(7) Information to provide proper perspective for judging the
prevalence and consequences of the audit findings, such as whether the
audit findings represent an isolated instance or a systemic problem.
Where appropriate, instances identified must be related to the universe
and the number of cases examined and be quantified in terms of dollar
value. The auditor should report whether the sampling was a
statistically valid sample.
    (8) Identification of whether the audit finding was a repeat of a
finding in the immediately prior audit and if so any applicable prior
year audit finding numbers.
    (9) Recommendations to prevent future occurrences of the deficiency
identified in the audit finding.
    (10) Views of responsible officials of the auditee.
    (c) Reference numbers. Each audit finding in the schedule of
findings and questioned costs must include a reference number in the
format meeting the requirements of the data collection form submission
required by Sec.  910.512 Report submission, paragraph (b) to allow for
easy referencing of the audit findings during follow-up.

Sec.  910.517  Audit documentation.

    (a) Retention of audit documentation. The auditor must retain
audit documentation and reports for a minimum of three years after
the date of issuance of the auditor's report(s) to the auditee,
unless the auditor is notified in writing by DOE or the cognizant
agency for indirect costs to extend the retention period. When the
auditor is aware that the Federal agency or auditee is contesting an
audit finding, the auditor must contact the parties contesting the
audit finding for guidance prior to destruction of the audit
documentation and reports.
    (b) Access to audit documentation. Audit documentation must be
made available upon request to the cognizant agency for indirect
cost, DOE, or GAO at the completion of the audit, as part of a
quality review, to resolve audit findings, or to carry out oversight
responsibilities consistent with the purposes of this Part. Access
to audit documentation includes the right of Federal agencies to
obtain copies of audit documentation, as is reasonable and
necessary.

Sec.  910.518  [Reserved]

Sec.  910.519  Criteria for Federal program risk.

    (a) General. The auditor's determination should be based on an
overall evaluation of the risk of noncompliance occurring that could be
material to the DOE program. The auditor must consider criteria, such
as described in paragraphs (b), (c), and (d) of this section, to
identify risk in Federal programs. Also, as part of the risk analysis,
the auditor may wish to discuss a particular DOE program with auditee
management and DOE.
    (1) Current and prior audit experience. Weaknesses in internal
control over DOE programs would indicate higher risk. Consideration
should be given to the control environment over DOE programs and such
factors as the expectation of management's adherence to Federal
statutes, regulations, and the terms and conditions of DOE awards and
the competence and experience of personnel who administer the DOE
programs.
    (i) A DOE program administered under multiple internal control
structures may have higher risk. The auditor must consider whether
weaknesses are isolated in a single operating unit (e.g., one college
campus) or pervasive throughout the entity.
    (ii) When significant parts of a DOE program are passed through to
subrecipients, a weak system for monitoring subrecipients would
indicate higher risk.
    (2) Prior audit findings would indicate higher risk, particularly
when the situations identified in the audit findings could have a
significant impact on a DOE program or have not been corrected.
    (3) DOE programs not recently audited as major programs may be of
higher risk than Federal programs recently audited as major programs
without audit findings.
    (4) Oversight exercised by DOE. Oversight exercised by DOE could be
used to assess risk. For example, recent monitoring or other reviews
performed by an oversight entity that disclosed no significant problems
would indicate lower risk, whereas monitoring that disclosed
significant problems would indicate higher risk.
    (5) Federal agencies, with the concurrence of OMB, may identify
Federal programs that are higher risk. OMB will provide this
identification in the compliance supplement.
    (6) Inherent risk of the Federal program. The nature of a Federal
program may indicate risk. Consideration should be given to the
complexity of the program and the extent to which the Federal program
contracts for goods and services. For example, Federal programs that
disburse funds through third party contracts or have eligibility
criteria may be of higher risk. Federal programs primarily involving
staff payroll costs may have high risk for noncompliance with
requirements of 2 CFR 200.430 Compensation--personal services, but
otherwise be at low risk.
    (7) The phase of a Federal program in its life cycle at the Federal
agency may indicate risk. For example, a new Federal program with new
or interim regulations may have higher risk than an established program
with time-tested regulations. Also, significant changes in Federal
programs, statutes, regulations, or the terms and conditions of Federal
awards may increase risk.
    (8) The phase of a Federal program in its life cycle at the auditee
may indicate risk. For example, during the first and last years that an
auditee participates in a Federal program, the risk may be higher due
to start-up or closeout of program activities and staff.
    (9) Programs with larger Federal awards expended would be of higher
risk than programs with substantially smaller Federal awards expended.

Sec.  910.520  Criteria for a low-risk auditee.

    (a) An auditee that meets all of the following conditions for each
of the preceding two audit periods may qualify as a low-risk auditee
and be eligible for reduced audit coverage. Compliance audits were
performed on an annual basis in accordance with the provisions of this
Subpart, including submitting the data collection form to DOE within
the timeframe specified in Sec.  910.512 Report submission. A for-
profit entity that has biennial audits does not qualify as a low-risk
auditee.
    (b) The auditor's opinion on whether the financial statements (if
available) were prepared in accordance with GAAP, or a basis of
accounting required by state law, and the auditor's in relation to
opinion on the schedule of expenditures of DOE awards were unmodified.
    (c) There were no deficiencies in internal control which were
identified as material weaknesses under the requirements of GAGAS.
    (d) The auditor did not report a substantial doubt about the
auditee's ability to continue as a going concern.
    (e) None of the DOE programs had audit findings from any of the
following in either of the preceding two audit periods:
    (1) Internal control deficiencies that were identified as material
weaknesses in the auditor's report on internal control as required
under Sec.  910.515 Audit reporting, paragraph (c);
    (2) Not applicable.
    (3) Not applicable.

Management Decisions

Sec.  910.521  Management decision.

    (a) General. The management decision must clearly state whether or
not the audit finding is sustained, the reasons for the decision, and
the expected

auditee action to repay disallowed costs, make financial adjustments,
or take other action. If the auditee has not completed corrective
action, a timetable for follow-up should be given. Prior to issuing the
management decision, the Federal agency may request additional
information or documentation from the auditee, including a request for
auditor assurance related to the documentation, as a way of mitigating
disallowed costs. The management decision should describe any appeal
process available to the auditee. While not required, DOE agency may
also issue a management decision on findings relating to the financial
statements (if they were available) which are required to be reported
in accordance with GAGAS.
    (b) As provided in Sec.  910.513 Responsibilities, paragraph
(c)(3), DOE is responsible for issuing a management decision for
findings that relate to DOE awards it makes to for-profit entities.
    (c) Not applicable.
    (d) Time requirements. DOE must issue a management decision within
six months of acceptance of the audit report. The auditee must initiate
and proceed with corrective action as rapidly as possible and
corrective action should begin no later than upon receipt of the audit
report.
    (e) Reference numbers. Management decisions must include the
reference numbers the auditor assigned to each audit finding in
accordance with Sec.  910.516 Audit findings paragraph (c).

Title 10--Energy

CHAPTER II--DEPARTMENT OF ENERGY

PART 602--EPIDEMIOLOGY AND OTHER HEALTH STUDIES FINANCIAL
ASSISTANCE PROGRAM

0
1. The authority citation for part 602 continues to read as follows:

    Authority: 42 U.S.C. 2051; 42 U.S.C. 5817; 42 U.S.C. 5901-5920;
42 U.S.C. 7254 and 7256; and 31 U.S.C. 6301-6308.

Sec.  602.1  [Amended]

0
2. Section 602.1 is amended to remove ``Office of Health, Safety, and
Security'' in the first sentence and add in its place ``Office of
Environment, Health, Safety, and Security''.

Sec.  602.2  [Amended]

0
3. Section 602.2 (b) is amended to remove ``10 CFR part 600 (DOE
Financial Assistance Rules)'' and add in its place ``2 CFR part 200 as
amended by 2 CFR part 910 (DOE Financial Assistance Regulation)''.

Sec.  602.3  [Amended]

0
4. Section 602.3 is amended to remove ``10 CFR part 600'' in the
introductory text and add in its place ``2 CFR part 200 and 2 CFR part
910''.
0
5. Amend Sec.  602.4 as follows:
0
a. Revise the section heading.
0
b. Remove ``deviations'' from paragraph (a) and add in its place
``exceptions''.
0
c. Remove ``Health, Safety, and Security'' from paragraph (a) and add
in its place ``Environment, Health, Safety, and Security''.
0
d. Remove ``10 CFR part 600'' and add in its place ``2 CFR part 200 as
amended by 2 CFR part 910''.
    The revision reads as follows:

Sec.  602.4  Exceptions.

* * * * *

Sec.  602.5  [Amended]

0
6. Section 602.5(a) is amended to remove ``Office of Health, Safety,
and Security'' in the first sentence and add in its place ``Office of
Environment, Health, Safety, and Security''.

Sec.  602.8  [Amended]

0
7. Section 602.8 (b)(4)(ii) is amended to remove ``10 CFR part 600''
and add in its place ``2 CFR part 200 as amended by 2 CFR part 910''.

Sec.  602.9  [Amended]

0
8. Amend Sec.  602.9 as follows:
0
a. Remove ``Office of Health, Safety, and Security'' from paragraph (g)
and add in its place ``Office of Environment, Health, Safety, and
Security''.
0
b. Remove ``10 CFR part 600'' from paragraph (b) and add in its place
``2 CFR 200 as amended by 2 CFR 910''.
0
c. Remove ``Office of Health, Safety, and Security'' from the second
sentence of paragraph (b) and add in its place ``Office of Environment,
Health, Safety, and Security''.

Sec.  602.14  [Amended]

0
9. Amend Sec.  602.14 as follows:
0
a. Remove ``10 CFR part 600'' wherever it appears and add in its place
``2 CFR part 200 as amended by 2 CFR part 910''.

Sec.  602.18  [Amended]

0
10. Section 602.18 (c) is amended to remove ``in accordance with the
applicable provisions of 10 CFR part 600''.

PART 605--THE OFFICE OF SCIENCE FINANCIAL ASSISTANCE PROGRAM

0
11. The authority citation for part 605 continues to read as follows:

    Authority: Section 31 of the Atomic Energy Act, as amended, Pub.
L. 83-703, 68 Stat. 919 (42 U.S.C. 2051); sec. 107 of the Energy
Reorganization Act of 1974, Pub. L. 93-438, 88 Stat. 1240 (42 U.S.C.
5817); Federal Nonnuclear Energy Research and Development Act of
1974, Pub. L. 93-577, 88 Stat. 1878 (42 U.S.C. 5901 et seq.); secs.
644 and 646 of the Department of Energy Organization Act, Pub. L.
95-91, 91 Stat. 599 (42 U.S.C. 7254 and 7256); Federal Grant and
Cooperative Agreement Act, as amended (31 U.S.C. 6301 et seq.).

0
12. The heading of part 605 is revised to read as set forth above.

Sec.  605.1  [Amended]

0
13. Section 605.1(d) is amended to remove ``Office of Energy Research
(ER) and the Science and Technology Advisor (STA) Organization'' and
add in its place ``Office of Science (SC)''.

