepared on a cash
basis, outlays are the sum of actual cash disburse-
ments for goods and services, the amount of indirect
expense charged, the value of in-kind contributions
applied, and the amount of cash advances and
payments made to contractors and subgrantees For
reports prepared on an accrued expenditure basis, out-
lays are the sum of actual cash disbursements, the
amount of indirect expense incurred, the value of in-
kind contributions applied, and the net increase (or
decrease) in the amounts owed by the recipient for
goods and other property received and for services
performed by employees, contractors, subgrantees, and
other payees
10c Enter the amount of all program income realized in
this period th« is required by the terms and con-
ditions of the Federal award to be deducted from total
project costs For reports prepared on a cash basis,
enter the amount of cash income received during the
reporting period For reports prepared on an accrual
basis, enter the amount of income earned since the
beginning of the reporting period When the terms or
conditions allow program income to be added to the
total award, explain in remarks, the source, amount
and disposition of the income
lOf Enter amount pertaining to the non-Federal share of
program outlays included in the amount on line e.
lOh Enter total amount of unliquidated obligations for this
project or program, including unliquidated obligations
to subgrantees and contractors Unliquidated obliga-
tions are
Cash basis—obligations incurred but not paid,
Accrued expenditure basis—obligations incurred but
for which an outlay has not been recorded
Do not include any amounts that have been included
on lines a through g On the final report, line h should
have a zero balance
lOj Enter the Federal share of unliquidated obligations
shown on line h. The amount shown on this line should
be the difference between the amounts on lines h and i
10k Enter the sum of the amounts shown on lines g and j
If the report is final the report should not contain any
unliquidated obligations.
10m Enter the unobligated balance of Federal funds This
amount should be the difference between lines k and I
lib Enter rate in effect during the reporting period
11c Enter amount of the base to which the rate was applied
lid Enter total amount of indirect cost charged during the
report penod
1 le Enter amount of the Federal share charged during the
report period
If more than one rate was applied during the project
period, include a separate schedule showing bases
against which the indirect cost rates were applied, the
respective indirect rates the month, day, and year the
indirect rates were in effect, amounts of indirect ex-
pense charged to the project, and the Federal share of
indirect expense charged to the project to date
STANDARD FORM 269 (BACK) (7-76)
Figure 33_3_A
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ASSISTANCE ADMINISTRATION
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FEDERAL CASH TRANSACTIONS REPORT
[See instructions on tke back. If report te for more than one grant or
omittance agreement, attach completed Standard Form 27S-A.)
Approved by Offic* of Manigamint «nd Budgtt. No 80-RO182
1. Fidml (poRtoring u«ncy ««J wganlotloul ilnm to atldi (Jill rwort
a wlmitM
2. RECIPIENT ORGANIZATION
Afanttf
Numbtr
and 8tr*t
City, Stat*
ana ZIP Code
4. Fodanl |i»t or 90m Wantlflca
lion numtar
5. Rodptart'a mount water at
Mwtllyiaf aumb*r
6. Lottor of crodit nunibor
7. Lot pornwit voudMf mimbor
Give total number for thie period
8- Ptjamrt Voudwn cndltod tt
yoer occoant
9. Tnuunr choda ncolmd (wJUtArr
or net d*po*iiad]
10. PERIOD COVERED BY THIS REPORT
3. FEDERAL EMPLOYER k
IDENTIFICATION NO. r
FROM dan. mar) TO (wowrt, day ynr)
11. STATUS OF
FEDERAL
CASH
(See specific
instructions
on the back)
a. Cash on hand beginning of reporting period
%
b. Letter of credit withdrawals

c Treasury check payments

d. Total receipts (Sum of lines b and e)

e. Total cash available (Sum of lines a and d)

1. Gross disbursements

g. Federal share of program income

h. Net disbursements (Line f minus brie g)

i Adjustments of prior periods

j. Cash on hand end of period
$
L2. THE AMOUNT SHOWN
13. OTHER INFORMATION
ON LINE 11 J, ABOVE.
REPRESENTS CASH RE-
QUIREMENTS FOR THE
a. Interest income
$
ENSUING
Days
b. Advances to subgrantees or subcontractors
$
14. REMARKS (Attach additional eheetB of plain paper, tf more space is required)
15.
CERTIFICATION


SIGNATURE
DATE REPORT SUBMITTED
1 certify to the best of my
knowledge and belief that
this report is true in all re-
spects and that all disburse-
ments have been made for
the purpose and conditions
of the grant or agreement
AUTHORIZED


