United States
Environmental
Protection Agency
Office of Regional Operations
and State/Local Relations
Washington DC 20460
EPA/100/B-96/003
July 1996
Sustainable Development Challenge Grant
Application Guidance
for FY 1996 Pilot Program
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Sustainable Development Challenge Grant
Application Guidance for FY 1996 Pilot Program
TABLE OF CONTENTS
Page
I OVERVIEW 1
II PURPOSE & SCOPE 1
III DEFINITIONS 2
IV ELIGIBLE APPLICANTS 3
V ELIGIBLE ACTIVITIES 4
VI PROJECT REQUIREMENTS / EVALUATION CRITERIA 7
VII APPLICATIONS 9
VIII PROCESS FOR AWARD OF GRANTS 11
IX EPA CONTACTS 14-15
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I OVERVIEW
The Sustainable Development Challenge Grant Program is one of 25 major environmental reforms
announced by President Clinton in March 1995 as part of the National Performance Review's
Reinventing Environmental Regulation initiative. The Sustainable Development Challenge Grant
program is designed to encourage people, organizations and businesses to work together in their
communities to improve their environment while maintaining a healthy local economy.
This guidance contains the information needed to apply for a Sustainable Development Challenge
Grant (SDCG) in August, 1996. This will be the first round of grant awards for this new
program, and is being run as a pilot round. Because this is a pilot round, only a limited number of
grants is anticipated, and application time will be unusually abbreviated. Evaluation of this pilot
phase will inform the program design and procedures for implementation of the full scale FY 1997
program. Total funds available for this initial round are approximately $500,000; applicants may
seek grant funding up to $100,000. For purposes of project selection, proposals will be compared
to other proposals within one of two categories: (a) those up to $50,000 and (b) those between
$50,001 and $100,000 Applications must be postmarked by August 1,1996.
If you have additional questions about submitting a proposal, please contact the Environmental
Protection Agency (EPA) office for your area (see Section IX).
II. PURPOSE AND SCOPE
The Sustainable Development Challenge Grant program is a new competitive grant program
developed by the U.S. Environmental Protection Agency (EPA) intended to encourage
community, business, and government to work cooperatively to develop flexible, locally-oriented
approaches that link efforts to enhance environmental quality management with sustainable
development and revitalization. The SDCG program is intended to challenge communities to
invest in a sustainable future.
EPA seeks proposals for projects that will:
• Catalyze community-based and regional projects to promote sustainable development;
• Build partnerships to increase community long-term capacity to protect the environment;
• Leverage public and private investments to enhance environmental quality by enabling
sustainable community efforts to continue beyond EPA funding.
EPA intends these competitive grants to be catalysts that challenge communities to invest in a
sustainable future, recognizing that sustainable environmental quality and economic prosperity
are inextricably linked. EPA seeks to award grants that serve as seed funding to leverage private
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investment and build partnerships that increase a community's long-term capacity to protect the
environment and sustainable development. For purposes of this program, sustainable development
is defined as "to meet the needs of the present without compromising the ability of future
generations to meet their own needs." This is the definition developed by the Brundtland
Commission in 1987 and adopted by the President's Council on Sustainable Development
(PCSD). The PCSD is a council comprised of corporate, government, and nonprofit
representatives convened by President Clinton in June, 1993.
COMMUNITY ROLE IN SUSTAINABLE DEVELOPMENT
CHALLENGE GRANTS
The Sustainable Development Challenge Grant Program has been created to fulfill one aspect of
the recommendations of the PCSD report: the integration of environmental protection and
economic goals at the community level. This grant program is designed to challenge
communities to use EPA funds to leverage significant private and public investments to develop
and implement community-based environmental programs.
One key goal of the program is to enlist and engage the support of community members in the
projects that are funded so that they will be self-sustaining after the initial receipt of the SDCG
funds.
III. DEFINITIONS
Sustainable Development - Sustainable development means integrating environmental
protection, and community and economic goals. Sustainable development meets the needs of
the present generation without compromising the ability of future generations to meet their
own needs. The sustainable development approach seeks to encourage broad-based community
participation and public and private investment in decisions and activities that define a
community's environmental and economic future.