Sec.  605.2  [Amended]

0
14. Section 605.2(b) is amended to remove ``10 CFR part 600'' and add
in its place ``2 CFR part 200 as amended by 2 CFR part 910''

Sec.  605.3  [Amended]

0
15. Amend Sec.  605.3 as follows:
0
a. Remove ``10 CFR part 600'' and add in its place ``2 CFR part 200 as
amended by 2 CFR part 910''.
0
b. Remove ``ER/STA'' in the definition of Related conference'' and add
in its place ``SC''.
0
16. Amend Sec.  605.4 as follows:
0
a. The section heading is revised.
0
b. Remove ``deviations'' in the first sentence and add in its place
``exceptions''.
0
c. Remove ``ER'' in the first sentence and add in its place ``SC''.
0
d. Remove ``deviation'' wherever it appears and add in its place
``exception''.

0
e. Remove ``10 CFR part 600'' in the third sentence and add in its
place ``2 CFR part 200 as amended by 2 CFR part 910''.
    The revision reads as follows:

Sec.  605.4  Exceptions.

* * * * *

0
17. Amend Sec.  605.5 as follows:
0
a. Revise the section heading.
0
b. Remove ``Energy Research'' in paragraph (a) and add in its place
``Science''.
0
c. Remove ``ER'' in paragraph (c) and add in its place ``SC''.
    The revision reads as follows:

Sec.  605.5  The Office of Science Financial Assistance Program.

* * * * *

Sec.  605.8  [Amended]

0
18. Amend Sec.  605.8 as follows:
0
a. Remove ``Energy Research, ER-64'' in paragraph (c) and add in its
place ``Science, SC''.
0
b. Remove ``Energy Research'' in the introductory text of paragraph (d)
and add in its place ``Science''.

Sec.  605.9  [Amended]

0
19. Amend Sec.  605.9 as follows:
0
a. Remove ``10 CFR part 600'' wherever it appears and add in its place
``2 CFR part 200 as amended by 2 CFR part 910''.
0
b. Remove ``10 CFR parts 600 and 605'' in paragraph (b)(5) and add in
its place ``2 CFR part 200 as amended by 2 CFR part 910''.

Sec.  605.10  [Amended]

0
20. Amend Sec.  605.10 as follows:
0
a. Remove ``10 CFR part 600'' in paragraph (b) and add in its place ``2
CFR part 200 as amended by 2 CFR part 910''.
0
b. Remove ``ER's'' in the first sentence of paragraph (g) and add in
its place ``SC's''.

Sec.  605.12  [Amended]

0
21. Section 605.12(b) is amended to remove ``ER'' and add in its place
``SC''.

Sec.  605.15  [Amended]

0
22. Amend Sec.  605.15 as follows:
0
a. Remove ``10 CFR part 600'' wherever it appears and add in its place
``2 CFR part 200 as amended by 2 CFR part 910''.
0
b. Remove ``ER'' in paragraph (a)(2) and add in its place ``SC''.
0
c. Remove ``deviation'' in paragraph (a) introductory text and add in
its place ``exception''.

Sec.  605.18  [Amended]

0
23. Section 605.18 is amended to remove ``ER's'' in the first sentence
and add in its place ``SC's''.

Sec.  605.19  [Amended]

0
24. Section 605.19(a)(1) is amended to remove ``ER'' in the second
sentence and add in its place ``SC''.

Sec.  605.20  [Amended]

0
25. Section 605.20(c) is amended to remove ``10 CFR part 600'' and add
in its place ``2 CFR part 200 as amended by 2 CFR part 910''.

Appendix A to Part 605 [Amended]

0
26. Amend Appendix A to Part 605 as follows:
0
a. Remove ``ER'' in paragraph 2.(a) and add in its place ``SC''.
0
b. Remove ``Energy Research'' in paragraph 2.(a) and add in its place
``Science''.

CHAPTER III--DEPARTMENT OF ENERGY

PART 733--ALLEGATIONS OF RESEARCH MISCONDUCT

0
27. The authority citation for part 733 continues to read as follows:

    Authority: 42 U.S.C. 2201; 7254; 7256; 7101 et seq.; 50 U.S.C.
2401 et seq.

0
28. Amend Sec.  733.3 as follows:
0
a. Revise the definition for Contract.
0
b. In the definition for Financial assistance agreement, remove ``10
CFR part 600'' and add in its place ``2 CFR part 200 as amended by 2
CFR part 910''.
    The revision reads as follows:

Sec.  733.3  Definitions.

* * * * *
    Contract is defined in 2 CFR 200.22.
* * * * *

Paul Bosco,
Director, Office of Acquisition and Project Management.

Department of Treasury

    For the reasons stated in the preamble, the Department of the
Treasury amends Title 2 to add chapter X of the Code of Federal
Regulations to read:

Title 2--Grants and Agreements

CHAPTER X--DEPARTMENT OF TREASURY

PART 1000--UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES,
AND AUDIT REQUIREMENTS FOR FEDERAL AWARDS

Sec.
1000.10 Applicable regulations.
1000.306 Cost sharing or matching.
1000.336 Access to records.

    Authority: 5 U.S.C. 301; 31 U.S.C. 301; 2 CFR part 200.

Sec.  1000.10  Applicable regulations.

    Except for the deviations set forth elsewhere in this Part, the
Department of the Treasury adopts the Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal
Awards, set forth at 2 CFR part 200.

Sec.  1000.306  Cost sharing or matching.

    Notwithstanding 2 CFR 200.306(e), Low Income Taxpayer Clinic
grantees may use the rates found in 26 U.S.C. 7430 so long as:
    (a) The grantee is funded to provide controversy representation;
    (b) The services are provided by a qualified representative, which
includes any individual, whether or not an attorney, who is authorized
to represent taxpayers before the Internal Revenue Service or an
applicable court;
    (c) The qualified representative is not a student; and
    (d) The qualified representative is acting in a representative
capacity and is advocating for a taxpayer.

Sec.  1000.336  Access to records.

    The right of access under 2 CFR 200.336 shall not extend to client
information held by attorneys or federally authorized tax practitioners
under the Low Income Taxpayer Clinic program.

Nani Coloretti,
Assistant Secretary for Management.

Department of Defense,

Office of the Secretary

    For the reasons set forth in the common preamble, Part 1103 of
Title 2, Chapter XI of the Code of Federal Regulations is added to read
as follows:

PART 1103--INTERIM GRANTS AND COOPERATIVE AGREEMENTS IMPLEMENTATION
OF GUIDANCE IN 2 CFR PART 200, ``UNIFORM ADMINISTRATIVE
REQUIREMENTS, COST PRINCIPLES, AND AUDIT REQUIREMENTS FOR FEDERAL
AWARDS''

Subpart A--Interim Implementation of Guidance in 2 CFR Part 200
Sec.
1103.100 Applicability of 2 CFR part 200 to requirements for
recipients in DoD Components' terms and conditions.
Subpart B--Pre-Existing Policies Continuing in Effect During Interim
Implementation
1103.200 Exception for small awards.
1103.205 Timing of payments made using the reimbursement method.
1103.210 Management of federally owned property for which a
recipient is accountable.
1103.215 Intangible property developed or produced under an award or
subaward.
1103.220 Debarment and suspension requirements related to
recipients' procurements.
1103.225 Debt collection.
Subpart C--Definitions of Terms Used in This Part
1103.300 DoD Components.
1103.305 DoD Grant and Agreement Regulations.
1103.310 Small award.

    Authority: 5 U.S.C. 301 and 10 U.S.C. 113.

Subpart A--Interim Implementation of Guidance in 2 CFR Part 200

Sec.  1103.100  Applicability of 2 CFR part 200 to requirements for
recipients in DoD Components' terms and conditions.

    Effective December 26, 2014, and on an interim basis pending update
of the DoD Grant and Agreement Regulations to implement Office of
Management and Budget (OMB) guidance published in 2 CFR part 200:
    (a) The guidance in 2 CFR part 200 as modified and supplemented by

provisions of Subpart B of this part governs the administrative
requirements, cost principles, and audit requirements to be included in
terms and conditions of DoD Components' new grant and cooperative
agreement awards to:
    (1) Institutions of higher education, hospitals, and other
nonprofit organizations included in the definition of ``recipient'' in
part 32 of the DoD Grant and Agreement Regulations (32 CFR part 32).
    (2) States, local governments, and Indian tribal governments.
    (b) The following class deviations from selected provisions of the
DoD Grant and Agreement Regulations therefore are approved for DoD
Components' new grant and cooperative agreement awards made on or after
December 26, 2014:
    (1) Awards to institutions of higher education, hospitals, and
other nonprofit organizations included in the definition of
``recipient'' in part 32 of the DoD Grant and Agreement Regulations (32
CFR part 32) are not subject to the administrative requirements, cost
principles, and audit requirements specified in 32 CFR part 32.
    (2) Awards to States, local governments, and Indian tribal
governments are not subject to the administrative requirements, cost
principles, and audit requirements specified in part 33 of the DoD
Grant and Agreement Regulations (32 CFR part 33).
    (3) References in other parts of the DoD Grant and Agreement
Regulations that cite part 32 or part 33 as the source of
administrative requirements, cost principles, and audit requirements
for awards to the types of recipient entities described in paragraphs
(b)(1) and (2) of this section therefore do not apply to those new
awards.
    (c) Provisions of the DoD Grant and Agreement Regulations other
than those listed in paragraph (b) of this section continue to be in
effect, with applicability as stated in those provisions.

Subpart B--Pre-Existing Policies Continuing in Effect During
Interim Implementation

Sec.  1103.200  Exception for small awards.

    For small awards to institutions of higher education, hospitals,
and other nonprofit organizations, DoD Components' terms and conditions
may apply less restrictive requirements to recipients than the OMB
guidance in 2 CFR part 200 specifies, except for requirements that are
statutory. This exception maintains long-standing policy established in
32 CFR 32.4.

Sec.  1103.205  Timing of payments made using the reimbursement method.

    In DoD Components' awards to institutions of higher education,
hospitals, and other nonprofit organizations, the terms and conditions
implementing the provisions of 2 CFR 200.305(b)(3) concerning timing of
payments when the reimbursement method is used must specify that the
DoD payment office generally makes payment within 30 calendar days
after receipt of the request for reimbursement by the office designated
to receive the request, unless the request is reasonably believed to be
improper. This substitution of ``generally makes payment'' for ``must
make payment'' maintains long-standing policy established in 32 CFR
32.22(e)(1).

Sec.  1103.210  Management of federally owned property for which a
recipient is accountable.

    In award terms and conditions implementing the guidance in 2 CFR
200.313(d) on procedural requirements for a recipient's equipment
management system, DoD Components must:
    (a) For any award to an institution of higher education, hospital,
or other nonprofit organization, broaden the requirements of 2 CFR
200.313(d) to also apply to any federally owned property for which the
recipient is accountable under its award. Doing so maintains long-
standing policy established in 32 CFR 32.34(f).
    (b) For any award to a State, local government, or Indian tribal
government (as defined in 32 CFR part 33), specify that the recipient
must manage federally owned equipment in accordance with the DoD
Components' rules and procedures. Doing so maintains long-standing
policy established in 32 CFR 33.32(f).

Sec.  1103.215  Intangible property developed or produced under an
award or subaward.