CERTIFYING
OFFICIAL
TYPED OR PRINTED NAME AND TITLE
(Arts Cod#) {Numbtr)
TELEPHONE | | |
Sxtnnon)
THIS SPACE FOR AGENCY USE
272-101
STANDARD FORM 272 (7-76)
Pr*tcril>«d by Offle* of M«n«g»ment and Budget
CIr. No. A-llO
Figure 33-4
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ASSISTANCE ADMINISTRATION
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INSTRUCTIONS
Please type or print legibly. Items 1, 2, 8, 9, 10,
instructions for other items are as follows:
Item	Entry
3	Enter employer identification number assigned by the
U S. Internal Revenue Service or the FICE (institution)
code
If this report covers more than one grant or other
agreement, leave items 4 and 5 blank and provide the
information on Standard Form 272-A, Report of Fed-
eral Cash Transactions—Continued, otherwise,
4	Enter Federal grant number, agreement number, or
other identifying numbers if requested by sponsoring
agency.
5	This space reserved for an account number or other
identifying number that may be assigned by the re-
cipient
6	Enter the letter of credit number that applies to this
report If all advances were made by Treasury check,
enter "NA" for not applicable and leave items 7 and 8
blank
7	Enter the voucher number of the last letter-of-credit
payment voucher (Form TUS 5401) that was credited
to your account
11a Enter the total amount of Federal cash on hand at the
beginning of the reporting period including all of the
Federal funds on deposit, imprest funds, and unde-
posited Treasury checks
lib Enter total amount of Federal funds received through
payment vouchers (Form TUS 5401) that were cred-
ited to your account during the reporting period
lie Enter the total amount of all Federal funds received
during the reporting period through Treasury checks,
whether or not deposited
1 if Enter the total Federal cash disbursements, made
during the reporting period, including cash received
as program income Disbursements as used here also
include the amount of advances and payments less
refunds to subgrantees or contractors, the gross
amount of direct salaries and wages, including the
lid, lie, llh, and 15 are self explanatory, specific
Entry	Item
emplopee's share of benefits if treated as a direct cost,
interdepartmental charges for supplies and services,
and the amount to which the recipient is entitled for
indirect costs
llg Enter the Federal share of program income that was
required to be used on the project or program by the
terms of the grant or agreement.
Hi Enter the amount of all adjustments pertaining to prior
periods affecting the ending balance that have not
been included in any lines above. Identify each grant or
agreement for which adjustment was made, and enter
an explanation for each adjustment under "Remarks "
Use plain sheets of paper if additional space is required
llj Enter the total amount of Federal cash on hand at the
end of the reporting period This amount should include
all funds on deposit, imprest funds, and undeposited
funds (line e,-less line h, plus or minus line i).
12 Enter the estimated number of days until the cash on
hand, shown on line 11|, will be expended If more than
three days cash reqirements are on hand, provide an
explanation under "Remarks" as to why the drawdown
was made prematurely, or other reasons for the excess
cash The requirement for the explanation does not
apply to prescheduled or automatic advances
13a Enter the amount of interest earned on advances of
Federal funds but not remitted to the Federal agency
If this includes any amount earned and not remitted to
the Federal sponsoring agency for over 60 days, explain
under "Remarks " Do not report interest earned on
advances to States.
13b Enter amount of advance to secondary recipients in-
cluded in item llh
14 In addition to providing explanations as required above,
give additional explanation deemed necessary by the
recipient and for information required by the Federal
sponsoring agency in compliance with governing legis-
lation Use plain sheets of paper if additional space is
required.
STANDARD FORM 272 (BACK) (7-76)
GPO 1976 O - 218-376
Figure 33-4-A
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1 TFRM 6 2000
PAYMEMT VOUO'KR ON LETTER OF CREDIT
(TO BE COLLECTED AS A NON-CASH ITEM)
The drawer* hank «M! (hi -ttfvnl i»f the drawer fir the collection of thts instrument
and each «uh«equent toileting mmereul Mnk 
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ASSISTANCE ADMINISTRATION	12/3/84
NUMBER	EXPLANATION
1.	Enter the payment voucher number commencing with
number "1" for each letter of credit and progressing
in consecutive order. Amendments to the letter of
credit will not interrupt the progression.
2.	Enter the letter of credit number exactly as shown
on the applicable SF 1193.
3.	Enter Agency Location Code.
4.	Enter the actual date that the payment voucher is
presented to the local commercial bank.
5.	Enter the dollar amount of the drawdown against the
letter letter of credit. Do not submit payment
vouchers with altered amounts.
Each grant or contract number and the amount of draw-
down applicable to each shall be shown on the reverse
side of the triplicate copy of the TFS Form 5401.
This information, which is necessary to identify
the amount for each grant and contract, is different
for funding with letters of credit issued under the
Superfund program-see Chapter 6 of this Manual
for details.
6.	Enter the name and address of the recipient organi-
zation. The information in this block shall be
exactly the same as shown on the SF 1193.
7.	Enter the name and address of the commercial bank
which handles the recipient organization's bank
account.
8.	Enter the name of the Federal Reserve Bank or branch
which services the local commercial bank, exactly as
it appears on the SF 1193.
9.	Enter the total amount of undisbursed Federal funds
on hand. Funds are considered disbursed when checks
have been released to pay for program costs.
10.	Enter the "U.S. Environmental Protection Agency" and
the address of the EPA office executing the applicable
letter of credit.
11 & 12.	The name and title of the person authorized to sign
payment vouchers (as evidenced by an executed SF
1194) shall be typed in block 11 and the person so
authorized shall affix his signature in ink in block
12.
13 & 14.	No entries are necessary since EPA does not require a
countersignature.
15 & 16.	Leave blank - to be completed by the Federal Reserve
Bank.
EXPLANATION OF INFORMATION TO BE
INCLUDED IN PREPARING TFS FORM 5401
Figure 33-5-A
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• 5700
ASSISTANCE ADMINISTRATION	12/3/84
CHAPTER 34 - PROJECT CHANGES
Table of Contents
PARAGRAPH	PARAGRAPH
TITLES	NUMBERS
General		1
Project Changes Vfiich Require Formal Amendments		2
Project Changes Which Do Not Require Formed Amendments		3
Project Change Process		4
FIGURE	FIGURE
THT.RS	NUMBERS
Budget Rsriod and Project Iteriod Limitations			34-1
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CHAPTER 3^ ~ PROJECT CHANGES
1.	GENERAL. Recipients may, at times, need to change their assistance projects
to respond to various changed conditions. Certain changes cannot be implemented
prior to the execution of a formal amendment to the assistance agreement. Formal
amendments are not necessary for minor changes consistent with the project objec-
tive and within the scope of the assistance agreement.
2.	PROJECT CHANGES WHICH REQUIRE FORMAL AMENDMENTS.
a.	Recipients must request the Award Official's approval and receive a for-
mal assistance amendment (see Chapter 15 of this Manual) before making the changes
listed below. If an EPA official/Project Officer disapproves a recipient's pro-
posed change, the official/Project Officer should advise the recipient in writing.
Recipients under any EPA program must receive a formal assistance amendment
before:
(1)	Transferring their award to another recipient by entering into a
successor in interest or name change agreement;
(2)	Changing the project objectives;
(3)	Making substantial changes within the scope of the project which
may include:
(a)	Changes in the budget or project period; or
(b)	Changes in the project site;
(4)	Changes in, or temporary absence of, the Project Manager or other
key personnel, if the change or absence will affect the project's scope or
objectives;
(5)	Making a change that will affect the assistance amount;
(6)	Rebudgeting of funds for:
(a)	Construction or non-construction activities if transferred fran
one of those types of activities to the other;
(b)	Indirect costs to absorb increases in direct costs; or
(c)	Training allowances (tuition, fees, stipends, etc.) to other
cost categories; and
(7)	Carryover of unused funds fran prior budget period to the current
budget period.
b.	In addition to the above, recipients of assistance for Construction
Grants for Wastewater Treatment Works must receive a formal amendment before
making changes which:
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(1)	Alter the project performance standards;
(2)	Alter the type of wastewater treatment provided by the project;
(3)	Significantly delay or accelerate the project schedule;
(4)	Substantially alter the facilities plan, design drawings and
specifications, or the location, size, capacity, or quality of any major part
of the project; or
(5)	Otherwise require a formal amendment as stated in paragraph 2a.
3. PROJECT CHANGES WHICH DO NOT REQUIRE FORMAL AMENDMENTS. Recipients do not
need to receive a formal assistance amendment or other EPA approval before
making minor changes In their projects. However, such changes should be dis-
cussed between the Project Officer and the recipient prior to implementation.
For example, recipients may:
a.	Make minor adjustments to the methodology, approach, or other aspects
of their project as needed in order to meet objectives or expedite completion;
b.	Adjust their project budgets, except as limited under paragraph 2a of
this Chapter, provided they use the funds in accordance with the approved
scope of work and EPA's regulations; and
c.	Alter the staff assigned to the project, provided the charge will not
change the objectives of the project.
1. PROJECT CHANGE PROCESS.
a. Transferring an Award to Another Recipient and Recipient Name Changes.
Recipients may request EPA to transfer their assistance projects to other recip-
ients for a number of reasons, e.g. transfer of the Project Manager to another
recipient organization; reorganization; changes in the recipient organization's
name.
(1) Types of Transfers. There are two ways that EPA may transfer
assistance frcm one recipient to another.
(a) Award of a New Assistance Agreement. EPA may transfer an
assistance award to a new recipient by closing out the original project and
making a new award to the new recipient. This type of transfer Is used when
a project Is transferred to a new recipient because the Project Manager moves to
a new recipient. Recipients of transferred awards must be eligible to receive
the award under EPA's statutory and regulatory requirements. Before EPA will
approve a transfer by awarding a new assistance agreanent:
_1 The recipient or Project Manager must justify the transfer
in writing and the appropriate Office of General or Regional Counsel must
concur;
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ASSISTANCE ADMINISTRATION
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2	The original recipient must agree, in writing, to relin-
quish the project and submit a final Financial Status Report, final Invention
report, if appropriate, and a final progress report;
3	The new recipient must assure EPA that significant
changes in the scope of work and level of expenditure will not be made;
4^ The new recipient must have adequate resources to continue
the project;
5	The new recipient must submit a new application for the
project; and
6	If the project is a research or demonstration project, the
Project Officer must request and obtain a deviation (see Chapter 36, "Deviations")
fran the extramural review requirement of 40 CPR 40.150(a).
(b) Transfers by Assistance Amendment. If legislative or other
legal action (e.g., merger, divestiture, reorganization, or recipient name
change) affects the status of the recipient, the Award Official may transfer
the original recipient's award to the new recipient or change the recipient's
name by issuing an assistance amendment. The new recipient is considered a
"successor in interest" to the assets and liabilities involved in the perfor-
mance of the project. Recipients must submit documentation of such changes to
the Award Official. Ihe appropriate Office of General or Regional Counsel must
concur that the documentation demonstrates that the new recipient has the same
obligations sis the original recipient. Recipients of such amendments must be
eligible to receive the award under EPA's statutory and regulatory requirements.
(2) Processing Transfers.
(a)	The Assistance Administration Unit will assure that the
recipient submitted the required information and that necessary concurrences
are obtained;
(b)	If the transfer Involves the award of a new assistance
agreement and the use of unobligated funds from the current project, the
Assistance Administration Unit will deobligate the amount to be awarded to the
new recipient. Ihe program office will request reprogramming of the funds, if
necessary, in accordance with the policies and procedures of the Budget
Operations Division, Office of the Canptroller. If the reprogramming of prior
year funds is not approved, the project must be funded with current year funds.
(c)	The Assistance Administration Unit will assign the new
project a new Assistance Identification Number and fund it as a new project; and
(d)	Ihe Assistance Administration Unit will close out the old
project In accordance with Chapter 40, "Closeout".
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b.	Changes in the Objective or Substantial Changes Within the Scope of Project.
(1 ) Recipients must receive the Award Official's approval of requests to
change their project's objectives or to make substantial changes within their
project's scope before Implementing them. Such changes may include changes in
budget or project periods, changes in the project sites, and changes In, or tem-
porary absence of, project managers or other key personnel if the change or
absence will affect the project's scope or objectives. (EPA's budget and project
period limitations are listed in Figure 34-1.)
(2)	The Project Officer must prepare a written recommendation to
the appropriate Assistance Administration Unit advising whether the EPA should
approve requests for changes in scope or objectives. The Assistance Administration
Unit must prepare an assistance amendment for approved requests.
(3)	The Project Officer must notify recipients in writing of disap-
provals of requests for changes in scope or objectives. The letter must
explain the reasons for the disapproval. A Project Officer's failure to
disapprove a request for a change In scope or objectives of a project will not
canmit or obligate EPA to provide additional assistance.
(4)	Requests for and approval of an extension of the budget or project
period must be submitted to the Assistance Administration Unit before payment
can be made for expenditures incurred beyond the current budget/project period.
Any extension beyond the regulatory duration periods (see Figure 3**-l) requires
a formal deviation.
c.	Changes in the Assistance Amount. Recipients may request additional
funding to complete projects, fund projects at higher levels, or carry out
additional tasks consistent with the original project objective. Also, recipi-
ents must notify EPA of changes .that reduce the amount of funding needed to
complete a project.
(1)	If the Approval Official approves a request for additional funds,
the appropriate Assistance Administration Ihit must prepare an assistance
amendment for the project. The Assistance Administration Ihit would also prepare
an assistance amendment to reduce funding for the project. The program office
would prepare a funding recommendation in accordance with the funding procedures
in Chapter 15 of this Manual.
(2)	The State water pollution control agency must approve a recipient's
request for additional EPA funds under a Construction Grant for Wastewater Treatment
Works before EPA can approve it.
d.	Rebudgetlng.
(1) Recipients may rebudget funds between approved budget categories,
except as limited below, provided the funds are used in conformity with EPA's
regulations. The recipient must receive an assistance amendment before rebud-
getlng funds budgeted for:
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ASSISTANCE ADMINISTRATION
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(a)	Construction or non-cons true t ion activities if transferred
fran one of those types of activities to the other;
(b)	Indirect costs to absorb increases in direct costs; or
(c)	Training allowances (tuition, fees, stipends, etc.) to other
cost categories.
(2) The recipient must request and justify rebudgeting of funds by
letter or on budget forms contained in the assistance application. A copy of
the rebudgeting request and the Project Officer's approval or disapproval must
be forwarded to the Assistance Administration unit for inclusion in the official
file.
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BUDGET PERIOD AND PROJECT PERIOD LIMITATIONS
1.	Research and Demonstration Projects.
a.	The budget period for research or demonstration projects must not
exceed two years, except for demonstration projects involving construction
(see 40 CFR 40.125-1(a)).
b.	The project period for research and demonstration projects must not
exceed five years. However, the Award Official may extend the budget and
project periods for up to an additional twelve months without additional
assistance funds when such extensions are in the Government's best interests.
2.	Training Projects. The project period for a trainirg project must not
exceed three years (see 40 CFR 45.140).
3.	Fellowships. Full-time fellowships must not exceed one year. Part-time
fellowships must not exceed three years (see 40 CFR 46.165).
4.	Continuing Environmental Support Programs (see 40 CFR 35.135). These
assistance programs support environmental programs are "continuing," that is,
will not be completed during a project period which is definable. The budget
period, generally the Federal or State fiscal year, will be chosen by the
applicant in consultation with and subject to the approval of the Regional
Administrator. A budget period may be less than one year to permit transition
from the Federal fiscal year to the recipient's fiscal year.
5.	Other Programs. The project and budget periods of other programs are
established at the time of the award and identified In the assistance agreement.
Figure 34-1
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ASSISTANCE ADMINISTRATION	12/3/84
CHAPTER 35 ~ DISPUTES RESOLUTION
Table of Contents
PARAGRAPH	PARAGRAPH
TITLES	NUMBERS
Applicability		1
Policy		2
Process		3
Disputes Decision Official		4
Disputes Decision Official's Decisions		5
Disputants' Request for Reviews		6
Regional Administrator's Review of a Disputes Decision Official's
Decision 	 7
Assistant Administrator's Review of a Regional Administrator's
Decision	 8
Assistant Administrator's Review of a Headquarters Disputes Decision
Offical's Decision	 9
Distribution of Regional Administrators' arri Assistant Administrators'
Decisions	 10
FIGURE	FIGURE
TITLES	NUMBERS
Regional Administrator's Review of Disputes Decision Official's
Action - Model Response	Reserved
Assistant Administrator's Decision Not To Review - Model Response	Reserved
i
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CHAPTER 35 - DISPUTES RESOLUTION
1.	APPLICABILITY. Ttiis chapter applies to disagreements between applicants
or recipients and EPA concerning applications or assistance agreements (see
40 CFR Part 30, Subpart L). Most disputes concern disagreements over the results
of an EPA audit or over the eligibility of a project or portions of a project
for EPA financial assistance.
2.	POLICY.
a.	Disagreements between EPA and applicants/recipients should be resolved
by the EPA Project Officer and appropriate Assistance Specialist with the branch,
division, regional or Headquarters organization closest to the problem and with
the authority to resolve the matter. If the dispute arises under the Construction
Grants for Wastewater Treatment works progran, delegated States should resolve
disagreements when possible.
b.	Disputants may not ask EPA to review the following Agency actions:
(1)	Denials of requests for a deviation under 40 CFR Part 30, Subpart J;
(2)	Bid protest decisions under 40 CFR Part 33;
(3)	National Environmental Policy Act decisions under 40 CFR Part 6;
(4)	Advanced wastewater treatment decisions of the Administrator;
(5)	Policy decisions of the EPA Audit Resolution Board; and
(6)	Debarments/suspensions of the Director, Grants Administration
Division.
3.	PROCESS.
a.	Each Award Official is to designate a Disputes Decision Official(s)
who will issue final disputes decisions.
b.	The Disputes Decision Official(s) reviews and issues the final decision
for all disputes.
c.	If an applicant or recipient disagrees with a Regional Disputes
Decision Official's decision, the disputant may file a request for a review
with the Regional Administrator, who will issue a written determination.
d.	If a disputant disagrees with a Regional Administrator's decision, and
requests a review by the appropriate Assistant Administrator, the Assistant
Administrator may grant the review.
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e. If a disputant disagrees with a Headquarters Disputes Decision Official's
decision, and the disputant requests that the appropriate Assistant Administrator
review the matter, the Assistant Administrator must grant the review.
4.	DISPUTES DECISION OFFICIAL.
a.	The Award Official should appoint a senior EPA employee knowledgeable
about EPA's assistance programs to act as the Disputes Decision Official. The
Award Official may act as the Disputes Decision Official.
b.	If the Regional Administrator determines that a delegated State has
a disputes review process comparable to that conducted by an EPA Disputes Decision
Official, the State's final decision will be considered to be the Disputes
Decision Official's decision for disputes involving delegated functions of
the Construction Grants for Wastewater Treatment Works program.
5.	DISPUTES DECISION OFFICIAL'S DECISIONS.
a.	The Disputes Decision Official provides the disputant a written decision
in each dispute, which will be EPA's final action unless the disputant requests
a review. The Disputes Decision Official may seek guidance fran appropriate
program and administrative staffs before making a final decision.
b.	The Disputes Decision Official will provide the appropriate Divisional
Inspector General for Audit a draft final decision each dispute in which the
questioned costs in the final audit report total $100,000 or more. The Divisional
Inspector General for Audit will have 15 days to review the proposed determination
and take appropriate action (see Chapter 38, "Audit" of this Manual) on the draft
final decision.
c.	If the disputant owes EPA money, the decision must state that interest
on the debt will be charged frcm the date of the decision unless the recipient
pays the debt within 30 days, or requests review of the decision under paragraph
6.	of this Chapter. The Disputes Decision Official must mail the disputes
decision letter to the disputant by certified mail, return receipt requested.
d.	If the disputant is not a State or local government, the decision must
also state that EPA will assess a penalty of six percent of the amount due if
the debt is not paid within 30 days of the date of the decision, and that the
disputant will be required to pay EPA's costs to collect the debt (see EPA's
Financial Management Manual), unless the disputant requests a review of the
decision under paragraph 6 of this Chapter. State universities are not considered
State goverrcnents.
e.	The Disputes Decision Official must inform the disputant that it may
request a review of the decision and that a request for the Regional Administrator's
review must include;
(1) A copy of the Disputes Decision Official's written decision;
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(2)	A statement of the amount in dispute;
(3)	A complete description of the issues involved in the matter; and
(4)	A concise statement of the objections to the Disputes Decision
Official's decision.
6.	DISPUTANTS' REQUESTS FOR REVIEWS.
a.	Disputants may request a review of a Disputes Decision Official's decision.
The disputant must submit a written request for review to the Regional Administrator
(for a regional assistance award) or the appropriate Assistant Administrator
(for a Headquarters assistance award) by certified mail (return receipt requested)
within 30 days of the date on the Disputes Decision Official's decision letter,
and must include the information stated in subparagraph 5d of this Chapter.
b.	A disputant is entitled to an informal conference with EPA officials.
c.	A disputant who requests a review or reconsideration of a Disputes
Decision Official's final decision may submit documentary evidence and briefs
on the issues for inclusion in the written record- While there is no prescribed
deadline for the submission of such material, Regional Administrators (for
regional awards), and the Assistant Administrators (for Headquarters awards)
should establish reasonable deadlines (with provisions for written extensions)
for the submission of additional information, and must advise the disputant of
deadlines.
d.	Disputants may be represented by counsel in any proceedings with EPA
officials.
7.	REGIONAL ADMINISTRATOR'S REVIEW OF A DISPUTES DECISION OFFICIAL'S DECISION.
a.	The Regional Administrator will review the dispute and issue a decision.
The decision may either confirm or alter the Disputes Decision Official's
decision. If the Regional Administrator acted as the Disputes Decision Official,
the review will be a reconsideration of that decision.
b.	In developing a decision, the Regional Administrator should assure
participation of the staff of the assistance program involved as well as the staff
of the Assistance Administration Unit, and the Office of the Regional Counsel.
If the matter is of national significance or has an impact on Agency policy, the
Regional Administrator is encouraged to consult with Headquarters program,
administrative, and legal staffs.
c.	The Regional Administrator's decision must be issued in writing. A
suggested format for the decision letter is in Figure 35-1.
(1) The letter must advise the disputant of its right to request review
by the appropriate Headquarter's Assistant Administrator and which Assistant
Administrator Is appropriate.
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(2)	If the disputant owes EPA money, the letter must state that interest
on the debt will be charged from the date of the decision unless the recipient
pays the debt within 30 days or requests Assistant Administrator review of the
decision under paragraph 8 of this Chapter and the Assistant Administrator
agrees to review the decision.
(3)	If the disputant is not a State or local goverrment, the letter
must also state that EPA will assess a penalty of six percent of the amount due
if the debt Is not paid within 30 days of the date of the decision, and that
the disputant will be required to pay EPA's costs to collect the debt (see EPA's
Financial Management Manual), unless the disputant requests a review of the decision
under paragraph 8 of this Chapter. State universities are not considered State
governments.
8. ASSISTANT ADMINISTRATOR'S REVIEW OF A REGIONAL ADMINISTRATOR'S DECISION.
a.	A disputant may request that the appropriate Assistant Administrator
review a Regional Administrator's decision. The disputant must submit the
request for the Assistant Administrator's review in writing by certified mail
(return receipt requested) within 30 calendar days of the date on the Regional
Administrator's decision. The request must Include a copy of the Regional
Administrator's decision and a concise statement of the reasons why the disputant
believes the decision Is erroneous.
b.	The Assistant Administrator will decide whether to review a Regional
Administrator's decision. The Assistant Administrator should consider the
following factors when making his decision of whether to review the Regional
Administrator's decision:
(1)	Potential national implications of the decision; and
(2)	Consistent and proper application of national policy and EPA
regulations.
c.	If the Assistant Administrator chooses to review the Regional Administrator's
decision, the review will generally be conducted on the basis of the written
record supporting the Regional Administrator's decision. The Assistant Administrator
may allow the disputant to present evidence, submit briefs, and may provide
the disputant an opportunity for an informal conference to clarify factual or
legal issues.
d.	The Assistant Administrator's decisions must be issued in writing.
(1)	Each decision will be transmitted to the disputant by certified
mail, return receipt requested, and will be EPA's final action.
(2)	If the disputant owes EPA money, the letter must state that interest
on the debt will be charged frcm the date of the decision unless the recipient
pays the debt within 30 days.
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(3) If the disputant is not a State or local government, the letter
must also state that EPA will assess a penalty of six percent of the amount due
if the debt is not paid within 30 days of the date of the decision, and that
the disputant will be required to pay EPA's costs to collect the debt (see EPA's
Financial Management Manual). State universities are not considered State
governments.
e. If the Assistant Administrator decides not to review the Regional
Administrator's decision, the Assistant Administrator will notify the disputant
in writing (certified mail, return receipt requested) that the Regional Administrator's
decision remains the final Agency action. (A suggested format for the Assistant
Administrator's letter is in figure 35-2.)
9.	ASSISTANT ADMINISTRATOR'S REVIEW OP A HEADQUARTERS DISPUTES DECISION OFFICIAL'S
DECISION.
a.	Upon written request, the appropriate Assistant Administrator will
review decisions of a Headquarters Disputes Decision Official.
b.	A disputant's request for review must be submitted in writing within
30 calendar days of the date on the Disputes Decision Official's decision.
c.	The Assistant Administrator must consider each timely request for
review. The Assistant Administrator's decision will either confirm the decision
of the Disputes Decision Official or alter that decision in whole or in part.
The Assistant Administrator's decisions must be written and Identify the appropriate
portions of EPA's policy on interest, penalty, and debt collection costs.
d.	The Assistant Administrator's decision is the final Agency action.
10.	DISTRIBUTION OF REGIONAL ADMINISTRATORS' AND ASSISTANT ADMINISTRATORS'
DECISIONS.
Regional and Assistant Administrators must forward a copy of each of
their decisions to the Chief, Grants Policy and Procedures Branch, Grants
Administration Division (PM-216). The Chief of the Grants Policy and Procedures
Branch will distribute copies of each decision to the other Regional and Assistant
Administrators for their use when preparing future decisions.
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CHAPTER 36 - DEVIATIONS
Table of Contents
PARAGRAPH	PARAGRAPH
TITTER	NUMBERS
General	 1
Deviation Requests	 2
Deviation Approval or Disapproval	 3
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CHAPTER 36 ~ DEVIATIONS
1.	GENERAL. Recipients must adhere to EPA's assistance regulations. In some
cases, however, it may be necessary to allow deviations frcm the regulations.
The Director, Grants Administration Division, is authorized to approve deviations
frcm the substatutory requirements of the regulations except for those that
implement statutory or Executive Order requirements. when such deviations are
warranted by special circumstances (see 40 CPR Part 30, Subpart J).
2.	DEVIATION REQUESTS. Deviation requests for assistance awards administered
in Regional Offices must be submitted in writing to the Regional Administrator
(or delegated State agency, if appropriate). The delegated State agencies must
submit requests to the Regional Administrators, or delegatees, who then must sub-
mit requests to the Director, Grants Administration Division (PM-216). Deviation
requests for assistance awards administered in EPA Headquarters must be submitted
in writing to the Director, Grants Administration Division (PM-216). Deviation
requests should be submitted as soon as the need for the deviation is known.
Each request for a deviation shall contain as a minimum:
a.	The name of the applicant or recipient, the assistance identification
number of the application (if available) or assistance award, the date the
assistance agreement was awarded, and the dollar value of the application or
award;
b.	The sectlon(s) of the regulation frcm which a deviation is needed;
c.	A complete description of the circumstances, and justification for, the
deviation: an explanation of what it will do, and any pertinent background
information including a copy of the applicant's or recipient's request, if any;
d.	A statement as to whether the same or a similar deviation has been
previously requested for the same project, and if so, an explanation as to why
the previous request was made and the outccrne; and
e.	If a deviation is requested for a project administered in a Regional
Office --
(1)	The Region's recommendation, including the delegated State's
recommendation, if appropriate; and
(2)	The name of the person in the Regional Office who is most familiar
with the request.
3.	DEVIATION APPROVAL OR DISAPPROVAL.
a. Deviations are approved or disapproved only by the Director, Grants
Administration Division. Generally, the Grants Administration Division will
refer deviations to the appropriate offices for comment and concurrence.
Regional Administrators must submit requests for Superfund assistance projects
to the Office of Emergency and Ranedial Response in Headquarters for concurrence
before consideration by the Grants Administration Division (see "State Participation
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in the Superfund Remedial Programs Manual"). Concurrence in the approval of
the deviation by the appropriate Assistant Administrator(s) is required where
a deviation will affect a group of applicants or recipients (Class Deviation).
b.	Vflien deviations are approved before assistance award, approval does not
commit Federal funds to the proposed project. Federal funds are obligated only
when, and if, an assistance agreement is signed by the Award Official. Any
letter advising an applicant of the approval of a deviation before assistance
award should emphasize this fact.
c.	Staff reviewing deviation requests must not make commitments to appli-
cants or recipients regarding approval or disapproval of a deviation before
signature of the Director, Grants Administration Division. Approximately one
month should be allowed for a response from the date of receipt of a deviation
request by the Director, Grants Administration Division.
d.	A ccpy of each written deviation approval or disapproval must be
retained in the official EPA assistance file. The provisions of any approved
deviation must be incorporated in the assistance agreement if approval is
subsequent to award.
e.	Decisions made by the Director, Grants Administration Division, on
deviation requests are not subject to the review procedures under 40 CFR Part
30, Subpart L (see Chapter 35 of this Manual). The Director, Grants Administration
Division will reconsider decisions in cases where it is believed the decision
was based on incomplete information.
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CHAPTER 37 ~ RECIPIENT REPORTING
Table of Contents
PARAGRAPH	PARAGRAPH
TITLES	NUMBERS
General		1
Regulations and Guidance		2
Reporting Limitations		3
Responsibilities		*1
Program Reporting		5
Administrative Reporting		6
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CHAPTER 37 ~ RECIPIENT REPORTING
1.	GENERAL. EPA must collect and make available information useful to those
responsible for monitoring project activities and expenditures at Headquarters,
regional and State levels. The recipient is required to document various aspects
of activities under the agreenent, to provide interim and final reports on status
and progress in carrying out the project and on overall performance. Interim
reporting is achieved in various ways. Project officers or other Agency personnel
may obtain information from a recipient through informal channels such as tele-
phone conversations or site visits. In other instances recipients must report
formally and prepare standard report forms for submission to EPA or to a State
agency delegated to act for EPA. This Chapter discusses the types of program
and administrative reports that EPA requires of recipients, how they should
prepare than, and when they must submit them to EPA. General assistance related
reporting requirements are listed in EPA's "General Regulation For Assistance
Programs," 40 CFR Part 30, Appendix D. It is Important that the Award Official
include any unique reporting requirements as special conditions in the assistance
agreement.
2.	REGULATIONS AND GUIDANCE.
a.	EPA Regulations, 40 CFR Parts 30, 35, 40 and 45 contain a number of
reporting requirements that implement the policies stated in CMB Circular A-102,
"Uniform Administrative Requirements for Grants-in-Aid to State and local govern-
ments," and CMB Circular A-110, "Uniform Administrative Requirements, Grants and
Agreanents with Institutions of Higher Education, Hospitals, and other Nonprofit
Institutions."
b.	Project officers and assistance administration and program personnel
should become familiar with these EPA regulations, EPA Guidance and Manuals,
and other documents which affect recipient reporting. The EPA Scientific and
Technical Publications Manual, the Handbook for Preparing Office of Research &
Development Reports (EPA 600/9-83-006), and Chapter 40 of this Manual, "Closeout
of Assistance Agreements" are especially relevant. The Superfund handbook,
"State Participation in the Superfund Renedlal Program," prescribes certain
special reporting requirements for that program.
3.	REPORTING LIMITATIONS.
a.	CMB Circulars A-102 and A-110 state uniform Federal requiranents for
reporting under assistance agreements. EPA can prescribe only 0MB approved
forms for recipient reporting, and must adhere to the CMB limits on the frequency
and the number of copies of routine reports (not more than the original and two
copies). EPA has Implemented these general requirements through 40 CFR 30.505
and specific requirements in 40 CFR Parts 35, 40, and 45.
b.	The line between reasonable and unreasonable reporting requirements is
narrow and often obscure. What the EPA Project Officer may consider essential
to assure timely and adequate performance may be seen as Federal intrusion by
the recipient of an assistance agreement. Reporting that is intended to assure
fiscal integrity may be viewed by the recipient as needless bureaucratic paper-
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work. This results in a tradeoff between assuring the integrity of Federally
assisted grant and cooperative agreements on the one hand and minimizing intru-
sion and paperwork on the other.
4.	RESPONSIBILITIES.
a.	Recipients. Recipients must be aware of both those general requirements
prescribed in Agency regulations and any unique requirements set forth in assis-
tance agreenents by special conditions. They must comply fully and on time with
all reporting requirements. Recipient understanding of the precise requirements
applicable to them is especially important since some reports are program specific
v^ile others apply to all programs. They should understand their reporting obliga-
tions and the sanctions that may be imposed upon them for failing to fulfill those
obligations (see Chapter 39, "Dealing with Noncompliance and High Risk Participants").
b.	Project Officers. Project officers are expected to monitor the technical
progress and performance under their agreements regularly to assure attairment
of project objectives and canpliance with established agreement conditions. They
should make certain that recipients are fully aware of and understand their
responsibilities regarding EPA reporting requirenents. This understanding should
be developed before or at the time of executing the agreement. The ability of
the Project Officer bo monitor a project and encourage its successful completion
is dependent on establishing and naintaining good communications - oral and written.
In some instances, it may be necessary to provide technical assistance to the
recipient so that the reports are properly prepared and submitted to EPA on time.
The Project Officer must be prepared to act promptly to assure that recipients
adhere to their commitments. A recipient's failure to comply with these reporting
requirements in a timely manner can result in the Project Officer recommending
remedied action permitted by 40 CFR Part 30.
c.	Assistance Administration Units (AAU). The Award Official depends upon
the supporting AAU assuring that the administrative aspects of each assistance
agreement are being executed effectively. These AAU staffs, therefore, must coor-
dinate with the Project Officer and the recipient's Project Manager and business
administration staff. The assistance administration staff must assure that the
Project Officer understands the administrative reporting requirements and they
should reinforce the Project Officers's follcw-up efforts if required to obtain
compliance with the terms of the agreement. The AAU must follow up with the
recipient if necessary to assure the submission of administrative reports, e.g.,
Financial Status Reports (FSR's), Property Reports, Minority and Women's Business
Reports, etc.
d. Financial Management Office. (Reserved).
5.	PROGRAM REPORTING.
a. General.
(1) Monitoring and Reporting Project Performance. The scope of work
plus any programnatic special conditions agreed to in the application and/or
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agreement should provide the objectives, the schedule for accomplishing project
goals, etc. EPA monitors project activity against this agreement. Recipients
are responsible for managing project activity on a daily basis. They must
maintain records of technical and administrative aspects of their project (see
Chapter 19, "Recipient's Records") that will be adequate for direct management
oversight and for periodic and final technical and administrative reporting.
Progress reports are designed for the use of Project Officers in monitoring
project performance. Recipients must submit both interim progress reports and
final technical progress reports to the Project Officer.
(2)	Interim Progress Reports. Progress reports are required at least
annually but no more frequently than quarterly. The specific reporting require-
ments differ for each EPA financial assistance program EPA project officers
and Regional progran staff should consult with the respective program and
administrative offices for additional guidance on the content, structure, and
frequency of progress reporting as it specifically applies to the individual
agreement and the conditions governing it.
(3)	Content. Interim progress reports should be brief and may consist
of either charts, a narrative or both. Report content should focus on the pro-
gress of each task in relation to the approved schedule and project milestones
described in the agreement for that reporting period. Reports should also
address:
(a)	Problems, delays, or adverse conditions which affect the
ability of the recipient to attain project objectives or adhere to the approved
project schedule;
(b)	Favorable developments or events viiich enable the recipient
to meet time schedules or milestones sooner than anticipated;
(c)	Major changes in the overall project, its objectives, time
schedule, organization, or staffing;
(d)	Major changes in the overall budget for the project,
including a presentation of current and projected project expenditures; and
(e)	Other pertinent information including, where appropriate,
analysis and explanation of cost overruns or high unit costs.
(4)	Non-scheduled Reports of Significant Changes. The recipient must
notify the Project Officer promptly of any unscheduled events that have a sub-
stantial effect on the project. Examples include changes that alter the project
objectives or substantially change the time and/or effort devoted to the project,
require a change in the assistance amount, the expected cost or time of perform-
ance, or other aspects of the project. Such changes require issuance of a formal
amendment to the grant or cooperative agreement before the change is made.
Changes to assistance agreements are discussed in 40 CFR 30.700 and Chapter 15
of this Manual.
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(5) Pinal Progress Reports. Most EPA assistance agreements for research,
demonstration and other project-type activities require a formal, written final
report of activities. The Award Official should assure that each assistance
agreement sets forth final reporting requirements that reflect the special
character of the project activity. When required, the recipient must prepare
and submit a draft of the final report to the Project Officer at least 90 days
before to the end of the project period and submit, a final report that is
acceptable to EPA (one reproducible copy suitable for printing, and such other
copies as the assistance agreement may stipulate) before the end of the project
period. The Project Officer may allow the recipient to submit a peer referred
Journal article in lieu of a final report in the EPA format.
b. Report Content for Project-type Assistance Programs (i.e., Research &
Development; Demonstration; Investigations, Surveys, Special Studies; Training).
(1)	General. Project-type scientific activities normally produce
definitive, tangible results that can be reduced to writing and other physical
media. Usually, the purpose of the supported activity is to test a theory,
collect and analyze valid statistical data, examine evidence, or otherwise
conduct scientific inquiry. While execution of the project may be meaningful
in itself, a professionally documented (and published) final report of the activity
is often the essence of the effort and constitutes the "product" (i.e., a camera-
ready copy of a document such as a manual, student text, guidance document, etc.).
EPA Project Officers and assistance administration staffs must never forget
that professionally competent interim and final project reports with supporting
data are the culmination of a successful project but that those reports may not
be delivered without the judicious application of pressure on the recipient's
Project Manager/Principal Investigator. EPA encourages the publication of the
results of project activities and may accept publication in respected journals
as partial fulfillment of reporting requirements (see 40 CFR 30.518).
(2)	Interim Progress Reporting for Continuation of Agreements. A
detailed progress report must be submitted to support an application to continue
financial assistance for research, demonstration, training or other project-type
activities. The reports must be submitted no later than 90 days before the end
of the current budget period. They may constitute the third quarter report for
projects that have budget periods of nxire than one year and report on a quarterly
basis (see Chapter 3> "Preapplication, Application, and Initial Evaluation").
(3)	Final Reports (see also Chapter 40, "Closeout of Assistance
Agreements").
(a) General. An a^eptable final progress (technical) report,
documenting all relevant projeo" activities initiated during the entire period
of support, is required for each assistance agreement awarded for project-type
activities Involving research and demonstration, training, or special surveys,
investigations, and studies. The requirement for a final progress report may
be waived in exceptional circumstances by the approval of a deviation. The
EPA Project Officer determines when a final technical report Is acceptable.
An acceptable final progress report must describe the recipient's achievements
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with respect to stated project purposes and objectives. The report should
cover all technical aspects of the project, (both positive and negative), the
recipient's findings, conclusions, and results. It may include an evaluation
of the technical effectiveness and economic feasibility of the methods or
techniques investigated or demonstrated. It may also include computer software
such as programs, source codes and data bases. The report should adequately
reflect any EPA comments (i.e., by footnote or an appendix) that the Project
Officer provided. The final report of a training grant need only document the
project activities carried out and the extent to which the recipient achieved
project objectives.
(b)	Recipient. The recipient's Project Manager must submit a
draft of a required final progress report to the Project Officer 90 days be-
fore the end of the approved project period. Timely delivery and prompt review
of a quality draft is likely to assure receipt of a high quality final product.
One reproducible copy of an acceptable final report must be submitted to the
Project Officer before the end of the project period. The Office of Research
and Development's (ORD) publication EPA 600/9-83-006, as noted in paragraph 2,
provides specifications for preparing reports of activities supported by ORD.
(c)	Project Officer. The Project Officer should be aware of pro-
gress leading to timely delivery of the draft of the final report and initiate
appropriate follow up to minimize slippage. See the Office of Research and
Development's handbook on preparing reports (EPA 600/9-83-006) and other rele-
vant Agency or program guidance for detailed instructions, peer review and
publication policies and procedures. The Project Officer must assure that the
recipient is notified of all necessary publication procedures. ORD project
officers must arrange with their organization's Reports Coordinator for formal
review of final reports to determine the technical and programmatic merit of
each report and its overall compliance with established requirements. The
Project Officer must also coordinate with his/her Reports Coordinator to determine
whether a final report will be accepted and whether EPA will publish it.
Finally, ORD project officers must file one (or more) copy of each final report
with the appropriate Reports Coordinator. The Reports Coordinator must provide
a copy to the EPA Headquarters Library (Information Management and Services
Division, PM-211) for archiving as soon as the report is accepted by EPA. The
Project Officer must notify the appropriate Assistance Administration Unit of
that acceptance in writing. The AAU does not require a copy of the final report
for the official file.
(d)	Assistance Administration Unit. The appropriate Headquarters
or Regional assistance administration staff must assure the proper closeout of
each assistance agreement (see Chapter 40 of this Manual). Three or four months
before the end of the project period, they should remind the recipient in writing
of any requirement for a final technical report. The AAU should coordinate with
the Project Officer on delivery, review, and acceptance of final technical and
administrative reports. They must follow up with the Project Officer to assure
delivery in accordance with the agreement. If necessary, the responsible
Assistance Specialist should follow up with the recipient directly. If unable
to get an acceptable final report, the AAU must consider Initiating appropriate