Community: "Community" means people within a geographic area who, as groups and
individuals, share common interests related to their homes and businesses, their personal and
professional lives. A community can be one or more local governments, a neighborhood within a
small or large city, a large metropolitan area, a small or large watershed, an airshed, tribal lands,
ecosystems of various scales, or some other specific geographic area with which people identify.
Stakeholder involvement - broad spectrum, multi-sector involvement of affected and
interested groups or individuals, using an inclusive process that will allow for the informed and
engaged participation of diverse interests and perspectives which characterize sustainable
development.
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Seed funds - a small amount of money designed to provide a springboard for an activity and to
leverage other funds and support; grant dollars intended to initiate, but not sustain, programs or
projects.
Sustainable future - a vision of the community which takes in to account the long term
wants and needs of present and future residents. An approach to community planning which
provides an integrated method of achieving mutual gains across economic and environmental
sectors. A method which supports integrating community concerns and improves decision-
making at all levels. A way to establish economic vibrance with the consent, understanding and
full participation of the community without compromising quality of life for human and
non-human species.
FY - Federal Fiscal Year (e.g., October 1, 1996 - September 30, 1997)
In-Kind Contributions: In-kind contributions are non-cash contributions to a project.
Volunteer services, and donated personnel and supplies may be used toward your match and be
calculated as part of the leveraging ratio. Examples of in-kind contributions might be:
—Corporate personnel or services such as environmental analysis services, legal work,
planning and architectural design, market research, etc.
—nonprofit personnel or services such as publication layout and production, survey work,
etc.
—government services to provide demographic or GIS analysis, etc.
—donated supplies such as equipment, office space, office supplies, postage, etc.
These examples are meant to be illustrative only. In-kind contributions toward preparation of the
project proposal and completion of the final application should not be counted as part of the
match/leverage.
IV. ELIGIBLE APPLICANTS
Eligible applicants include: 1) Incorporated nonprofit (or not-for-profit) private agencies,
institutions and organizations; and 2) public entities, agencies, institutions and organizations,
including those of state and local governments, and federally-recognized tribes and regional
entities. While state agencies are eligible they are encouraged to work in partnership with
community groups to strengthen their proposals. Coalitions of eligible organizations may also
apply, as long as one organization is clearly identified to be the project lead and designated
recipient for funding purposes.
Applicants are not required to have a formal Internal Revenue Service (IRS) nonprofit
designation, such as 501(c)(3) or 501(c)(4), however they should present their letter of
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incorporation or other documentation demonstrating their nonprofit or not-for-profit status with
their proposal. Applicants who do have an IRS 501(c)(4) designation are not eligible for grants if
they engage in lobbying, no matter what the source of funding for the lobbying activity. (No
recipient may use grant funds for lobbying.) Further, profit-makers are not eligible to receive sub-
grants from eligible recipients, although they may receive contracts, subject to EPA's regulations
on procurement under assistance agreements, 40 Code of Federal Regulations (CFR) 30.40 (for
non-governmental recipients) and 40 CFR 31.36 (for governments).
EPA requires that all nonprofit organizations receiving grants be incorporated. In order to reach
out to communities unfamiliar with government procedures, EPA will accept grant applications
from incorporated organizations acting as a sponsor or umbrella for community groups that
would otherwise be ineligible to apply directly. The sponsoring organization must specifically
identify the community group that will actively manage the project.
An organization may submit more than one proposal, provided that the proposals are for separate
and distinct projects. No organization, however, may receive funding for more than one proposal
each year.
Ineligible applicants include: individuals, for-profit businesses, nonprofit organizations
engaged in lobbying, and federal government agencies.
Partnership: Although not eligible for this challenge grant, EPA encourages individuals and
for-profit businesses, as well as other government organizations, to participate as partners with
eligible applicants. The nature of building sustainable environments where people live requires the
involvement of a wide range of stakeholders, and the level and breadth of commitment to the
proposed project by public and private organizations in the community will be a factor in selecting
projects.
Leverage: Participation of people representing diverse interests is needed to make decisions
about development that will sustain future generations. EPA's challenge within these grants calls
for eligible applicants to match the total project costs with a minimum 20 percent match (see
"Funding and Match Requirements," below) during EPA funding. Within one to three years, the
activities financed under this grant program should be operating without EPA funding. Therefore,
involvement by other stakeholders in the form of funding, volunteer services, or other
participation will play a vital role.