    In DoD Components' awards to institutions of higher education,
hospitals, and other nonprofit organizations, the award terms and
conditions implementing the guidance in 2 CFR 200.315(a) on intangible
property must exclude intangible property developed or produced under
an award or subaward. Doing so maintains long-standing policy
established in 32 CFR 32.36(e).

Sec.  1103.220  Debarment and suspension requirements related to
recipients' procurements.

    In award terms and conditions implementing the guidance in 2 CFR
200.318(h) on awarding contracts only to responsible entities, DoD
Components must require recipients to comply with DoD's implementation
in 2 CFR part 1125 of OMB guidance on nonprocurement debarment and
suspension (2 CFR part 180). Doing so maintains long-standing policy
established in 2 CFR parts 180 and 1125 and in 32 CFR 32.44(d), as well
as compliance with Executive Orders 12549 and 12689.

Sec.  1103.225  Debt collection.

    In award terms and conditions implementing the guidance in 2 CFR
200.345 on collection of amounts due, DoD Components must inform
recipients that DoD post-award administration offices follow procedures
set forth in 32 CFR 22.820 for issuing demands for payment and
transferring debts for collection, and that a recipient will be
informed about specific procedures and timeframes affecting it through
the written notices of grants officers' decisions and demands for
payment. Doing so maintains long-standing policy established in 32 CFR
32.73(c).

Subpart C--Definitions of Terms Used in This Part

Sec.  1103.300  DoD Components.

    The Office of the Secretary of Defense, the Military Departments,
and all Defense Agencies, DoD Field Activities, and other entities
within the Department of Defense that are authorized to award or
administer grants, cooperative agreements, and other non-procurement
transactions subject to the DoD Grants and Agreement Regulations.

Sec.  1103.305  DoD Grant and Agreement Regulations.

    The regulations in Chapter I, Subchapter C of Title 32, Code of
Federal Regulations, and Chapter XI of Title 2, Code of Federal
Regulations.

Sec.  1103.310  Small award.

    An award not exceeding the simplified acquisition threshold.

Patricia L. Toppings,
Office of the Secretary of Defense, Federal Register Liaison Officer,
Department of Defense.

Department of Transportation

Office of the Secretary

    For the reasons set forth in the preamble, and under the authority
of 5 U.S.C. 301, 49 U.S.C. 322, and the authorities listed below, Part
1201 of title 2 of the Code of Federal Regulations is added, and Parts
18 and

19 of title 49 of the Code of Federal Regulations are removed, as
follows:

Title 2--Grants and Agreements

CHAPTER XII--DEPARTMENT OF TRANSPORTATION

0
1. Add Part 1201 to read as follows:

PART 1201--UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES,
AND AUDIT REQUIREMENTS FOR FEDERAL AWARDS

Sec.
1201.1 What does this part do?
1201.2 Definitions.
1201.80 Program income.
1201.102 Exceptions.
1201.106 DOT Component implementation.
1201.107 DOT Headquarters responsibilities.
1201.108 Inquiries.
1201.109 Review date.
1201.112 Conflict of interest.
1201.206 Standard application requirements.
1201.313 Equipment.
1201.317 Procurements by States.
1201.319 Competition.
1201.327 Financial reporting.
1201.330 Subrecipient and contractor determinations.

    Authority:  49 U.S.C. 322(a); 2 CFR 200.106.

Sec.  1201.1  What does this part do?

    Except as otherwise provided in this part, the Department of
Transportation adopts the Office of Management and Budget Uniform
Administrative Requirements, Cost Principles, and Audit Requirements
for Federal Awards (2 CFR part 200). This part supersedes and repeals
the requirements of the Department of Transportation Common Rules (49
CFR part 18--Uniform Administrative Requirements for Grants and
Cooperative Agreements to State and Local Governments and 49 CFR part
19--Uniform Administrative Requirements--Uniform Administrative
Requirements for Grants and Agreements with Institutions of Higher
Education, Hospitals, and other Non-Profit Organizations), except that
grants and cooperative agreements executed prior to December 26, 2014
shall continue to be subject to 49 CFR parts 18 and 19 as in effect on
the date of such grants or agreements. New parts with terminology
specific to the Department of Transportation follow.

Sec.  1201.2  Definitions.

    Throughout this part, the term ``DOT Component'' refers to any
Division, Office, or Mode (e.g., the Federal Aviation Administration
(FAA), Federal Highway Administration (FHWA), Federal Motor Carrier
Safety Administration (FMCSA), Federal Railroad Administration (FRA),
Federal Transit Administration (FTA), Maritime Administration (MARAD),
National Highway Traffic Safety Administration (NHTSA), Office of
Inspector General (OIG), Office of the Secretary of Transportation
(OST), Pipeline and Hazardous Materials Safety Administration (PHMSA),
St. Lawrence Seaway Development Corporation (SLSDC), and the Surface
Transportation Board (STB)) within the Department of Transportation
awarding Federal financial assistance. In addition, the term ``DOT
Headquarters'' refers to the Secretary of Transportation or any office
designated by the Secretary to fulfill headquarters' functions within
any office under the Secretary's immediate supervision.

Sec.  1201.80  Program income.

    Notwithstanding 2 CFR 200.80, program income means gross income
earned by the non-Federal entity that is directly generated by a
supported activity or earned as a result of the Federal award during
the period of performance. (See 2 CFR 200.77 Period of performance.)
Program income includes but is not limited to income from fees for
services performed, the use or rental or real or personal property
acquired under Federal awards, the sale of commodities or items
fabricated under a Federal award, license fees and royalties on patents
and copyrights, and principal and interest on loans made with Federal
award funds. Interest earned on advances of Federal funds is not
program income. Except as otherwise provided in Federal statutes,
regulations, or the terms and conditions of the Federal award, program
income does not include rebates, credits, discounts, taxes, special
assessments, levies, and fines raised by a grantee and subgrantee, and
interest earned on any of them.

Sec.  1201.102  Exceptions.

    DOT Headquarters may grant exceptions to Part 1201 on a case-by-
case basis. Such exceptions will be granted only as determined by the
Secretary of Transportation.

Sec.  1201.106  DOT Component implementation.

    The specific requirements and responsibilities for grant-making DOT
Components are set forth in this part. DOT Components must implement
the language in this part unless different provisions are required by
Federal statute or are approved by DOT Headquarters. DOT Components
making Federal awards to non-Federal entities must implement the
language in the Subpart C--Pre-Federal Award Requirements and Contents
of Federal Awards of this Part through Subpart F--Audit Requirements of
this Part in codified regulations unless different provisions are
required by Federal statute or are approved by DOT Headquarters.

Sec.  1201.107  DOT Headquarters responsibilities.

    DOT Headquarters will review DOT Component implementation of this
part, and will provide interpretations of policy requirements and
assistance to ensure effective and efficient implementation. Any
exceptions will be subject to approval by DOT Headquarters. Exceptions
will only be made in particular cases where adequate justification is
presented.

Sec.  1201.108  Inquiries.

    Inquiries regarding Part 1201 should be addressed to the DOT
Component making the award, cognizant agency for indirect costs,
cognizant or oversight agency for audit, or pass-through entities as
appropriate. DOT Components will, in turn, direct the inquiry to the
Office of Chief Financial Officer, Department of Transportation.

Sec.  1201.109  Review date.

    DOT Headquarters will review this part at least every five years
after December 26, 2014.

Sec.  1201.112  Conflict of interest.

    The DOT Component making a financial assistance award must
establish conflict of interest policies for Federal awards, including
policies from DOT Headquarters. The non-Federal entity must disclose in
writing any potential conflict of interest to the DOT Component or
pass-through entity in accordance with applicable Federal awarding
agency policy.

Sec.  1201.206  Standard application requirements.

    The requirements of 2 CFR 200.206 do not apply to formula grant
programs, which do not require applicants to apply for funds on a
project basis.

Sec.  1201.313  Equipment.

    Notwithstanding 2 CFR 200.313, subrecipients of States shall follow
such policies and procedures allowed by the State with respect to the
use, management and disposal of equipment acquired under a Federal
award.

Sec.  1201.317  Procurements by States.

    Notwithstanding 2 CFR 200.317, subrecipients of States shall follow
such policies and procedures allowed by the

State when procuring property and services under a Federal award.

Sec.  1201.327  Financial reporting.

    Notwithstanding 2 CFR 200.327, recipients of FHWA and NHTSA
financial assistance may use FHWA, NHTSA or State financial reports.

Title 49--Transportation

Subtitle A--Office of the Secretary of Transportation

PART 18--[REMOVED AND RESERVED]

0
2. Remove and reserve part 18.

PART 19--[REMOVED AND RESERVED]

0
3. Remove and reserve part 19.

Anthony R. Foxx,
Secretary of Transportation.

Department of Commerce

Office of the Secretary

    For the reasons set forth in the common preamble, and under the
authority of 5 U.S.C. 301 and the authorities listed below, Part 1327
of Title 2, Chapter XIII of the Code of Federal Regulations is added,
and Parts 14 and 24 of Title 15, Subtitle A of the Code of Federal
Regulations are amended, as follows:

Title 2--Grants and Agreements

CHAPTER XIII--DEPARTMENT OF COMMERCE

0
1. Add Part 1327, consisting of Sec.  1327.101, to Chapter XIII to read
as follows:

PART 1327--UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES,
AND AUDIT REQUIREMENTS FOR FEDERAL AWARDS

    Authority:  5 U.S.C. 301; 38 U.S.C. 501; 2 CFR part 200.

Sec.  1327.101  Adoption of 2 CFR Part 200.

    Under the authority listed above, the Department of Commerce adopts
the Office of Management and Budget (OMB) Guidance in 2 CFR part 200.
Thus, this part gives regulatory effect to the OMB guidance and
supplements the guidance as needed for the Department.

Title 15--Commerce and Foreign Trade

Subtitle A--Office of the Secretary of Commerce

PART 14--[REMOVED AND RESERVED]

0
2. Remove and reserve part 14.

PART 24--[REMOVED AND RESERVED]

0
3. Remove and reserve part 24.

Barry Berkowitz,
Director of Acquisition Management.

Department of the Interior

Office of the Secretary

    For the reasons set forth in the common preamble, and under the
authority of 5 U.S.C. part 301 and the authorities listed below, part
1402 in Chapter XIV of title 2 is added, and part 12 of title 43 of the
Code of Federal Regulations is amended, as follows:

Title 2--Grants and Agreements

CHAPTER XIV--DEPARTMENT OF THE INTERIOR

0
1. Add Part 1402 to Chapter XIV to read as follows:

PART 1402--UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES,
AND AUDIT REQUIREMENTS FOR FEDERAL AWARDS

Sec.
1402.100 Purpose.
1402.101 To whom does this part apply?
1402.102 Do DOI financial assistance policies include any exceptions
to 2 CFR part 200?
1402.103 Does DOI have any other policies or procedures award
recipients must follow?

    Authority: 5 U.S.C. 301; 38 U.S.C. 501, 2 CFR part 200.

Sec.  1402.100  Purpose.

    The Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards set forth in 2 CFR part 200 apply to
the Department of the Interior. This part adopts, as the Department of
the Interior (DOI) policies and procedures, the Office of Management
and Budget's (OMB) Uniform Administrative Requirements, Cost
Principles, and Audit Requirements set forth in 2 CFR part 200. The
Uniform guidance applies in full except as stated in Sec. Sec.
1402.102 and 1402.103.