sanctions (see Chapter 39 of this Manual).
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c.	Continuing Environmental Support Programs.
(1)	General. Reporting requirements (and limitations) for the Regionally
administered continuing environmental support programs are included in 40 CFR
Part 35 Subpart A. The promulgation of this regulation in October 1982 inaugu-
rated an EPA effort to provide greater consistency in the way the EPA deals with
State and local governments in administering these assistance programs. Reporting
reguiranents must accommodate the uniqueness of each program yet maintain the
maximum degree of uniformity that prudent management determines feasible.
Environmental program support agreenents are usually for one year and are
continued (renewed) annually. Since the agreements are continuing, i.e., have
no planned final ending, the "final" reports relate to the completion of the
annual agreement.
(2)	Evaluation of Programmatic Performance. Regional Administrators
monitor the performance of State and local governments under continuing environ-
mental support progran agreanents through periodic on-site evaluations. The
EPA Region and the recipient negotiate the terms and schedule of the evaluation
and include them in the assistance agreement. The Region must document the
findings of each evaluation and provide then to the recipient (and to the
official EPA assistance file). The Regional Administrator should act upon obser-
vations that the recipient failed to meet conditions of the assistance agreement.
Such actions may range fran negotiated improvements and/or corrections to, in
exceptional circumstances, recommendations to impose sanctions under 40 CFR
Part 30, Subpart I. (Also see Chapter 39.)
(3)	Maintenance of Effort Reporting. Recipients under several continuing
environmental support programs must maintain a prescribed level of effort or
level of non-Federal expenditures (LOE) as a condition of receiving the assistance.
There is no requirement for special reporting of these expenditures to EPA.
However, Project Officers and the appropriate AAU must check the annual Financial
Status Report submissions to assure that the DOE was met. Maintenance of effort
requirenents apply to:
(a)	Air Pollution Control Progran Support;
(b)	Vbter Pollution Cbntrol State/Interstate Progran Support; and
(c)	Construction Management Assistance (Section 205g of the Clean
W&ter Act).
(4)	Water Quality Management Planning (Section 205j). A State must
report each year on the nature, ext". and causes of water quality problems
within its geographic areas of interest as a condition for assistance under §205j
of the Clean water Act.
d.	WWT Construction. EPA (or States and the Corps of Engineers acting on
behalf of EPA under interagency delegation agreements) obtains information on
WWT construction project progress and status through frequent and regular
informal contacts, inspection visits, and routine financial reports. Detailed
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reporting requiranents for WWT construction projects are referenced in EPA publi-
cation QG-85. They include:
(1) Award of Subagreeanent.
(a)	Recipient's Report. The recipient shall notify the iWard
Official in writing of the award of subagreements for building significant
elements of the project, i.e., which have or are expected to have an aggregate
value over $10,000 within any 12-month period. The recipient shall notify the
Award Official or the delegated State agency within ten calendar days
after the award of each construction subagreement.
(b)	Required Information. The notice shall include:
1	Name, address, telephone number and Employer Identification
Number (EIN) of the construction contractor;
2	Mount of the award;
2	Estimated starting and completion dates;
4^	EPA Assistance Identification Number, name and site location
of the project; and
5^ Copy of the tabulations of bids or offerors and the
nanes of each bidder or offeror (see 40 CFR §35.2212(d) and §33.211).
(c)	Regional Offices.
1^ In States that have not been delegated the responsibility
for determining compliance with requirements of 40 CFR Part 33, the Award
Official should send the information required in subparagraphs 5d(l)(b)l through
4^ above to the appropriate Department of Labor (DOL) Regional Office. This
Information is used by DOL to monitor compliance with the labor standards
provisions referred to in §33.1016 by recipients, contractors, and subcon-
con tractors.
2 The Award Official should send the information required
in subparagraph 5d7l)(b)j> to the appropriate Divisional Inspector General for
Investigations. This information is used to help assure that contractors or
subcontractors have not entered into such illegal activities as bid rigging or
bid collusion to obtain an EPA subagreement.
(d)	Delegated States. In "delegated States," the State must send
the information required in subparagraphs 5d( 1) (b) through _4 to the Department
of Labor Rsgional Office having jurisdiction in that State. The State will send
the information required in subparagraph 5d(l)(b)5 to the Divisional Inspector
General for Investigations who has audit cognizance in that State.
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(2)	MBE/WBE Reporting. Reports of the level of participation for
minority (MBE) and women's business enterprises during facilities planning and
design of the project (see Chapter 24 of this Manual);
(3)	Acquisition of Real Property. Before initiating action to acquire
eligible real property, a recipient of an agreement for a Step 3 or Step 2+3
project must submit for the Regional Administrator's review and written approval
the information required under §35.2040(b)(7);
(4)	Procurement for Building. Before initiating procurement action for
the building of a project, a recipient of an agreement for Step 3 or Step 2+3
construction must submit for the Regional Administrator's review and written
approval the information required under §§35«2040(b)(5) and (b)(6), 35.2106,
35.2107, 35-2130 and 35.2140;
(5)	Notification of Building Completion so a Final Inspection can be
Made, (see 40 CFR 35-2216);
(6)	Notification of Initiation of Operation (see 40 CFR 35.2218(a))
and Certification of Whether the Project Meets Performance Standards (40 CFR
2218(c));
(7)	Corrective Action Report(s). (If appropriate see 40 CFR 35.2218(c));
(8)	Operation and Maintenance (0 & M) Manuals;
(9)	Sewer Use Ordinance;
(10)	Field Testing Reports for I/A Projects (see 40 CFR 35.2211); and
(11)	User Charge System.
e. Superfund Remedial Planning and Implementation. Appendix F of EPA
Manual "State Participation in the Superfund Remedial Program" prescribes the
requirenents for final technical reporting of ranedial activities under cooper-
ative agreements.
6. ADMINISTRATIVE REPORTING. Recipients must submit periodic administrative
reports to EPA depending upon the schedule set forth in the assistance agreement.
These may include reports on financial management, project inventions, property,
and relocation and acquisition of real property. The responsible AAU must
assure timely receipt of all required administrative reports and follow up as
necessary to resolve delinquency.
a. Financial Management Reporting. (Also see Chapter 33, "Payment Procedures"
and Chapter 40, "Closeout of Assistance Agreements.")
(1) General. EPA assistance agreements for all non-construction assis-
tance programs except fellowships require the submission of a Financial Status
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Report (FSR) within 90 days after each budget period. Recipients must submit
the PSR's to the AAU that supports the Award Official. All other financial
reports must be submitted to the responsible Financial Management Office (FMO).
(2)	Superfund Remedial Planning and Implementation.	Special reporting
requirments that apply to States as recipients of Superfund	cooperative agree-
ments are contained in the EPA handbook "State Participation	in the Superfund
Remedial Program" (the "purple book").
(3)	Financial Report Forms. EPA requires the use of standard financial
reports as prescribed in 0MB Circulars A-102, Attachment H, and A-110, Attachment
G, to monitor the use of EPA assistance funds and to pay requests frcrn the recip-
ient for payment (see Chapter 33, "Payment Procedures"). Note that you cannot
require that the recipient provide additional information as an attachment to
a standard financial report unless that additional requirement has been approved
by 0MB.
(a) Financial Status Reports, (see Standard Form 269, figure 33—3)¦
1^ Submission. The recipient must submit an FSR within 90
calendar days after the end of each budget period and within 90 calendar days
following the end of the project period. Note that final FSRs must reflect
zero unliquidated obligations and than an FSR is an interim report if any
obligations remain unliquidated. Each FSR must be submitted to the appropriate
Assistance Administration Unit; that staff will forward a copy to the appropriate
FMO except that recipients of Superfund cooperative agreements must submit an
FSR to the EPA Regional Site Project Officer within 90 calender days after the
completion of each subactlvity. (See 40 CFR 30.505 and paragraph 2 Block 6 below.)
2 Instructions for Completion. General instructions for the
use of the FSR are printed on the back of the form (SF 269). Those instruc-
tions are augmented here. RECIPIENTS SHOULD NOT HESITATE TO CALL THEIR EPA
ASSISTANCE SPECIALIST FOR FURTHER GUIDANCE.
Block 1 - The EPA Assistance Administration Unit (AAU) that prepared and
issued the assistance agreement, i.e., regional office for regionally administered
assistance; Grants Operations Branch (PM-216) for Headquarters awards.
Block 2 - The identification number that EPA assigned to the agreement.
Block 4 - Employer ID Number (EIN) assigned by the Internal Revenue Service.
Block 5 - Leave blank.
Block 6 - A final report must have no unliquidated obligations. Otherwise,
it is an interim rather than a final report. In that case, the recipient must
follow the interim report with a final report as soon as you have liquidated
all obligations (paid all bills).
Block 8 - The beginning and ending dates (duration) of your assistance
agreement Including amendments, If any.
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Block 10 -
Line a - Will be zero on the first report. Thereafter, the amount last
reported on line "e" of the previous report.
Line b - How much have you spent this reporting period?
Line c - Did the project generate income during the reporting period?
If it did, insert the amount of such incane.
Line d - Subtract as indicated on the form.
Line e - Add as indicated on the form to determine the expenditures to date.
Line f - Skip to Line g.
Line g - What percentage of project costs has EPA agreed to share as
stated in your grant or cooperative agreement? Type or print that percent to
the left of the "a" column. Multiply that percent by the amount reported on
line "e" above. Insert that amount or the maximum amount of the EPA share in
dollars as shown in your agreement, whichever is the lesser.
Line f - Determine your share of the outlays reported in "e" above per
the terms of your assistance agreement by subtracting the amount In Line g frcm
the amount in Line e. Insert that amount here.
Line h - Any obligations which have not been converted to outlays, i.e.,
either not paid or, if paid, any payments not yet recorded in recipient's books
this line must be zero on all final FSRs. Otherwise the report is an interim
report.
Line 1 - Recipient's percent share of these obligations times the
amount in "h".
Line j - EPA's percent share of these obligations times the amount in
"h" above. Note that the sum of the amounts on lines "i" and "j" must equal
the amount on line "h".
Line k - The sum of "g" + "j".
Line 1 - Refer to your assistance agreement as amended.
Line m - The amount on line "1" minus the amount on liiie "k" .
Block 11a - Check the type of Indirect cost rate applicable to your organization.
If unknown, telephone the EPA Assistance Administration Unit for advice.
Block lib - Insert the rate used to ccmpute the amount of indirect expense.
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Block 11c - Insert the base amount of expense against which you are applying
the indirect cost rate.
Block lid - Insert result of multiplying "b" times "c" .
Block lie - Insert the result of multiplying EPA's percent share against
the total amount of indirect expense entered in Block lOd.
(b)	Federal Cash Transactions Report (see Standard Form 272, figure
33-4).
_1 When funds are advanced to a recipient by the letter of credit
method, the recipient must submit a Federal Cash Transactions Report within
fifteen working (15) days after the end of each calendar quarter. EPA may
require a monthly report from those recipients receiving annual assistance
totaling one million dollars or more.
2 This report is used primarily to monitor cash advanced to
a recipient in accordance with the terms of the letter of credit method of
payment and to obtain information on cash disbursements for each agreanent.
(c)	Request for Advance or Reimbursement (see Standard Form 270,
figure 33-1).
_1 The Request for Advance or Reimbursement Report is used
for nonconstruction EPA assistance agreements except fellowships when letter
of credit method of payment is not used.
2 Recipients should not submit requests for advance or reim-
bursement more frequently than once a month.
(d)	Outlay Report and Request for Reimbursement for Construction
Grant Programs (see Standard Form 271, figure 33-2T-
1_ The Outlay Report and Request for Reimbursement voucher
form is similar to the Request for Advance or Reimbursement voucher (see subpar-
agraph (c) above) except that EPA uses the Outlay Report solely for the WWT
construction grants, demonstration projects, and Superfund remedial planning
and implementation cooperative agreenents.
2 Recipients are authorized to submit their requests for
reimbursement at least once a year and not more often than rronthly unless
otherwise provided in the assistance agreement.
(e) Status of Federal Funds Report (U. S. Treasury Form TFS 1201).
Periodically the U. S. Treasury may direct EPA to have selected letter of credit
recipients complete a "Status of Federal Funds Report" for at least one calendar
month. Treasury determines those recipients that will be requested to report
and for which month(s). The recipients must forward the original and one copy
of the completed TFS-1201 to the requesting EPA office and retain one copy.
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b.	Property (Equipment) Reports.
(1)	General. The basic requlranents governirig the procurement,
retention, sale or other disposal of real and/or personal property by recipients
are provided In 40 CPR 30.530 through §30.536. (See Chapter 26 of this Manual.)
(2)	Federally Owned Property. Recipients must submit an annual inventory
and a canplete fined inventory of all Federally owned property for which they
are accountable (see Chapter 40, "Closeout of Assistance Agreements"). The
recipient must also inform the Project Officer of the availability of property
vhen it is no longer needed for the project. These submissions must indicate
the condition of each property (equipment) iton and request disposition instru-
ctions. Biey may include recanmendations for such disposition. Users of
this Manual should consult the appropriate AAU for precise reporting requiranents
relating to specific categories of property.
c.	Minority and Women's Business Utilization Reporting. Except for fellow-
ships, recipients must report on their use of minority and women's businesses.
See Chapter 24 of this Manual for explicit instructions.
d.	Relocation and Acquisition Reporting. A recipient whose project
involves acquisition or displaconent of persons must report those activities
to the Project Officer. See Chapters 27 and 28 of this Manual for reporting
requirements.
e.	Invention Reports. Recipients of other than Construction Grants for
Wastewater Treatment Works must provide the Award Official an invention dis-
closure report of any Subject Invention as soon as the recipient can convey a
clear understanding of the invention. Use EPA Form 3340-3, "Contractor's or
Assistance Recipient's Invention Disclosure." (See Chapter 293 "Patents, Inventions,
Data and Copyrights".)
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CHAPTER 38 - AUDIT
Table of Contents
PARAGRAPH	PARAGRAPH
TITLES	NUMBERS
General		1
Responsible Officials		2
Categories of Audits		3
Priority for Conducting EPA Audits		4
Audit of State and DDcal Goverrment Recipients		5
Audit of Non-Government Recipients		6
EPA Requests for Audit		7
Procesing Audit Reports		8
Costs of Recipient Initiated Audits		9
Assistance Management System Deficiencies		10
Allegations of Wrongdoing		11
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CHAPTER 38 - AUDIT
1.	GENERAL.
a.	This Chapter discusses the responsibilities and procedures for the
audit of recipients of EPA financial assistance and for related follow-up actions.
Readers requiring further guidance concerning audit requirements and practices
should refer to:
(1)	EPA Manual 2750, "Management of EPA Audit Reports and Follow-up
Actions" (1984 edition);
(2)	EPA Audit Guides, "WT Construction Grants" (May 1980), and "Assistance,
other than Construction Grants" (Feb. 1976);
(3)	0MB Circulars, A-50, "Audit Followup"; A-73, "Audit of Federal
Operations and Programs"; A-88, "Indirect Cost Rates, Audits and Audit Followup
at Educational Institutions"; A-102 (Attachment P), "State and local Government
Audit Requirements" with Canpliance Supplement; and for nonprofit organizations,
Circular A-110, Attachment F, "Standards for Financial Management Systems;"
(4)	GAO "Standards For Audit Of Government Organizations, Programs,
Activities, and Rjnctions" (Yellow Book); and
(5)	GAO "Guidelines For Financial And Canpliance Audits Of Federally
Assisted Programs" (Red Book).
b.	EPA is authorized to audit the financially assisted activities of any
recipient organization. However, it is Federal policy to place maximum reliance
on a recipient's own audits if they are carried out in accordance with applicable
Federal audit standards. Generally, audits will be conducted on an organization-
wide basis annually, and not less often than every two years, and should include
a representative sampling of Federal grants and cooperative agreements. A copy
of such "single audits" must be provided to the Federal agency that is assigned
audit responsibility for the recipient (the cognizant agency). The cognizant
Federal audit agency must assure that EPA's Office of the Inspector General
(OIG) receives all audit reports of recipients that affect EPA financial assis-
tance programs. While organization-wide audits will cover Construction Grants
for Wastewater Treatment Works (WWT) and cooperative agreements for Superfund
remedial planning and implementation, EPA will build upon these origanlzation-wide
audits at OIG's discretion.
2.	RESPONSIBLE OFFICIALS.
a. Inspector General. The Office of the Assistant Inspector General for
Audits (OAIGA) provides, arranges for and/or monitors the audit of EPA's financial
assistance program activities. The Divisional Offices of the OAIGA (DIGA) may
perform these audits or arrange for their performance by Independent Public
Accountants under an EPA procurement contract or auditors who are employed by
or serving under contract to another Federal agency. The OAIGA also monitors
the adequacy of self-audits of State and local goverrment recipients.
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b.	Recipients. Recipients are responsible for having an organization-wide
audit at least every other year (40 CFR 30.510(g)) and providing a systematic
method for resolving EPA audit findings and recanmendations.
c.	Action Officials. The Regional Administrators and Assistant
Administrators are the principal Action Officials for audit matters. Action
Officials must respond to the findings and recanmendations included in audit
reports relevant to their respective geographic or programmatic areas of respon-
sibility. They are responsible for:
(1)	Working with auditors and auditees to assure that all relevant
information is available and thoroughly reviewed;
(2)	Ensuring that timely, adequate responses and determinations are
transmitted on findings and recanmendations contained in audit reports and that
both monetary and non-monetary corrective actions are implemented; and
(3)	Wbrking with OIG staff to resolve disagreements.
Action Officials may, and are encouraged to, designate individuals to serve for
them. Designations must be written to delineate the specific responsibilities
(and authority) of the individual designee especially for such matters as the
negotiation of audit issues with recipients and issuing final determinations.
While Action Officials cannot delegate the authority to issue final
determinations to States assisting in the management of the WWT Construction
Grant Program, the delegation agreements may provide for State assistance with
audit resolution. In such event, the Regional Office must ensure that the
delegated State and Region coordinate a position on the findings and
recommendations before the State presents any determinations to the auditee.
c.	Headquarters Award Official. The Award Official (Chief, Grants
Operations Branch) is usually designated to serve as Action Official for audit
matters relating to Headquarters administered grant and cooperative agreements.
d.	Disputes Decision Official. The Disputes Decision Official is an
individual who is designated to issue final disputes decisions (see Chapter 35
of this Manual).
e.	Audit Resolution Board. The Audit Resolution Board (ARB), upon request
of the OAIGA, reviews major differences of opinion in resolving significant
audit findings and establishes the final Agency position. The ARB is supported
by an advisory staff, the Audit Review Group.
3. CATEGORIES OF AUDITS. Audits of assistance activities may be categorized
by the objective(s) to be served, i.e., their purpose, the scope or depth of
coverage and their timing in relation to the assisted project recipient or
contractor as follows:
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a.	Purpose.
(1)	Financial and Compliance Audits. Audits to determine whether the
financial statements of the audited recipient fairly reflect the true financial
position and results of financial operations; whether the recipient has complied
with applicable laws and regulations; and whether the claimed costs are allowable.
These audits may include an indirect cost audit to review and evaluate whether
a recipient's or contractor's prospective or incurred indirect cost rate allo-
cates allowable costs properly. A financial and compliance audit may include
a systems audit, i.e., an audit to evaluate the recipient's systems of internal
accounting and/or procurement control.
(2)	Economy and Efficiency. Audits to determine whether the recipient
is managing and using its resources (such as personnel, property, space) econom-
ically and efficiently.
(3)	Program Results. Audits to determine whether the desired results
or benefits are being achieved and whether the recipient and EPA have considered
less costly but equally effective alternatives.
b.	Scope or Depth.
(1)	Project-by-Project Audit. Audits that focus solely upon a single
project or activity.
(2)	Organization-wide Audit. An organization-wide ("Attachment P"
or "single") audit is a broad audit of a recipient organization that covers
all Federally assisted projects and activities. Organization-wide audits are
intended to satisfy the individual and collective audit requirements of all
Federal agencies while minimizing Federal presence and interference.
c.	Timing. The Award Official may request an audit as a prerequisite to
making an award of assistance (preaward audit), during the active project
period of an assisted project (interim audit), following completion of the
project period (final or postaward audit), or, for continuing program grants,
following an annual budget period.
(1) Preaward Audit. This is a review and evaluation to determine
whether prospective cost or pricing data submitted were current, accurate, and
complete. The review may include a systems audit to establish the applicant
as responsible. The systems audit would assess the prospective contractor's
accounting, procurement, and/or property management systems.
(2) Interim Audit. A review and evaluation to assess, at a minimum,
the allowability of costs claimed or reported under the assistance agreement or
subagreement and to assure compliance with applicable statutes, regulations, and
terms and conditions of the award. These audits may include a review of incurred
direct costs and indirect costs and the recipient's or contractor's policies,
procedures, and practices that influence and control assistance agreement and
subagreement costs. An interim audit may be conducted during an EPA assisted
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project as part of an organization-wide audit of the recipient, or upon request
of the Award Official or the Project Officer in response to a special need.
(3) Fined Audit. A final or post audit is a review and evaluation
conducted at the conclusion of a specific assistance agreement, usually following
the completion of the project period or termination of the agreement. In
addition to determining that the claimed costs are acceptable, the final audit
is performed to ensure that the completed project meets all the conditions of
the agreement and that the desired results were achieved.
4.	PRIORITY FOR CONDUCTING EPA AUDITS. All EPA assisted projects are subject
to EPA audit. However, since requirements for auditing EPA supported projects
exceed available resources, priorities for audit have been established in
order to concentrate attention on areas of greatest need. Award officials
should not construe these criteria as inhibiting the request for audit of any
project or recipient when they believe such action is warranted.
a.	Construction Grants for Wastewater Treatment. The Office of the Inspector
General (OIG), with cooperation of the Office of Water (OW), designed criteria
for selecting, and sampling when appropriate, WWT Construction projects for
audit. Under this procedure, the region (or delegated State) reviews the
final on-site inspection report of each project and its history, and certifies
whether the project is believed free of priority problem areas. Problem-free
projects are selected by the Divisional Office of the Inspector General (DIGA)
for closeout without audit. Other projects are identified for "limited scope"
audit while still others are selected for more extensive "broad scope" audit.
Preference is given to conducting limited scope audits of larger projects,
particularly to those areas deemed most vulnerable to fraud, waste, or abuse.
OAIGA determines and publishes the selection criteria in cooperation with CW.
b.	Superfund Remedial Planning and Implementation. (Reserved).
c.	Other EPA Assistance Projects. OAIGA gives priority to:
(1)	Preaward Audits. Requests for accounting system surveys of pro-
spective new recipients being considered for EPA financial support of at least
$100,000 and, at the discretion of the DIGA, other preaward audits involving
$500,000 or more.
(2)	Interim or Final Audits. The Award Official and/or Project
Officer may submit a written request to the appropriate DIGA for an audit of
any project when justified by exceptional circumstances.
5.	AUDIT OF STATE AND LOCAL GOVERNMENT RECIPIENTS.
a. General.
(1) Attachment "P" Audits. CMB Circular A-102, Attachment P, as
implemented by 40 CFR §30.540, requires State and local governments, and Indian
tribal governments that receive EPA assistance to arrange for independent
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financial and compliance audits. These audits must be independent, i.e., the
auditors must be separate and independent of the recipient organization being
audited. These audits are to be carried out at least every two years, usually
annually. EPA relies upon those audits to the maximum extent feasible. Regional
program and assistance administration staffs must judge whether the Attachment P
audit reports received satisfy EPA's stewardship requirements and must bring sus-
pected deficiencies to the attention of the appropriate DIGA, Headquarters
program, and GAD. Note that Attachment P does not limit the authority of EPA
to audit recipient organizations and that EPA retains audit jurisdiction over
subagreements under grant agreements and cooperative agreements. Special
audits will be scheduled at the discretion of the DIGA and will build upon,
but not duplicate, the audit work already done.
(2)	Carpiiance Supplement. OMB publishes a supplement to Attachment
P, "Compliance Supplement for Single Audits of State and local Governments,"
that identifies the principal compliance features of three major EPA financial
assistance programs, Air Pollution Control Program Support, Construction Grants
for Wastewater Treatment Works, and Construction Management Assistance (§205(g)).
In addition to programratic requirements, auditors must also consider these and
other applicable crosscutting statutory and regulatory requirements such as the
restrictions on the use of Federal funds for political activity; labor standards;
civil rights requirements; cash management systems; relocation assistance and
real property acquisition; and Federal financial reporting.
(3)	Cognizant Agencies. OMB assigns a "cognizant" Federal agency to
exercise audit responsibility for a particular recipient organization. Cognizant
agencies provide technical advice and oversee the independent organization-wide
audits, and represent Federal audit interests with assigned major State and
local government recipients. Cognizant agencies obtain or make quality assess-
ments of the audit activities of the non-Federal audit organizations assigned
to than. They serve as liaison between Federal agencies, independent auditors,
and assigned recipient organizations. Cognizant agencies assure that satisfactory
audit coverage is provided in a timely manner and assure the receipt, prcper
dissemination and review of audit reports, and effective followup on and '
response to, audit findings. The cognizant agency must assess the quality of
the audit work of non-Federal audit organizations and provide those assessments
to other Federal audit agencies. QAIGA coordinates EPA's relationship with
cognizant audit agencies.
(4)	Recipient's Failure to Audit. Assistance administration officials
who, at the time of closing out an agreement (end of the annual budget period
for Continuing Environmental Support Program agreements) other than a WWT Construction
grant, have received no record of the recipient's compliance with the biennial
audit requirements of Attachment P during the past two years, should notify
the DIGA of that fact. It is the DlGA's responsibility to contact the recipient
and determine the recipient's plans for arranging an audit. If the recipient fails
to obtain an Attachment P audit, the DIGA should determine what sanctions to
recommend to Agency management on a case-by-case basis.
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b. Continuing Environmental Support Program Agreements. Organization-wide
audits are of particular importance to EPA's continuing environmental support
programs that provide financial assistance to State and local agencies under
40 CFR Rart 35, Subpart A, (listed in figure 4-2). The uniform administrative
requirements and procedures prescribed by that rule should facilitate audit by
independent auditors. However, ftroject Officers and Assistance Specialists
must be alert to assure continuing recipient canpliance with any special statu-
tory and regulatory requirements of the individual programs as well as the
special terms and conditions of the individual agreements.
c.	WWT Construction Agreements. For purposes of final audit of those
grant agreements funded under P.L. 92-500 before May 13, 1982, the related
projects involved in the building (see 40 CFR 35.2005.(b)(8)) of the treatment
works (the Step 3 and/or 2+3 projects(s)) are generally treated as a single
entity. Step 1 (facility planning) and Step 2 (design) projects will normally
be audited in conjunction with the related Step 3 or 2+3 project(s). The
audit process begins when the regional office (or delegated State) screens the
project against audit criteria and determines frcm review of the project file
and the final on-site inspection report whether or not the project meets the
criteria for requesting final audit and whether it can be "certified" by the
Water Management Division Director or delegated State official. Before formally
requesting final audit of a construction project, the region (or the delegated
State) must review the official project file and assure that it is ccmplete
including a current Grants Information and Central System (GICS) Project Detail
Report (PGR). The Region must assemble the ccmplete file and make it available
to the appropriate DIGA according to their agreed practice. A listing of
required documents is provided in Chapter 5 of this Manual. Upon completion
of the final audit, the EPA audit office (or delegatee) must provide the appro-
priate regional Assistance Administration Unit (AAU) with the audit report and
the audited GICS project record (Project Detail Report) annotated with any
additions or corrections. The regional staff must confirm these changes and
update the GICS data base accordingly.
d.	Superfund Remedial Planning and Implementation. (Reserved.)
6. AUDIT OF NON-GOVERNMENT RECIPIENTS.
a.	Private Nonprofit Organizations, nrivate nonprofit organizations that
receive EPA assistance are also generally responsible for arranging audits of
their activities at least every two years, and preferably annually. EPA places
maximum reliance upon the results of these audits. In addition, EPA supported
activities may be audited following completion of a project upon the request
of the EPA Project Officer and/or the Award Official for compelling reasons.
b.	Other Recipients. For-profit organizations, individuals, and foreign
organizations are subject to individual audit on a project-by-project basis
rather than on an organization-wide basis. These audits will be requested at
the discretion of the EPA Project Officer and Award Official, and scheduled
by DIGA as warranted by resource availability and justifying circumstances
(see paragraph 7 below).
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c. Cognizance Assignments» CUB assigns principal nonprofit recipients
to the audit cognizance of a Federal agency, usually designating that agency
with which the recipient has the most business. OAIGA will refer EPA's audit
requests to the cognizant Federal audit agency if one has been assigned for the
recipient organization. If no agency has been assigned cognizance, EPA will
perform or arrange for the audit.
7.	EPA REQUESTS FOR AUDIT.
a.	State and Local Recipients. Award Officials must submit requests
for audit of State or local government recipients directly to the DIGA for the
recipient's geographical area (or to regional audit staff if so instructed) on
an "Assistance Audit Request," EPA Form 5700-29. They must make a complete
project file of relevant documents and correspondence (see Chapter 5, "Official
EPA Assistance Files" for a listing of required material) available to the DIGA.
Requests for audit of nonconstruetion projects under exceptional circumstances
itfiich do not meet the current criteria for routine audit must be submitted to
the audit office (DIGA) in writing frcm the Award Official. That letter must
explain the circumstances that necessitate the audit in sufficient detail to
permit the DIGA to make a judgment as to the allocation of audit resources.
b.	Other Recipients. Award Officials must address written requests for
audit of a recipient other than a State or local goverrment to the appropriate
DIGA for the recipient's geographical area. They must make available a complete
project file and explain the circumstances that suggest the need for the audit
in sufficient detail to permit a judgment as to the allocation of audit resources.
The DIGA will determine whether to request the cognizant agency, if any, to
perform an audit, take any other action, or no action.
c. Cost and Price Analyses. Requests for cost and price analyses may be
submitted directly to the cognizant agency with a copy to the DIGA.
8.	PROCESSING AUDIT REPORTS.
a.	General. EPA Manual 2750, "Management of EPA Audit Reports and fbllowup
Actions," establishes responsibilities and procedures for the processing of
audit reports and followup actions. Reports of the audit of assistance projects
are advisory to the Action Official, who is normally the Award Official.
b.	Audits Performed by Cognizant Agency. EPA may request the cognizant
audit agency to assist in resolving any problems identified in their audit reports.
The cognizant agency for a State and local assistance recipient is responsible
only for resolving those audit issues affecting two or more Federal agencies.
The ccgnizant agency for audit of educational institutions will normally resolve
issues related to the findings of their reports regardless of the agencies
affected.
c.	Coordination with the Audited Recipient. The Action Official should
transmit to the recipient (auditee) a copy of the final audit report (less any
classified or irrelevant material) within 15 days of the report date. The
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covering letter should advise the recipient what information and/or other
response EPA expects. EPA assistance personnel should seek the cooperation of
the recipient early in the process to provide them ample time to review the
findings and recommendations and to carry out negotiations/discussions before
the time requirements compel the Action Official to issue a final determination.
The Action Official, assisted by those designated to help with audit resolution,
should determine whether the issues are such as to warrant telephoning or
meeting with the recipient to discuss problem areas and their resolution, and
act accordingly. The Action Official should provide the auditee with any
supplementary analysis or initial determinations on the findings within 45
days of the final audit report. Timeliness by all concerned will avoid lengthy
and expensive delays in settling outstanding differences.
d.	States Acting under EPA Delegation Agreements. Regional offices must
coordinate the resolution of an audit of a local government recipient with the
State if EPA has an intergovernmental agreement (IAG) (delegation agreement or
other IAG) which covers such support. The Region and the State should, wherever
possible, develop a coordinated position on audit findings, recommendations,
and auditee's response on those projects before the State presents any determi-
nations to the recipient and before the Action Official issues a final determi-
nation, if any.
e.	Resolution of Differences. Disputes between EPA and the recipient over
individual audit findings, not including questioned costs, should be resolved
through negotiation whenever possible within the limits of applicable rules
and regulations. EPA representation in such final negotiations should include
the Project Officer or other program representative(s), a senior Assistance
Specialist, an Agency attorney and, when appropriate, should reflect prior
consultation with the appropriate audit staff. EPA/recipient agreements that
resolve disputes over disallowances should be confirmed and explained in the
letter of final determination.
f.	Final Disputes Decision (see Chapter 35 also, "Disputes Resolution").
(1) Final Determination. The Action Official will have set forth any
initial determinations, asked the auditee for any rebuttal, evaluated information
received, and attempted to resolve differences before developing the final deter-
mination. If reasonable efforts to reach timely agreement with the recipient
fail, the Action Official must issue a final determination. Action Officials
are encouraged to submit letters of final determination to their supporting
counsel for legal review of decisions that differ frcni the auditor's recommen-
dations and are based upon interpretations of law, regulation, or the authority
of an EPA (or delegated State) official.
(a) Substance. Each final determination letter must adequately
notify the recipient that the decision is a final decision. The letter must
state the Agency's final position on all findings and recanmendations and
should address:
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_1 Specific areas upon which agreement has been reached, the
EPA final position on each issue upon which agreement has not been reached and
the basis for that position, and what the auditee needs to do to ccme into compliance;
2	Specific amounts due the Agency for any disallowed costs
and the reasons the costs are disallowed;
3	Payment instructions (see subparagraph 8f(3) below) where
appropriate, Including provisions for the assessment of late charges for the
accrual of interest if amounts due are not promptly (within 30 days) paid;
b Appropriate notification of the right to higher level
administrative review of the decision available under 40 CFR Part 30, Subpart L
for disputes, if the final determination places requirements on the auditee.
(b)	Timing of Determinations.
jL Questioned Costs Below $100,000. Issue the final deter-
mination within 150 days of the final audit report date.
2 Questioned Costs of $100,000 or More. Provide the DIGA
with a copy of the proposed determination on the findings within 90 days of
the final audit report date.
(c)	Clearance. DIGA will review all proposed final determinations
on questioned costs of $100,000 or more and must respond in accordance to the
requirements set forth in EPA Manual 2750. The Action Official must make
every reasonable effort to reach agreement with the DIGA on audit resolution
matters. In the event that the DIGA does not agree with the Action Official's
response to an audit report, the DIGA may submit any disagreement concerning
questioned costs of $100,000 or more to QAIGA in Headquarters. The OAIGA may
refer the matter to the Audit Resolution Board (ARB) for decision if policy or
other significant issues are involved.
(d)	Delivery. Mail each determination to the auditee, certified
mail, return receipt requested. A dated copy of the final determination letter
must be provided to the DIGA and to the Action Official's servicing Financial
Management Office.
(2) Recipient's Request for Review. A decision of the Disputes
Decision Official constitutes final EPA action unless the recipient files a
request for review of the decision. Requests for review are to be submitted
by registered mall, return receipt requested, within 30 calendar days of the
date of the decision. Requests for review of a Regional office decision
should be addressed to the appropriate Regional Administrator. Requests for
review of a decision issued by a disputes decision official at Headquarters
should be addressed to the EPA Assistant Administrator who is responsible for
management of the supporting financial assistance program. Subpart L of
40 CFR Part 30 and Chapter 35 of this Manual explain the procedures and protocol
for the review of disputes decisions.
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(3) Collection of Disallowances.
(a)	Upon final determination of disallowances resulting from an
audit exception, the Action Official will notify the recipient of the determi-
nation by certified mail, return receipt requested, and request that a check
for the amount due be sent directly to the servicing EPA Financial Management
Office. The notice must state that interest will be charged on the debt If not
paid within 30 days of the date of the decision unless the recipient requests
review of the decision under 40 CFR Part 30, Subpart L. The deferral of interest
accrual during review of Subpart L disputes is discussed in Chapter 30 of this
Manual. Any charge for late payment in the form of interest will be accessed
in accordance with Treasury Fiscal Manual requirements 6-8020.20 (also see 40
CFR 30.802) and will be applied and collected at a percentage rate based on
the current value of funds to the Treasury. That percentage rate is published
in the Treasury Manual and the Federal Register before the first day of each
calendar quarter. The applied rate will remain fixed for the duration of the
Indebtedness unless other payment provisions have been made. Charges for late
payments will be assessed for each 30 calendar day period. If the recipient
Is not a State and local government, EPA will assess a late penalty charge of
6% of the debt, plus Agency handling and processing costs in accordance with
the provisions of Chapter 7 of the EPA Financial Management Manual. State
universities are not considered State governments.
(b)	Action Officials must notify the recipient in writing of
the basis for the indebtedness, the date by which payment is to be made, and
the requirements concerning charges for late payment.
1_ The following, or similar paragraph concerning Interest
charges, is suggested:
I must advise you that to avoid additional charges, payment
must be received within thirty (30) days of the date of this letter
unless you request review of the decision under 40 CFR Part 30,
Subpart L. If payment is not received by that date, we are
required to charge Interest on the unpaid amount for each 30-day
period from the date of this letter. The current annual interest
rate, set on a quarterly basis by the Department of the Treasury
(see Treasury Bulletin yr-No.), is 	 per cent.
2 If the recipient is not to a State or local government,
add the following or similar language:
A late payment handling charge of $20.00 will be imposed after
thirty (30) days with an additional handling charge of $10.00 for each
subsequent thirty (30) day period over which a balance remains unpaid.
A six percent per annum late penalty charge will be applied on any
principal amount not paid within ninety (90) days of the due date.
_3 If the requested payment is less than $25,000, require that
the payment be sent to the appropriate FM3.
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If the required payment is $25,000 or more, add the following
or similar language:
Enclosed is EPA Form 2570-6, "Funds Transfer Deposit", to be
used for your payment. Please take this form to your bank and
request them to wire the amount stated on it through the Federal
Reserve Canmunication System (FRCS) to the account of the U.S.
Treasury at the Federal Reserve Bank of New York.
[Note: See Chapter 14, subparagraph 5c of the EPA Financial Management Manual
for instructions on how to obtain and prepare EPA Form 2570-6.]
(c)	Action Officials must provide a dated copy of each determination
with a covering letter requesting the servicing EPA Financial Management Office
to establish an accounts receivable. A copy of the letter and determination
must be provided to the appropriate DIGA.
(d)	Servicing EPA Financial Management Offices are responsible
for collecting the amount due within 90 days. However, collection efforts will
be suspended during any higher level management review of a final determination
that is requested under 40 CFR Part 30, Subpart L. The account will be turned
over to the EPA Claims Officer for collection if payment is not made within 90
days of the Agency's final action.
(4)	Compromise. EPA may agree to liquidate an account receivable by
payment of a sum less than the finally determined disallowance. Only the EPA
Claims Collection Officer or other individuals specifically delegated, are
authorized to compromise for the Agency. (See EPA Claims Collection Manual.)
Canprcmlse may be sought whether the EPA claim is disputed or not.
(5)	Offset. The Award Official, with the concurrance of the appropriate
Approval Official, may offset a recipient's debt to the Agency if so doing will
not impair the accomplishment of the objectives of any Federal assistance pro-
gram. Involuntary offset of a recipient's debt is feasible only under agreements
paid by the reimbursement rrethod. (See §102.3 of the Federal Debt Collection
Act.)
9.	COSTS OF RECIPIENT INITIATED AUDITS. The costs of recipient initiated
audits are a normal business expense and are an allowable cost if the recipient
has an approved indirect cost rate.
10.	ASSISTANCE MANAGEMENT SYSTEM DEFICIENCIES. Deficiencies in EPA assistance
management systems, policies or procedures (as expressed in regulations or this
Manual) that are observed during the resolution of audit findings, and
recommendations for their correction, should be brought to the attention of the
Grants Administration Division (Policy and Procedures Branch) formally or
otherwise as the circumstances warrant.
11.	AT.LEGATIONS OF WRONGDOING. Any EPA employee having knowledge of wrongdoing
in any assistance relationship, or the appearance thereof, is obligated to report
those suspicions to the OIG. (See also Chapter 39, "Dealing with Noncompliance
and High Risk Participants.")
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CHAPTER 39 - DEALING WITH NONCOMPLIANCE AND HIGH RISK PARTICIPANTS
Table of Oontents
PARAGRAFH
TITLES	PARAGRAPH
NUMBERS
Purpose	 1
Background	 2
General	 3
Coordination	 4
Remedies	 5
Special Conditions	 6
Nonresponsibility	 7
Stop-work Orders	 8
Witholding Payment	 9
Termination	 10
Annulment	 11
Debarment and Suspension	 12
Reviews	 13
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CHAPTER 39 - DEALING WITH NONCOMPLIANCE AND HIGH RISK PARTICIPANTS
1.	PURPOSE. This chapter explains the different kinds of actions which may
be taken to protect the integrity of EPA assisted activities.
2.	BACKGROUND. All Agency officials are responsible for safeguarding the
integrity of EPA's assistance programs. EPA assistance administration and
program officials are faced with a wide range of potential problans involving
program participants. The participant may be a grant or cooperative agreanent
recipient, a contractor to a recipient, a subcontractor or a supplier. In
some cases, the problem may Involve a technical matter which can easily be
resolved by informal discussions with the participant. At other times, the
matter may Involve nonperformance, poor performance or a criminal matter which
places the Agency's assistance programs at significant risk.
3.	GENERAL, ^forious actions for dealing with noncompliance and high risk
participants are authorized throughout EPA's regulations. Aside from attempts
at informal resolution, Award Officials may impose special conditions on the
award, find a person or organization nonresponsible to receive an award, issue
stop work orders, withhold payment of funds, terminate or annul an award, or
initiate judicial proceedings. In addition, the Director, Grants Administration
Division (GAD) may suspend and/or debar any person or organization fran partic-
ipation in all EPA assisted activities for a specified period of time. Taken
together, these actions provide Agency officials with an effective arsenal for
combating waste, fraud, abuse and poor performance.
4.	COORDINATION. Because the remedies for noncompliance involve several areas
of interest to the Agency, it is important that any Agency action be coordinated
among those various offices concerned. Principal participants in the decision
to take an action under this chapter may be the program office, assistance
administration personnel, and the Office of General or Regional Counsel. The
Office of Inspector General (OIG) is also a key participant in suspension or
debarment actions or where a matter may Involve an audit or potential criminal
wrongdoing. Often, a debarment and/or suspension action will arise from infor-
mation obtained during the normal course of OIG operations. Also, the Director,
GAD, or program office may ask the OIG to assist in investigating any matter