V. ELIGIBLE ACTIVITIES
Sustainability projects recognize and plan for the unique needs and environmental and economic
characteristics of a community. EPA encourages creative Sustainability strategies and new forms
of cooperation. To help stimulate such creativity, the following examples of potential projects are
provided. These examples are intended to be illustrative only and arenot meant to limit proposals
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in any way. Project proposals may take many forms. EPA welcomes the submission of
alternative types of projects that address the selection criteria.
4 Demonstrate environmental and economic benefits in a rural community through
the development of community-based agricultural pollution prevention practices.
Reduced use of fertilizers and pesticides by area farmers should result in economic
benefits in lower drinking water treatment and monitoring costs, and reduced
water treatment costs for local businesses. It is also expected to lower human
exposure to agricultural chemicals and minimize adverse impacts to habitat with
associated quality of life benefits.
4 Demonstrate the design and establishment of an eco-industrial park. Enlist the
participation of local officials, environmental groups, and business interests in
designing and establishing an eco-industrial park that will attract industries that can
use each other's wastes as raw materials, and that pioneer environmentally sound
technologies, thereby promoting new and existing locally based companies that are
"zero dischargers". The goal would be to reduce costs for the businesses involved
for water treatment, waste incineration, and land filling. These improvements
would be intended to have positive long-term water and air quality benefits.
4 Demonstrate a cooperative effort among business interests, environmental groups,
and government agencies to design and implement a plan for managing timber
lands in such a way that they continue to provide jobs and bring money into the
local economy, but also protect critical habitats and sensitive species. As part of
the plan development, wildlife agencies and organizations commit to conducting or
funding the scientific research needed. The project will also explore opportunities
for using extracted timber in local manufacturing and finished goods.
4 Demonstrate the interrelationship between federal environmental mandates and
sound urban redevelopment as an alternative to suburban sprawl. The project will
demonstrate the benefits of development that uses existing urban infrastructure
close to the urban core and also protects drinking water sources, air quality, and
wildlife habitat. By providing open spaces for natural sumps for the treatment of
stormwater runoff, green spaces can be provided to increase aesthetic value and
recreational opportunities. The project will increase residential spaces with good
access to public transportation, and will assess improvements in air quality, as well
as the impact on use of other infrastructure, sewers, sidewalks and roads. The
project will assess the environmental quality benefits gained from urban
redevelopment.
Statutory Authority: EPA expects to award Sustainable Development Challenge Grants
program under the following eight grant authorities: Clean Air Act section 103(b)(3); Clean
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Water Act section 104 (b)(3); Resource Conservation and Recovery Act section 8001; Toxics
Substances Control Act section 10; Federal Insecticide, Fungicide, and Rodenticide Act section
20; Safe Drinking Water Act sections 1442(a) and (b); National Environmental Education Act,
section 6; and Pollution Prevention Act, section 6605.
As a threshold determination, to be selected for funding, a project must consist of activities
within the statutory terms of these EPA grant authorities. Most of the statutes authorize
grants for the following activities: "research, investigations, experiments, training, demonstrations,
surveys and studies." These activities relate generally to the gathering or transferring of
information or advancing the state of knowledge. Grant proposals should emphasize this
"learning" concept, as opposed to "fixing" an environmental problem via a well-established
method. For example, a proposal to plant some trees in an economically depressed area in order
to prevent erosion would probably not fall within the statutory terms "research, studies" etc. nor
would a proposal to start a routine recycling program.
On the other hand, the statutory term "demonstration" can encompass the first instance of the
application of a pollution control technique, or an innovative application of a previously used
method. Similarly, the application of established practices may qualify when they are part of a
broader project which qualifies under the term "research. "
As a second threshold determination, in order to be funded, a project's subject generally
must be one that is specified in the statutes listed above. For most of the statutes, a project
must address the causes, effects, extent, prevention, reduction, and elimination of air, water, or
solid/hazardous waste pollution, or, in the case of grants under the Toxic Substances Control Act
or the Federal Insecticide, Fungicide and Rodenticide Act, to "carrying out the purposes of the
Act." While the purpose of this program's grants will include the other two aspects of sustainable
development and economic prosperity, the overarching concern or principal focus must be on the
statutory purpose of the applicable grant authority, in most cases "to control pollution." Note
that proposals relating to other topics which are sometimes included within the term
"environment" such as recreation, conservation, restoration, protection of wildlife habitats, etc.,
should describe the relationship of these topics to the statutorily required purpose of pollution
control.