Sec.  1402.101  To whom does this part apply?

    This part, and through it 2 CFR part 200, subparts A through E.
applies to any non-Federal entity that applies for, receives, operates,
or expends funds from a DOI Federal financial assistance award,
cooperative agreement or grant after the effective date of December 26,
2014.

Sec.  1402.102  Do DOI financial assistance policies include any
exceptions to 2 CFR part 200?

    This chapter applies to Federally recognized Indian tribal
governments, except for those awards made pursuant to the authority of
the Indian Self-Determination and Education Assistance Act (P.L. 93-
638, 88 Stat. 2204), as amended. However, Sec. 9 of P.L. 93-638 does
provide for use of a grant agreement or cooperative agreement when
mutually agreed to by the Secretary of the Interior and the tribal
organization involved.

Sec.  1402.103  Does DOI have any other policies or procedures award
recipients must follow?

    Award recipients must follow bureau/office program specific or
technical merit policies and procedures that will be published in the
Federal Register, Grants.gov, or bureau Web site.

Title 43--Public Lands: Interior

Subtitle A--Office of the Secretary of the Interior

PART 12--[REMOVED AND RESERVED]

0
2. Remove and reserve part 12.

Kristen J. Sarri,
Principal Assistant Secretary for Policy, Management and Budget.

Environmental Protection Agency

    For the reasons stated in the preamble, under the authority of 5
U.S.C. 301 and the authorities listed below, 2 CFR part 1500 and 40 CFR
parts 33, 35, 40, 45, 46 and 47 are amended as follows:

Title 2--Grants and Agreements

CHAPTER XV--ENVIRONMENTAL PROTECTION AGENCY

0
1. Part 1500 is added to chapter XV to read as follows:

PART 1500--UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES,
AND AUDIT REQUIREMENTS FOR FEDERAL AWARDS

Subpart A--Acronyms and Definitions [Reserved]
Subpart B--General Provisions
1500.1 Adoption of 2 CFR part 200.
1500.2 Applicability.
1500.3 Exceptions.
1500.4 Supersession.

Subpart C--Pre-Federal Award Requirements and Contents of Federal
Awards.

1500.5   Fixed Amount Awards.

Subpart D--Post Federal Award Requirements.

Standards for Financial and Program Management

1500.6 Retention requirements for records.
1500.7 Program Income.
1500.8 Revision of budget and program plans.

Procurement Standards

1500.9 General Procurement Standards.
1500.10 Use of the same architect or engineer during construction.

Performance and Financial Monitoring and Reporting

1500.11 Quality Assurance.
Subpart E--Disputes.
1500.12 Purpose and scope of this subpart.
1500.13 Definitions.
1500.14 Submission of Appeal.
1500.15 Notice of receipt of Appeal to Affected Entity.
1500.16 Determination of Appeal.
1500.17 Request for review.
1500.18 Notice of receipt of request for review.
1500.19 Determination of request for review.

    Authority: 42 U.S.C. 241, 242b, 243, 246, 1857 et seq., 33
U.S.C. 1251 et seq., 42 U.S.C. 7401 et seq., 42 U.S.C. 6901 et seq.,
42 U.S.C. 300f et seq., 7 U.S.C. 136 et seq., 15 U.S.C. 2601 et
seq., 42 U.S.C. 9601 et seq., 20 U.S.C. 4011 et seq., and 33 U.S.C.
1401 et seq.; 2 CFR 200.

Subpart A--Acronyms and Definitions [Reserved]

Subpart B--General Provisions

Sec.  1500.1  Adoption of 2 CFR Part 200.

    Under the authority listed above the Environmental Protection
Agency adopts the Office of Management and Budget (OMB) guidance
Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards to Non-Federal Entities (subparts A
through F of 2 CFR part 200), as supplemented by this part, as the
Environmental Protection Agency (EPA) policies and procedures for
financial assistance administration. This part satisfies the
requirements of 2 CFR 200.110(a) and gives regulatory effect to the OMB
guidance as supplemented by this part. EPA also has programmatic
regulations located in 40 CFR Chapter 1 Subchapter B.

Sec.  1500.2  Applicability.

    Uniform administrative requirements and cost principles (Subparts A
through E of 2 CFR part 200 as supplemented by this part) apply to
foreign public entities or foreign organizations, except where EPA
determines that the application of these subparts would be inconsistent
with the international obligations of the United States or the statute
or regulations of a foreign government.

Sec.  1500.3  Exceptions.

    Consistent with 2 CFR 200.102(b):
    (a) In the EPA, the Director, Office of Grants and Debarment or
designee, is authorized to grant exceptions on a case-by-case basis for
non-Federal entities.
    (b) The EPA Director or designee is also authorized to approve
exceptions, on a class or an individual case basis, to EPA program
specific assistance regulations other than those which implement
statutory and executive order requirements.

Sec.  1500.4  Supersession.

    Effective December 26, 2014, this part supersedes the following
regulations under Title 40 of the Code of Federal Regulations:
    (a) 40 CFR part 30, ``Uniform Administrative Requirements for
Grants and Agreements with Institutions of Higher Education, Hospitals,
and other Non-profit Organizations.''
    (b) 40 CFR part 31, ``Uniform Administrative Requirements for
Grants and Cooperative Agreements to State and Local Governments.''

Subpart C--Pre-Federal Award Requirements and Contents of Federal
Awards

Sec.  1500.5  Fixed Amount Awards.

    In the EPA, programs awarding fixed amount awards will do so in
accordance with guidance issued from the Office of Grants and
Debarment. (See 2 CFR 200.201(b)).

Subpart D--Post Federal Award Requirements.

Standards for Financial and Program Management

Sec.  1500.6  Retention requirements for records.

    (a) In the EPA, some programs require longer retention requirements
for records by statute.
    (b) When there is a difference between the retention requirements
for records of the Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (2 CFR 200.333)
and the applicable statute, the non-federal entity will follow to the
retention requirements for records in the statute.

Sec.  1500.7  Program Income.

    (a) Governmental revenues. Permit fees are governmental revenue and
not program income. (See 2 CFR 200.307(c))
    (b) Use of Program Income. The default use of program income for
EPA awards is addition. The program income shall be used for the
purposes and under the conditions of the assistance agreement. (See 2
CFR 200.307(e)(2))
    (c) Brownfields Revolving Loan. To continue the mission of the
Brownfields Revolving Loan fund, recipients may use grant funding prior
to using program income funds generated by the revolving loan fund.
Recipients may also keep program income at the end of the assistance
agreement as long as they use these funds to continue to operate the
revolving loan fund or some other brownfield purpose as outlined in
their closeout agreement.

Sec.  1500.8  Revision of budget and program plans.

    Pre-award Costs. EPA award recipients may incur allowable project
costs 90 calendar days before the Federal awarding agency makes the
Federal award. Expenses more than 90 calendar days pre-award require
prior approval of EPA. All costs incurred before EPA makes the award
are at the recipient's risk. EPA is under no obligation to reimburse
such costs if for any reason the recipient does not receive a Federal
award or if the Federal award is less than anticipated and inadequate
to cover such costs.

Procurement Standards

Sec.  1500.9  General Procurement Standards.

    (a) Payment to consultants. EPA will limit its participation in the
salary rate (excluding overhead) paid to individual consultants
retained by recipients or by a recipient's contractors or
subcontractors to the maximum daily rate for level 4 of the Executive
Schedule unless a greater amount is authorized by law. (Recipient's
may, however, pay consultants more than this amount with non EPA
funds.) This limitation applies to consultation services of designated
individuals with specialized skills who are paid at a daily or hourly
rate. This rate does not include transportation and subsistence costs
for travel performed; recipients will pay these in accordance with
their normal travel reimbursement practices. Contracts with firms for
services which are awarded using the procurement standards in Subpart D
of 2 CFR part 200 are not affected by this limitation.
    (b) Subawards with firms for services which are awarded using the
procurement standards in 2 CFR

200.317 through 2 CFR 200.326 are not affected by this limitation.

Sec.  1500.10  Use of the same architect or engineer during
construction.

    (a) If the recipient is satisfied with the qualifications and
performance of the architect or engineer who provided any or all of the
facilities planning or design services for a waste-water treatment
works project and wishes to retain that firm or individual during
construction of the project, it may do so without further public notice
and evaluation of qualifications, provided:
    (1) The recipient received a facilities planning (Step 1) or design
grant (Step 2), and selected the architect or engineer in accordance
with EPA's procurement regulations in effect when EPA awarded the
grant; or
    (2) The award official approves noncompetitive procurement under 2
CFR 200.320(f) for reasons other than simply using the same individual
or firm that provided facilities planning or design services for the
project; or
    (3) The recipient attests that:
    (i) The initial request for proposals clearly stated the
possibility that the firm or individual selected could be awarded a
subaward for services during construction; and
    (ii) The firm or individual was selected for facilities planning or
design services in accordance with procedures specified in this
section.
    (iii) No employee, officer or agent of the recipient, any member of
their immediate families, or their partners have financial or other
interest in the firm selected for award; and
    (iv) 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 subawards.
    (b) However, if the recipient uses the procedures in paragraph (a)
of this section to retain an architect or engineer, any Step 3
subawards between the architect or engineer and the grantee must meet
all of the other procurement provisions in 2 CFR 200.317 through
200.326.

Performance and Financial Monitoring and Reporting

Sec.  1500.11  Quality Assurance.

    (a) Quality assurance applies to all assistance agreements that
involve environmentally related data operations, including
environmental data collection, production or use.
    (b) Recipients shall develop a written quality assurance system
commensurate with the degree of confidence needed for the
environmentally related data operations.
    (c) If the recipient complies with EPA's quality policy, the system
will be presumed to be in compliance with the quality assurance system
requirement. The recipient may also comply with the quality assurance
system requirement by complying with American National Standard ANSI/
ASQ E4:2014: Quality management systems for environmental information
and technology programs.
    (d) The recipient shall submit the written quality assurance system
for EPA review. Upon EPA's written approval, the recipient shall
implement the EPA-approved quality assurance system.
    (e) EPA Quality Policy is available at: http://www.epa.gov/quality.
    (f) The standards required in this section are incorporated by
reference into this section with the approval of the Director of the
Federal Register under 5 U.S.C. 552(a) and 1 CFR part 51.
    The material is available for inspection at the Environmental
Protection Agency's Headquarters Library, Room 3340, EPA West Building,
1301 Constitution Avenue NW., Washington, DC 20004,<PHONE_NUMBER>. A
copy is also available for inspection at the National Archives and
Records Administration (NARA). For information on the availability of
this material at NARA, call<PHONE_NUMBER>, or go to: http://www.archives.gov/federal_register/code_of_federal_regulations/ibrlocations.html.
    (1) American Society for Quality, 600 North Plankinton Avenue,
Milwaukee, WI 53201, 1-800-248-1946, http://asq.org.
    (i) American National Standard ANSI/ASQ E4:2014: Quality management
systems for environmental information and technology programs--
Requirements with guidance for use, approved February 4, 2014.
    (ii) Reserved.
    (2) Reserved.