involving potential debarment.
5.	REMEDIES. Depending on the facts and circumstances in the particular case,
any one or a combination of these actions for noncompliance, may be necessary
to protect the Agency's interest. When a program or assistance administration
personnel becomes aware of problems in a given project, or of events that present
a risk to other EPA projects, immediate steps must be taken to safeguard the
Agency's interests. If informal resolution is not appropriate given the circum-
stances, or has already failed, the Project Officer and the Award Official
should elect which formal action or actions should be taken.
6.	SPECIAL CONDITIONS. Whenever an Award Offical is concerned about an
applicant's ability to carry out a project because of a poor record of past
performance, financial instability, or because its management system does not
conform to the standards prescribed by CMB in Circular A-102, he or she may
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include special conditions in the award in order to secure reliable performance
on the project. (See paragraph 10 to 0MB Circular A-102 and 40 CPR 30.309(b)).
a.	Procedures. Any time special conditions to an award are imposed upon
a recipient and those conditions create obligations on the recipient which
exceed the requirements of 0MB Circular A-102, the Award Official must, in
writing:
(1)	Notify the applicant of the reasons for imposing the special
conditions;
(2)	Describe what corrective action is needed; and
(3)	Immediately furnish a copy of the applicant notification to CMB
and any other agencies funding the project.
b.	Caution. Special care must be exercised when using special conditions,
especially if used to correct past performance deficiencies. Such circumstances
often require other formal Agency action instead of, or in addition to, the
use of special conditions as means of protecting the Agency's interests. An
applicant's refusal to accept an award subject to special conditions may
equate to a finding of nonresponslbility. Subsequent denials of award or
refusals to accept an award subject to special conditions may constitute a de
facto debarment and thereby entitle the applicant to certain constitutional
due process safeguards. Suspension and debarment actions under 40 CPR 32 (see
paragraph 12 of this Chapter) provide for those protections. De facto debarment
may subject the Award Official to personal liability for damages incurred as a
result of unconstitutional action.
7. NONRESPONSIBILITY. Award Officials (under 40 CFR 30.301) and assistance
recipients (under 40 CFR 33.220) must assure that initial awards and subagree-
ments are made only to persons or organizations that are responsible. A finding
of nonresponslbility by an Award Official of a recipient precludes award to
the person or organization unless the problem is resolved. While recipient
responsibility determinations are normally pre-award decisions and preventive
in nature, responsibility is a continuing obligation on the part of a recipient.
If it becomes evident that a recipient is nonresponsible after award, the Award
Official may apply other remedies such as issuing stop-work-orders, withholding
payments, termination or annulment to protect Immediate interests of EPA, or
seeking a debarment from future award eligibility.
a.	Standards. The criteria for responsibility determinations are listed
in the regulations at 40 CPR 30.301 for award of assistance and Pt 40 CFR
33-220 for award of subagreements.
b.	Procedures. In practice, affirmative findings of responsibility
are not made for each submitted application for assistance. The applicant,
by signing and submitting the application, certifies to EPA that it is a
responsible applicant. However, the Award Official may conduct a review or
ask the OIG for a preaward audit to determine responsibility. In the event
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the Award Official does so and is not satisfied that an applicant meets the
regulatory standards, the Award Official must notify the applicant of the
finding and the reasons for it. Recipients use their own procedures to deter-
mine whether a contractor is responsible under the regulations.
8. STOP-WORK ORDERS. Under 40 CPR 30.901 the Award Official may issue a
written stop-wrk order for default by the recipient and failure to ccmply
with the terms and conditions of the assistance agresnent. Generally, stop-
work orders are used where it is advisable to halt work on the project pending
corrective action on a decision to terminate the project. A stop-work order
will not be used in lieu of termination, if a decision to terminate has already
been made.
a.	Procedures. Ihe Award Official issues all stop-work orders. The
order must be in writing and should:
(1)	Be concurred in by the Office of General Counsel or Regional
Counsel;
(2)	Clearly describe the work to be halted;
(3)	Give instructions as to the issuance of further orders by the
recipient for materials or services;
(4)	Instruct the recipient fcfoat to do with its subagreements;
(5)	Give guidance to minimize costs being incurred; and
(6)	Be sent certified mail, return receipt requested.
If the grant is for construction of wastewater treatment (WWT) works, the
State agency must also be notified in writing of the action.
b.	Restrictions. Unless agreed to by both parties, stop-work orders
cannot exceed 45 days duration. Stop-work orders cannot be issued for awards
to nonprofit and educational institutions made before October 1, 1983 (see 40
CPR §30.915, as effective prior to that date).
c.	Concluding Action. At any time during the life of a stop-work order,
the Award Official may cancel the order, In whole or in part, or terminate the
work in accordance with 40 CFR 30.903. If the stop-work order Is canceled or
expires the recipient may resume work.
d.	Equitable Adjustments. If a stop-work order is canceled or expires,
EPA may amend the agreement if the recipient submits a written claim for
adjustment of the project/budget period or assistance amount within sixty
(60) days after the stop-work order expires. The Project Officer must act on
any claim made before the final payment of the project or before closeout and
must notify the Award Official of the request for an adjustment. If an award
under a stop-work order is terminated, the reasonable costs resulting frctn
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the stop-work order vtf.ll be allowed in the termination settlement. Any costs
incurred by the recipient or its contractors, subcontractors, or representatives
that are not consistent with the stop-work order are not allowable costs. The
Project Officer must consult with the Assistance Administration Unit (AAU) for
guidance in determining allowable costs; however, these costs are subject to
final audit by the OIG.
9. WITHHOLDING PAYMENT. Under 40 CFR 30.902, the Award Official may authorize
that payments be withheld at any time during a project if the Project Officer
determines that a recipient is not performing in accordance with the terms and
conditions of the assistance agreement, the scope of work, reporting require-
ments, or regulatory requirements. The Award Official may withhold only the
amount necessary to ensure compliance with the assistance agreement.
a.	Procedures.
(1)	The Project Officer must request the AAU to prepare the letter
to the recipient for the Award Official's signature to withhold payment. The
request must:
(a)	Identify the project on which payment is to be withheld;
(b)	Cite the reasons for the action requested;
(c)	Give the date by which the recipient must achieve
compliance; and
(d)	Include copies of correspondence, memoranda to the file, and
telephone memoranda of attempts to encourage compliance.
(2)	The Award Official must send a letter to the recipient notifying
it of the action. The letter should:
(a)	Give the specific reason or reasons for withholding funds;
(b)	Provide a time frame to correct the problem(s); and
(c)	Give the name(s) of the irriividual(s) with whom to work to
correct the problem(s).
(3)	The Award Official must send copies of this letter to the appro-
priate Financial Management Office, Project Manager, Project Officer, and the
official file. The Award Official may provide the recipient with an opportunity
for a conference with appropriate involved Agency personnel during the period
allowed for corrective action.
b.	Corrective Action. If the recipient corrects the problem, the Award
Official will notify the recipient, in writing, return receipt requested, of
its compliance and EPA's restoration of payment. If the recipient cannot or
will not correct the problem, the Award Official must notify the recipient, in
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writing, return receipt requested, that the project will be terminated or
annulled as appropriate. At this point the Award Official should consider
whether to initiate a suspension and/or debarment action.
10. TERMINATION. Termination is a procedure under which an assistance
agreement is brought to an Immediate or designated end before its normally
scheduled date for completion. It may be used at any time during the life of
a project. Termination is a project-specific ranedy and affects only the
unperformed parts of a project. Termination may occur by mutual consent or by
order of the Award Official for cause. The recipient may not terminate without
consent of the Award Official. For WWT construction grants, the State Agency
should be notified by the Project Officer prior to formal action being taken.
a.	Termination by Mutual Consent. Under 40 CFR 30.710, EPA and a
recipient may agree at any time to terminate an agreement. In such cases, the
parties simply agree to terms regarding the termination date, allocation of
costs incurred, and payment of funds due either party, Including any Interest
due (see 40 CFR 30.1230). The Assistance Administration Unit will prepare
the agreement for signature by the Award Official and the recipient. The
Assistance Administration Unit must assure that all regulatory and statutory
requirements are satisfied.
b.	Termination for Cause. Under 40 CFR 30.9035 the Award Official is
authorized to terminate unilaterally any assistance agreement, or portion of
it, for failure to comply with the conditions of the assistance agreanent.
This action should be taken only upon the recommendation of the Project Officer
and after concurrence of the Approval Official. The Office of General or
Regional Counsel will be consulted if deemed appropriate.
(1)	Procedures. Tb terminate for cause, the following actions are
necessary:
(a)	The Project Officer must provide the Award Official, through
the AAU, full justification and documentation for the requested action;
(b)	The Award Official must issue a Notice of Intent to Terminate;
and
(c)	If the affected person does not respond to the Notice of
Intent to terminate, or no resolution can be worked out, the Award Official
must issue a Notice of Termination.
(2)	Notice of Intent to Terminate. The Notice must give the reasons
for the proposed action, should state that no new commitments will be made, and
give the recipient 10 calendar days to respond. The Award Official may extend
the response period if circumstances warrant. If, after consultation with or
other reply by the recipient, the matter can be resolved, the Award Official
may rescind the Notice of Intent to terminate. The Award Official must amend
the assistance agreanent as necessary to modify the scope of work, duration of
budget/project period, or amount of award. Copies of the resolution and changes,
if any, must be placed in the official file.
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(3) Notice of Termination. A Notice of Termination identifies the
project, scope of the termination, and date of termination; requests the sub-
mission of the final Financial Status Report, Standard Fbrm (SF) 269; and
notifies the recipient that a final audit will be performed on the project.
The Notice must also advise the recipient that the action is a final action by
the Award Official and that the recipient has a right of review under 40 CPR
Bart 30, Subpart L. EPA will pay the recipient the Federal share of allowable
costs incurred up to the date of termination and allowable costs related to
commitments made before termination that the recipient cannot cancel. Upon
final action, the Award Official should consider whether suspension or debarment
of the recipient is appropriate. Whenever a termination of award involves a
WWT construction grant, the Award Official must notify the State agency before
acting upon the decision to terminate.
c. Termination Settlement. Ch the effective date of the termination,
the recipient must stop work immediately arri refund any unexpended project
funds to the Agency, reduce the amount of outstanding canmitments if possible,
and report the uncanmitted funds on the final Financial Status Report. The
allowable termination costs will be determined according to applicable Federal
cost principles and statutory limitations. These costs are subject to final
audit.
11. ANNULMENT. Annulment is a procedure which makes an assistance agreement
void from its beginning and requires that the entire amount of the award be
returned to EPA. Under 40 CFR 30.904, the Award Official may unilaterally
annul any assistance agreement when no substantial progress on the project
has been made without good cause, the assistance agreanent was obtained by
fraud or misrepresentation, there are corrupt practices in project adminis-
tration, the project has been inordinately delayed without good cause, or
there is a failure to meet the purpose of the project to the extent that the
fundamental purpose of the assistance agreement is frustrated.
a.	Procedures. Tb annul an award, the following actions are necessary:
(1)	The Project Officer must discuss the matter fully with the Award
Official and if appropriate, the Office of General or Regional Counsel;
(2)	Upon approval by the Office of General or Regional Counsel, as
appropriate, the Award Official must prepare a Notice of Intent to Annul; and
(3)	If the affected person does not respond to the Notice of Intent
to Annul or no resolution can be worked out, the Award Official must issue a
Notice of Annulment.
b.	Notice of Intent to Annul. The Notice must clearly give the reasons
for the proposed action and give the recipient 10 calendar days to respond.
The Award Official may extend the period if circumstances warrant. If, after
consultation with or other reply by the recipient, the matter can be resolved,
the Award Official may rescind the Notice of Intent to Annul. The Notice must
be sent to the recipient by certified mail, return receipt requested.
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c.	Notice of Annulment. Hie Notice of Annulment identifies the project,
the reason for the action and demands that any funds advanced for the project
be returned to the Agency. The Notice must be sent to the recipient by certified
mail, return receipt requested.
d.	Supplemental Actions. Following the initiation of any action for
annulment, the Award Official should consider whether the circumstances giving
rise to the annulment would also be appropriate for additional actions, such
as criminal prosecutions at the State or Federal level or suspension and/or
debarment action by the Agency. Actions which may be criminal acts must be
reported to the Office of Inspector General.
12. EEBARMENT AND SUSPENSION. 40 CFR Part 32 authorizes the Director, Grants
Administration Division, to debar (exclude) any person from future participation
in EPA assisted programs where that person's participation presents a risk to
the Agency. The regulations set forth various circumstances which may give
rise to an action seeking debarment (see 40 CFR 32.200). These causes involve
such matters as criminal activities, poor performance, serious noncompliance
with Agency requirements and debarment by another Federal agency. As with the
other measures above, there are situations in which informal resolution or
other action is more appropriate. However, generally, matters of the degree
of seriousness giving rise to an action under Part 32 are those where informal
resolution has already proven unsuccessful (such as incidents of noncompliance)
or is Inappropriate (e.g., serious or intentional misperformance and/or criminal
conduct).
a.	Effect of Debarment. A person who is "debarred" is ineligible for
participation In any project which is funded by EPA for a stated period (usually
not exceeding 3 years). Debarment and suspension are prospective in nature.
They do not affect current awards and, therefore, are generally not the remedies
of first resort when EPA has a problem on an existing project. The person
debarred or suspended is made ineligible for future awards of assistance or
subagreements, or participation in them.
b.	Applicability. Anyone, whether it be a recipient, contractor, subcon-
tractor, supplier or even an anployee of them, may be debarred by the Director.
Unlike other actions noted above, lack of privity to the subagreanent is not
an obstacle to EPA's taking an exclusionary action directly against a subtler
participant.
c.	Suspension. In some cases, the Agency's interest is so threatened
that the passage of time between a Notice of Proposed Debarment and the hearing
could result in further loss to the Agency. In such situations, the Director
may issue a suspension order before, after, or concurrent with the Notice of
Proposed Debarment. A suspension makes a person ineligible Immediately, but
provides the affected person with an opportunity to be heard later.
d.	Purpose of Suspension. Suspension is Imposed only where necessary to
protect Important Interests of the Government which cannot be adequately pro-
tected otherwise. The central issue In deciding whether a suspension is needed
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is the presence of compelling circumstances. In such circumstances, there is
an identifiable interest which is reasonably threatened that the Agency cannot
protect by merely proposing a debarment and considering the case first.
Compelling circumstances are not required to suspend if a matter that is reason-
ably connected with performance under an EPA assistance program is referred to
the Department of Justice or a grand jury, or there is an outstanding indictment
or information of a criminal offense. (See 10 CFR 32.300.)
e. Procedures. Upon completion of an investigation or other inquiry, all
actions begin with a Memorandum of Information (MOI) vhich is sent to the
Director, GAD, from the Office of General or Regional Counsel (Agency Attorney)
asking that an action under 10 CFR Part 32 be initiated. Since the MOI states
the substance of the action, it should be specific enough to put the person on
notice of the circumstances giving rise to it. The MOI must:
(1)	Identify the person against whom the action is sought;
(2)	Provide the last known address of the person;
(3)	Summarize the facts and cite the grounds for the action; and
(1) If a suspension is sought, specifically request suspension and
identify in the memorandum the risk involved (compelling circumstances) and
why suspension is necessary to protect the Agency.
f. Notice of Action. Upon receipt, the Director's (GAD) staff will
review the request and take the appropriate action. The Director may take no
action, impose a suspension, propose debarment or impose a suspension jointly
with a proposal to debar. If action is warranted, the Director will issue a
Notice of Suspension, Notice of Proposed Debarment, or a Notice of Suspension
and Proposed Debarment to the affected person together with a copy of the MOI.
A copy will be sent to the Agency Attorney in the matter, the Assistance
Administration Unit, program office and the Office of Inspector General.
The Notice of Action will inform the person that debarment is proposed and/or
that a suspension is in effect. It will state that the person has 30 calendar
days to request to be heard in the matter or debarment will be imposed or the
suspension will remain in effect. If no action is appropriate, the Director
will notify the initiating counsel that no action will follow and the
reasons for the decision.
g. Hearings. The person against whom an action is taken will be provided
an opportunity to be heard upon request before Imposition of debarment or as
soon after suspension as practicable. The person may ask for and receive an
oral hearing or waive the oral hearing in favor of entering a written submis-
sion. The Agency Attorney is responsible for presenting the Agency's case, in
person or in writing. Hearing times and locations are determined by the Director,
GAD, after consulting with the Agency Attorney and the person against whom
the action is directed. Oral hearings are informal and do not follow special
rules of evidence or procedure. The Director (or Hearing Officer appointed by
the Director) will listen to both sides in the matter and permit each side to
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submit information and ask questions of witnesses present. Regional offices
are asked to make arrangements for the recording of any hearings held in the
Regional Office.
h.	Determinations. The Director, GAD will Issue a written decision and
mail it to the affected person with a copy to the Agency Attorney, program
office, Assistance Administration Unit and the Inspector General. The determi-
nation shall specify the facts in support of EPA's decision and order that the
person be debarred, not be debarred, remain suspended or be reinstated, as the
case may be.
i.	Settlements. At any time after a Notice of Action has been issued
and before a final determination is made by the Director, GAD, the parties may
agree on terms of settlement instead of debarment. All agreements must be
submitted to the Director as recommendations. The Director may accept, reject,
accept with condition, or postpone acceptance or rejection of the recommendation
until after hearing the matter. If the Director accepts the reccmmended agree-
ment, he or she will endorse it and send copies to the affected person and the
Agency Attorney.
j. Master List. All exclusionary actions, whether suspensions, debarments,
or voluntary exclusions under settlements, are placed on EPA's Master List of
Debarred, Suspended and Voluntarily Excluded Persons. The Master List is
computerized and updated every Friday at 3:00 p.m. EST and remains unchanged
during the following week. A current list may be obtained in each Regional
Office, at Headquarters or in the State agency to check eligibility for assistance
or subagreanent awards. To access the list, instruct your ADP operator as
follows:
(1)	Use Text Editing Language: OBS WYLBUR
(2)	Use $GICWBR2.REG.DEBAR CLR
(3)	List OFFLINE CC UNN EEST RMTNNN
[ NNN = Your Regional/State remote site ]
k. Reconsideration. A person who has been debarred may request the
Hearing Officer to reconsider the determination if the affected person submits
the request within 10 calendar days of the person's receipt of the determination.
1. Reinstatement. Under 40 CFR 32.208, any debarred person may petition
the Director, GAD, for reinstatement. Petitions for reinstatement should
state that the cause for debarment no longer exists, or that the risk associated
with the cause of action has been substantially mitigated. The petition must
include documentation sufficient to support the person's request.
13. REVIEWS. An applicant or recipient may seek a review of a determination
of nonresponsibility, or of a decision to withhold payment, terminate or
annul an award, or the issuance of a stop-work order, in accordance with the
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disputes procedures in 40 CFR Part 30, Subpart L. A person may seek a review
of a suspension or debarment order in accordance with procedures in 40 CFR
Part 32.
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CHAPTER 40 - CLOSBOUT OF ASSISTANCE AGREEMENTS
Table of Contents
PARAGRAPH	PARAGRAPH
TITLES	NUMBERS
General		1
Timely Closeout		2
Relationship of Closeout and Final Audit		3
General Closeout Responsibilities		4
Closeout of Project-Type Activities
(other than WWT Construction and Superfund	 5
Closeout of Wastewater Treatment Works Construction Projects		6
Closeout of Continuing Environmental Support Program Agreements	 7
Closeout of Superfund Cooperative Agreements		8
Record Retention	 9
FIGURE	FIGURE
TITrF.fi	NUMBERS
Status Report of Projects Completed but Not Closed Out	 40-1
Sample Completion Alert Letter	 40-2
Final Status Step Information Sheet	 40-3
Sample Followup Letter - 90 Days After Completion	 40-4
Sample Followup Letter - 120 Days After Completion	 40-5
Sample Followup Letter - 120 Days After Completion	 40-6
Sample Followup Letter - 120 Days After Completion	 40-7
Sample Closeout Letter - 	 40-8
APPENDIX	APPENDIX
TITLES	NUMBERS
Office of Water Program Operation's Memorandum "84-22"	 40-A
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CHAPTER 40 - CLOSEOUT OF ASSISTANCE AGREEMENTS
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1.	GENERAL.
a.	The closeout of a financial assistance project is the final process
used by EPA to determine that the recipient has completed all required substan-
tive work and complied with all applicable administrative requirsnents under the
agreement. An agreement is physically complete only when the recipient submits
all deliverables (work and services) required by the terms and conditions of the
agreement and EPA formally accepts them and determines that all other conditions
of the agreement have been satisfied. (See paragraph 6 below for criteria by
which to determine physical completion of Wastewater Treatment Works construction
projects.) A project is administratively complete after all payments are made,
financial accounts settled, and required administrative reports delivered and
accepted.
b.	Office of Management and Budget Circular A-102, Attachment L, establishes
the basic Federal requirements for closing out projects with State and local
governments, and Indian tribal governments. 0MB Circular A-110, Attachment K,
provides similar guidance applicable to universities, hospitals, and other non-
profit organizations. 40 CFR Part 30, Subpart H states the closeout requirements
that apply to all recipients of EPA financial assistance. General requirements
for recipient reporting, including reporting that is required at the conclusion
of each budget period, are stated in 40 CFR Ifert 30 and in Chapter 37 of this
Manual.
2.	TIMELY CLOSBOtrr.
a.	EPA should close out projects promptly. Delay unnecessarily ties up
obligated but unexpended funds. Also, closeout becomes more difficult as time
passes because persons responsible for various aspects of a project resign,
retire, or transfer; memories of events are less clear; the interests of the
Project Officer and Project Manager shift to other matters; and documents are
lost or destroyed. Most reports are due within 90 days after the end of the
budget or project period, except for the final progress (technical) report, if
any, which for most project-type agreements is due by the end of the project
period (see 40 CFR 30.505, 40.160-5, 45.150-2 and Chapter 37 of this Manual).
Recipients of cooperative agreements under the Superfund Remedial Planning and
implementation program should submit the final technical report of rsnedial
activities within 60 calender days after the effectiveness of the remedy has
been confirmed through monitoring (see "State Participation in the Superfund
Remedial Program Manual"). To assure timely receipt of required information,
the Assistance Administration Unit (AALJ) is encouraged to use listings from the
Qrants Information & Control System (GICS) to alert Assistance Specialists of
those projects that will end within 90-120 days.
b.	The EPA Project Officer and Assistance Administration Unit should
assure that the recipient understands the closeout process, knows what will be
expected, and when it will be expected. The actual closeout process should
begin during the last budget period, 3 or 4 months before the scheduled end of
the project or other supported activity (the project period end-date). At
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that time, the Project Officer should remind the recipient's Ftoject Manager
of closeout requirements, and the appropriate Assistance Administration Unit
should notify the recipient in writing that the budget/project period will end
and identify the information the recipient must submit before closeout.
3.	RELATIONSHIP OF CLOSEOUT AND FINAL AUDIT. EPA relies heavily on the
organization-wide audits of recipients carried out in accordance with the
Federal policy expressed in 0MB Circulars A-102, Attachment P, and A-110,
Attachment F. Consistent with that policy, many assistance agreements will
not receive individual final audits. Those agreements that are not selected
for EPA audit may be closed out quickly. EPA will routinely select certain
projects, principally WWT construction grants and Superfund cooperative agree-
ments, for final audit. Others may be scheduled as a result of suspected
problems. Those agreements especially selected for audit will not be closed
until the audit has been completed and all issues resolved. All assistance
agreements ranain subject to final audit even if closed out, and recipients
must comply with EPA's records retention requirements (see Chapter 19,
"Recipient Record Requirements".)
4.	GENERAL CLOSEOUT RESPONSIBILITIES.
a.	Recipient. Recipients must complete the work specified in the assistance
agreement and produce the required reports, manuals, plans, specifications and
other data. They must also provide the required final financial report for
the last budget period and other final administrative reports. They are respon-
sible for submitting all reports on time without receiving a formal request
from the EPA Project Officer or Assistance Administration Unit. The recipient's
Project Manager, contractors and consultants, and business staff will generate
and/or deliver most of the products and prepare the required reports.
b.	EPA (or Delegated State). EPA's Project Officer and Assistance
Administration Unit share a similar relationship to that of the recipient's
Project Manager and Business Office staff.
(1) They must work together to assure that the recipient:
(a)	Delivers a satisfactory principal final product, e.g. a
final research report, a Wastewater Treatment plant, or trainees certified
through a pesticide applicator training program;
(b)	Delivers ancillary products such as Operations and Maintenance
manuals, rights in technical data, or supporting statistical data;
(c)	Completes the output canmitments under continuing environmental
program support agreements;
(d)	Submits a final Financial Status Report (see Chapter 37
of this Manual);
(e)	Submits any other required reports; and
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(f) Has settled any claims or legal suits.
(2) They must also assure that EPA (or delegated State):
(a)	Promptly reviews/inspects work under the project and arranges
for acceptance or correction;
(b)	Reviews and approves required reports;
(c)	Follows up on delinquencies or deficiencies;
(d)	Assures that all audit exceptions are resolved;
(e)	Resolves any disputes;
(f)	Issues final determinations on any outstanding issues;
(g)	Establishes accounts receivable for recipient debts, reconciles
differences in billings and payments, and is refunded any amount due or makes
any final payment due the recipient;
(h)	Updates the Grants Information & Control System (GICS);
(i)	Documents the closure in the official file; and
(j) Retires the official records (see Chapter 41 of this Manual).
5. CLOSEOUT OF PROJECT-TYPE ACTIVITIES (other than VMT Construction and Superfund).
a.	General. The EPA Headquarters program offices manage most grant and
cooperative agreements which support research and development, demonstration,
surveys, studies, training, investigations, and similar project-type activities,
directly or through the EPA laboratories. The Grants Operations Branch (GOB)
at Headquarters provides administrative support in conjunction with the Financial
Management Center, Las Vegas and the respective laboratory and program staffs.
The closeout procedures followed by the Assistance Administration Units other
than GOB differ, but the basic GOB procedures outlined belcw provide a model
that can be modified to meet the needs of the regional offices.
b.	Initial GOB Closeout Procedures.
(1) The GOB provides each Assistance Specialist a 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 Not 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 entered that status. An example of the listing
is provided by Figure 40-1. These printouts can be used throughout the month as
turnaround documents, i.e., worksheets to record changes in the status of
milestone events for use by the GICS data entry clerk in updating the computer
file.
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(2)	When a project first appears on the GICS listing, the responsible
specialist reviews the project file to be sure that the project period in GICS
is correct.
(3)	The first "completion alert" letter (see Figure 40-2) is prepared
90 days before the end of the project period and is addressed to that individual
who accepted the most recent award document on behalf of the recipient. The
recipient is provided the necessary reporting forms and instructions with that
letter. A copy of that letter and all other relevant correspondence must be
provided to the EPA Project Officer.
(4)	The Assistance Specialist updates GICS when the status of a final
milestone changes. Milestone events are also recorded as they occur on a locally
prepared check list such as the "Final Status Step Information Sheet" (Figure
40-3) for inclusion in the official agreement file. This form is prepared when
the first reninder letter is mailed to the recipient or when EPA receives the
first closeout report or correspondence whichever is first.
c. Followup Schedule.
(1)	0-30 days after Completion. All Assistance Specialist use their
monthly GICS listing to determine their priority of closeout activity. The
second reminder letter should be mailed to the recipient at this time unless
the Project Officer or the specialist have received the required reports. The
specialist must talk (make a note of calls) to the Project Officer regularly,
especially before sending followup letters, to determine if the Project Officer
has received final any required reports. The specialist will alter the model
letter to fit the situation.
(2)	90 days after Completion. Final progress (technical) reports must
be delivered to the Project Officer by the project end date. Other reports,
including final Financial Status reports, are normally due within 90 days.
The Assistance Specialist will review those projects that have been completed
for over 90 days and determine whether another followup letter should be sent
(see Figure 40-4). This letter must be tailored to specific deficiencies of
that project.
(3)	120 days after Completion- If the recipient has not provided the
information required for closeout 4 months after completion of the project,
the specialist should check with the Project Officer and consider addressing a
followup letter patterned after the models in Figures 40-5 through 40-7. This
letter may be addressed to the university president or comparable head of
other recipient organizations. 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 set a specific date (suggest
2 to 3 weeks) for receipt of a response. The specialist should advise their
supervisor upon failing to receive an adequate response by the date established.
(4)	180 days after Completion. Closeout should be completed within 6
months after the end of the agreement. By that time the Av^rd Official should
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provide the recipient a closeout letter (see Figure 40-8) or a letter of final
determination.
d. Processing Final Reports.
(1)	Final Progress (Technical) Report.
(a)	General. For the purpose of Closeout, final reports are
reports of activity for or through the end of the last budget period. The
individual assistance agreement must specify final progress report requirements.
The responsible Assistance Administration Unit must coordinate with the Project
Officer to assure timely delivery of an acceptable report of the supported
activities. Some projects, will not require one. In any instance where waiver
of the reporting requirement seems appropriate, the Project Officer can request
a deviation. (See Chapter 36, "Deviations".)
(b)	Form. Final progress reports may take various forms (see
Chapter 37 "Recipient Reports").
(c)	Approval. The Project Officer and the appropriate Reports
Officer must assure that final progress reports are reviewed through EPA s pub-
lication review process. The Project Officer must provide written notification
to the responsible Assistance Specialist as soon as the report is received.
Subsequently, the Project Officer must provide a completed EPA Form 2220-1,
"Technical Report Data", to advise the Specialist that EPA has accepted the
report. The EPA publication number and/or NTIS accession number should be
provided if applicable and known. The Assistance Specialist should advise their
supervisor if it appears that an EPA Project Officer is unduly slow or unable
to obtain or process a final progress (technical) report. The supervisor may
request the help of the appropriate Laboratory Director or other program official
to expedite matters. It may also be necessary for the Award Official may exert
pressure to obtain compliance.
(d)	Record Copy of Final Progress (Technical) Reports. -The Project
Officer must provide two copies of the approved report, accompanied by a copy of
EPA Form 2220-1, "Technical Report Data", for retention in the EPA Headquarters
Library (see Chapter 37, "Recipient Reporting" for mailing instructions). Do not
send a copy of the report to the Assistance Administration Unit for filing.
(2)	Disposition of Property.
(a) Requirements for the purchase, use and disposition of personal
and real property are included in Chapter 26 of this Manual.
(3)	Final Financial Reports. (Also see Chapter 37, "Recipient Reporting"
for additional information regarding financial reports.)
(a) Settlement. At the time EPA financial support for a project
ends, the recipient must settle its financial account for:
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1	Any funds received under the agreement that are unexpended,
2	Any amounts payable to the EPA for equipment, supplies, etc.,
3	Program income, if any, and
4	An amount equivalent to EPA s share of project costs which
EPA paid but subsequently disallowed. The servicing EPA Financial Management
Office (FMO) provides a computer printout of financial transactions relating
to assistance agreements. The printout provides a base against which the
assistance specialist can verify the financial data in an official project
file before closeout.
(b)	Final Request for Advance or Reimbursement (SF-270). Recipients
not using the Letter of Credit method of payment must submit a final Request
for Advance or Reimbursement Form (SF-270) or, if applicable, a final voucher
to request final payment, to the servicing FMO. The FMO and Project Officer will
review the request for payment. If any discrepancy is discovered, the reviewer
will inform the recipient and resolve the matter by phone, if possible, or by
submission of a corrected form.
(c)	Final Financial Status Report (SF-269). All recipients, except
recipients of fellowships or assistance for wastewater treatment construction
projects, must submit a final FSR for the last budget period of the project.
The following are suggestions for reviewing the final FSR for the last budget
period. (Remember that an FSR is not final if the recipient reports unliquidated
(unpaid) obligations.) The responsible Assistance Specialist should:
1_ Review the reported data to locate apparent errors.
2 Assure that all amounts paid during the project period as
listed on the printout received fran the FMO agree with the amount of Federal
funds reported by the recipient.
2 Calculate the total EPA share of the recipient s outlays.
The amount reported as paid out by the FMO should equal EPA s share of the
expenditures reported.
£ Assure that reported nonfederal expenditures are adequate
to satisfy any level-of-effort requirements.
The Assistance Specialist should discuss any difference with
the FMO. If the amount paid by EPA is greater than the outlays reported on the
final FSR, the recipient was overpaid. In that event, the Assistance Specialist
must request the recipient to refund to EPA the amount of the overpayment with-
in 30 days. If the recipient is paid by letter of credit, advise them that
they may credit EPA for the amount of the overpayment on their next letter of
credit drawdown. Otherwise, repayment will be by check.
(d)	Remittance of Unencumbered Cash Advances. Recipients who have
cash on hand should remit the excess and any interest that was earned on that
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excess, to the servicing FMO when the final financial reports are submitted.
Checks must be made payable to U.S. Environmental Protection Agency and mailed
to the servicing FMO.
(4) Other Closeout Reporting.
(a) Invention Report. For agreements involving experimental,
developmental, research, or demonstration work, determine whether an invention
report is required (see Chapter 29 in this Manual).
e. Closeout Notice. The responsible Assistance Specialist must monitor
the receipt and acceptance of required final reports and the completion of any
other actions that are prerequisite to closeout. Upon receipt and acceptance
of all reports and the resolution of any financial differences, exceptions, or
discrepancies, the assistance administration staff will notify the recipient
in writing, copy to the Project Officer, that the agreement has been closed and
that the recipient may close its file subject to record retention requirements
(see Chapter 41 in this Manual) and possible audit.
6. CLOSEOUT OF WASTEWATER TREATMENT WORKS CONSTRUCTION PROJECTS.
a.	General. WWT construction projects differ considerably frcm those
projects discussed above. A WWT construction project may produce a facility
plan (Step 1), or plans and specifications for a treatment works (Step 2); it
may result in building a treatment works (Step 3); or it may result in the
design and building of a treatment works (Step 2+3). (As a result of amend-
ments to the Clean Water Act, Step 1 and Step 2 grants were not awarded after
December 29, 1981.) An EPA regional office in conjunction with the State water
pollution control authority acting for the regional office under a Delegation
Agreement, will oversee administration of the project. Closeout of a WWT con-
struction agreement must be preceded by physical and administrative completion
of the project and final audit unless the Divisional OIG determines that the
project will not be audited or the grant is terminated early either by mutual
agreement or for cause.
b.	Guidance. The Office of Water Program Operations (CWFO) publishes
specific guidance for WWT construction project closeout in its "Handbook of
Procedures" and in memoranda to the regional Water Management Division Directors.
c.	Physical (Substantive) Completion.
(1)	Step 1 project. The CMPC publishes a checklist to determine when
the Region or delegated State may consider a facility plan physically complete.
A Step 1 project is considered physically complete when the reviewing official
determines that the scope of work contained in the grant agreement is approvable,
or, for projects not going on to Step 2, Step 3, or Step 2+3, when it has met
the minimum requirements contained in OWPO "84-22" (Appendix 40-A).
(2)	Step 2 project. The regional office or delegated State may consider
a Step 2 project complete following a full and comprehensive review of the
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drawings and specifications in accordance with CWPO requirements, including
bidability and constructibility review if the project is expected to be built.
A Step 2 project is considered physically complete when the plans and specifica-
tions are either approved or judged approvable by the appropriate office. For
additional information, see OWPO s regional guidance memorandum "84-22."
(3) Step 3 and 2+3 projects. Projects are considered to be physically
complete when an official inspection (EPA/State/Corps of Engineeers) determines
that:
(a)	All but minor components of the project have been completed
(e.g., if all but landscaping was done, the project may be considered complete)
in accordance with the approved plans, specifications and change orders;
(b)	The facility is capable of functioning as designed;
(c)	All equipment is operational and performing satisfactorily (does
not apply to interceptors/collection systems); and
(d)	Laboratory facilities are complete and available to conduct
appropriate tests (does not apply to interceptors/collection systems and pumping
stations).
d. Administrative Completion.
(1)	Step 1 projects. (Reserved).
(2)	Step 2 projects. (Reserved).
(3)	Step 3 and 2+3 projects. The regional office or delegated State
may consider these projects administratively complete when;
(a)	Building is complete;
(b)	All pre-final audit administrative requirements have been
satisfied:
(c) Final inspection has been performed;
(d)	The project is operating and the project performance certifi-
cation has been received for grants awarded after December 29, 1981;
(e)	The final payment has been approved;
e. Timing of Closeout. EPA expects closeout of Step 3 and Step 2+3 projects
to occur^iThin 6 months "after resolution of any final audit findings including
any dispute, and final financial settlement.
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f.	Final Progress Reports.
(1)	Step 1 projects. The Facilities Flan constitutes the principal
final report.
(2)	Step 2 projects. The Plans and Specifications constitute the prin-
cipal final report.
(3)	Step 3 and 2+3 projects (Project Performance Certification). Che
year after initiation of operation the recipient of a grant awarded on or after
May 12, 1982, must certify whether the treatment works Is meeting project
performance standards. A negative certification must be accompanied by an
analysis of the cause of the problem, an estimate of the nature, scope, and
cost of corrective action and expected timing of the remedy (40 CFR 35.2218
(c)).
g.	Final Administrative Reports. The Project Officer must certify that
performance under the assisted project has been adequate and that final payment
may be made. For Step 3 and Step 2+3 projects, the Project Officer must
certify that a final inspection has been made (40 CFR 35.2216) and that the
treatment works has been satisfactorily completed. The certifications must
be delivered to the appropriate Assistance Administrative Unit which will
authorize final payment to the recipient (see Chapter 33, "Payment Procedures"
in this Manual).
h.	Final Audit. The Project Officer or Assistance Specialist must determine
whether a completed project (Step 1, Step 2, Step 3 or 2+3) will be scheduled
for final audit and request the Assistance Administrative Uilt to notify the
appropriate Divisional Office of the Inspector General. If the IG conducts an
audit, the project can not be closed out until after completion of final audit
and resolution of findings.
7. CL0SE0UT OF CONTINUING ENVIRONMENTAL SUPPORT PROGRAM AGREEMENTS.
a.	General. Annual assistance agreements by which EPA supports State and
local governments' pollution control programs are continuing in nature and will
not be completed within a definable time period. (See 40 CFR 35.105.) Each
agreanent with a State, Interstate or local government for the support of a
continuing environmental support program will not be completely closed out
annually but will be subjected to evaluation of program performance and financial
reporting after the end of each annual budget period. The responsible Assistance
Specialist should assure that the reported nonfederal expenditures were sufficient
to meet the recipient's level of effort requirements, if any. The ending of EPA's
financial support of a recipient will normally result from the termination of
the statutory authorization and funding for the program. EPA will completely
close out the continuing agreements only after the end of the last annual con-
tinuation agreement funded.
b.	Water Pollution Control Program Grants (§ 106). (Reserved).
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c. A_ir Pollution Control Program Grants (§105). (Reserved).
d. (Reserved for other Continuing Environmental Support Programs.)
8.	CLOSEOUT OF SUPERFUND COOPERATIVE AGREEMENTS. (Reserved). (Note that
Superfund agreements may not be closed out until after the completion of cost
recovery requirements, if any.)
9.	RECORD RETENTION. EPA s Records Management Manual states the requirements
that apply to EPA Headquarters and Regional Offices and delegated States for
the retention of official EPA financial assistance records. Chapter 41 of this
Manual discusses those requirements. Chapter 19 discusses the requirements
that apply to recipients.
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Figure 40-1
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Our Reference:
Dear
According to our records, this project will erxi on	. Please
submit the reports noted below:
[ ] Final Progress (Technical) Report. Submit the Pinal Progress Report to
the EPA Project Officer by the end of the project period (40 CPR 30.505).
[ ] Property Reports, hbt later than 90 days after the end of the project
period, submit a final inventory (in your format) to the EPA Project Officer
of Federally-owned Nonexpendable Ftersonal Property for which title remains
vested by law in the Federal Government (see 40 CFR 30.536).
[ ] Financial Status Report. A Financial Status Report (FSR) (Form SF-269) sent
to my attention, Grants Administration Division (PM-216), Environmental
Protection Agency, Washington, D.C. 20460. Please serai it not later than
90 days after the end of the project period. A copy of the form is enclosed
for your convenience (40 CFR 30.505(b)). (If that FSR includes unliquidated
obligations, you must submit a final FSR ttfien all obligations are liquidated.)
[ ] Disclosure of Inventions. We need a report of any Inventions that were
developed under this project. A copy of EPA Form 3340-3, "Contractor's
or Assistance Recipient's Invention Disclosure" is enclosed. Please complete
the form and send it to my attention within 90 days after the end of the
project period. A negative report is not required.
When all of the above items have been received and any differences have been recon-
ciled, we may request a final audit of the project. We will be your principal
contact for any administrative or fiscal adjustments that may be required because
of audit findings.
EPA regulations require that you retain all project records for a period of 3
years following submission of the final Financial Status Report or until any
litigation, claim or audit started before the expiration of the 3 year period
is canpleted and all issues are resolved.
Figure 40-2
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Please feel free to call me on (202) 382-9999 if you wish to discuss these
requirements or if you have any questions.
Sincerely yours,
Assistance Specialist
Assistance Management Section X
Qrants Operations Branch
Grants Administration Division (PM-216)
Enclosures
cc: EPA Project Officer
Recipient Project Manager
Figure 40-2-A
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ASSISTANCE ADMINISTRATION
	HEADQUARTERS ADM TEMP ASSISTANCE PROJECTS - CLOSEOUT AC
5(00
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'S
/	/
/
/
Project IP#
Recipient
year Month day
Proj. Per, gad Par
/A/
L
E
T
T
E
R
S
/B/
/C/
/D/
/X/
I
N
V
E
N
T
I
0
N
fwj
/RN/
/RP/
/RP/