Allowable Costs
Even though a proposal may involve an eligible applicant, eligible activity, and eligible purpose,
grant funds cannot necessarily pay for all of the costs which the recipient might incur in the course
of carrying out the project. Allowable costs are determined by reference to the EPA regulations
cited below and to OMB Circulars A-122, "Cost Principles for Nonprofit Organizations", A-21
"Cost Principles for Education Institutions" and A-87, "Cost Principles for State, Local, and
Indian Tribal Governments." Some examples of costs which are allowable include: accounting,
advertising, advisory councils, audit service, bonding, budgeting, building lease management,
central stores, communications, compensation, personal services, salaries, equipment, supplies,
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training, rental of office space, etc., as long as these are "necessary and reasonable." Examples of
unallowable costs include: entertainment costs, interest and other financial costs, legislative
expenses, bad debts, and contingencies. These are more explicitly defined in the above referenced
circulars.
Applicable Grant Regulations
40 CFRPart 30 (for other than state/local governments e.g. nonprofit organizations) (recently
revised, see 61 Fed. Reg. 6065 (Feb. 15, 1996)), and Part 31 (for state and local governments and
Indian tribes).
VI. PROJECT REQUIREMENTS AND EVALUATION
CRITERIA
(A) Match Requirement: The program requires a non-federal match of at least 20%. The match
can include both cash and in-kind commitments from public and private sources. In kind services
must be identified and a cost analysis for these services must be documented.
(B) Leverage criteria: While a minimum match of 20% is required, proposals that leverage a
larger amount of community investment will score higher. As with match requirements, the
leverage can include both cash and in-kind commitments from public and private sources. It is
one objective of the program that monies identified as leveraged funds constitute new monies
being committed to the project for which EPA funding is being sought. Written affirmation that
new monies or services are being committed from the community partner should be attached with
the proposal and will be taken into consideration in reviewing projects.
(C) Project Duration: Funded projects are expected to complete proposed activities in a period of
one to three years.
(D) Project Viability after EPA Funding: Within one to three years (whatever the project
duration), the activities financed with this grant or activities building on those funded by this grant
should be operating without EPA funding. It is one objective of this program that this grant
catalyze commitment by other stakeholders to the project and its objectives beyond the limited
period for which funding is being sought.
(E) After establishing that the proposed project satisfies the parameters for eligible applicants,
eligible activities, project duration, and the matching requirements, EPA will employ the criteria
described in this section in evaluating project proposals. The relative weights that will be assigned
to each criteria are identified below. Long-term project viability and the leveraging ratiowill be
factored into the evaluation.
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PROJECT SELECTION CRITERIA: After determining that the proposed project
meets the two statutory threshold determinations described above under Statutory Authority,
EPA will employ the following criteria in evaluating project proposals. The criteria are weighted
to reflect importance. Proposals should address each of the criteria.
(1) Sustainability: 40 points
o How well does the proposal integrate environmental protection and economic prosperity?
o Does the proposal define the community it will benefit, either by geographic or political
boundaries? Does the proposal define how it relates to regional sustainability?
o Does the proposal take a comprehensive multi-media approach (e.g. air, water, land) to
assess environmental quality and set priorities for action?
o Does the proposal use a proactive environmental approach, for example, pollution
prevention or watershed protection?
o Will the proposal result in sustainable economic development benefits, such as more
appropriate, efficient use of resources so that jobs created will be sustained, or the
amount of money retained in the local economy will be maximized?
o Does the proposal represent new solutions for the community, given their previous history
and current circumstances?
(2) Community Commitment and Contribution: 30 points
o Do the partners fully represent those in the community who have an interest in or will be
affected by the project?
o Will the proposal's outcomes and results benefit all affected groups in the community?
o Does the proposal describe effective methods for community involvement to assure that all
affected by the project are provided an opportunity to participate?
o Does the proposal describe the depth and breadth of the community's support (financial
and in-kind) for the proposal? Does it provide evidence of long-term commitment to the
proposal?