Subpart E--Disputes

Sec.  1500.12  Purpose and scope of this subpart.

    (a) This section provides the process for the resolution of pre-
award and post-award assistance agreement disputes as described in
Sec.  1500.13, except for:
    (1) Assistance agreement competition-related disputes; and
    (2) Any appeal process relating to an award official's
determination that an entity is not qualified for award that may be
developed pursuant to guidance implementing Section 872 of the Duncan
Hunter National Defense Authorization Act for Fiscal Year 2009 (Pub. L.
110-417, as amended).
    (b) Pre-award and post-award disagreements between affected
entities and EPA related to an assistance agreement should be resolved
at the lowest level possible. If an agreement cannot be reached, absent
any other applicable statutory or regulatory dispute provisions,
affected entities must follow the dispute procedures outlined in this
subpart.
    (c) Determinations affecting assistance agreements made under other
Agency decision-making processes are not subject to review under the
procedures in this Subpart or the Agency's procedures for resolving
assistance agreement competition-related disputes. These determinations
include, but are not limited to:
    (1) Decisions on requests for exceptions under Sec.  1500.3;
    (2) Bid protest decisions under 2 CFR 200.318(k)
    (3) National Environmental Policy Act decisions under 40 CFR part
6;
    (4) Policy decisions of the EPA Internal Audit Dispute Resolution
Process (formerly known as Audit Resolution Board); and
    (5) Suspension and Debarment Decisions under 2 CFR parts 180 and
1532.

Sec.  1500.13  Definitions.

    As used in this subpart:
    (a) Action Official (AO) is the EPA official who authors the Agency
Decision to the Affected Entity regarding a pre-award or post-award
matter.
    (b) Affected Entity is an entity that applies for and/or receives
Federal financial assistance from EPA including but not limited to:
State and local governments, Indian Tribes, Intertribal Consortia,
Institutions of Higher Education, Hospitals, and other Non-profit
Organizations, and Individuals.
    (c) Agency Decision is the Agency's initial pre-award or post-award
determination. The Agency Decision is sent by the Action Official (AO)
to the Affected Entity electronically and informs them of their dispute
rights including appealing the Agency Decision to the DDO. Assistance
Agreement Appeal (or Appeal) is the letter an Affected Entity submits
to the DDO to challenge an Agency Decision.
    (d) Dispute is a disagreement by an Affected Entity with a specific
Agency Decision regarding a pre-award or post-award action.
    (e) Disputes Decision Official (DDO) is the designated agency
official responsible for issuing a decision resolving an Appeal.
    (1) The DDO for a Headquarters Assistance Agreement Appeal is the
Director of the Grants and Interagency Agreement Management Division in
the

Office of Grants and Debarment or designee. To help provide for a fair
and impartial review, the AO for the challenged Agency Decision may not
serve as the Headquarters DDO and the DDO cannot serve as the Review
Official for the Appeal decision.
    (2) The DDO for a Regional Assistance Agreement Appeal is the
official designated by the Regional Administrator to issue the written
decision resolving the Appeal. To help provide for a fair and impartial
review, the AO for the challenged Agency Decision may not serve as the
Regional DDO and the DDO cannot serve as the Review Official for the
Appeal decision. Request for Review is the letter an Affected Entity
submits to the designated Review Official to challenge the DDO's Appeal
decision.
    (f) Review Official is the EPA official responsible for issuing a
decision resolving an Affected Entity's request for review of a DDO's
Appeal decision.
    (1) For a Headquarters DDO Appeal decision, the Review Official is
the Director of the Office of Grants and Debarment or designee.
    (2) For a Regional DDO Appeal decision, the Review Official is the
Regional Administrator or designee.

Sec.  1500.14  Submission of Appeal.

    An Affected Entity or its authorized representative may dispute an
Agency Decision by electronically submitting an Appeal to the DDO
identified in the Agency Decision. In order for the DDO to consider the
Appeal, it must satisfy the following requirements:
    (a) Timeliness. The DDO must receive the Appeal no later than 30
calendar days from the date the Agency Decision is electronically sent
to the Affected Entity. The DDO will dismiss any Appeal received after
the 30-day period unless the DDO grants an extension of time to submit
the Appeal. The Affected Entity must submit a written request for
extension to the DDO before the expiration of the 30-day period. The
DDO may grant a one-time extension of up to 30 calendar days when
justified by the situation, which may include the unusual complexity of
the Appeal or because of exigent circumstances.
    (b) Method of submission. The Affected Entity must submit the
Appeal electronically via email to the DDO, with a copy to the AO,
using the email addresses specified in the Agency Decision within the
30-day period stated in paragraph (a) of this section.
    (c) Contents of Appeal. The Appeal submitted to the DDO must
include:
    (1) A copy of the disputed Agency Decision;
    (2) A detailed statement of the specific legal and factual grounds
for the Appeal, including copies of any supporting documents;
    (3) The specific remedy or relief the Affected Entity seeks under
the Appeal; and
    (4) The name and contact information, including email address, of
the Affected Entity's designated point of contact for the Appeal.

Sec.  1500.15  Notice of receipt of Appeal to Affected Entity.

    Within 15 calendar days of receiving the Appeal, the DDO will
provide the Affected Entity a written notice, sent electronically,
acknowledging receipt of the Appeal.
    (a) Timely Appeals. If the Appeal was timely submitted, the notice
of acknowledgement may identify any additional information or
documentation that is required for a thorough consideration of the
Appeal. The notice should provide no more than 30 calendar days for the
Affected Entity to provide the requested information. If it is not
feasible to identify such information or documentation in the notice
the DDO may request it at a later point in time prior to Appeal
resolution.
    (b) Untimely Appeals. If the DDO did not receive the Appeal within
the required 30-day period, or any extension of it, the DDO will notify
the Affected Entity that the Appeal is being dismissed as untimely and
the Agency Decision of the AO becomes final. The notification will also
identify the Review Official. The dismissal of an untimely Appeal
constitutes the final agency action, unless further review is sought in
accordance with the requirements of Sec.  1500.16. In limited
circumstances, the DDO may, as a matter of discretion, consider an
untimely Appeal if doing so would be in the interests of fairness and
equity.

Sec.  1500.16  Determination of Appeal.

    (a) Record on Appeal. In determining the merits of the Appeal, the
DDO will consider the record related to the Agency Decision, any
documentation that the Affected Entity submits with its Appeal, any
additional documentation submitted by the Affected Entity in response
to the DDO's request under Sec.  1500.14(a), and any other information
the DDO determines is relevant to the Appeal provided the DDO gives
notice of that information to the Affected Entity. The Affected Entity
may not on its own initiative submit any additional documents.
    (b) Appeal decision. The DDO will issue the Appeal decision within
180 calendar days from the date the Appeal is received by the DDO
unless a longer period is necessary based on the complexity of the
legal, technical and factual issues presented. The DDO will notify the
Affected Entity if the expected decision will not be issued within the
180 day period and if feasible will indicate when the decision is
expected to be issued. The Appeal decision will also identify the
Review Official. The DDO will issue the Appeal decision electronically.
The DDO's decision will constitute the final agency action unless the
Affected Entity files a timely request for review in accordance with
the Request for Review procedures in Sec.  1500.17.

Sec.  1500.17  Request for review.

    An Affected Entity may file an electronic written request for
review of the DDO's Appeal decision to the appropriate Review Official
within 15 calendar days from the date the Appeal decision is
electronically sent to the Affected Entity. The request for review must
comply with the following requirements:
    (a) Submission of request for review. The request must be submitted
to the Review Official identified in the Appeal decision as follows:
    (1) If a Headquarters DDO issued the Appeal decision, the request
must be electronically submitted to the Director of the Office of
Grants and Debarment, or designee, at the email address identified in
the Appeal decision, with a copy to the DDO.
    (2) If the Appeal decision was issued by a DDO located in an agency
Regional Office, the request for review must be electronically
submitted to the Regional Administrator, or designee, at the email
address identified in the Appeal decision, with a copy to the DDO.
    (b) Contents and grounds of request for review. The request for
review must include a copy of the DDO's Appeal decision and provide a
detailed statement of the factual and legal grounds warranting reversal
or modification of the Appeal decision. The only ground for review of a
DDO's Appeal decision is that there was a clear and prejudicial error
of law, fact or application of agency policy in deciding the Appeal.
    (c) Conducting the review. In reviewing the Appeal decision, the
Review Official will only consider the information that was part of the
Appeal decision unless:
    (1) The Affected Entity provides new information in the request for
review that was not available to the DDO for the Appeal decision; and
    (2) The Review Official determines that the new information is
relevant and

should be considered in the interests of fairness and equity.

Sec.  1500.18  Notice of receipt of request for review.

    Timeliness. The Review Official will provide the Affected Entity
electronic written notice acknowledging receipt of the review request
within 15 calendar days of receiving the request. The Review Official
will further provide a copy of the notice to the DDO.
    (a) If the request was submitted in accordance with Sec.  1500.17,
the notice of acknowledgment will also advise the Affected Entity that
the Review Official expects to issue a decision within 45 calendar days
from the date they received the request.
    (b) If the request for review was not submitted within the required
15 calendar day period, or does not allege reviewable grounds
consistent with Sec.  1500.17, the Review Official will notify the
Affected Entity that the request is denied as untimely and/or for
failing to state a valid basis for review. In limited circumstances,
the Review Official may, as a matter of discretion, consider an
untimely review if doing so would be in the interest of fairness and
equity.

Sec.  1500.19  Determination of request for review.

    (a) Within 15 calendar days of receiving a copy of the notice
acknowledging the receipt of a timely and reviewable Request for
Review, the DDO will submit the Appeal record to the Review Official.
    (b) The Review Official will issue a final written decision within
45 calendar days of the submission of the request for review unless a
longer period is necessary based on the complexity of the legal,
technical and factual issues presented.
    (1) The Review Official will notify the Affected Entity if the
expected decision will not be issued within the 45-day period and if
feasible will indicate when the decision is expected to be issued.
    (2) The Review Official's decision constitutes the final agency
action and is not subject to further review within the agency.

Title 40--Environmental Protection

CHAPTER I--ENVIRONMENTAL PROTECTION AGENCY

PART 30--[Removed]

0
1. Remove part 30.

PART 31--[Removed]

0
2. Remove part 31.

PART 33--PARTICIPATION BY DISADVANTAGED BUSINESS ENTERPRISES IN
UNITED STATES ENVIRONMENTAL PROTECTION AGENCY PROGRAMS

0
3. The authority citation for part 33 is revised to read as follows:

    Authority: 15 U.S.C. 637 note; 42 U.S.C. 4370d, 7601 note,
9605(f); E.O. 11625, 36 FR 19967, 3 CFR, 1971 Comp., p. 213; E.O.
12138, 49 FR 29637, 3 CFR, 1979 Comp., p. 393; E.O. 12432, 48 FR
32551, 3 CFR, 1983 Comp., p. 198, 2 CFR part 200.

0
4. Section 33.103 is amended by revising the first sentence of the
introductory text and the definition for ``Equipment'' to read as
follows:

Sec.  33.103  What do the terms in this part mean?