/NAJ /
Hot applicable to thla project.
FINAL



/RP/ /
Received report.

/RU/ /
Received unacceptable report. Follow-up to recipient.
FINANCIAL


/RA/ /
FSR approved. Zero unobligated balance.

/PR/ /
FSR approved. FMC.LV requested to deobllgate.
STATUS



/PR/ /
FSR approved. Recipient directed to draw down.

/on/ /
PSR approved. Recipient owes EPA. Recipient requested
REPORT

to subalt refund or adjust letter of credit.

/PO/ /
FSR approved. Recipient has paid EPA.
PERSONAL PROPERTY
/NA/
/BW/
/RP/
/BP/
/pr/
/PP/
/PI/
/PI/
/DH/
/HA/
T S
K P
C 0
H R
/RF/
/PR/
/an/
/AA/
Pre-coapletlon reaialer sailed.
Coapletlon minder sailed.
Rainder{s) to ilgmtorj of agreeaent.
Warning to ptealdent/chief officer of recipient.
Final determination recoMended.
Hot applicable to thla project.
Received negative report.
Received positive report.
Received report and forwarded Co OGC.
Hot applicable to thla project.
Received negative report.
Received poaltlve report.
Received and forwarded repoit
to project officer
Project officer received report.
Project officer provided
disposition tecouendatlon.
Disposition Insttactions executed.
Ho further property action requited.
Disposition lnatractlona lintd.
Part ha r action required.
Disposition instructions withhold
pending d all very of report, etc.
REAL PROPERTY
/HA/
/BH/
/RP/
tut
/PR/
/PP/
/m/
/pi/
B*L
Hot applicable to thla project.
Received and forwarded report to project officer.
Project officer received repoit. Awaiting approval.
Project report unacceptable. Farther action needed.
Project report'approved. Confimatloa filed In COB/GICS.
Figure 40-3
closure /ray	/	/fp'/	/	/fc/	/
Planrp ilf)-3
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Our Reference:
Dear
According to our records, this project ended on	. Hie
purpose of this letter is to remind you of the final reports needed to close out
your project. Your prompt submittal of the following reports will facilitate a
routine closeout:
[ ] Final Progress (Technical) Report. Submit the Final Progress Report
to the EPA Project Officer immediately.
[ ] Property Reports. Not later than 90 days after the project end date,
submit a final report (in your format) to the EPA Project Officer of
Federally-owned Nonexpendable Personal Property. This inventory report
must list equipment for which title remains vested by law in the Federal
Government (see 40 CFR 30.536).
[ ] Financial Status Report. Not later than 90 days after the project
period end date, submit this report of expenditures (Form SF-269)
directly to my attention, Grants Administration Division (PM-216),
Brvirormental Protection Agency, Washington, D.C. 20460. A copy of
the form is enclosed for your convenience (40 CFR 30.505(b)). If the FSR
submitted 90 days after the budget period ended, included unliquidated
obligations, you must submit a final FSR when all obligations are liquidated.
[ ] Disclosure of Inventions. We need a report of any inventions that were
developed under this project. A copy of EPA Fbnri 3340-3, "Contractor's
or Assistance Recipient's Invention Disclosure" is enclosed. Please com-
plete the form and send it to my attention within 90 days after the project
period end date. A negative report is not required.
When all of the above items have been received and any differences have been
reconciled, we may request a final audit of the project. We will be your
principal contact for any administrative or fiscal adjustments that may be
required because of audit findings.
EPA regulations require that you retain all project records for a period of 3
years following submission of the final Financial Status Report or until any
litigation, claim or audit started before the expiration of the 3 year period
is completed and all issues are resolved.
Figure 40-4
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I would like to emphasize the importance of submitting these reports within the
time frames noted above.
Please feel free to call me on (202) 382-9999 if you wish to discuss these
requirements or if you have any questions.
Sincerely yours,
Assistance Specialist
Assistance Management Section X
Grants Operations Branch
Grants Administration Division (PM-216)
Enclosures
cc: EPA Project Officer
Recipient Project Manager
Figure 40-4-A
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Our Reference:
Dear
The project period for this assistance agreement ended on	. On
, we wrote to you requesting a number of items that we must have in
order to close out this project. These itms are required by EPA regulations
and were a condition of your acceptance of EPA assistance funds. As of this
date, we have no record of receipt for the following reports:
Final Progress (Technical) Report. Your assistance agreement requires that
you submit an acceptable final" progress report, covering the entire project,
to your EPA Project Officer for review and approval. Please ccmplete the
final progress report arri submit it to the EPA Project Officer.
Property Reports. You must send us the property reports described in
our	, 198 , letter, a copy of which is enclosed. You should
send the inventory in your own format to the EPA project officer.
Financial Status Report. In accordance with Environmental Protection
Agency regulations [40 CFR 30.505(b)], this report was due no later than
90 days after the end of the project period. Please submit a completed
Financial Status Report (Form SF-269) to me on your project expenditures.
Disclosure of Inventions. You are also reminded to advise me of any
inventions you developed under the project.
Please submit the above report(s) as soon as possible but no later than 30 days
from the date of this letter.
When all the above items have been received and any differences have been recon-
ciled, we may request a final audit of the project. We will be your principal
contact for any administrative or fiscal adjustments that may be required because
EPA regulations require that you retain all project records for a period of 3
years following submission of the final Financial Status Report or until any
litigation, claim or audit started before the expiration of the 3 year period
is completed and all issues resolved.
Figure 40-5
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It is essential that you take appropriate action to submit the materials necessary
to close out this project. Again, I ask that you help us in this important
matter. If we do not receive the requested reports within the time limit set
above, we may take action as outlined in EPA s regulation 40 CFR Part 30, Subpart
I, (copy enclosed).
Please feel free to call	, Assistance Specialist, or me on (202)
382-9999, if you have had difficulty in complying with these requirements or if
you have any questions. It is in our mutual interest to close out this project
as promptly as possible.
Sincerely yours.
Chief
Assistance Management Section X
Grants Operations Branch
Grants Administration Division (PM-216)
Enclosures
cc: EPA Project Officer
Recipient Project Manager
Figure 40-5-A
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Our Reference:
Dear
We have previously contacted	on the
above referenced assistance agreement with	Enclosed is a
chronology of our efforts to obtain the materials that we must have in order to
close out this agreement, which ended on	I am writing to
inform you that we must have the following materials within 	 days of the date
of this letter:
If we do not have these reports promptly, ve will take action under 40 CFR Part
30, Subpart I of the Environmental Protection Agency's "General Regulations for
Assistance Programs." Actions that may be taken include:
1.	Annulment of the assistance agreement.
2.	Withholding of any remaining payments.
3.	Suspending and debarring you as an eligible recipient.
4.	Disallowing project costs directly related to the noncompliance and
collecting refunds due because of the disallowed costs.
5.	Initiating other administrative or judicial procedures.
I urge your prompt attention to this important natter so that we are not forced
to take any of the above actions.
Sincerely yours,
Chief
Grants Operations Branch
Grants Administration Division (FM-216)
Enclosures: Chronology
Copies of previous correspondence
cc: EPA Project Officer
Recipient Project Manager
Recipient Business Office
Figure 40-6
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Our Reference:
Dear (Recipient's Principal Official):
I am writing to inform you that the referenced assistance agreement ended on
and to date we still have not received all the items necessary
to close out this project. I am enclosing copies of all previous correspondence
with your institution requesting the closeout materials. According to our
records, the following item(s) is/are outstanding and must be submitted within
15 days from the date of receipt of this letter:
If we do not receive this material/these materials within the 15 day period
cited above, we will consider enforcing sanctions under the Noncompliance provision
(40 CFR Part 30, Subpart I) of the Environmental Protection Agency's "General
Regulations for Assistance Programs." In consultation with the Environmental
Protection Agency's Office of General Counsel, we will consider taking one or
more of the following actions:
1.	Annulling the assistance agreement.
2.	Withholding of retaining payments of any projects to the recipient.
3.	Suspending and debarring you as an eligible recipient.
4.	Disallowing project costs directly related to the noncompliance and
requesting reimbursement of all Federal funds.
5.	Initiating other administrative or judicial procedures.
It is essential that you take appropriate action to submit the materials neces-
sary to close out this project. Again, I urge your pratpt attention to this
important matter.
If you have any questions, please feel free to call me on (202) 382-9999.
Sincerely yours,
Chief
Grants Operations Branch
Grants Administration Division (PM-216)
Enclosure: Previous correspondence
cc: EPA Project Officer
Recipient Rroject Manager
Recipient Business Office
Figure 40-7
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Our Reference:
Dear
We have received all of the final reports required on this assistance agreement
and we are therefore closing out this project, subject to final audit.
The Environmental Protection Agency Project Officer on this project has reviewed
the listing of property purchased with assistance funds. He has recommended
that you retain the equipment listed on the enclosure to this letter, for use on
EPA funded project NNNNNN-NN.
(Note: See property management standards in 40 CFR 30.531 and 30.532 for guidance
in spelling out property disposition instructions. Nonprofit institutions of
higher education and nonprofit organizations whose primary purpose is to conduct
scientific research are exempt from those standards.)
Your records should be preserved for three years frcm the date of the submission
"c dlv cxjgt cxjgj&xgt bdgdrb mvo"mdt "m rjdxt gja titigation, claim or audit
bdgmdv/ !vc"mv dlv v?oxmgdx"j "c dlv Y aear period is completed and all issues
resolved. It) ensure proper disposition of your records, please refer to 40 CFR
30.500 of our "General Regulations for Assistance Programs" (a copy of which you
received with your award). Once the provisions of this regulation are satisfied,
you may dispose of these records in accordance with your cwn practices.
We are pleased to have participated with you in this project.
Sincerely yours,
Chief
Assistance Management Section X
Grants Operations Branch
Grants Administration Division (PM-216)
cc: EPA Project Officer
Figure 40-8
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ASSISTANCE ADMINISTRATION
5700
12/3/81
DEC 2 1 m
MEMORANDUM
SUBJECT:
FROM:
TO:
PURPOSE
The purpose of this memorandum is to establish National'
goals for completing and closing out Step 1 and Step 2 projects
and to describe procedures and a time frame for performing this
work.
BACKGROUND
In FY 1982, a major initiative to complete Step 3, Step 2+3
and P.L. 84-660 projects was undertaken. In FY 1983, this
initiative was expanded to include the closeout of all Step 3,
Step 2+3 and P.L. 84-660 projects. With the inclusion of Step 1
and Stop 2 projects starting In FY 1984, this expansion will be
complete and all construction grant projects will be included in
the completion/closeout effort.
NATIONAL GOALS
The goal of the construction grants program is to complete
all Stop 1 and Step 2 projects except large, complicated or
involved projects by the end of FY 1985.
REVIEW OF FACILITY PLANS
Dae to evolving changes in the construction grants program,
many Stop 1 projects will not result in the construction of a
Federally ^funded treatment works'. Accordingly, a comprehensive
review of the- facility plan where a Step 3 or Stop 2+3 project is
not .expected to be awarded is, in most instances, not warranted.
Therefore, in-order to make the best use of limited
Completing and Closing Out Step 1 and Step 2 Projects
Henry L. Longest II, Director He!"•!"¦/ L	^
Office of Water Program Operations (1^1-546)°"
Water Management Division Directors
Regions I-X
Appendix 40-A
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ASSISTANCE ADMINISTRATION
5700
12/3/84
-2-
resources, the Regional Offices or delegated State Agency can,
at their discretion, review the facility plan only for
completeness and conformance with regulatory requirements and
essential grant conditions. The minimum requirements for such a
review are described in Attachment 1. If all of the elements
described in Attachment 1 are in the facility plan, and if the
key provisions of the Architect/Engineer (A/E) subagreement have
been fulfilled, the Step 1 project can be considered complete:
for grant payment purposes.
REVIEW OF CONSTRUCTION DRAWINGS AND SPECIFICATIONS
If it is expected that a Step 2 project will eventually
result in the construction of a treatment works, whether with
Federal funds or with State and local funds, a full and compre-
hensive review of the construction drawings and specifications
should be performed in accordance with current operating
requirements. This includes a biddability and constructibility
review. If a Step 2 project is not expected to progress to the
construction phase, ths biddability and constructibility review
can be omitted.
DELAYED PROJECTS
A delated project is any Step 1 or Step 2 project where the
work (facility planning or preparation of construction drawings
and specifications) has been stopped for an excessive period of
time, -generally for six months- or more.
This group of projects will require special attention.
First, grantees with delayed Step 1 or Step 2 projects should be
notified that they will be expected to complete the scope of
work described in ,the grant agreement. Notifications reminding
the grantees of this requirement should be sent to the
appropriate parties by February '15, 1984. The notification
should include a time frame for requiring the grantee to submit a
revised project schedule, if one is needed.
If the grantee cannot, or will not, meet the conditions of
the' grant agreement, consideration should be given to* annulling
the grant in accordance with 40 CFR 30.920-5, in which case, ail
grant .funds previously paid to the grantee Vould be returned to
the Federal Government. If the criteria for annulment in
30.920-5 are^not satisfied, the grant may be terminated pursuant
to 40 CFR 30.920 based upon the grantee's failure to comply with
the terms and conditions of the grant agreement. Negotiation of
Appendix 40-A-l
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ASSISTANCE ADMINISTRATION
5700
12/3/84
-3-
a termination agreement with the grantee is the preferable
method of termination. However, if the grantee refuses to enter
into a termination agreement, EPA nay unilaterally terminate the
grant. Upon termination,'SPA must pay the grantee the Federal
share of allowable costs for non-cancelable obligations incurred
prior to the effective date of termination."
Regions should use their best judgment in determining the
most effective approach for annulling or terminating grants and
negotiating termination agreements. All termination agreements
should provide assurances that the government has received full
value for the funds expended. Any terminations agreement that
is negotiated with a grantee must conform to Agency policies,,
regulations and guidelines and be supported by factual data.
All terminations require the concurrence of the Regional Counsel
or the Assistant General Counsel for Grants. Additionally, all
terminations can be reviewed by the Office of t'fie Inspector
General (OIG).
Work on delayed projects should be restarted_or termi-
nation or annulment procedures initiated, by June 1, 1934.
ONGOING PROJECTS
In accordance with current Agency operating procedures, the
facility planning and preparation of construction drawings and
specifications should be performed in accordance with the
schedule contained in the grant agreement. As soon as the
Step 1 or Ste'p 2 work has been accomplished, it should be
reviewed and acted upon, as appropriate, by the SJtate or
Regional Offices,
FINAL AUDIT REQUESTS
Any Step 1 or Step 2 project for which a Step 3 or Step 2+3
grant is not expected to be awarded should be forwarded to the
OIG with a request for a final audit. At this time, OIG has not
yet decided whether to restrict final audits to only those "* *
Step 1 and Step 2 projects over $250,(500, as is the case with
Step 3 and Step 2+3 projects, or to establish a separate cut-off
for Step .1 and Step- 2 projects. For this reason, all completed
Step 1 and/or Step 2 projects' fcr which a Step 3.or Step 2+3
grant is not expected to be awarded should be forwarded to OIG
for review.
If a Step 3 or Step 2+3 grant is expected to be awarded, a
final audit for the Stop 1 or. Step 2 project should not be -
requested until all work on the Step 3 or Step 2+3 grant has
been* completed. In those cases where overriding circumstances
require a final audit for a Step 1 or Step 2 grant before the
completion of the Step 3 project, one should ttev requested.
Appendix 40-A-2
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ASSISTANCE ADMINISTRATION
5700
12/3/84
-4-
CLOSEOUTS
Environmental Protection Agency Order No. 2750.2A states
that audit resolution must occur within 120 days after
completion of the final audit. The Office <^f Water Operating
Guidance and Accountability System (OWOGAS) states that closeout
is expected to occur within three months of audit resolution.
These time based goals also apply to Step 1 and Step 2
closeouts. If a final audit is not required, closeout is
expected to occur within six months of project completion.
OWOGAS
An evaluation of the progress in meeting the National goals
has been incorporated into the FY 1984 OWOGAS. The Regional"
Offices, as part of the FY 19 84 OWOGAS, have developed
commitments for completing, terminating or annulling
Step 1 and Step 2 projects.
The Regional Offices will be expected to establish target
dates, and to closely monitor and track any Step 1 and Step 2
projects scheduled for completion after FY 1985.-
CONTACTS
If you have any questions regarding the procedures
contained in this memorandum, please contact- Mr. David A. Luoma,
Acting Director, Municipal Construction Division (FTS 382-5859)
or Mr. Myron Tiemens, Deputy Director, Facility Requirements
Division (FTS 382-7260).
Attachment
bcc:concurrence/WH-547/WH-546/S. Moran, GAD
H. Corcoran, OGC/A. Brown, OGC/McGee/Tucker/WCB/Murphy/ECB/WCB
WH-547 :LMcGee: lb: 1219ET: 382-5847: 8/4"/83
WH-547:LMcGee:eg:1219ET:382-5847:8/12/83	MCGEE4 DISK,
WH-547 : LMcGee: eg: 1219ET: 382-5847:10/2-1/83
WH-547:LMcGee:eg:1219ET;382-5847:10/24/83
WH-547 :LMcGee:eg: 17.19ET: 382-5847:10/26/83
WH-547 :LMcGee:eg :1219ET: 382-5-847:11/8/83
WH-547:LMcGee:eg:1219ET:382-5847:12/15/83
WH-547:LMcGee:eg:1219ET:382-5847:12/19/83
Appendix 40-A-3
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ASSISTANCE ADMINISTRATION
5700
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REVIEW FOR COMPLETENESS
OF A FACILITIES PLAN
If each of the items described below is present and complete
in the facility plan, the facility plan can be considered com-
plete for grant payment purposes.
1. Description of treatment works for which
construction drawings and specifications will
be prepared, including design flow and analysis.
2'. Description of the entire waste treatment system
of which the proposed treatment works is a part.
3.	Infiltration/Inflow documentation.
4.	Analysis of innovative and alternative treatment
processes,*
5.	Cost effectiveness analysis of alternatives
including renovation, upgrading O&M, and use- of
on-site or non-conventional system.
6.	Analysis of net primary energy requirement.*
7.	Effluent discharge limitations,, NPDES permit
number if issued.
8.	Comments or approvals of relevant State,
interstate, Regional and local agencies.
9.	Public participation summary.
10.	Statement of local legal, financial,
institutional, and managerial resources.
11.	Adopted resolution accepting facilities plan by
the municipality.
12.	Statement regarding recipient compliance with
Civil Rights Act of 1964.
13.	Description of potential recreation/open space
opportunities.*
14.	Municipal Pretreatment Program (if require"^ by
40 CFR 35.907).
15.	Total project costs and customer charges
which include both user changes and debt
retirement.
Appendix 40-A-4
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ASSISTANCE ADMINISTRATION
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12/3/84
-2-
16.	Site availability and cost.
17.	Environmental Information Document.
18.	Fulfillment of essential grant conditions.
~Applicable only if facilities planning begun after September.30,
1978.
NOTE: Facilities planning initiated before May 1, 1974, may
be accepted under regulations published on February 11,
1974, if a Step 2 grant was awarded before April 1, 1980
(40 CFR 35.917 (c)) .
Appendix 40-A-5
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»	CONSTRUCTION GRANTS
on
\
CVJ
^ QUANTITATIVE MEASURE	DEFINITION/PERFORMANCE EXPECTATION
1(d) (cont.)	Performance Expectation:
The goal of the construction grants program is to complete all Step 1 and
Step 2 projects, except large, complicated or involved projects, by the end
of FY 1985.
The Region will be expected to establish target date! and to report the
status, or reason for delay, via GICS, for any Step 1 or Step 2 project
scheduled for completion after FY 1985.
1(e) 0 of Step 3, Step 2+3 &	l(e)\A project is considered physically complete when an official Inspection
PL 84-660 physical completions	(EPA/State/Corps) determinfes that:
and terminations.
° All but minor components of the project have been completed (e.g., If
all but landscaping was done, the project may be labeled as physically
complete) in accordance with the approved plans, specifications and
change orders;
° The facility is capable of functioning as designed;
s	° All equipment is operational and performing satisfactorily (does not
o
apply to interceptors/collection systems); and
P	° Laboratory facilities are complete and available to conduct appropriate
h)	tests (does not apply to Interceptors/collection systems and pumping
§	stations).
|	:
All administrative recjul rements-need not be satisfied for a project to be
0	physically complete. GICS select logic for physical completion is:
1	N5 = 'At4' or 'F(4' or 'BB'. GICS Select logic for termination 1s:
g	N5 = 'Al\
CO
Performance Expectations:
As a minimum target, all projects more than 90% complete at the beginning
of the fiscal year should be planned for physical completion by the end of
the fiscal year.
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o -=r
o co
LPl oo
Quantitative measure
CONSTRUCTION GRANTS
DEFINITION/PERFORMANCE EXPECTATION
1(f) # of Step 3, Step 2+3 and
PL 84-660 administrative
completions.
1(f) An administrative completion is any one of the following:
0 A final audit request: N8 = 'A(j' or 'Ftf' or*'Bp' or;
° A project that 1s administratively complete but not sent to OIG because
of related segments or phases: N8 = 'AP', or;
° A project not requiring a final audit: N8 » *NS'-
Final audit is requested when the following conditions have been satisfied:
° Construction 1s complete as defined In data element N5, Project Com-
pletion Code & Date;
0 All pre-final audit administrative requirements have been satisfied;
° Final inspection has been performed;
0 The plan of operation has been implemented, or for projects awarded
after December 29, 1981, project performance certification has been
recei ved;
° The "cut-off" letter has been issued to the grantee; and
° The final payment has been requested.
Performance Expectations:
All projects for which grants were awarded before December
expected to be administratively completed within 12 months
completion. All projects awarded after December 29, 1981,
be administratively completed within 24 months of physical
29, 1981, are
of physical '
are expected to
completion.
I
<
I
o
TJ
C
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CONSTRUCTION GRANTS
QUANTITATIVE MEASURE
DEFINITION/PERFORMANCE EXPECTATION
1(h) # of Step 3, Step 2+3 and
P.L. 84-660 closeouts.
1(h) Closeout occurs after:
° Funds owed the Government by the grantee (or vice versa) have been
recovered (or paid): and
° A closeout letter has been issued to the grantee; or
0 The grant has been withdrawn, terminated or annulled.
Performance Expectations:
Project closeout is expected to occur within 6 months after final audit
resolution.
However, the time-based measure will not apply 1f:
° An action is pending before the Audit Resolution Board;
0 The grantee appeals!a final decision to the Administrator in accordance
with 40 CFR 30.1100; or
0 The action official has referred the project to the, servicing finance
office to establish an accounts receivable fcased on the audit findings.
As a minimum target, all projects awaiting closeout or awaiting audit
resolution at the beginning of the fiscal year or any project planned for
'screen out' by OIG during the fiscal year should be planned for closeout by
the end of the fiscal,year. GICS select logic for closeouts 1s:
mm	• a. .J a	'
P0 = 'AfcJ'.
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5700
ASSISTANCE ADMINISTRATION	12/3/84
CHAPTER 41 ~ RECORDS RETENTION - Elft'S FINANCIAL ASSISTANCE FKPJECT RECORDS
Table of Oontents
PARAGRAPH	PARAGRAPH
TITLES	NUMBERS
Policy	 1
Required Records	 2
Retention and Disposition	 3
i
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5700
ASSISTANCE ADMINISTRATION	12/3/84
CHAPTER 41 - RECORDS RETENTION - EPA'S FINANCIAL ASSISTANCE PROJECT RECORDS
1.	POLICY. EPA's records retention policies and specific requirements for
individual financial assistance programs and responsible offices are prescribed
through the EPA Records Management Manual.
2.	REQUIRED RECORDS. These requirements apply to the official financial
assistance files that are generated and maintained by ERA Headquarters and
regional offices and, under specific delegation agreements, by the States in
the awarding and administration of grant and cooperative agreements. They also
apply to official records of unsolicited proposals and rejected applications
for assistance. They apply to paper records and to microform records.
3.	RETENTION AND DISPOSITION.
a.	General. The official file of an EPA assistance agreement is considered
to be inactive once the project/activity is complete and the agreement is closed
out. Inactive Federal records that must be retained are packaged and transferred
to a Federal Records Center (FRC) for storage.
b.	Federal Retention Period.
(1)	The retention period is the length of time that the Federal
Government must keep inactive records. The retention period for official
assistance administration records starts with the closeout of the individual
assistance agreement. Chapter 40, "Closeout" states the specific criteria for
timing of closeout of the various EPA assistance programs.
(2)	Inactive EPA records must be retained until expiration of the
prescribed retention period. In addition, if any litigation, claim, or audit
is started before the expiration of the retention period, the records must not
be destroyed as scheduled but must be retained until all litigations, claims,
or audit findings have been resolved or the expiration of the retention period
whichever is later.
c.	Retirement of Inactive Records. The Agency's Records Management Manual
contains comprehensive instructions for retiring official records to FRC's.
Retention requirements and disposition instructions for the official assistance
administration records of ER^ Headquarters and Regional Award Officials are
summarized below.
d.	Program Specific Requirements.
(1) WWT Construction Grant Agreements funded under Public Law 84-660.
Retention; Retain official file (paper and/or microform) for 4 years.
Disposition: Prepare official file for transfer to Federal Records
Center (retirement) immediately after closeout of the agreement.
41-1
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ASSISTANCE ADMINISTRATION
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(a)	Paper Records (Official Record Copy). Transfer to FRC.
Keep in FRC for 4 years, then destroy.
(b)	Microform Records (Official Record Ccpy). Transfer to FRC.
Keep in FRC for 4 years, then destroy.
(2)	WWT Construction Grant Agreements funded under Public Law 92-500
before May 12, 1982.
Retention; Retain official file (paper and/or microform) for 33 years.
Disposition; Rrepare official "grant" file (files of all projects
with the same six digit EPA Assistance Identification Number) for transfer to the
Federal Records Center immediately after closeout of the last segment (two digit
EPA project sequence number) awarded before May 12, 1982.
(a)	Paper Records (Official Record Oopy). Transfer to FRC. Keep
in FRC for 33 years, then destroy.
(b)	Microform Records (Official Record Copy). Transfer to FRC.
Keep in FRC for 33 years, then destroy.
(3)	WWT Construction Grant Agreements funded under Public Law 92-500
after May 11, 1982.
Retention. Retain official file (paper and/or microform) for 33 years.
Disposition. Prepare official file of the project for transfer
to Federal Records Center immediately after closeout of the agreement.
(a)	Paper Records (Official Record Oopy). Transfer to FRC. Keep
in FRC for 33 years, then destroy.
(b)	Microform Records (Official Record Copy). Transfer to FRC.
Keep in FRC for 33 years, then destroy.
(4)	Superfund Remedial Planning and Implementation Agreements.
Retention; Retain official file (paper and/or microform) for 20 years.
Disposition; Prepare file for transfer to the Federal Records Center
immediately after closeout of the agreement.
(a)	Paper Records (Official Record Copy). Transfer to FRC.
Keep in FRC for 20 years, then destroy.
(b)	Microform Records (Official Records Copy). Transfer to FRC.
Keep in FRC for 20 years, then destroy.
41-2
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ASSISTANCE ADMINISTRATION
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(5)	Continuing Environmental Program Support Agreements.
Retention: Retain official file (paper and/or microform) for 4 years.
Disposition: Prepare official file for transfer to Federal Records
Center Immediately after closeout of the annual agreement.
(a)	Paper Records (Official Record Copy). Retain in office
for 1 year after receipt of final Financial Status Report then transfer to
Federal Records Center. Keep in PRC for 3 years, then destroy.
(b)	Microform Records (Official Record Copy). Retain in office
for 1 year after receipt of final Financial Status Report then transfer to
Federal Records Center. Keep In FRC for 3 years, then destroy.
(6)	Other Project-type Agreements (Investigations, Surveys or
Studies, Research, Demonstration, Training, etc.) and Fellowships.
Retention: Retain official file (paper and/or microform) for 4 years.
Disposition: Prepare official file for transfer to the Federal
Records Center immediately after closeout of the agreanent.
(a)	Paper Records (Offlcal Record Copy). Transfer to FRC. Keep in
FRC for b years, then destroy.
(b)	Microform Records (Official Record Copy). Transfer to FRC.
Keep in FRC 4 years, then destroy.
e. States Acting Under Delegated Authority. Many States administer the
EPA Construction Grants for Wastewater Treatment Works (WWT) program under
Construction Management Assistance Program (§205(g)) grants. They may also
administer other EPA financial assistance activities such as Superfund clean-
ups under delegation agreanents. The responsible EPA regional office must
assure that its Inactive official EPA project files are transferred (retired)
to Federal Records Centers for storage in accordance with the requirements of
the EPA Records Management Manual and this Chapter.
(1)	Transfer to EPA Regional Office. Delegation agreanents with
States may provide that the State transfer inactive official EPA assistance
records to the EPA regional office for review and shipment to a Federal
Records Center for retention. Agreanents should provide detailed Instructions
that identify the relevant records and specifications for their assembly,
packing, and transfer; or
(2)	Transfer to Federal Records Center (FRC). Dslegation agreements
with States may provide that States prepare and transfer inactive official EPA
assistance records directly to an FRC for retention. Agreanents should provide
detailed instructions that Identify the relevant records and the specifications
for their assembly, packing, and transfer and also for compliance with other
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requirements specified by the General Services Administration for such transfers
to FRCs.
(3) Accessibility of Records. The responsible EPA assistance adminis-
tration staff and/or delegated Statewhen appropriate, will make official- EPA
records available to the EPA Office of the Inspector General (or other responsible
audit group) for performance of audit work.
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PERFORMANCE MONITORING
CHAPTER	CHAPTER
TITLES	NUMBERS
PROJECT OFFICER RESPONSIBILITIES	 44
(RESERVED)	 45
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CHAPTER 44 - PROJECT OFFICER RESPONSIBILITIES
Table of Contents
PARAGRAPH	PARAGRAPH
TITLES	NUMBERS
General		1
Guidance		2
Assignment of Project Officers		3
Preappllcatlon/Application Responsibilities		1
Project Monitoring		5
Recipient Noncompliance		6
FIGURE	FIGURE
TITLES	NUMBERS
Field Regional Liaison Officers	 44-1
Regional Research and Development Contacts (June 21, 1984)	 44-2
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CHAPTER 44 - PROJECT OFFICER RESPONSIBILITIES
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1.	GENERAL. The Project Officer is critical to the successful completion of
work performed under an EPA grant or cooperative agresnent. The job demands a
high degree and mix of: administrative skills; technical expertise; working
knowledge of regulations, procedures and program objectives that govern the
projects; ccmmon sense; good judgement; creativity; a willingness to solve
problems; and a close partnership with applicants/recipients and assistance
administration staff. The amount of involvement a Project Officer has in the
recipient's performance is indicated by the type of assistance that EPA awards
to support the project. (Appendix A of 40 CFR Part 30 identifies the types of
awards under EPA programs.) Under a grant involvement is limited (e.g., periodic
review of recipient reports; infrequent site visits); under a cooperative agree-
ment there Is significant involvement at all stages of the project.
a.	Once designated, the Project Officer is the appileant/recipient's main
point of contact with EPA (or the delegated State agency) for technical guidance
and output related issues. The Project Officer has the basic charge to manage
and monitor the performance of work under the terms of the assistance agreement.
There is little difference between the responsibilities of Regional and Headquarters
project officers; some variations exist simply because of organizational and
management differences, but the overall job is the same.
b.	Project officers rely on the Assistance Administration Units, financial
management offices and other support units of the Agency which perform the
administrative tasks required for applications, awards and financial reporting;
coordination with them is necessary and will benefit all concerned. Those tasks
include: the administrative and financial review of applications; evaluation
of recipient management systems; procurement guidance; cost/price analysis;
program inccme treatment; property disposition; audit requirements; records
retention; deviation processing; suspension and debarment; congressional noti-
fication; intergovernmental review process; assistance disputes. In disputes,
staff from the offices of General Counsel and Inspector General will provide
advice to project officers on legal and audit matters.
2.	GUIDANCE. Project officers should be familiar with a wide range of regula-
tory requirements that apply to the grant or cooperative agresnent for which
assistance will be given. The Project Officer may not be an expert in the
administrative and financial requiranents of the assistance processes but must
be able to identify situations that require in-house coordination and support.
In addition to the staff available within EPA, State and local goverrments,
educational Institutions, and other Federal agencies (i.e., your contacts) you
have access to the following:
a. Regulations that apply to ALL EPA assistance programs: •
(1)	Implorientation of the Uniform Relocation Assistance and Real Property
Acquisition Policies Act, 40 CFR Part 4;
(2)	Implementation of Proecdures on the National Eftvirormental Policy
Act, 40 CFR Part 6;
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(3)	Nondiscrimination in Prograns Receiving Federal Assistance frcm
the Environmental Protection Agency, 40 CFR Part 7;
(4)	Intergovernmental Review of Environmental Protection Agency Programs
and Activities, 40 CFR Part 29;
(5)	General Regulation for Assistance Prograns, 40 CFR Part 30;
(6)	Debarment and Suspension Under EPA Assistance Programs, 40 CFR
Part 32;
(7)	Procuranent Under Assistance Agreements, 40 CFR Part 33;
b. Regulations that apply to SPECIFIC EPA assistance programs;
(1)	Financial Assistance for Continuing Bivirormental Prograns, 40 CFR
Part 35, Subpart A;
(2)	Grants for Water Quality Planning, Management and Implanentation,
40 CFR Part 35, Subpart G;
(3)	Cooperative Agreements for Protecting and Restoring Publicly CX>/ned
Freshwater Lakes, 40 CFR Part 35, Subpart H;
(4)	Grants for Construction of Treatment Works, 40 CFR Part 35, Subparts
E and I;
(5)	Construction Grants Progran Delegation to States, 40 CFR Part 35,
Subpart J;
(6)	Research and Danonstration Grants, 40 CFR Part 40;
(7)	Training Grants and Manpower Forecasting, 40 CFR Part 45;
(8)	Fellowships, 40 CFR Part 46;
c.	"Assistance Administration Manual," available frcni the Grants Policy and
Procedures Branch (PM-216) and the National Technical Information Service (NTIS);
d.	Approved workscope of the project or assistance agreement/amendment,
including special conditions;
e.	Project site visits, phone calls, letters, meetings;
f.	Recipient and contractor(s) records (including cost/price analyses);
g.	Annual progran operating guidance (Headquarters and Regional);
h.	"State Participation in the Superfund Remedial Program—Feb. 1984,"
available frcm the State and Regional Coordination Branch (WH-548E); the U.S.
Goverrment Printing Office (GPO), and NTIS; and
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i. V&rious wastewater treatment construction grants publications available
frcrn State Water Pollution Gontrol agencies, EPA Regional offices, and the Office
of Water Programs (WH-547), except as otherwise noted:
(1)	"Handbook of Procedures;"
(2)	"Regulation and Policy Matrix;"
(3)	"Guidelines for (Verviewing Construction Grants Activities Conducted
Under the Interagency Agreement With the Corps of Engineers;"
(4)	"Operating Procedures for Monitoring Construction Activity — all
Projects Funded Under the EPA's Construction Grants Program;"
(5)	"Financial Capability Guidebook;"
(6)	"Construction Management Evaluation and Project Management Conference
Manual;"