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3) Measurable Results: 30 points
o Does the proposal describe the specific environmental and economic benefits to be gained
by the community? What non-sustainable behaviors will be addressed by the proposal?
o Does the proposal include achievable short-term (within three years) and long-term targets
or benchmarks to measure the proposal's contribution to the community's sustainability?
(These may be quantitative and/or qualitative.)
o Does the proposal set goals for the proactive environmental approaches it employs?
o After seed funds from EPA are exhausted, does the proposal demonstrate how the work
will continue, or how it will evolve into or generate other sustainability efforts, either
locally or regionally?
o Will the experiences gained during the project be transferable to other communities?
VII. PREPARING AND SUBMITTING A PROPOSAL
Formatting Your Proposal
• Proposals should include a one page cover sheet that summarizes: the amount of
assistance requested from EPA; the various entities or organizations that will be partners
in the project; and the project's anticipated results. The cover sheet should also include
the applicant's name, address, and phone number. Explain the relationship of the
proposal to the criteria for project selection described in Section VI.
• Proposals should be no more than 10 pages in length, and preferably double-sided
(i.e., 5 pages, printed on both sides of the paper.)
• Use no smaller than 10-point type and one-inch margins.
• Using headings and short paragraphs will make your proposal easier to read.
• Proposal should preferably be submitted on recycled paper, without binders or plastic
covers.
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Proposal Organization and Content
EPA recommends that you follow the outline below when preparing your proposal. The exact
length of each section will vary by project, but do not omit any of the sections. EPA will compare
the information you provide in the application to the ranking criteria described in Section VI in
order to evaluate your proposal.
1. Project Title: The name of the project.
2. Applicant Information: Contact name, organization, full mailing address, phone number, fax
number, and e-mail address (if available).
3. Project Abstract: A basic description of your project (who, what, where, why, and how) in
one or two paragraphs. Include the amount of your request, the amount and cost analysis of
match/leverage provided, and the total project cost in your abstract.
4. Project Goals: A narrative describing what the project intends to accomplish and how it will
address the basic purpose (see Section II) and selection criteria (see Section VI) of the
Sustainable Development Challenge Grants Program.
5. Project Tasks: An outline of the steps you will take to meet the project goals described
above. This section should show EPA that you have thought your project through and know
what you want to do to achieve your goals. All projects must include the submission of a final
project report to EPA.
6. Project Results: Describe how you will measure the results of your project. How will you
demonstrate that your goals have been met and tasks completed? Results can be measured
quantitatively and/or qualitatively.
Quantitative Results are results that are measured and shown with numbers. Examples could
include the number of kilowatt hours of energy saved, the funds invested in community
sustainability leveraged by the project, the percentage increase in the number of species present,
the number of hours volunteered by community members, or improvement in the number of days
air quality standards are achieved.
Qualitative Results are results that are best described in words instead of numbers. Examples
could include the extent to which different segments of the population participated in the project,
how the local economy has improved as a result of the project, the intrinsic improvements in the
community's environment, or how the project resulted in the adoption of more sustainable private
or public sector practices.
7. Project Match/Leverage: List the primary project partners, with contact names,
organizational affiliations, and phone numbers. This section should include only the partners that
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are providing in-kind or financial commitments of the project. A formal commitment statement
from the project partners who are providing the proposed match or leverage should be attached to
your proposal. Do not include individuals and organizations that endorse your project, but will
not be providing in-kind or financial resources.
Match Requirement:
To calculate the 20% minimum match requirement:
Total project budget x .20 = Minimum required match
Example where total project budget = $60,000:
$60,000 x.20 = $12,000
The minimum public or private contribution to the project for which funding is requested
is $12,000.
Leverage Ratio:
To calculate the leverage ratio:
Total public and private commitments to the project
EPA SDCG Grant funds requested
Example where EPA funds being sought are $10,000 and public and private commitments are
$90,000:
$90,000/$10,000 = 9
Schedule: Show when you expect to complete significant steps and milestones in your project.
Use October 1, 1996 as the starting date of the project (the exact date can be negotiated with
EPA if your project is selected.)