    * * * Terms not defined below shall have the meaning given to them
in 2 CFR part 200 and 1500, and 40 CFR part 35 as applicable. * * *
* * * * *
    Equipment means items procured under a financial assistance
agreement as defined by 2 CFR 200.33.
* * * * *

0
5. Section 33.105 is amended by revising the introductory text to read
as follows:

Sec.  33.105  What are the compliance and enforcement provisions of
this part?

    If a recipient fails to comply with any of the requirements of this
part, EPA may take remedial action under 2 CFR 200.338, Remedies for
noncompliance, or 40 CFR part 35, as appropriate, or any other action
authorized by law, including, but not limited to, enforcement under 18
U.S.C. 1001 and/or the Program Fraud Civil Remedies Act of 1986 (31
U.S.C. 3801 et seq.). Examples of the remedial actions under 2 CFR
200.338 or 40 CFR part 35 include, but are not limited to:
* * * * *

0
6. Section 33.303 is amended by revising the second sentence to read as
follows:

Sec.  33.303  Are there special rules for loans under EPA financial
assistance agreements?

    * * * This provision does not require that such private and
nonprofit borrowers expend identified loan funds in compliance with any
other procurement procedures contained in 2 CFR part 200 Subpart D--
Post Federal Award Requirements, Procurement Standards, or 40 CFR part
35 subpart O, as applicable.

0
7. Section 33.502 is amended by revising the second sentence to read as
follows:

Sec.  33.502  What are the reporting requirements of this part?

    * * * Recipients of Continuing Environmental Program Grants under
40 CFR part 35, subpart A, recipients of Performance Partnership Grants
(PPGs) under 40 CFR part 35, subpart B; General Assistance Program
(GAP) grants for tribal governments and intertribal consortia; and
institutions of higher education, hospitals and other non-profit
organizations receiving financial assistance agreements, will report on
MBE and WBE participation on an annual basis. * * *

PART 35--STATE AND LOCAL ASSISTANCE

0
8. The authority citation for part 35 is revised to read as follows:

    Authority: 42 U.S.C. 7401 et seq.; 33 U.S.C. 1251 et seq.; 42
U.S.C. 300f et seq.; 42 U.S.C. 6901 et seq.; 7 U.S.C. 136 et seq.;
15 U.S.C. 2601 et seq.; 42 U.S.C. 13101 et seq.; Pub. L. 104-134,
110 Stat. 1321, 1321-299 (1996); Pub. L. 105-65, 111 Stat. 1344,
1373 (1997), 2 CFR 200.

0
9. Section 35.001 is amended by revising the second sentence to read as
follows:

Sec.  35.001  Applicability.

    * * * These provisions supplement the EPA general assistance
regulations in 2 CFR parts 200 and 1500.

Subpart A--Environmental Program Grants

0
10. Section 35.100 is amended by revising the second sentence to read
as follows:

Sec.  35.100  Purpose of the subpart.

    * * * These provisions supplement the EPA general assistance
regulations in 2 CFR parts 200 and 1500. * * *

0
11. Section 35.104 is amended by revising paragraph (a) to read as
follows:

Sec.  35.104  Components of a complete application.

* * * * *
    (a) Meet the requirements in 2 CFR part 200, subpart C.
* * * * *

0
12. Section 35.111 is amended by revising paragraph (a)(1) to read as
follows:

Sec.  35.111  Criteria for approving an application.

    (a) * * *
    (1) The application meets the requirements of this subpart and 2
CFR part 200, subpart C.
* * * * *

0
13. Section 35.113 is amended by revising paragraph (a) first sentence
to read as follows:

Sec.  35.113  Reimbursement for pre-award costs.

    (a) Notwithstanding the requirements of 2 CFR parts 200 and 1500,
EPA may reimburse recipients for pre-award costs incurred from the
beginning of the funding period established in the grant agreement if
such costs would have been allowable if incurred after the award and
the recipients submitted complete grant applications before the
beginning of the budget period. * * *
* * * * *

Sec.  35.114  [Amended]

0
14. Section 35.114 introductory text is amended by removing the first
sentence.

0
15. Section 35.115 is amended by revising paragraph (a) third sentence
and paragraph (c) to read as follows:

Sec.  35.115  Evaluation of performance.

    (a) * * * The schedule must require the recipient to report at
least annually and must satisfy the requirements for progress reporting
under 2 CFR 200.328.
* * * * *
    (c) Resolution of issues. If the joint evaluation reveals that the
recipient has not made sufficient progress under the work plan, the
Regional Administrator and the recipient will negotiate a resolution
that addresses the issues. If the issues cannot be resolved through
negotiation, the Regional Administrator may take appropriate measures
under 2 CFR 200.338. The recipient may request review of the Regional
Administrator's decision under the dispute processes in 2 CFR part
1500, subpart E.
* * * * *

0
16. Section 35.360 is amended by revising paragraph (a) second sentence
to read as follows:

Sec.  35.360  Purpose.

    (a)* * * These sections do not govern Water Quality Cooperative
Agreements to other entities eligible under section 104(b)(3).
* * * * *

0
17. Section 35.380 is amended by revising paragraph (a) second sentence
to read as follows:

Sec.  35.380  Purpose.

    (a) * * * These sections do not govern Water Quality Cooperative
Agreements to other entities eligible under section 104(b)(3).
* * * * *

Subpart B--Environmental Program Grants for Tribes

0
18. Section 35.500 is amended by revising the second sentence to read
as follows:

Sec.  35.500  Purpose of this subpart.

    * * * These provisions supplement the EPA general assistance
regulations in 2 CFR parts 200 and 1500.* * *

0
19. Section 35.503 is revised to read as follows:

Sec.  35.503  Deviation from this subpart.

    EPA will consider and may approve requests for an official
deviation from non-statutory provisions of this regulation in
accordance with 2 CFR 1500.3.

0
20. Section 35.505 is amended by revising paragraph (a) to read as
follows:

Sec.  35.505  Components of a complete application.

* * * * *
    (a) Meet the requirements in 2 CFR part 200, subpart C.
* * * * *

0
21. Section 35.511 is amended by revising paragraph (a)(1) to read as
follows:

Sec.  35.511  Criteria for approving an application.

    (a) * * *
    (1) The application meets the requirements of this subpart and 2
CFR part 200, subpart C.
* * * * *

0
22. Section 35.513 is amended by revising paragraph (a) first sentence
to read as follows:

Sec.  35.513  Reimbursement for pre-award costs.

    (a) Notwithstanding the requirements of 2 CFR parts 200 and 1500,
EPA may reimburse recipients for pre-award costs incurred from the
beginning of the funding period established in the grant agreement if
such costs would have been allowable if incurred after the award and
the recipients submitted complete grant applications before the
beginning of the budget period.* * *
* * * * *

Sec.  35.514  [Amended]

0
23. Section 35.514 is amended by removing the first sentence of the
introductory text.

0
24. Section 35.515 is amended by revising paragraph (a) third sentence,
and paragraph (c) to read as follows:

Sec.  35.515  Evaluation of performance.

    (a) * * * The schedule must require the recipient to report at
least annually and must satisfy the requirements for progress reporting
under 2 CFR 200.328.
* * * * *
    (c) Resolution of issues. If the joint evaluation reveals that the
recipient has not made sufficient progress under the work plan, the
Regional Administrator and the recipient will negotiate a resolution
that addresses the issues. If the issues cannot be resolved through
negotiation, the Regional Administrator may take appropriate measures
under 2 CFR 200.338. The recipient may request review of the Regional
Administrator's decision under the dispute processes in 2 CFR part
1500, subpart E.
* * * * *

0
25. Section 35.588 is amended by revising paragraph (a)(1) to read as
follows:

Sec.  35.588  Award limitations.

    (a) * * *
    (1) All monitoring and analysis activities performed by the Tribe
or Intertribal Consortium meets the applicable quality assurance and
quality control requirements in 2 CFR 1500.11.
* * * * *

0
26. Section 35.600 is amended by revising paragraph (a) second sentence
to read as follows:

Sec.  35.600  Purpose.

    (a) * * * These sections do not govern Water Quality Cooperative
Agreements under section 104(b)(3) to organizations that do not meet
the definitions of Tribe or Intertribal Consortium in Sec.  35.502.
* * * * *

0
27. Section 35.610 is amended by revising paragraph (a) to read as
follows:

Sec.  35.610  Purpose.

    (a) Purpose of section. Sections 35.610 through 35.615 govern
wetlands development grants to Tribes and Intertribal Consortia under
section 104(b)(3) of the Clean Water Act. These sections do not govern
wetlands development grants under section 104(b)(3) to organizations
that do not meet the definitions of Tribe or Intertribal Consortium in
Sec.  35.502.
* * * * *

Subpart E--[RESERVED]

0
28. Remove and reserve part 35 subpart E.

Subpart H--[RESERVED]

0
29. Remove and reserve part 35 subpart H.

Subpart I--Grants for Construction of Treatment Works

0
30. Section 35.2000 is amended by revising paragraph (b) first
sentence, and paragraph (c) to read as follows:

Sec.  35.2000  Purpose and policy.

* * * * *
    (b) This subpart supplements EPA's Uniform Relocation and Real
Property

Acquisition Policies Act regulation (part 4 of this chapter), its
National Environmental Policy Act (NEPA) regulation (part 6 of this
chapter), its public participation regulation (part 25 of this
chapter), its intergovernmental review regulation (part 29 of this
chapter), its general grant regulation (2 CFR parts 200 and 1500), and
its debarment regulation (2 CFR part 1532), and establishes
requirements for Federal grant assistance for the building of
wastewater treatment works. * * *
    (c) EPA's policy is to delegate administration of the construction
grants program on individual projects to State agencies to the maximum
extent possible. Throughout this subpart we have used the term Regional
Administrator. To the extent that the Regional Administrator delegates
review of projects for compliance with the requirements of this subpart
to a State agency under a delegation agreement (Sec.  35.1030), the
term Regional Administrator may be read State agency.
* * * * *

0
31. Section 35.2005 is amended by revising paragraph (a) to read as
follows:

Sec.  35.2005  Definitions.

    (a) Words and terms not defined below shall have the meaning given
to them in 2 CFR part 200, subpart A--Acronyms and Definitions.
* * * * *

0
32. Section 35.2035 is amended by revising paragraph (c) to read as
follows:

Sec.  35.2035  Rotating biological contractor (RBC) replacement grants.

* * * * *
    (c) The modification/replacement project meets all requirements of
EPA's construction grant and other applicable regulations, including 40
CFR part 35, and 2 CFR parts 200, 1500 and 1532.
* * * * *

0
33. Section 35.2036 is amended by revising paragraphs (a)(4), (b)(1)
and (b)(3) to read as follows:

Sec.  35.2036  Design/build project grants.

    (a) * * *
    (4) The grantee obtains bonds from the contractor in an amount the
Regional Administrator determines adequate to protect the Federal
interest in the treatment works (see 2 CFR 200.325);
* * * * *
    (b) * * *(1) Grantee procurement for developing or supplementing
the facilities plan to prepare the pre-bid package, as well as for
designing and building the project and performing construction
management and contract administration, will be in accordance with the
procurement standards at 2 CFR 200.317 through 200.326 and 2 CFR 1500.9
through 1500.10.
* * * * *
    (3) The grantee may use the same architect or engineer that
prepared the facilities plan to provide any or all of the pre-bid,
construction management, and contract and/or project administration
services provided the initial procurement met EPA requirements (see 2
CFR 1500.10).
* * * * *

0
34. Section 35.2040 is amended by revising the second sentence of the
introductory text, paragraphs (a) introductory text, (a)(1), (b)
introductory text, (b)(1), (c) introductory text, (d) introductory
text, (e) introductory text, (f) introductory text, and (g)
introductory text to read as follows:

Sec.  35.2040  Grant Application.