(7)	"Management of EPA Projects By Local Grantees;"
(8)	"Construction Grants '85," available frcm NTIS, GPO and Office of
Water Programs (Note; this is updated each year);
(9)	"Management of Construction Change Orders - A Guide for Grantees
(March 1983)," available from NTIS and EPA Regional Offices;
(10)	"Guidance for the Preparation and Review of (Marine CSO) Applications,"
available frcm State Water Pollution Control agencies, EPA Regional Offices and
NTIS;
(11)	"Policy for Review of Advanced Treatment Projects," Federal
Register Notice, May 21, 1984, available frcm the Office of Water Programs
(WH-547);
j. "Handbook for Preparing Office of Research and Development Reports,"
April 1983, EPA 600/9-83-006, available frcm EPA, Center for Environmental Research
Information, Cincinnati, Ohio 45268.
3. ASSIGNMENT OF PROJECT OFFICERS. Project officers can be assigned at different
points in the application process. Often, EPA does not assign a Project Officer
until the award is offered. However, EPA may assign a Project Officer at the pre-
application stage of the process to assist a prospective applicant in developing
a proposal for funding consideration. At Headquarters and laboratories for the
Office of Research and Development, the Office of Pesticides and Toxic Substances,
and the Office of Air and Radiation, the progran office authorized to approve
the project for an award will designate a person from their staff to be the EPA
Project Officer. Regional offices may designate a person frcm either the
Assistance Administration unit or frcm one of the operating program offices.
(See Chapter 8, subparagraph 4a(2) of this Manual, "Consolidated Assistance" for
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further discussion.) Regional offices may also assign a liaison officer in
cases where a project is conducted in the Region but the Project Officer is
located at Headquarters or a laboratory. The Office of Research and Development's
Field Regional Liaison Officers and Regional contacts can serve in this capacity
(see Figures 44-1 and 44-2). A delegated State should assign a Project Officer
at the time it certifies an application for funding. When assigned, the Project
Officer should establish a "working file" for the project. This is not to be
confused with the official file maintained by the Assistance Administration
unit.
4. PREAPPLICATION/APPLICATION RESPONSIBILITIES. The EPA Project Officer assigned
before award will often be the individual who reviews the proposal for technical
merit and program relevancy and suggests a course of action to the submitter (see
Chapter 12 of this Manual, "Technical Review of Proposals"). The Project Officer
should ensure that the Assistance Administration unit receives and reviews the
submittal and that their recommendations are included in the Agency's response
to the submitter. A copy of that response and any other correspondence relevant
to developing the preapplication or application must be forwarded to the
Assistance Administration unit for inclusion in the official file. The purpose
of assigning a Project Officer at this early stage is to assist the prospective
applicant with developing an application that is "fundable." By working with
the submitter, the Project Officer can sharpen the focus of a proposal to better
meet EPA's needs, help the prospective applicant to understand and can ply with
all preaward requirements, (e.g., quality assurance) and avoid delays caused by
incomplete submittals. (See Chapter 3, "Preapplication, Application, and
Initial Evaluation.")
a.	New Application. If the progran office recommended that the submitter
of a preapplication or unsolicited proposal develop a formal application for
consideration and designated you as the EPA Project Officer, contact the pro-
spective applicant as soon as possible. It is important that you establish a
good relationship and understanding of what the prospective applicant can expect
of you, and you of them, while developing the application. You are available
to assist — not mandate — the development of the scope of work that will be
submitted to EPA. You should assure they are advised about what forms to use;
specific EPA progran needs and objectives; evaluation criteria; preaward require-
ments (e.g., intergovernmental review, procurement system certification, quality
assurance plan); whether the proposed costs are eligible, reasonable, allocable
and allowable; and the fact that EPA does not pay for costs incurred before an
assistance agreenent is signed by both the Award Official and the recipient.
During this stage, make sure the prospective applicant understands that there
is no commitment by EPA to fund the proposal being developed.
b.	Continuation Application. If you are assisting with developing a con-
tinuation application, coordinate your ongoing project monitoring, progress
reports and evaluations with any site visits, phone calls, or meetings necessary
for developing the continuation application.
c.	Consolidated Application. If you are assigned as EPA's Project Officer
for a consolidated (multimedia) proposal, refer to Chapter 8, "Consolidated
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Assistance" for additional procedures and guidance. Your responsibilities will
vary, depending on the functional area in which you work — assistance adminis-
tration or an operating program office. You will request and coordinate reviews
and ccniments frcm all offices involved with the proposal and use them to develop
an acceptable application and any special conditions for the intended award.
d.	Foreign Grant Application. If you are assigned to a project that will
be performed in a foreign country, you must coordinate your activities with
the Office of International Activities (OIA). See Chapter 7 of this Manual
for specific procedures and requirenents that you must observe regarding corre-
spondence, canmunications, and travel related to project activities outside of
the United States.
e.	Negotiation of Conditions. During the development of the application,
you can negotiate the level of proposed funding within the constraints of the
program and special programmatic conditions that will help you to manage the
project if it is funded. Such conditions must be consistent with regulations
governing the project and can not impose an unreasonable burden on the prospec-
tive applicant's or recipient's accomplishment of the project objectives. You
should refer to Appendix A of 40 CFR Part 30 and discuss vhether the project
is one that EPA will be involved in significantly (cooperative agreement) or if
EPA's involvement will be limited (grant). The Award Official will make the
final determination on the type of award.
5. PROJECT MONITORING. If you were not involved with the recipient's develop-
ment of the project application, you should establish contact as soon as possible
after the award and after you are designated as the EPA Project Officer. It is
important that you quickly establish a good relationship and that the recipient
understand your role (i.e., what you can/cannot do for them) and what you expect
frcm them. You are their primary point of contact with EPA and must monitor
technical aspects of work performed and ensure that the recipient complies with
the terms of the assistance agreement.
a.	General. You are authorized and responsible for overseeing project
progress and performance including the recipient's compliance with all technical
special conditions of the award; approving minor modifications to the work
plan and or budget; coordinating with the Assistance Administration Unit on
requests for deviations frcm the nonstatutory requirements of regulations
governing the project (see Chapter 36 of this Manual); providing technical
assistance to help accomplish the project objectives; and project completion
and closeout. You must coordinate activities between the operating program
and the Assistance Administration Uhit on all matters that concern project
revisions. You are expected to assure the project is on schedule and to iden-
tify and resolve problems as they arise. You must provide documentation to
the Assistance Administration Unit of correspondence, meetings, phone calls,
etc., that have a significant bearing on the performance of either the project
or the recipient or its contractors.
b.	Site visits. Before you visit the project site, notify the recipient
well in advance and advise then of specific matters you wish to discuss. You
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should also notify the Assistance Administration Unit and, if appropriate, the
Office of Research and Development's Field Regional Liaison Officer or Regional
contact assigned to the geographic area of the project (see figures 44-1 and
44-2) to learn of any concerns that they may want you to address for them.
There may be occasions vhich will require a representative from either or both
of these offices to participate in the visit.
(1)	Be alert to any problens that you can handle "on the spot;" those
that can't be resolved immediately should either be referred to the appropriate
office for action or followed up by you upon return from the site. Sane of the
things that you should check during your visit include:
(a)	Actual versus scheduled perfonnance/accanplishments;
(b)	Condition of equipment/property used on, or purchased for, the
project;
(c)	Resources (personnel, equipment, facilities, etc.) charged to
the project are actually used on the project; and
(d)	Conditions that might adversely affect EPA's interest, i.e.,
change in the recipient's financial status; personnel problens, noncompliance with
labor/civil rights laws; over-extension of the facilities.
(2)	Provide constructive advice/criticism, but do not try to actually
supervise either the project or the recipient's employees. Discuss your evalua-
tion and findings with the recipient and where necessary, require corrective
action. Conduct the visit in a business-like way, combining your diplanacy,
tact and technical expertise to achieve the maximum benefit for EPA and the
recipient.
(3)	Prepare a trip report that highlights your findings and evaluates
the quality of work being performed. You must provide a copy of this report
to the Assistance Administration unit for inclusion in the official file as
well as documentation of any follow up actions that are taken.
c.	Financial Reports. The recipient's "Outlay Report and Request for
Reimbursement for Construction Progran" (SF 271) or SF 269, "Financial Status
Report" (FSR) must be reviewed to assure that the recipient uses the funds
properly. In most instances, this review and necessary follow up action are
the responsibility of the Assistance Administration unit, and a copy is sent
to the Project Officer. It is good practice to review these in relation to
your evaluation reports and the recipient's progress reports to see if shifting
resources or-rearranging schedules of certain work elements might save time
or get the project back on schedule. Notify the Assistance Administration
Unit of any exceptions you take to these reports.
d.	Progress Reports. Insist on high quality progress reports as well as
their timely submission. These reports can alert you in advance to problens the
recipient may have in meeting schedules for canpleting certain v*>rk elements;
whether the overall approach should be modified, and whether a deviation is needed.
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e.	Project Changes. Recommend approval or disapproval and notify the
Assistance Administration unit of any major changes BEFORE they are imploriented.
Changes which require a formal anendment to be signed by the Award Official
and the recipient before they are made are identified under 40 CFR 30.700.
Those that do not require a formal amendment before they are implemented are
explained under 40 CFR 30.705.
f.	Deviation Requests. Recommend approval or disapproval of any request
for deviation from EPA regulations for the project. If the recipient submitted
the request through you, be sure to forward the request as submitted with your
recanmendation(s) to the Assistance Administration unit for inclusion in the
official file. Work with the assistance administration staff to be sure that
the formal deviation request to be submitted to the Director, Grants Administration
Division, clearly defines the reasons that a deviation should or should not be
approved. You should be familar with the procedures in Chapter 36 /"Deviations,"
of this Manual and 40 CFR Part 30, Subpart J. It is important that you and
the recipient recognize the need for a deviation IN ADVANCE; do whatever you
possibly can to avoid requesting them at the last minute or after the fact.
g.	Payments. Work with the Assistance Administration Unit if there are
any problans concerning payments; their staff will coordinate matters with the
Financial Management Office to assist you and the recipient. Refer to procedures
in Chapter 33 of this Manual.
h.	Subagreements. Review and approve the technical content (e.g., scope
of work, plans and specifications) of any subagreements under the award BEFORE
the recipient awards them to ensure they are the best means available to achieve
the project goals. For recipients with uncertified procurement systems, you
should forward the documentation submitted in support of a proposed subagreanent
to the Assistance Administration Unit to review for compliance with 40 CFR Part 33
requiranents. If questions arise from the review, DO NOT APPROVE the award of
a subagreement until you resolve the problems. If needed, the assistance
administration staff may arrange for an audit or perform a cost/price analysis
of the proposed subagreement. If possible, let the recipient know when to
expect the audit to occur.
i.	Property Disposition. Advise recipients who receive Federally-owned
property about when and where to return it after it is no longer needed for
the project or the project is completed. The Assistance Administration unit
will instruct you on how to advise the recipient to dispose of real and personal
property purchased with assistance funds. Refer to Chapter 26 of this Manual,
"Property Management," and the requirements under 40 CFR 30.535 and 30.536.
j. Final Project Report. If you are assigned to a project where the agree-
ment requires a final report, you must review the draft of the final project
report. If appropriate, suggest changes/additions, etc. You should work very
closely with the recipient to help produce a final product that meets EPA's
requiranents for content (see 40 CFR 40.160-5) and for publication (40 CFR
30.518). After you receive and approve an acceptable final project report,
complete EPA Form 2220-1, "Technical Report Data," and submit it with two
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copies of the final project report to the Information and Management Services
Division at Headquarters (PM-211E). You must also notify the Assistance
Administration Unit when you approve the final project report for the completed
project.
k. Final Audit. If appropriate, the Assistance Administration Unit will
request the Office of Inspector General's Office of Audit to perform a final
audit of the completed project. You should be available to help resolve any
problems.
1. Project Ccmpletion/Closeout. (See Chapter 40 of this Manual for detailed
guidance.) You are expected to certify that the project is completed and to
assist with closing out the official file. It is wise to check your own "working
file" to be sure that:
(a)	Audit exceptions and financial discrepancies are reconciled;
(b)	Project changes are documented by appropriate correspondence
and or formal amendments;
(c)	Equipment used on the project is properly accounted for and
disposed of; and
(d)	A final project report, if required, has been received and approved.
6. RECIPIENT NONCOMPLIANCE. If your attanpts to enforce the recipient's com-
pliance fail, you can recommend that the Pward Official take administrative
action under 40 CFR Part 30, Subpart I. You should familarize yourself with
the provisions of 40 CFR Part 32; the procedures set forth in Chapter 39,
"Compliance" and Chapter 35, "Disputes Resolution," and discuss the ramifications
with your Assistance Administration Unit throughout the process.
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FIELD REGIONAL LIAISON OFFICERS
OFFICE OF RESEARCH AND DEVELOPMENT
Office of Research Program Management
Regional Services Staff
(February 29, 1984)
Marvin 0. Allum
Environmental Research Laboratory
Environmental Protection Agency
200 SW 35th Street
Corvallis, OR 9733 3
Richard Field
Environmental Protection Agency
Woodbridge Avenue
Edison, NJ 08837
Douglas Kreis
Robert S. Kerr Environmental Research
Laboratory
Environmental Protection Agency
P. 0. Box 1198
Ada, OK 74820
Si Duk Lee (MD-52)
Environmental Criteria and Assessment
Office
Environmental Protection Agency
Research Triangle Park, NC 27711
Gilbert D. Potter
Environmental Monitoring Systems
Laboratory
Environmental Protection Agency
P. 0. Box 15027
Las Vegas, NV 89114
FTS 420-4349
CML (508) 757-4601
FTS 340-6674
FTS 743-2303
CML (405) 332-8800
FTS 629-4159
CML (919) 541-2266
FTS 545-2321
CML (702) 790-2100
Figure 44-1
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ASSISTANCE
REGIONAL
ADMINISTRATION
RESEARCH AND DEVELOPMENT CONTACTS
12/3/84
(June 21, 1984)
Region
Contact
Telephone
1
Lester Sutton
223-6304
2
Barbara Metzger
340-6754
3
Robert J. Mitkus
597-4532
4
David Hopkins
257-3776
5
Clifford Risley
353-1369
6
Ray Lozano
729-0728
7
Charles Hajinian
758-5593
8
Denis Nelson
564-4935
9
Terry Stumph
454-7483
10
Robert Courson
399-1526
Figure 44-2
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OTHER
CHAPTER	CHAPTER
TITLES	NUMBERS
FREEDOM OF INFORMATION		46
(RESERVED)		47
(RESERVED)		48
(RESEFVED)		49
(RESERVED)		50
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CHAPTER 46 - FREEDOM OF INFORMATION
Table of Contents
PARAGRAffl	PARAGRAPH
TITTfyj	NUMBERS
FOlicy		1
Requests for Assistance Related Information		2
Time Limitations		3
Claim of Rights of Nondisclosure		4
Recommendations of Extramural Reviewers		5
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CHAPTER 46 - FREEDOM OF INFORMATION
1.	POLICY. It is EPA policy to make the fullest possible disclosure of
information to any person who requests it without unjustifiable expense or
delay. Disclosures of infonration are subject to the provisions set forth in
40 CFR Part 2, "Public Information," and to the procedures set forth in EPA
Order 1550.1C, "Freedcm of Information Rrocedures." Regional and Headquarters
staffs will process requests for information concerning unsolicited proposals,
applications for assistance, and grant and cooperative agreements in the same
manner as any other requests for information under the Freedom of Information
Act (5 U.S.C. 552).
2.	REQUESTS FOR ASSISTANCE-RELATED INFORMATION.
a.	The appropriate Regional or Headquarters Assistance Administration Unit
(AAU) will honor requests for existing records prepared by EPA for routine
public distribution, e.g., pamphlets, copies of speeches, press releases, and
educational materials automatically.
b.	An AAU receiving a request for existing records that are not available
for routine public distribution will follcw the procedures contained in ERA
Order 1550.1C and refer the request to the appropriate Freedom of Information
Officer.
3.	TIME LIMITATIONS. EPA requires that the Headquarters or Regional Freedom
of Information Officer must respond to freedom of information requests within
ten (10) days after receipt (see 40 CFR Part 2, §2.112 and EPA Order 1550.1C,
paragraph 6).
4.	CIAIM OF RIGHTS OF NONDISCLOSURE. Applicants for assistance, recipients,
and their contractors may claim nondisclosure rights for information (or portions
thereof) submitted to EPA provided that the information is clearly marked as
"trade secret," "proprietary," or "business confidential," at the time the
information is first received by EPA, (see 40 CFR 2.203 and 30.304). The
responsible EPA staff will make the determination to disclose the information
or not in accordance with procedures stated in EPA Order 1550.1C.
5.	RECOMMENDATIONS OF EXTRAMURAL REVIEWER'S. EFA will not disclose the recau-
mendations of extramural reviewers on applications for financial assistance,
preapplication or unsolicited proposals.
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INTERAGENCY (IAG) AGREEMENTS
CHAPTER	CHAPTER
TITLES	NUMBERS
MANAGING INTERAGENCY AGREEMENTS	 51
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CHAPTER 51 - MANAGING INTERAGENCY AGREEMENTS
Table of Contents
PARAGRAPH	PARAGRAFH
TITLES	NUMBERS
BASIC INFORMATION
General		1
Purpose		2
Authority		3
Applicability and Use		4
Definitions		5
Responsibilities		6
IA3 Policy		7
DEVELOPMENT AND APPROVAL OF AGREEMENTS
Initiation of Proposed Agreement		8
Procedures for Entering into Interagency Agreements		9
Numbering of Interagency Agreements		10
POST-APPROVAL REQUIREMENTS
Programmatic Oversight		11
Management CX/ersight		12
Financial Oversight		13
Closeout Procedures for IAGS		14
FIGURE	FIGURE
TITLES	NUMBERS
Interagency Agreement File	 51-1
Interagency Agreement/Amendment Form (EPA Form 1610-1
(Rev. 8-84))	 51-2
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ASSISTANCE ADMINISTRATION
CHAPTER 51 - MANAGING INTERAGENCY AGREEMENTS
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1. GENERAL.
a.	What are Interagency Agreements? An interagency agreement (IAG) is a
written agreement between Federal agencies under which goods or services are
provided in exchange for monetary reimbursement, or where services are provided
without monetary reimbursement. An intergovernmental agreement is a written
agreement between a Federal agency and a State or local government under which
the Federal agency provides special or technical services to the State or local
government. As used in this Chapter, the term interagency agreenent includes
both interagency and intergovernmental agreements. The following agreements are
not interagency agreements and are not covered by the policies and procedures
of this Chapter:
(1)	Purchase orders or job orders issued to the General Services
Administration for space rental, supplies, and services;
(2)	Orders for printing and related services issued to the Government
Printing Office;
(3)	Orders to the Office of Efersonnel Management for the training of
EPA employees;
(4)	Services provided by the Small Business Administration under
Section 8(a) of the Snail Business Act;
(5)	Assignments of personnel under the Intergovernmental Personnel
Act; and
(6)	State-EPA agreements (broad agreements between EPA and individual
States which identify environmental problems, objectives, and priorities and
provide for coordination and integration among covered environmental programs).
b.	Distinct Projects. Each interagency agreement must be a distinct
project. It must have a clearly defined objective, and the activities under
the agreement all must serve that objective. Unrelated activities or separate
projects may not be included under one IAG.
c.	Categories of Interagency Agreements. EPA interagency agreements can
be categorized in several ways (see paragraph 10 for the effect of these cate-
gories on IAG numbering).
(1) By purpose:
(a) Agreement for Goods or Services. An agreement between EPA
and another Federal agency in which one agency provides goods or services
directly to another agency in exchange for monetary reimbursement, or in which
the parties have a mutual need for the goods or services and share in the cost
of the work performed under the agreement by an outside contractor or grantee.
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(b) Policy Agreement or Memorandum of Understanding. An agreement
between EPA and another Federal agency or a State or local government which sets
forth basic policies and procedures governing their relationship on matters of
mutual interest and responsibility/ or which provides services without monetary
reimbursement. There is no exchange of funds under this type of agreement.
(2)	funding source:
(a)	Reimbursement Agreement. An agreement in which EPA delivers
goods or services to another Federal agency or to a State or local government
and is reimbursed for its expenses. Under a reimbursement agreement, EPA uses
reimbursable authority provided by CMB to perform agreement activities, this
authority is conveyed to the originating office by the Office of the Comptroller
through a reimbursable advice of allowance. These funds are available only
for incurring obligations for the reimbursable activity. After the funds are
obligated, EPA bills the other agency and is reimbursed by it. If EPA fails
to recover these finds from the other agency, its own funds must be used to
cover the expended anounts.
(b)	Disbursement Agreement. An agreement in which another Federal
agency delivers goods or services to EPA and EPA disburses funds to pay for
their expenses.
(3)	By relationship to other agreements:
(a)	Master Agreement. A broad, general agreement vrf-iich provides
the basis for anticipated actionsat undetermined times and places over a
prescribed period. Separate projects (see definition) or unrelated activities
may not be combined under one master agreorient.
(b)	Dependent Agreement. An individual agreement to authorize
the performance of specific activities at specific times and places in accordance
with and dependent upon the terms and conditions of a master agreement.
(c)	Independent Agreement. An individual agreanent to authorize
the performance of specific activities at specific times and places, and vduch
is unrelated to a master agreement.
d. Method of Payment. There are three ways in which EPA may make payments
for goods or services under IAGs: reimbursement, advance payment, and allocation
transfer. Each method is discussed below:
(1)	Reimbursement. The other agency performs the work specified in
the agreement and on a periodic basis submits a request for payment to EPA.
EPA reviews the request for conformance with the agreement and other applicable
requiranents. If the request is in order, EPA pays the other agency.
(2)	Advance Payment. EPA and a number of other agencies receive reim-
bursable authority [see paragraph lc(2)(a) above] frcm CMB and do not require
advances to perform work under an agreement. However, certain agencies fund
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reimbursable activities from a special working fund account. These agencies
must receive payment in advance of performing the work under an agreement.
The agreement form will specify if advances are to be made under an agreement.
The other agency will report to EPA periodically on the status of costs incurred
under the agreement and these reports will be used as a basis to liquidate the
advances.
(c) Allocation Transfers. This procedure involves the transfer
of obligational authority from EPA to the other agency. This method of payment
often is used with agreanents of large dollar anount or where a transfer of
function is involved. Allocation transfers have special reporting requirements
and entail special accounting problems. Therefore, this method of payment only
may be used with the approval of the Office of the Comptroller.
2.	PURPOSE. This Chapter prescribes policies and procedures for the development,
execution, and administration of interagency agreements between the Environmental
Protection Agency and other Federal agencies and State and local governments.
3.	AUTHORITY.
a.	Organizational Authority. The EPA Organization and Functions Manual
assigns responsibility for the management of interagency agreements to the
Assistant Administrator for ^ministration and Itesources Management and to the
Director of the Office of Administration (see Chapter 5, paragraph 4). Authority
regarding the approval and execution of interagency agreements is set forth in
the Delegations Manual, 1-11. This authority provides that:
(1)	The authority to enter into (execute) interagency agreements
originating in Headquarters Offices is delegated to the Assistant Administrator
for Administration and Resources Management, except for certain anergency
situations under the Superfund program. In those situations (see paragraph
9d(2)), this authority is delegated to the Assistant Administrator for the
Office of Solid waste and Ehiergency Response (AA/OSWER).
(2)	The authority of the Assistant Administrator for Administration
and Resources Management to enter into interagency agreements, except environmental
policy agreanents, is redelegated to the Director, Grants Administration Division
(GAD).
(3)	The authority of the Assistant Administrator for Administration
and Resources Managanent to enter into environmental policy agreements is re-
delegated to the Director, Office of Federal Activities (OFA) .
(4)	The authority to enter into (execute) interagency agreonents
originating in Regional Offices is delegated to the Regional Administrators.
b.	Statutory Authority. Each interagency agreanent must be authorized by
specific statutory authority. Agreements between EPA and other Federal agencies
must be authorized either by the Economy Act of 1932, as amended, (31 USC 1535),
vihich authorizes the provision of goods and services by one Federal agency to
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another, or by another statute. Agreements between EPA and State and local
goverrments must be authorized either by the Intergovernmental Cooperation Act
of 1968 (35 USC 6501), which gives Federal departments and agencies the authority
to provide special or technical services to State and local units of government
(refer to CMB Circular A-97), or by another statute. Interagency agreements
between EPA and State and local governments may be reimbursement agreements only;
EPA may not enter into a disbursement agreement with a State or local government.
Disbursement of Federal funds to State or local governments is accomplished
through an assistance relationship, i.e., a grant or cooperative agreement, or
through a procurement contract.
4. APPLICABILITY AND USE.
a. Applicability. These policies and procedures apply to all EPA organiza-
tions. They are intended to be applied consistently throughout the Agency, jet
to be flexible enough to accommodate the unique requirements of each IAG. This
manual does not govern certain relationships listed in paragraph la of this Chapter.
b. Use. This Chapter serves as a basic reference for EPA officials who are
responsible for and/or active in the development, negotiation, approval, and
management of interagency agreements. It is intended to provide guidance on how
to administer IAGs, but it is subordinate to applicable Agency regulations and
related statutes, Executive Orders, 0MB Circulars, etc. This document does not
provide programmatic and technical information for specific agreements.
5. CEFINITIONS. The following definitions apply to the use of these terns with
interagency agreements.
a.	Action Official. The EPA administrative official when the Director, GAD
authorizes to enter into interagency agreements and obligate funds on behalf of
a Headquarters Office.
b.	Amendment. Any significant change in an IAG such as a change in the scope
of vork to be performed, project period, funding level, funding terms, or other
major provision.
c.	Budget Period. The period of time during which the IAG activities are
funded.
d.	Commitment. The reservation of finds in anticipation of their obligation.
e.	Commitment Notice. The notification to the Financial Management Division
of the commitment of funds to a disbursement IAG.
f.	Continuation. The refunding and reauthorization of an IAG for a second
or succeeding budget period.
g.	Decision Official. An EPA official, or his designee, who is authorized
to approve the technical/programmatic terms and conditions of an IAG.
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h.	Dependent Agreement. An IAG under which one agency provides goods or
services to another, subject to the terms and conditions of a previously executed
master agreenent between the two agencies.
i.	Disbursement Agreonent. An IAG under viiich EPA agrees to pay another
agency for a service or product.
J. Federal Agency. Any department or independent establishment of the
Government or any bureau or office thereof, but not the District of Columbia
or its agencies. For the purpose of this Chapter, a nongoverrmental organization
operating a Government owned, contractor operated (GOCO) facility will be con-
sidered a Federal agency. Examples of such organizations are the contractor
operated Argonne National Laboratory of the Department of Ehergy, the Jet
Propulsion Laboratory of NASA, and the Radford Army Ammunition Plant of the
Department of the Army.
k. Independent Agreement. An IAG whose terms and conditions are set forth
in that agreement alone.
1. Master Agreement. A broad, general agreonent which provides for the
performance of generally described activities at undetermined times and places
over a prescribed time period.
m. Obligation. Ihe official action which creates a liability 'on the part
of EPA to pay for goods or services obtained through an interagency (disbursement)
agreement. An obligation is created when both agencies have signed the agreement.
n. Policy Agreement¦ An IAG which sets forth basic understandings or
relationships between EPA and another Federal agency, or a State or local
government, in areas of mutual interest ard responsibility, and under which no
exchange of funds occurs. An environmental policy agreement is an IAG which
involves a policy matter requiring the review of EPA's high level policy officials
or their designees.
o. Project. The activities to be carried out under an IAG. Each project
must have a clearly defined objective and include only activities germane to
that objective.
p. Project Officer. Ihe programmatic official who is responsible for the
day-to-day management of the agreonent.
q. Project Period. The period during which activities under the agreement
are to be performed, including a startir^ date and an ending date.
r. Reimbursement Agreement. An IAG under which EPA agrees to deliver
goods or services and is to receive payment in return.
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s. State or Local Government.
(1)	"State" means a State of the United States, the District of Columbia,
a territory or possession of the United States, and an agency or instrumentality
of a State but does not mean a local government of a State.
(2)	"Local government" means a unit of general local government, a
school district, or other special district established under State law.
6. RESPONSIBILITIES. This paragraph sets forth responsibilities within EPA
for the development, execution, and management of Interagency agreements.
a. It is the responsibility of the Assistant Administrator for Administration
and Resources Management, or his/her designee, to:
(1)	Develop and implement agency-wide policy and procedures for interagency
agreements;
(2)	Assist in the development of interagency agreements as requested
by the initiating office;
(3)	Review, approve, and (except for emergency agreements executed by
the AA/OSWER) execute all EPA agreements or amendments which originate in
Headquarters (including Headquarters laboratories) and which involve payment
or receipt of funds; and
(*0 Assure compliance with the provisions of this Chapter;
(a)	Establish and maintain a system of administrative management
control and reporting for all interagency agreanents;
(b)	Maintain the official IAG file for agreements originating in
Headquarters; and
(c)	Conduct periodic monitoring of interagency agreements.
b. It is the responsibility of Associate Administrators Assistant Adminis-
trators, and Directors of Headquarters Staff Offices, or their designees, to:
(1)	Establish procedures to assure that agreements are developed and
managed in accordance with the provisions of this Chapter;
(2)	Determine that the proposed agreonents are consistent with EPA's
mission;
(3)	Designate Project Officers and promptly inform the Grants Administration
Division and the Cincinnati Financial Management Center (CMC) of changes in
Project Officers;
(4)	Develop and negotiate agreements within their respective program
areas;
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(5)	Provide the Grants Administration Division with certain basic data
on each agreement;
(6)	Submit all interagency agreements, except for environmental policy
agreements, to the Qrants Administration Division for review, approval, and
(except for those emergency agreements executed by the AVOSWER) execution? and
(7)	Sutmit all environmental policy agreements to the Director, Office
of Federal Activities for review, approval, and execution.
c.	It is the responsibility of Regional Administrators, or their designees,
to:
(1)	Review, approve and execute all EPA agreements or amendments vhich
originate in Regional Offices;
(2)	Designate the unit within the Regional Office which is responsible
for conducting the administrative review of IAGs;
(3)	Establish procedures to assure that agreements are developed and
managed in accordance with the provisions of this Chapter;
(4)	Determine that the proposed agreements are consistent with EPA's
mission;
(5)	Designate Project Officers; and
(6)	Develop and negotiate agreements within their respective areas of
responsibility.
d.	It is the responsibility of the Project Officer to:
(1)	Provide technical and managerial oversight of the agreement,
including coordination with other interested offices within EPA and liaison with
other agencies party to the agreement;
(2)	Maintain the working interagency agreement file. As a minimum,
this file should contain those items listed in Figure 51-1;
(3)	Negotiate the agreement, complete EPA Form 1610-1, Interagency
Agreement/Amendment, and obtain required originating office approvals;
(4)	Assemble an interagency agreanent package (which includes the
agreement, supporting information, a copy of the Ccmmitment Notice if applicable,
and a Decision Memorandum signed by the appropriate Decision Official or designee)
submit the package for administrative review, approval, and execution;
(5)	Inform the Cincinnati Financial Management Center (CFMC) of the
ccmmitment, either by submission of a Commitment Notice or by entering the
ccmmitment into an electronic data system, such as "First Up;"
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(6)	Record the cost of all work performed by EPA in reimbursable accounts,
and fill out and send EPA Form 2550-Ev "Report of Reimbursable Services Rendered,"
to CFMC in order to assure that EPA bills other agencies for work it has performed.
(7)	Receive and review detailed cost information sufcmitted by other
Federal agencies. This information must be provided on a project-by-project
basis and must break down the information into the budget categories provided
in Item 21 of EPA Form 1610-1, "Interagency Agreement/Amendment" (Figure 51-2).
(8)	Approve vouchers received frcm CFMC requesting payment for goods
or services provided to EPA, after determining that performance is in accordance
with the agreement, and forward those vouchers to CFMC for payment. Within one
week of receiving a voucher the Project Officer must approve the voucher for
payment or notify CFMC that payment should be withheld.
a. Upon completion of the project, the Project Officer will take steps
and make recanmendatiosn to the Property Management Section, Facilities and
Support Division, or to the regional property management specialist regarding
final disposition of equipment and personal property.
7. IAG POLICY. The following represent basic policies applicable to interagency
agreements:
a.	Requirement for Distinct Agreements. Each interagency agreement must
be a distinct project with a clearly defined objective. Itie Action Official
(or Regional Administrator) will not enter into IAGs which canbine separate
projects, or include activities that are unrelated or that do not serve the
same objective. This requirement does not preclude the use of task orders,
when appropriate, e.g., when an agreement previously obligated funds and author-
ized activities, but left activities to be carried out on an "as needed" basis.
However, a separate IAG must be executed when the amount of funds or type of