Funding Categories: Applicants may compete for funding in either of two categories for
FY 96: 1) $50,000 or less, and 2) between $50,001 and $100,000. Proposals will be compared
to other proposals within their same funding category (i.e., a $50,000 proposal wiftnot compete
against a proposal for $100,000).
Duration: Funded projects are expected to be structured to complete proposed activities in a
period of one to three years.
Match Requirement: This program is intended to provide money for significant public and
private sector investment in sustainability activities. As a result, the program requires a non-
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federal match of at least 20% of the total project budget. In other words, EPA funds can be used
for no more than 80% of the total cost of the project. The match can come from a variety of
public and private sources and can include in-kind services. In-kind services must be identified
with a cost analysis provided.
Although a minimum match of 20% is required, your proposal will score higher if a larger
amount of investment is leveraged. Please refer to Section VI(B) and Criteria #2 for more
information.
VIII. PROCESS FOR AWARD OF GRANTS
Selection Process: A national review committee consisting of EPA headquarters and regional
office representatives will rank all of the proposals based upon the selection criteria (listed in
Section VI). Recommendations for funding will be made to senior EPA management.
Final Project Agreements: The selected applicants will be invited to work with EPA regional
office contacts (listed in Section IX) to develop a Final Project Grant Agreement. Only the
signing of a Final Project Grant Agreement between the applicant and the Regional Project
Officer will constitute the acceptance of a project. EPA is also bound by 40 CFR Part 29 to
conduct an intergovernmental review of grants to be awarded. This means that states will be
contacted to review a grant that will be awarded in that state.
IX. EPA CONTACTS
For further information contact your EPA Regional Office listed below.
Regional Offices
Rosemary Monahan
US EPA Region I (CSP)
JF Kennedy Federal Bldg.
Boston, MA 02203
(617)565-3551
For: CT MA ME NH RI VT
Janet Sapadin
US EPA Region 2
290 Broadway
New York, NY 10007
(212)637-3584
For: NJ NY PR VI
Glenn Eugster
US EPA Region 3
Chesapeake Bay Program
410 Severn Avenue
Suite 109
Annapolis, MD 21403
(410)267-5722
For: DE DC MD PA VA WV
Tom Moore
US EPA Region 4
345 Courtland Street, NE
Atlanta, GA 30365
(404) 347-3555 x6089
For: AL FL GA KY MS NC
Janette Marsh
US EPA Region 5
77 West Jackson Blvd
Chicago, IL 60604
(312)886-4856
For: IL IN MI MN
Karen Alvarez
US EPA Region 6
Fountain Place, Suite 1200
1445 Ross Avenue
Dallas, TX 75202-2733
(214) 665-7273
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SCTN
OHWI
For: AR LA NM OK TX
Dick Sumpter
US EPA Region 7
726 Minnesota Avenue
Kansas City, KS 66101
(913)551-7661
For: IA KS MO NE
David Schaller
US EPA Region 8
999 18th Street
Suite 500 (8P2-P2)
Denver, CO 80202
(303)312-6146
For: CO MT ND SD
UTWY
Debbie Schechter
US EPA Region 9 (P-2-1)
75 Hawthorne Street
San Francisco, CA 94105
(415)744-1624
For: AZ CA HI NV AS GU
Jim Werntz
US EPA Region 10
1200 Sixth Avenue
(01-085)
Seattle, WA 98101
(206)553-2634
For: AK ID OR WA
Headquarters Office
Pamela A. Hurt
Sustainable Development Challenge Grants Program
US EPA (1503)
Washington, DC 20460
(202) 260-0422
Paperwork Reduction Act
The information collection provisions in this Notice, for solicitation of proposals, have been approved by the Office of Management and Budget
(OMB) underthe Paperwork Reduction Act, 44 U.S.C. 3501 et seq. (ICR No. 1755.01 and OMB Approval No. 2010-0026). The approved
Information Collection Request (ICR No. 1755.01) is in effect and will cover all burdens associated with Sustainable Development Challenge Grants.
Copies of the ICRs (ICR Nos. 1755.01 and 1755.02) may be obtained from the Information Policy Branch, EPA, 401 M Street, S.W. (Mail Code
2136), Washington, DC 20460 or by calling (202) 260-2740.
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