    * * * In addition to the information required in 2 CFR parts 200
and 1500, applicants shall provide the following information:
* * * * *
    (a) Step 2+3: Combined design and building of a treatment works and
building related services and supplies. An application for Step 2+3
grant assistance shall include:
    (1) A facilities plan prepared in accordance with this subpart;
* * * * *
    (b) Step 3: Building of a treatment works and related services and
supplies An application for Step 3 grant assistance shall include:
    (1) A facilities plan prepared in accordance with this subpart;
* * * * *
    (c) Training facility project. An application for a grant for
construction and support of a training facility, facilities or training
programs under section 109(b) of the Act shall include:
* * * * *
    (d) Advances of allowance. State applications for advances of
allowance to small communities shall be on government wide Application
for Federal Assistance (SF-424). The application shall include:
* * * * *
    (e) Field Testing of Innovative and Alternative Technology. An
application for field testing of I/A projects shall include a field
testing plan containing:
* * * * *
    (f) Marine CSO Fund Project. An application for marine CSO grant
assistance under Sec.  35.2024(b) shall include:
* * * * *
    (g) Design/build project grant (Step 7). An application for a
design/build project grant shall include:
* * * * *

0
35. Section 35.2042 is amended by revising paragraph (c) to read as
follows:

Sec.  35.2042  Review of grant applications.

* * * * *
    (c) Applications for assistance for training facilities funded
under section 109(b) and for State advances of allowance under section
201(l)(1) of the Act and Sec.  35.2025 will be reviewed in accordance
with 2 CFR parts 200 and 1500.
* * * * *

0
36. Section 35.2105 is revised to read as follows:

Sec.  35.2105  Debarment and suspension.

    The applicant shall indicate whether it used the services of any
individual, organization, or unit of government for facilities planning
or design work whose name appears on the master list of debarments,
suspensions, and voluntary exclusions. See 2 CFR 200.113 and 2 CFR part
1532. If the applicant indicates it has used the services of a debarred
individual or firm, EPA will closely examine the facilities plan,
design drawings and specifications to determine whether to award a
grant. EPA will also determine whether the applicant should be found
non-responsible under 2 CFR parts 200 and 1500 or be the subject of
possible debarment or suspension under 2 CFR part 1532.

0
37. Section 35.2200 is revised to read as follows:

Sec.  35.2200  Grant conditions.

    In addition to the EPA General Grant Conditions (http://www.epa.gov/ogd/tc.htm), each treatment works grant shall be subject to
the conditions under Sec. Sec.  35.2202 through 35.2218.

0
38. Section 35.2212 is amended by revising paragraph (a) second
sentence, and paragraph (d) to read as follows:

Sec.  35.2212  Project initiation.

    (a) * * * Failure to promptly initiate and complete a project may
result in the imposition of sanctions under 2 CFR 200.338.
* * * * *
    (d) The grantee shall notify the Regional Administrator immediately
upon award of the subagreement(s) for building all significant elements
of the project.
* * * * *

0
39. Section 35.2250 is revised to read as follows:

Sec.  35.2250  Determination of allowable costs.

    The Regional Administrator will determine the allowable costs of
the project based on applicable provisions of laws and regulations, the
scope of the approved project, 2 CFR part 200, subpart E--Cost
Principles and Appendix A of this subpart.

0
40. Section 35.2300 is amended by revising paragraph (a) and paragraph
(d) second sentence to read as follows:

Sec.  35.2300  Grant payments.

* * * * *
    (a) * * * The Regional Administrator may at any time review and
audit request for payment and payments and make appropriate adjustments
as provided in 2 CFR 200.305.
* * * * *
    (d) * * * The requirements in 2 CFR 200.305 apply to any advances
of funds for assistance payments.
* * * * *

0
41. Appendix A to Subpart I of Part 35--Determination of Allowable
Costs is amended by revising paragraphs (a), A.1.b., A.1.c.,
A.1.g.(2)(ii) and E.2.a to read as follows:

Appendix A to Subpart I of Part 35--Determination of Allowable Costs

    (a) * * * The information in this appendix represents Agency
policies and procedures for determining the allowability of project
costs based on the Clean Water Act, EPA policy, appropriate Federal
cost principles of 2 CFR part 200 and reasonableness.
* * * * *
    A. * * *
    1. * * *
    b. The costs of complying with the procurement standards in 2
CFR 200.317 through 200.326 and 2 CFR 1500.9 and 1500.10.
    c. The cost of legal and engineering services incurred by
grantees in deciding procurement protests and defending their
decisions in protest appeals in 2 CFR 200.318.
* * * * *
    g. * * *
    (2) * * *
    (ii) Costs of equitable adjustments under Clause 4, Differing
Site Conditions, of the model subagreement clauses required under
Sec.  33.1030 of this subchapter.
* * * * *
    E. * * *
    2. * * *
    a. The costs of equipment or material procured in violation of
the procurement standards in 2 CFR 200.317 through 2 CFR 200.326 and
2 CFR 1500.9 and 1500.10.
* * * * *

Subpart J--Construction Grants Program Delegation to States

0
42. Section 35.3025 is amended by revising paragraph (c) sixth sentence
to read as follows:

Sec.  35.3025  Overview of State performance under delegation.

    (c) * * * The Regional Administrator may terminate or annual any
section 205(g) financial assistance for cause in accordance with 2 CFR
200.338 through 2 CFR 200.342 Remedies for Noncompliance.
* * * * *

0
43. Section 35.3030 is amended by revising paragraph (c) to read as
follows:

Sec.  35.3030  Right of review of State decision.

* * * * *
    (c) The Region shall determine whether the State's review is
comparable to a dispute decision official's (DDO) review pursuant to 2
CFR part 1500, subpart E. If the State's review is comparable, Regional
review of the State's decision will be conducted by the Regional
Administrator. If the State's review is not comparable, the DDO will
review the State's decision and issue a written decision. Review of
either a Regional Administrator or DDO decision may be requested
pursuant to 2 CFR part 1500, subpart E.
* * * * *

Subpart K--State Water Pollution Control Revolving Funds

0
44. Section 35.3105 is amended by revising the introductory text to
read as follows:

Sec.  35.3105  Definitions.

    Words and terms that are not defined below and that are used in
this rule shall have the same meaning they are given in 2 CFR part 200
Subpart A--Acronyms and Definitions and 40 CFR part 35, subpart I.
* * * * *

0
45. Section 35.3140 is amended by revising paragraph (b) second
sentence to read as follows:

Sec.  35.3140  Environmental review requirements.

* * * * *
    (b) * * * The State may elect to apply the procedures at 40 CFR
part 6, subpart I and related subparts, or apply its own ``NEPA-like''
SERP for conducting environmental reviews, provided that the following
elements are met.
* * * * *

Subpart L--Drinking Water State Revolving Funds

0
46. Section 35.3500 is amended by revising paragraph (b) second
sentence to read as follows:

Sec.  35.3500  Purpose, policy, and applicability.

* * * * *
    (b) * * * This subpart also supplements EPA general assistance
regulations in 2 CFR parts 200 and 1500 which contain administrative
requirements that apply to governmental recipients of Environmental
Protection Agency (EPA) grants and subgrants.* * *
* * * * *

0
47. Section 35.3510 is amended by revising paragraph (b) second
sentence to read as follows:

Sec.  35.3510  Establishment of the DWSRF program.

* * * * *
    (b) * * * The State agency that is awarded the capitalization grant
(i.e., grantee) is accountable for the use of the funds provided in the
capitalization grant agreement under 2 CFR part 200 and the EPA general
assistance regulations in 2 CFR part 1500.
* * * * *

0
48. Section 35.3540 is amended by revising paragraph (a) to read as
follows:

Sec.  35.3540  Requirements for funding set-aside activities.

    (a) * * * If a State makes a grant or enters into a cooperative
agreement with an assistance recipient to conduct set-aside activities,
the recipient must comply with 2 CFR part 200 and the EPA general
assistance regulations in 2 CFR part 1500.
* * * * *

0
49. Section 35.3550 is amended by revising paragraph (a) first sentence
to read as follows:

Sec.  35.3550  Specific capitalization grant agreement requirements.

    (a) * * * A State must agree to comply with this subpart, 2 CFR
part 200, the EPA general assistance regulations in 2 CFR part 1500 and
the specific conditions of the grant.* * *
* * * * *

0
50. Section 35.3570 is amended by revising paragraph (a)(3)(xiv) and
(b)(1) to read as follows:

Sec.  35.3570  Reports and audits.

    (a) * * *
    (3) * * *
    (xiv) Complied with 2 CFR part 200, the EPA general assistance
regulations

in 2 CFR part 1500 and the specific conditions of the grant.
* * * * *
    (b) * * *
    (1) A State must comply with the provisions of the Single Audit Act
Amendments of 1996, 31 U.S.C. 7501-7, 2 CFR part 200 and the Office of
Management and Budget's Compliance Supplement.
* * * * *

0
51. Section 35.3585 is amended by revising paragraphs (a) and (d) to
read as follows:

Sec.  35.3585  Compliance assurance procedures.

    (a) * * * The RA may take action under this section and the
remedies of noncompliance of 2 CFR 200.338 through 200.342, if a
determination is made that a State has not complied with its
capitalization grant agreement, other requirements under section 1452
of the Act, this subpart, 2 CFR parts 200 and 1500, or has not managed
the DWSRF program in a financially sound manner (e.g., allows
consistent and substantial failures of loan repayments).
* * * * *
    (d) * * * A State or an assistance recipient that has been
adversely affected by an action or omission by EPA may request a review
of the action or omission under 2 CFR part 1500, subpart E.

Subpart M--Grants for Technical Assistance

0
52. Section 35.4011 is revised to read as follows:

Sec.  35.4011  Do the general grant regulations apply to TAGs?

    Yes, the regulations at 2 CFR part 200 and 2 CFR Part 1500 apply to
TAGs. 2 CFR part 200, as supplemented by 2 CFR part 1500, establishes
the uniform administrative requirements for Federal grants.

0
53. Section 35.4012 is revised to read as follows:

Sec.  35.4012  If there appears to be a difference between the
requirements of 2 CFR Parts 200 and 1500 and this subpart, which
regulations should my group follow?

    You should follow the regulations in 2 CFR part 200 and 2 CFR part
1500, except for the following provisions from which this subpart
deviates:
    (a) 2 CFR 200.305(b)(1) and (2), Payment
    (b) 2 CFR 200.324(b)(2), Federal awarding agency or pass-through
entity review
    (c) 2 CFR part 1500 Subpart E--Disputes.

0
54. Section 35.4020 is amended by revising paragraph (a)(2) to read as
follows:

Sec.  35.4020  Is my community group eligible for a TAG?