activity must be executed by the Decision Official, or when a new obligation
of funds is required. The originating office and GAD (or the designated Regional
administrative unit) will consult on vrfiether a new agreement is required, but
GAD's (or the Regional unit's) decision shall be final.
b.	Detailed Cost Information. EPA policy requires that requests for payment
under disbursement agreements must provide detailed cost information concerning
work performed by other Federal agencies. This information must be provided on
a projectby-project basis and must break dowi the information into the categories
provided in the "Interagency Agreement/Amendment," EPA Form 1610-1, Item 21.
c.	Preference for Conmercial Sources. The Government will not, as a
matter of policy, start or carry on any commercial industrial activity to
provide a service or product for its own use if such product or service may be
procured frcm private enterprise through ordinary business channels (Office of
Management and Budget Circular No. A-76). This general policy establishes a
presumption in favor of Government procurement fran commercial sources, with
certain exceptions (e.g., national security, costs, and unfeasibility). EPA
interagency agreements and amendments shall be entered into only vhen the
originating office determines that:
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(1)	Statutory authority for the proposed agreement exists. No funds
may be transferred under an IAG unless both Federal agencies have the authority
to perform the activities included under the agreement. Questions regarding
statutory authority will be resolved by the Office of General Counsel; and
(2)	The goods or services are not available frcm a commercial source
or that acquiring from a commercial source would result in increased costs, or
that it is not feasible to acquire the goods or services from a commercial
source (see CMB Circular A-76).
d.	Selecting IAGs As An Instrument. Subject to the determinations in para-
graph 7c above, an interagency agreement shall be negotiated whenever EPA and
another Federal agency agree to provide goods or services in exchange for mone-
tary reimbursement, or vrtien EPA agrees to provide services to a State or local
government or whenever EPA enters into or extends a relationship with a Federal
agency, State or local government to assign or reassign responsibilities and/or
establish interagency policies or understandings on matters of joint interest.
An IAG may not be used to circumvent travel or personnel ceilings or the require-
ments of the Federal procursnent regulations.
e.	Project Period. An agreement shall be written to include the entire
period for which performance is required or goods or services are to be delivered,
including a specific starting and ending date.
i
f.	Equipment and Personal Property.
(1)	An agreanent which requires the furnishing or acquisition of non-
expendable equipment or personal property (items costing $1,000 or more) shall
identify the equipment or property, when it is to be furnished or acquired,
and shall state the agency's approval of such acquisition.
(2)	Property or equipment thus authorized for acquisition by the other
agency under the terms of the IAG will be titled in that agency and subject to
the property management procedures of that agency. Property or equipment that
is furnished to the other agency by EPA under the terms of the IAG will be
transferred to the other agency in accordance with the procedures of the General
Services Administration, titled in that agency, and subject to the property
management procedures of that agency.
(3)	Vhere conditions exist in a specific IAG that make it appropriate
to deviate frcm the above policy, the natter should be brought to the attention
of both Headquarters and appropriate field Property Management officials for a
final determination.
g.	Interagency Agreement Funds. Interagency agreanent funds must be
obligated within their period of availability. This period depends on the
appropriation which provides the finds. Certain finds are available for one
year only, others for two years, and sane funds have no such availability
limitation. Funds transferred under an IAG retain the same limitations vrfiich
applied to their use by EPA or by the other agency.
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h.	Recovery of Agency Indirect Expenses. An agreement for goods or services
in which EPA performs work for another Federal agency shall include as part of
the cost, the indirect expenses allocable to the work to be performed (see
Controller General's Opinion B-136318 dated January 21, 1977). GAD will develop
an indirect cost rate for reimbursable IAGs. In the interim, EPA will determine
indirect costs for reimbursable IAGs on a project-by-project basis. GAD and
the originating office will determine these costs jointly. When both Federal
agencies have a need for the goods or services, the agency responsible for
performance of the work will recover only the cost of the work it performs
in-house.
i.	Cost Sharing. Where cost sharing is a condition to entering into an
agreonent, the agreement shall specify the share that each party shall pay.
The amount of cost funded by EPA shall be proportional to the Agency's interest
in the project, as determined by the progran office.
j. Agreements Involving Extramural Instruments. Vtfiere the objective of
the agreement is to be accomplished through an extranural instrument such as a
grant or a contract, and when such information is available at the time of pre-
paration, the agreement shall include the name of the grantee or contractor, the
grant or contract amount, and the percentage of the cost to be funded by EPA.
k. Personnel Details. Detailing personnel under an interagency agreement
for a period of more than 30 days must be preceded by the preparation of a Request
for Personnel Action (SF-52) and the preparation and approval of a Notice of
Personnel Action (SF 50).
1. Amendment to an Agreement. An anendment to an agreonent must be prepared,
sutmitted, and processed like an original agreement. Any significant change in
the scope of work, project period, finding level, finding terms, or other major
provision of an IAG requires an amendment.
m. Interagency Agreements with State or Local Goverrments. EPA will not
enter into disbursement agreements with State or local goverrments. State or
local goverrments may purchase specialized or technical services (see CMB
Circular A-97) frcm EPA through IAGs, but EPA may not obtain goods or services
frcm State or local goverrments by interagency agreement. Rather, a grant,
cooperative agreement or procurement contract will be negotiated to provide
assistance to or to procure frcm State or local goverrments.
n. Audit. It is EPA policy that interagency agreements in which EPA
participates are subject to audit. Should EPA have concerns about the manner
in which another agency is carrying out a disbursement agreement, EPA may
request that agency to audit the agreonent. Similarly, dien requested, EPA's
Office of the Inspector General will conduct an audit of reimbursable agreements
being carried out by EPA.
o. Required Documentation. Interagency agreanents must contain the informa-
tion required by this Chapter. However, it is EPA policy to avoid unnecessary
paperwork. Therefore, when a portion of a proposed agreement or anendment is
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identical to provisions in a previously appro/ed IAG, it is not necessary to
duplicate those provisions in the proposed agreement. Instead, a simple,
specific reference to the previous IAG provision will suffice. Similarly,
when a statute mandates that EPA select a specific Federal agency to carry out
an IAG, the Decision Memorandum, in justifying the selection of that agency
for an IAG, need only so state and identify the statute and section containing
the requirement.
p. Quality Assurance. It is EPA policy that all environmentally related
measurements and data collected and used in EPA interagency agreements be
scientifically sound, defensible, and of known, acceptable, documented quality.
All EPA interagency agreements which involve environmentally related measurements
or data generation must include a quality assurance program acceptable to the
Decision Official.
8. INITIATION OF PROPOSED AGREEMENT.
a.	General. Interagency agreements will be originated, negotiated, and
developed by progran offices. For IAGs which originate in Headquarters, the
Grants ^ministration Division will review agreements (except for environmental
policy agreements) for compliance with statutory, regulatory, and administrative
requirenents. For IAGs vhich originate in Regional Offices, the Regional
Administrator will designate a unit to perform this review. (Ft>r ease of
reference, these procedures refer to the Regional review unit as the Regional
Assistance Administration Uhit or RAAU. However, the Regional Administrator may
designate any appropriate organization to perform this function.) Once an agree-
ment is determined to have met those requirements, the Action Official in GAD
(except in the case of certain Superfund agreements in special emergency situa-
tions and environmental policy agreements), or the Regional Administrator will
sign the agreement for EPA.
b.	Policy Agreements.
(1)	Environmental Policy Agreements focus primarily on envirormental
policy issues (e.g., multi-agency steering groups.) All proposed envirormental
policy agreements which originate in Headquarters will be forvrarded to the
Office of Federal Activities (CPA) for policy review and approval. The CFA
will review the proposal, and return it to the originating office for execution
- either approved by the Director, CFA, or with a written indication of the
need for revision. Ehvirormental Policy agreements originating in the Regional
Offices will be handled in the same manner as other IAGs. In order to maintain
a consistent IAG numbering system and to insure coordination between both types
of policy agreements, CFA and RAAU will obtain an IAG number frcm GAD (see
paragraph 9c(1)) before executing policy agreements and returning them to the
originating office. CFA and RAAU will maintain the official files but will
send CAD a copy of each such executed IAG for information.
(2)	All other policy agreements are defined as those of an administrative
or service nature (e.g. aircraft or ship maintenance services). GAD will
process and execute all other HQ policy IAGs. The GAD will send OFA a copy of
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each such IAG for review and comment prior to execution. For this type of
IAG, GAD will coordinate and present any significant policy issues to senior
management for resolution and will maintain the official file. Such policy
agreements originating in the Regional Offices will be handled in the same
manner as other IAG's. The RAAU will maintain the official file and will send
GAD a copy of each executed IAG for information.
c.	Saperfund Emergency Situations. When an agreanent is executed by the
AVOSWER under the procedures outlined under paragraph 9d, GAD will review it
for compliance with statutory, regulatory, and administrative requiranents,
but not until after the AA has signed the agreanent.
d.	Determination to enter into an IAG. Before the originating office
prepares an Interagency agreanent, it must determine that the agreement is
necessary and appropriate (see paragraph 7c, Preference for Commercial
Sources), and in particular, that:
(1)	The proposed IAG is consistent with EPA's mission;
(2)	The proposed IAG is, after consideration of the available alter-
natives, the best method of achieving the objective;
(3)	The activities under the proposed IAG will be performed in con-
formance with accepted scientific or technical standards (see paragraph
7p, Quality Assurance);
(4)	For reimbursement agreements, the work involved is consistent with
EPA's objectives, and its performance will not adversely affect the agency's
ability to service its own programs. If the agency cannot make this latter
determination, then it must obtain reimbursable FTEs fron the Comptroller's
Office to provide staffing for agreement activities; and
(5)	That there sire sufficient resources to cover the cost of the work
under the agreement; and
(a)	For disbursement agreements, funds are included in its allow-
ances for the current fiscal year. If the allowances do not contain sufficient
funds, the originating office must contact the Comptroller's Office to obtain
a reprogramming of funds.
(b)	During the last quarter of the fiscal year, the originating
office must contact the Comptroller's Office concerning all reimbursement
agreements over $100,000 In orcler to assure the availability of resources
prior to the end of the fiscal year.
d. Interagency Agreanent Format. All agreements originated by EPA (except
for policy agreements) shall be prepared on EPA Form 1610-1 "Interagency
Agreement/Amendment" (see figure 51-2). Instructions for completing the form
will be found on pages 4 and 5 of the form. An agreement prepared by another
Federal agency or a State or local goverrment and submitted to EPA for
signature shall contain the information shown on EPA Form 1610-1.
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9. PROCEDURES FOR ENTERING INTO INTERAGENCY AGREEMENTS, following are the
steps which the EPA originating office, the Grants Administration Division, the
designated Regional Assistance Administration Unit (RAAU), and the Cincinnati
Financial Management Center (CFMC) will take in processing interagency agreements.
Except as otherwise noted, the procedures apply to both disbursement and
reimbursement agreements, and to IAGs originated by EPA Headquarters Offices,
Regional Offices, and EPA Laboratories.
a. Procedural Steps for Offices Originating Agreements.
(1)	The originating office designates a Project Officer. The Project
Officer is the EPA staff person responsible for the IAG generally and for
liaison with the other agency. An IAG must have a project officer at all
times; any change of project officers shall be reported to GAD/RAAU and the
CFMC promptly and in writing.
(2)	The Project Officer establishes a working file which eventually
will include all pertinent documents concerning the agreement. While this is
not the official file, it is important that the Project Officer's file be
complete. Figure 51-1 includes a list of the documents which should be in a
complete working file.
(3)	The Project Officer negotiates the content of the proposed agree-
ment with the other agency. For disbursement agreements, EPA Form 1610-1 must
be used. For reimbursement agreements, either the EPA 1610-1 form or that of
the other agency may be used; in either case, the proposed agreement must in-
clude the information requested on the EPA 1610-1 and any other conditions
which affect the performance of the agreement. Also, for reimbursement agree-
ments, the other agency should sign the agreement first.
(4)	For disbursement agreements, the Project Officer obtains an executed
Ccmmitment Notice, EPA Form 2550-9, from the appropriate allowance holder's
Commitment Clerk.
(5)	The originating office transmits the agreement to the Decision
Official who signs and returns it to the Project Officer. The Project Officer
assembles an agreement package which includes the agreement form (either the
EPA 1610-1 or that of the other agency), relevant narratives, a copy of the
Commitment Notice, if applicable, and a Decision Memorandum (where appropriate,
the package also shall Include a Quality Assurance form). The Decision Memorandum,
which must be signed by the Decision Official, sunmarizes how the proposed IAG
will facilitate the accomplishment of a particular EPA objective (including
whether an extramural instrument will be used), discusses the alternatives to
an IAG which the originating office considered, and explains why the proposed
source (other agency) was selected (including the determination required by
paragraph 8d(2), above). A Decision Memorandum will not be required for any
IAG mandated by CERCLA or E.0. 12316.
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(6)	The originating office informs the CMC of the canmitment, either
by transmitting a copy of the Canmitment Notice or by entering the canmitment
into an electronic data system such as "First Up."
(7)	The Project Officer completes and forwards the agreement package
to GAD (or to the designated RAAU for administrative review. It should include
four copies of the EPA Form 1610-1 with original signatures. In the case of
reimbursement agreements, two of the agreement forms should have an original
signature from the other agency.
b. Procedural Steps for GAD (Headquarters IAGs).
(1) GAD receives the IAG package, logs it in, assigns an agreement
number (for information explaining the IAG number see paragraph 10), and
records basic identifying data. Basic identifying data includes:
(a)	Descriptive title;
(b)	Agreement number;
(c)	Date package received in GAD;
(d)	Type of agreement (disbursement or reimbursement)
(e)	Proj ect Officer;
(f)	EPA program office;
(g)	Other agency;
(h)	Anticipated EPA agreement cost; and
(i)	Canmitment Notice number (Document Control
Number), if a disbursement agreement.
(2)	GAD establishes the official agreement file, which will include
all pertinent documents concerning the agreement, and enters basic identifying
data into GICS. If requested, GAD will provide assistance to the originating
office In canpleting IAG forms (FTS 475-8270, Grants Information and Analysis
Branch).
(3)	GAD reviews the package to assure that it fully complies with all
appropriate legislative, regulatory, and administrative requirements. If the
proposed agreement meets these requirements, GAD staff prepare a recommendation
that the Action Official sign and forward the agreement to the other agency.
If it does not, GAD staff contact the Project Officer and resolve the agreement's
deficiencies.
(4)	GAD telephones the Cincinnati Financial Management Office (FTS
684-7831) and provides them with the agreement number assigned to the agreement.
For reimbursement agreements, GAD also obtains the reimbursable account number
frcm CFMC and then telephones that number to the Project Officer.
(5)	For disbursement agreements, GAD prepares a letter submitting the
agreement package to the other agency. The other agency returns a signed copy
of the agreement form to GAD. If the agreement is not returned within two
weeks, GAD will contact the Project Officer for follow-up with the other agency.
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(6)	For reimbursement agreements, GAD prepares a letter returning a
signed copy of the agreement to the other agency.
(7)	As soon as the agreement has been signed by both agencies, GAD
sends a copy of the executed agreement to the Project Officer, the Office of
the Comptroller, the CFWC, and the official GAD file. The copy sent to the
official file must have original signatures. To avoid duplicate canmltments,
no copy of the Commitment Notice is sent to the CMC. If the agreement involves
providing or purchasing equipment, GAD will send a copy of the agreement to
the Property Management Section, Facilities and Support Services Division.
(8)	GAD updates the status of the IAG data and transmits it to the
data entry clerk who enters the data into GICS.
(9)	For disbursement agreements, the obligation is recorded in GICS.
On a regular basis the CFMC electronically transfers accounting data to its
Financial Management System in which the appropriate obligation is recorded.
c. Procedural Steps for Regional Assistance Administration Units (Regional
IAGs).
(1)	The Regional Assistance Administration Unit (RAAU) receives the
IAG package and telephones the Grants Administration Division in Headquarters.
GAD assigns an agreement/amendment number and records basic Identifying data
concerning the agreement. This data includes:
(a)	Descriptive title;
(b)	Agreement number;
(c)	Date package received in RAAU;
(d)	Type of agreement (disbursement or reimbursement);
(e)	Project Officer;
(f)	EPA program office;
(g)	Other agency;
(h)	Anticipated EPA agreenent cost; and
(i)	Commitment Notice number (Document Control
Number), if a disbursement agreement.
(2)	RAAU establishes the official agreement file, which will include
all pertinent documents concerning the agreenent, and enters basic Identifying
data in GICS. If requested, RAAU will provide assistance to the originating
office in completing IAG forms.
(3)	GAD verifies that the data has been recorded in GICS. If it has
not, GAD will mate the entry. If requested, GAD will provide assistance to
Regional offices in completing IAG forms (FTS 475-8270, Grants Information and
Analysis Branch).
(4)	RAAU reviews the package to assure that it fully complies with
all appropriate legislative, regulatory and administrative requirements. If
the proposed agreement meets these requirements, RAAU staff prepare a reccmmend-
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ation that the Chief, RAAU send the agreanent to the Regional Administrator
for'signature. If it does not, RAAU staff contact the Project Officer and
resolve the agreement's deficiencies.
(5)	The Regional Administrator signs two copies of the agreement and
returns the IAG package to RAAU.
(6)	RAAU telephones the CFMC (FTS 684-7831) and provides them with
the agreement number assigned to the agreement. For reimbursement agreements,
RAAU obtains the last two digits of the account number and transmits the completed
account number by telephone to the Project Officer.
(7)	For disbursement agreements, RAAU prepares a letter transmitting
the agreement package to the other agency. The other agency returns a signed
copy of the agreement form to RAAU. If the agreanent is not returned within
two weeks, RAAU will contact the Project Officer for follow-up with the other
agency.
(8)	For reimbursement agreorients, RAAU prepares a letter transmitting
a signed copy of the agreement to the other agency.
(9)	As soon as the agreement has been signed by both agencies, RAAU
sends a copy of the executed agreement to the Project Officer, GAD in Headquarters,
the Comptroller's Office, the CFMO, and the official RAAU file. The copy sent
to the official RAAU file must have original signatures. lb avoid duplicate
canmitments, no copy of the Commitment Notice is sent to CFMO. If the agreement
involves providing or purchasing equipment, RAAU will send a copy of the agreement
to the Regional property management specialist.
(10)	RAAU updates the status of the data in GICS. GAD verifies that the
updating has been done. If not, the data entry clerk makes the entry.
(11)	For disbursement agreements, the obligation is recorded in GICS.
On a regular basis, the CFMO electronically transfers accounting data to its
Financial Management System in which the appropriate obligation is recorded.
d. Emergency Procedures. When an anergency situation requires Immediate
action, GAD/RAAU will provide expedited processing of IAGs. In order to do
so, they may defer certain administrative steps, but will assure that the
proposed IAG meets statutory and regulatory requirements. GAD/RAAU will give
the highest priority to reviewing agreements involving emergency situations.
When emergencies occur that dictate Immediate action under Superfund programs,
the following specific actions may be taken to effect Immediate emergency and
remedial response.
(1) Oral authorization. Oral authorization to initiate action may be
given by a staff member designated by the Assistant Administrator, Office of
Solid Waste and Etaer^gency Response (OSWER).
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(2)	Written authorization. Hie Assistant Administrator, OSWER (-or-
his/her designee) may sign the IAG for EPA. However, this authority is limited
to those situations in which:
(a)	The emergency is of such a compelling nature that action
must be initiated even more quickly than the rapid processing time under GAD/RAAU-
anergency oral authorization procedures, and
(b)	The agency with which EPA is entering the IAG is unable to.
initiate activities without a signed agreement.
(3)	Whenever it authorizes emergency action, OSWER shall ccmply with
the following additional requirements:
(a)	No later than the first working day following an oral or
written authorization, an OSWER staff member will telephone GAD and inform
them that funds have been authorized for an anergency. The information provided
to GAD shall include the name of the other agency, the location of the incident,
the amount EPA has authorized, the date on which the authorization was made,
and necessary accounting information. The latter includes, as appropriate,
appropriation number, account number, document control number, and object
class number;
(b)	GAD will assign an agreement number to the agreanent, inform
OSWER by telephone of the assigned number, and immediately record the obligation
in GICS. Hie IAG staff then will notify CFMC so that they may transfer the
obligation into the Financial Management System;
(c)	Oral or written authorization will be confirmed within two
working days by submittal of a completed EPA Form 1610-1 to GAD. Steps required
under paragraph 9a, Procedural Steps for Offices Originating Agreements, will
be followed to complete the paperwork required for management of the emergency
action; and
(d)	GAD will review the EPA Form 1610-1 utilizing the procedures
under paragraph 9b, Procedural Steps for GAD. If the terms of the agreanent,
as submitted to GAD, differ from those previously authorized, the IAG staff
will note the changes and instruct the data entry clerk to make the appro-
priate corrections in GICS.
10. NUMBERING OF INTERAGENCY AGREEMENTS.
a. Structure of Interagency Agreement Identification Number. An EPA
Interagency Agreanent Identification Number consists of thirteen characters,
both letters and numbers. In sequential order, the six parts of this identifi-
cation number consist of:
(1) Interagency Agreanent Type Code. A one-character alpha code.
This character identifies the agreement as either a policy agreement (the
letter "P"), a disbursement agreement (the letter "D"), or a reimbursement
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agreement'(the'letter "R"). Note that reimbursement and disbursonent agreements
maybe .master agreements, dependent agreements, or independent agreements.
(2). Relation Code. This character identifies the agreement as a
Master-(M) j Dependent (D), or Independent (V) agreement.
C3;) Agency Code. This two-digit code identifies the other party to
the agreement with EPA. Other Federal agencies are identified by the two-number
Federal Account Symbol assigned to than; States are identified by the Postal
Service's two-letter abbreviation, e.g., Illinois—IL. GAD will provide other
EPA offices with listings of these other agencies and their assigned codes.
(4)	Serial Number. A six-digit number (930000 - 939999) identifies
the.specific agreanent. Die number 93 Identifies the instrument as an interagency
agreement. The-last four digits indicate the number of the agreement, itself.
Thus, the fiftieth EPA agreanent under this numbering system would have a serial
number of 930050. Each policy agreanent, each master agreement, and each
independent agreement is assigned a unique serial number. Dependent agreements
are each assigned the six-digit serial number of the parent master agreanent.
(5)	Sequence Number. The eleventh and twelfth digits (using 01-99)
indicate the sequence in which agreements occurred. Thus, each original policy
and master agreement and each independent agreanent will have the Sequence
Number 01. Each dependent agreanent will have the same Serial Number as its
parent master agreement, but a different Sequence Number (beginning with 20
and continuing through 99. Similarly, continuation agreements will use Sequence
Numbers 02-19-
(6)	Amendment Designator. The last character identifies a specific
modification of the terns or conditions of an Interagency agreement. Numbers
"0 - 9" represent zero amendments through the ninth amendment of an agreanent.
The alpha codes "A - Z" Identify the tenth through thirty-fifth amendment.
(7)	Example of Interagency Agreanent Number .
FW 17-937516-01-4
	IAG Type Code - Policy Agreement
	 Relation Code - Independent Agreement
	 Agency Code (other agency)
Interagency Agreanent Identifier
.. Serial Number of Agreement
	 Sequence Number
	 Amendment Designator
P W 17 93 7516 01 1
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b. Responsibility for Numbering. The Grants Administration Division in;
Headquarters will assigji an identification number to each interagency agreement,
and will assign a modification of that number to each continuation or amendment
of an agreement. GAD will assign IAG identification numbers for-all EPA inter-
agency agreements, including agreements for goods and services and policy ,agpee7-'
ments. Fbr the former, the number will be assigned upon the receipt of the
agreement package in GAD/RAAU. For the latter, the Office of Federal Activities
or RAAU, as appropriate, will contact'GAD upon receipt of the agreement-,-for.
review.
11. PROGRAMMATIC OVERSIGHT. Following the approval of an IAG by .both of the
Involved agencies, the implementation of the agreement ordinarily begins.
During this period, the role of the"Project Officer is paramount. The Project
Officer is the key person responsible-for day-to-day programmatic .oversight ,of
the agreement. Even when he delegates some of his duties (e.g.,.when another
staff person handles the administrative requirements of an IAG), the Project
Officer retains basic responsibility for both the programmatic and administrative
aspects of the agreement listed below. It is his/her responsibility to*
a. Monitor the progress of work done by EPA including preparing and/or
receiving progress reports and acting on than:
(1)	Reimbursement Agreements.
(a)	Monitor the delivery of goods or services by EPA throughout
the project period, assuring their delivery in accordance with the terms of
the agreement.
(b)	Provide EPA's Cincinnati Financial Management Center informa-
tion on the delivery of goods or services by EPA (EPA Form 2550-8, "Report of
Reimbursable Services Rendered") so that EPA may bill the receiving agency,
establish accounts receivable, and Insure that the cost of activities performed
for the other agency are recorded to a reimbursable account code.
(2)	Disbursement Agreements.
(a)	Monitor the receipt of goods or services by EPA throughout
the project period in order to assure conformance with the terms of the agreement;
(b)	Receive and review detailed cost information submitted by
other Federal agencies (see paragraph 7b). If this information is not included
on or with vouchers submitted for payment, the Project Officer shall contact
the other agency and obtain the Information. At the same time, he/she shall
notify CMC of the lack of cost information and the need to withhold payment;
and
(c)	Approve ltanized billings frcm other agencies concerning the
receipt of goods or services provided to EPA under an agreement (within five
days of receipt), and forward these billings to the CFMC.
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b.	Maintain a complete working file concerning relevant programmatic and
administrative activities, including pertinent documents.
c.	Upon completion of the work covered by the agreanent (including the
receipt and acceptance of the^final technical/ programmatic report, if any,
and final reporting and disposition of property), notify GAD/RAAU and the sup-
porting FMO so that the agreement may be closed out.
12. MANAGEMENT OVERSIGHT. It is the responsibility of the administrative review
offices (GAD and RAAU) to provide management .oversight for EPA's interagency
agreement program. This responsibility involves-maintaining information about
IAGs, establishing liaison with programmatic 'and other administrative offices
involved in the IAG process, and following up with those offices vfoen problems
appear;-in.iorder to-,assure a smoothly functioning process. When problems of a
potlcy.-nature _arise, the GAD and RAAU are responsible for providing assistance
to resolve them.
a,	Inf onnat-ion -Maintenance.
.(1) Official IAG File. GAD and RAAU are responsible for maintaining
a complete file of .documents relating to official-,actions on each IAG under
their jurisdiction.
(2) Amendment Information. GAD and RAAU are responsible for ensuring
that amendment information is entered into -the GICS system and the official
file.
b.	Reports. Monthly and annual reports,, ,on. IAGs shall be prepared by
GAD/RAAU no later than 15 calendar days after the end of the month or fiscal
year, as appropriate. Information shall be provided separately for disbursement
agreements and reimbursement agreements.
(1) Monthly Report Information.
(a)	Number of IAGs active* at beginning of month;
(b)	-Number of IAGs inactive** at beginnlrg of month;
(c)	Number of IAGs in backlog0 at beginniirg of month;
(d)	Number of IAGs entered into this month;
(e)	Number of IAGs changing from active to inactive
this month;
(f)	Number of IAGs closed out this month:
(g)	Number of IAGs remaining at end of month,
active, inactive, and backlog; and
(h)	Dollar value of (d) above.
* Approved, project period has not ended, and not closed out.
** Approved, project period has ended, and not closed out.
0 Inactive for 120 days or more.
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(2) Annual Report Information.
(a)	Number of IAGs active at beginning of this FY;
(b)	Number of IAGs inactive at beginning of FYj-
(c)	Number of IAGs in backlog at beginning of FY;"
(d)	Number of IAGs entered into this FY;
(e)	Number of IAGs changing frcm active to Inactive
this FY;
(f)	Number of IAGs closed out this FY;
(g)	Number of IAGs remaining at end of this FY.,
active, inactive', and'backlog; and .
(h)	Dollar value ofrCd);above.
c. Oversight of IAG Activity. Ch a quarterly basis, 'GAD-^wiH obtairt>.'fron-
the Financial Management Systan data -indicating whether activity -X disbursements'"
or reimbursements) occurred during the report period. This information wiir be
obtained on a projectby-project basis. GAD will review a list of all active
IAGs and will note all such IAGs which report no activity. -GAD.wi111 rnaintaIn
a list of all such IAGs. When an IAG has no activity for two full quarters,
GAD will initiate the closeout'process described in "paragraph' l|».f -Each RAAU
will be responsible for maintaining similar oversight of' IAGs under its'juris-
diction.
13. FINANCIAL OVERSIGHT. Financial oversight of Interagency agreements is the
responsibility of the Financial Management Division of the Office of the Comptroller.
Hie Cincinnati Financial Management Center (CFMC) is the central servicing
finance office for all payments and receipts for EPA interagency agreements.
All vouchers for payment and all requests for EPA to bill other agencies for
services rendered should be sent to the CMC in Cincinnati, Ohio 45268. The
CFMC also is responsible for:
a.	Recording obligations in the Financial Management System (FMS) by
electronically transferring the obligation data frcm GICS to the FMS;
b.	Recording accounts receivable upon receipt of a copy of a "Report of
Reimbursable Services Rendered" (EPA Form 2550-8) and the rendering of a bill;
c.	Preparing and sending the appropriate forms to the other agency so
that they may bill EPA;
d.	Receiving payments and recording receipts under reimbursement agreements;
e.	Assuring that project officers approve vouchers for payment (SF-1080
and SF-1081);
f.	Making payments under disbursement agreements; and
g.	Upon request, providing additional information concerning the financial
requirements of IAGs. Information may be obtained frcm the CFMC (FTS 8-684-7831;
Ccmmercial [513] 684-7831) or the EPA Headquarters Financial Management Office
(FTS 8-382-5113; Ccmmercial [202] 382-5113).
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14. CLOSEOUT PROCEDURES FOR IAGs. When no further activities are to take place
under an IAG, the agreement must be closed out. A closeout should occur if all
planned activities have been completed satisfactorily, or all available funds
have been expended, or authority to expend funds has expired, or for any other
appropriate reason. Closing out an interagency agresnent requires the efforts
of the Project Officer, the servicing Financial Management Officer, and the Grants
Administration Division (or the Regional Office).
a.	Initiating an IAG Closeout.
(1)	When the project period of an IAG expires, or when an IAG reports
no activity (no payments or receipts) for two full quarters (i.e., covering six
full months), GAD (RAAU) shall contact the Project Officer and request that he
determine if the project should be closed out. If the determination is positive,
the Project Officer shall complete the steps in paragraph 14b, below; If it is
not, he shall notify GAD (RAAU) of the reasons for his/her determination.
(2)	When a Project Officer determines that no further activities
under an IAG will take place (includlrg receipt of a report or other product),
he/she shall initiate a closeout of that agreement.
b.	Completing a Closeout.
(1)	The Project Officer requests in writing that FMD and GAD/RAAU close
out the agreement. The Project Officer provides FMD and GAD/RAAU the following
information:
(a)	A statement that no further activity will occur under the
agreement and an explanation supporting this statement (project completed,
fund availability period expired, etc.)
(b)	A statement that the final product(s) of the agreement has
been received or provided, if applicable.
(2)	FMD provides GAD/RAAU with the following information:
(a)	If a reimbursement agreement, all payments due EPA have been
received; or
(b)	If a disbursement agreement, all obligations have been cleared,
either through payment or deobligation.
(3)	Upon receipt of the information listed In paragraphs (1) and (2)
above, GAD/RAAU will take the following steps to close out the project:
(a)	Incorporate the closeout information Into the official file
and remove that file from the active category;
(b)	Inform the GICS data entry clerk that the agresnent has been
closed out and request the updating of the canputer record; and
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(c) Verify the closed-out status of the agreement by obt&lnijig
data frcm GICS at the time of the next' IAG status report?.
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The following documents should be found In a complete working agreement
file:
a.	Record of discussions and contacts with all potential sources and the
resultir^ decision.
b.	Copy of the Decision Memorandum..
c.	Copy of Commitment Notice(s), if applicable.
d.	Copy of signed agreement as sent to other agency, if applicable.
e.	Copy of signed agreanent as received fran other agency.
f.	Copy of continuations or amendments to the agreanent, if applicable.
g.	Transmittal letters.
h.	Manoranda received fran the servicing FWO (CFMC), Project Officer, RAAU,
GAD, or others involved in the processing, monitoring, and termination
of the agreanent.
1. Copy of F.PA form 2550-8 (Report of Services Rendered), if applicable.
j. Termination or closing papers, including a statement from the project
officer that no additional activities will take place under the agreanent
and that the final product of the agreement (if any) has been provided.
k. Copy of the notice fran the CFMC that all payments have been received
or that all obligations have been cleared.
Figure 51-1
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5700
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US ENVIRONMENTAL PROTECTION AGENCY
Washington. dc 20460
1 IAG -Identification Nufnber
2 Funding Location by Region
INTERAGENCY AGREEMENT/AMENDMENT
PariJ ^ GEN£BAL-INFOR(yiATJON
3 Type of Action
4 Program Abbreviation
"5 Ntfflie-and'Address'of-EPA-Grgantzatton-
,6 Name,and.Address of Other Agency
T~PrgjOTt-Tnto-
? EPA"Pro[ecrOfficer//Vame.-^
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ASSISTANCE ADMINISTRATION	12W34 -
PART II - APPROVED &UOGET
' TAtfTBWTiFiCATioMfr
21 Budget Categories
, Tow JtftmiEarujn
.E^ir^te^.Cost tfl Date . -
(a) Personnel 	

lb) Frinqe Benefits

(c) Travel

Id) EauiDtnent

le) SuDOlies

(f) Procurement/Assistance

(q| Construction

(hi Other
I
(i) Total Direct Charqes
$- ...
III Indirect Cosis Rate $ Base
1
(k) Total
(EPA Share %) (Other Agency Share %)
$
22 Is equipment authorized to be furnished bv EPA or acquired with EPA funds? Q Yes I	I No
(Identify all equipment costing SI.OOO or more)
23 Are any of these funds being used on extramural agreements? LJ Yes Q No/See Item 210
~ Grant. Q Cooperative Agreement or 0 Procurement
Contactor/Recipient Name (if known!
Total Extramural Amount Under This Project
Percent Funded by EPA (if known}
PART III - PAYMENT METHODS AND BILLING INSTRUCTIONS '
24 Q Disbursement Agreement
O Reimbursement Request for reimbursement of actual costs will be itemized on SF 1081 or SF 1080 and
submitted to the Financial Management Office. Environmental Protection Agency. 26 West St
Clair. Cincinnati. OM 45268
0 Monthly Quarterly D Upon Completion of Work
Q Advance Only available for use by Federal agencies on working capital fund or with appropriate justifica-
tion of need for this type of payment method Unexpended funds at completion of work will be
returned to EPA Quarterly cost reports will be forwarded to the Financial Management Office
Environmental Protection Agency. 26 West St Clair, Cmcinati. OH 45268
O Allocation Transfer Used to transfer obligational authority or transfer of function between Federal agencies Must
receive prior approval by the Office of the Comptroller: Budget Division, Budget Formulation and
Control Branch. EPA Headquarters
25 O Reimbursement Agreement
Other Agency s IAG Identification Number
Billing Instructions and Frequency
Billing Address
EPA Form 1610-1 (Rev 8-84)	2_of 5
Figure 51-2A
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	„ ... 		_ „	T 1AG IDENTIFICATION NO
PART LV — ACCEPTANCE CONDITIONS
26 General Conditions'
Thp other, agency.covenants and.agrees that it will expeditiously initiate and complete the project work for
¦vyhijch fundsJiaye been ayygrded under this.aqreement.		
27. Special .Conditions.
Pfrrt-V -> OFFER AND ACCEPTANCE
NQTEf^ t) Fotr.'d»8buf6enwitr3fiWgnSttt+ie.38fflement/amendment must be signed in duplicate and one original
returnedct© thetifants Adrmnistra^pn Divisi6tvfdrHte&tiquarters agreements and to the appropriate
EPA lAG^dministratjqnoff iqefofflegional agreements within 3 calendar weeks after receipt or within
anv extension, oftime as may oe granted by EPA. The agreement/amendment must be forwarded to
the address cited* in Item 28 after acceptance signature.
Receipt of a written refusal or failure to return the properly executed document within the prescribed
ti me may cesuit in the.witKdr9wa< of the offer by the Agency. Any change to the ag reement by the other
agency suoseqdent to me aocument being signed by the EPA Action Official which the Action Official
determines to -materially iltet- the agreement/anrfehdrrient shall void the agreement/
amendment
2) Fori^rrtbur'ifemerti&fiori3? tHe'bttier agency will initiate the action and forward two original
a"<}refcmen*eya'mdntlrftents tblA1% Appropriate BPA^pfoijrartirdffice for signature The agreements/
amendments will then be forwardedtto the appropriate EPA 'AG administration office for acceptance
signature on behalf of the Environmental Protection Agency. One original copy will be returned to the
bth'er agency'after acceptance.
EPA IAG Administration Office 1for administrative/management assistance)
EPA Program Office ffor technical assistance)
28 Orgamtalion/Address
29, Orgamtafiofi/Address
Decision Official op Hehalf'otthe Environmental Protection Agency Program Office
30 Signature
Typed Name and Title
Date
•' IJ "Ji J
Action Official on
iehalf of the Environmental Protection Agency
Signature "
Typed Name and Title
Dale
Authorizing Official on Behalf of the Other Agency
. 32il Signaiure;
Ty06d Name and Tide
Date
EPA Form 1610-1 (Rev 8-84)
Figure 51-2B
Page 3 of 5
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5700
ASSISTANCE ADMINISTRATION	12/3/84
4NS7RUCT4QNS
This form is to be used for all disbursement interagency
agreements It may be used for reimbursement intera-
gency agreements if the other funding agency agrees.to
do so It will not be used for Policy Agreements. How-
ever, if the other agency's instrument is usea it ana any
attachments thereto must reflect all the information
contained in this form
This form is to be used in conjunction with the Assist-
ance Administration Manual and any other supplemen-
tal information
1	The original agreement identification number will be
assigned by the IAG administration/management office
servicing the EPA Program initiating the action. If the
original project is amended, cite only the first 10 charac-
ters of the original agreement number (e.g.,
DW84930128) The servicing IAG administration/
management office will assign the sequence number
and amendment designator (e g , 01-1).
2	Identify the regional location of the EPA Program
disbursing/receiving funds(e g ,projeotafandodbvEPA
Headquarters and ORD laboratories wtU>ert&¥f6«|&<£XH
3	Identify the purpose of this actiorvg&iPKjionejaUbe,
following terms
New Agreement
Increase in Funds
(Decrease in Funds
Administrative Amendment
Administrative amendment is used 19, if^fify pgo;e.c£
period extensions, project officer changes, special con-
dition changes, rebudgeting of funds, etc.
The terms are listed in order of priority,
an action involve multiple changes usa^h^frrsttipari:
that appropriately identifies one of the change
4	If known, enter the EPA GICS abbreviation for the
funding program. This should be at the Office Director or
comparable level (e g , OERR/HQ), exceptfor EPA.ORD:,
laboratories (e g , ERL/OUL).
5	Enter "Environmental Protection Agency" followed
by the name and address of the EPA organization
responsible for technical management of the project.
EPA offices should be identified at the Office Director or
comparable level for Headquarters or the appropriate
Regional Office
6	Enter the name and mailing address of the other
agency Identify the Department and the appropriate
organizational components within the Department (e g
DHHS, PHS, Center for Disease Control)
NOTE: Use the appropriate Department of Energy area
office for agreements with a National Laboratory
7	Enter project title Be concise and use only the space
pr ovidec*
8	Enter the EPA P'oject Officer name, EPA addressand
telephone number
9' Enter the other "agency"project'officer name, other
agency aooress and telephone numqe^
TO Enter beginning &ncf ending date ot entire period
expected to brf-ne6dsd-to compi«a^w«.-pK>}Bct, Jfiis
period of time should not be longer tttSrt'S yefcte For
projects requiring more than 3 years, appropriate justifi-
cation must be submitted in the decision memorandum
11 Enter the period of time this transaction will fiind
project activities. (Note: budget period cannot excied
the period of appropriation.)
12.	Provide a complete description of the project work to
be performed under the agreement. In jointly funded
projects, the scope of work should describe specific
responsibilities of the participating agencies not just the
portion funded by EPA Additional pages should be at-
tached as necessary.
13.	Enter both the appropriate statutory authority that
authorizes the interagency agreement mechanism and
the appropriate statutory authority that authorizes pro-
ject actjvities.
Wften!6irftdring'Jnto!ef®^a&rt1^^fe wftrrt Federa^au Uiu non-
monetary exchange-and-enteredm tfre^onginal qgrke-
ment For amendments, enter the EPA "previousamouiM,"
"amount this action" and "amended total."
17	Idemitv the other agenev's funds This should'be
used when a project is jointly funded or when BpA is
being reimbursed. For original agreements, enter other
agency
Figure 51-2C
EPA Form 1610-1 (Rev 8-84)
Pago 4 of 5
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ASSISTANCE ADMINISTRATION,
5700
12/3/84
"amountthis action." Fdr-amendments, enter the otner
agency's "previous amount," "amount this action" and
"amended total."
18.	A fair dollar amount should be assigned to the non-
monetary exchange and entered in the original agree-
ment. For amendments enter the "previous amount,"
"amount this action" and "amended total."
19.	Enter the total amount for all categories.
20.	Enter the appropriate fiscal information identifying
the funds being used. In the case of a reimbursable
agreement the EPA reimbursable account number will
appear under "Account Number "
21 (a-i). For original agreements, enter the total funded
proiect costs according to the categories provided,
include the other agency's contribution as well. For
amendments increasing funds, add the additional funds
by category and enter the revised itemization to date.
This will reflect total direct charges.
(j). Identify how indirect charges are computed. Enter a
percentage and a base amount or a comparable state-
ment reflecting how costs were computed.
(k). Enter the total amount to date. Indicate EPA share
and other agency shard by summing total cost to date
and dividing into the amount provided by one agency to
arrive at that agency's share (e.g.. $60,000 EPA share
divided by $100,000 total project cost to date to arrive at
60% EPA share).
22. The agency funding the acquisition shall be respon-
sible for maintaining an inventory of the property All
nonexpendable equipment (items costing $1,000 or
more) to be furnished or acquired shall be identified and
the appropriate property management office consulted.
23. If any of the funds are to be used on extramural
agreements, enter identifying information.
2$. For disbursement agreements, identify the payment
method-most suitable for the agreement.
25.	For reimbursement agreements, identify all perti-
nent information needed in order for EPA to properly hill
the other agency (e.g., other agency form number
appropriate number of copies, complete billing address,
etc.).
26.	Self explanatory
27: Enter any special conditions applicable to the tecn-
nical management of the project (e.g., reports) The ser-
vicing IAG administration/management office will pro-
vide the appropriate administrative special conditions.
28.	Enter the appropriate IAG administration/manage-
ment office address (Headquarters or Regional) servic
ing your program. This will be a return address for origi-
nal signed acceptances of interagency agreements/
amendments, therefore, use complete address of your
IAG administration/management office.
29.	Enter the complete address of the EPA Program
office funding the agreement.
30.	Enter the name and title of the Decision Official for
the EPA program.
31.	Enter the- name and title of the appropriate IAG
administration/management office action official (e g ,
Chief, Grants Information and Analysis Branch, Grants
Adminstration Division for Headquarters and Regional
Administrator or designee for Regions)
32.	Enter the name and title of the otheV^gency 's author
izing official
EPA 1*10-1 (Rav. C-84)
Figure 51-2D
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