    (a) * * *
    (2) Your group meets the minimum administrative and management
capability requirements found in 2 CFR 200.302 by demonstrating you
have or will have reliable procedures for record keeping and financial
accountability related to managing your TAG (you must have these
procedures in place before your group incurs any expenses); and
* * * * *
0
55. Section 35.4050 is amended by revising paragraph (b) first sentence
to read as follows:

Sec.  35.4050  Must my group contribute toward the cost of a TAG?

* * * * *
    (b) Under 2 CFR 200.306, your group may use ``cash'' and/or ``in-
kind contributions'' (for example, your board members can count their
time toward your matching share) to meet the matching funds
requirement. * * *

0
56. Section 35.4075 is amended by revising paragraphs (d), (e) and
(i)(2) to read as follows:

Sec.  35.4075  Are there things my group can't spend TAG money for?

* * * * *
    (d) Political activity and lobbying that is unallowable under 2 CFR
part 200 Subpart E--Cost Principles, (this restriction includes
activities such as attempting to influence the outcomes of any Federal,
State or local election, referendum, initiative, or similar procedure
through in-kind or cash contributions, endorsements, or publicity, or
attempting to influence the introduction or passage of Federal or state
legislation; this regulation is available at http://www.ecfr.gov.)
    (e) Other activities that are unallowable under the cost principles
stated in 2 CFR part 200 Subpart E--Cost Principles (such as costs of
amusement, diversion, social activities, fund raising and ceremonials);
* * * * *
    (i) * * *
    (2) Disputes with EPA under its dispute resolution procedures set
forth 2 CFR Part1500 Subpart E (see Sec.  35.4245); and
* * * * *

0
57. Section 35.4125 is amended by revising paragraph (c) first sentence
to read as follows:

Sec.  35.4125  What else does my group need to do?

* * * * *
    (c) Assurances, certifications and other preaward paperwork as 2
CFR part 200 requires. * * *

0
58. Section 35.4175 is amended by revising paragraph (c) to read as
follows:

Sec.  35.4175  What other reporting and record keeping requirements are
there?

* * * * *
    (c) Comply with any reporting and record keeping requirements in 2
CFR parts 200 and 1500.

0
59. Section 35.4210, paragraph (a), is amended by revising entry (4) of
the table to read as follows:

Sec.  35.4210  Must my group solicit and document bids for our
procurements?

    (a) * * *

------------------------------------------------------------------------

------------------------------------------------------------------------
If the aggregate amount of the.........  Then your group.

                                * * * * *
(4) proposed contract is greater than    must follow the procurement
 $100,000.                                regulations in 2 CFR Parts 200
                                          and 1500 (these regulations
                                          outline the standards for your
                                          group to use when contracting
                                          for services with Federal
                                          funds; they also contain
                                          provisions on: codes of
                                          conduct for the award and
                                          administration of contracts;
                                          competition; procurement
                                          procedures; cost and price
                                          analysis; procurement records;
                                          contract administration; and
                                          contracts generally).

                                * * * * *
------------------------------------------------------------------------

* * * * *

0
60. Section 35.4230 is amended by revising the first sentence of
paragraph (a) to read as follows:

Sec.  35.4230  What are my group's contractual responsibilities once we
procure a contract?

* * * * *
    (a) Is responsible for resolving all contractual and administrative
issues arising out of contracts you enter into under a TAG; you must
establish a procedure for resolving such issues with your contractor
which complies with the provisions of 2 CFR 200.318 (k).* * *
* * * * *

0
61. Section 35.4235 is amended by revising paragraphs (f) and (g) to
read as follows:

Sec.  35.4235  Are there specific provisions my group's contract(s)
must contain?

* * * * *
    (f) The following clauses from 2 CFR part 200 Appendix II--Contract
Provisions for Non-Federal Entity Contracts Under Federal Awards, which
are available at http://www.ecfr.gov.):
* * * * *
    (g) The following clauses from 2 CFR part 200:
    (1) Remedies for breaches of contract (2 CFR part 200 Appendix II--
Contract Provisions for Non-Federal Entity Contracts Under Federal
Awards)
    (2) Termination by the recipient (2 CFR part 200 Appendix II--
Contract Provisions for Non-Federal Entity Contracts Under Federal
Awards); and
    (3) Access to records (2 CFR 200.336); and
* * * * *

0
62. Section 35.4245 is revised to read as follows:

Sec.  35.4245  How does my group resolve a disagreement with EPA
regarding our TAG?

    The regulations at 2 CFR part 1500 Subpart E will govern disputes
except that, before you may obtain judicial review of the dispute, you
must have requested the Regional Administrator to review the dispute
decision official's determination under 2 CFR 1500.17.

0
63. Section 35.4250 is amended by revising paragraph (b) to read as
follows:

Sec.  35.4250  Under what circumstances would EPA terminate my group's
TAG?

* * * * *
    (b) EPA may also terminate your grant with your group's consent in
which case you and EPA must agree upon the termination conditions,
including the effective date as 2 CFR 200.339 describes.

0
64. Section 35.4260 is amended by revising the introductory text to
read as follows:

Sec.  35.4260  What other steps might EPA take if my group fails to
comply with the terms and conditions of our award?

    EPA may take one or more of the following actions, under 2 CFR
200.338, depending on the circumstances:
* * * * *

0
65. Section 35.4270 is amended by revising the definition ``Allowable
cost'' to read as follows:

Sec.  35.4270  Definitions.

* * * * *
    Allowable cost means those project costs that are: eligible,
reasonable, allocable to the project, and necessary to the operation of
the organization or the performance of the award as provided in the
appropriate Federal cost principles, in most cases 2 CFR part 200
Subpart E--Cost Principles, and approved by EPA in the assistance
agreement.
* * * * *

0
66. Section 35.4275 is amended by revising the section heading to read
as follows:

Sec.  35.4275  Where can my group get the documents this subpart
references (for example Whitehouse OMB circulars, eCFR and tag Web
site, EPA HQ/Regional offices, grant forms)?

* * * * *

Subpart O--Cooperative Agreements and Superfund State Contracts for
Superfund Response Actions

0
67. Section 35.6005 is amended by revising paragraph (b) to read as
follows:

Sec.  35.6005  Purpose and scope.

* * * * *
    (b) 2 CFR part 200, ``Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards to Non-Federal
Entities,'' establishes consistency and uniformity among Federal
agencies in the administration of grants and Cooperative Agreements to
non-federal entities. For CERCLA-funded Cooperative Agreements, this
subpart supplements the requirements contained in 2 CFR parts 200 and
1500 for States, political subdivisions thereof, and Indian Tribes.
This subpart references those sections of 2 CFR parts 200 and 1500 that
are applicable to CERCLA-funded Cooperative Agreements.
* * * * *

0
68. Section 35.6015 is amended by revising paragraph (b) to read as
follows:

Sec.  35.6015  Definitions.

* * * * *
    (b) Those terms not defined in this section shall have the meanings
set forth in section 101 of CERCLA, 2 CFR part 200, and 40 CFR part 300
(the National Contingency Plan).

0
69. Section 35.6020 is revised to read as follows:

Sec.  35.6020  Requirements for both applicants and recipients.

    Applicants and recipients must comply with the applicable
requirements of 2 CFR part 1532, ``Nonprocurement Debarment and
Suspension and of 2 CFR part 1536, ``Requirements for Drug-Free
Workplace (Financial Assistance).''

0
70. Section 35.6025 is amended by revising the second sentence to read
as follows:

Sec.  35.6025  Deviation from this subpart.

    * * * Refer to the requirements regarding additions and exceptions
described in 2 CFR 1500.3.

0
71. Section 35.6055 is amended by revising paragraphs (a)(3) and
(b)(2)(i) to read as follows:

Sec.  35.6055  State-lead pre-remedial Cooperative Agreements.

    (a) * * *
    (3) Other applicable forms and information authorized by 2 CFR part
200 Subpart C--Pre-Federal Award Requirements and Contents of Federal
Awards.
* * * * *
    (b) * * *
    (2) * * *
    (i) The recipient must comply with the quality assurance
requirements described in 2 CFR 1500.11.
* * * * *

0
72. Section 35.6105 is amended by revising paragraphs (a)(2)(vi)(A),
(a)(3) and (b)(5) to read as follows:

Sec.  35.6105  State-lead remedial Cooperative Agreements.

* * * * *
    (a) * * *
    (2) * * *
    (vi) * * * (A) * * * If the project involves environmentally
related measurements or data generation, the recipient must comply with
the requirements regarding quality assurance described in 2 CFR
1500.11.
* * * * *
    (3) Other applicable forms and information authorized by 2 CFR part
200 Subpart C--Pre-Federal Award Requirements and Contents of Federal
Awards.
* * * * *
    (b) * * *
    (5) * * * If EPA determines in the remedy selection process that an
interest in real property must be acquired in order to conduct a
response action, such acquisition may be funded under a Cooperative
Agreement. EPA may acquire an interest in real estate for the purpose
of conducting a remedial action only if the State provides assurance
that it will accept transfer of such interest in accordance with 40 CFR
300.510(f) of the NCP. The State must provide this assurance even if it
intends to transfer this interest to a third party, or to allow a
political subdivision to accept transfer on behalf of the State. If the
political subdivision is accepting the transferred interest in real
property, the State must guarantee that it will accept transfer of such
interest in the event of default by the political subdivision. If the
State or political subdivision

disposes of the transferred real property, it shall comply with the
requirements for real property in 2 CFR 200.311. (See Sec.  35.6400 for
additional information on real property acquisition requirements.)

0
73. Section 35.6230 is amended by revising paragraph (d) to read as
follows:

Sec.  35.6230  Application requirements.

* * * * *
    (d) Other applicable forms and information authorized by 2 CFR part
200 Subpart C--Pre-Federal Award Requirements and Contents of Federal
Awards.

0
74. Section 35.6270 is amended by revising paragraph (a)(1) third
sentence, paragraph (a)(2) and paragraph (b)(3) second sentence to read
as follows:

Sec.  35.6270  Standards for financial management systems.

    (a)(1) * * * The recipient must allow an EPA review of the adequacy
of the financial management system as described in 2 CFR 200.302.
    (2) * * * The recipient's systems must comply with the appropriate
allowable cost principles described in 2 CFR part 200 Subpart E--Cost
Principles.
* * * * *
    (b) * * *
    (3)) * * * The recipient must comply with the requirements
regarding source documentation described in 2 CFR 200.302.
* * * * *

0
75. Section 35.6275 is amended by revising paragraph (a) to read as
follows:

Sec.  35.6275  Period of availability of funds.

    The recipient must comply with the requirements regarding the
availability of funds described in 2 CFR parts 200 and 1500.
* * * * *

0
76. Section 35.6280 is amended by revising paragraphs (a) introductory
text, (a)(2), paragraph (b)(1) first sentence, paragraph (b)(2) second
sentence and paragraph (b)(3) fourth sentence to read as follows:

Sec.  35.6280  Payments.

    (a) * * * In addition to the following requirements, the recipient
must comply with the requirements regarding payment described in 2 CFR
200.305.
* * * * *
    (2) * * * The interest a recipient earns on an advance of EPA funds
is subject to the requirements of 2 CFR 200.305.
    (b) * * *
    (1) * * * In order to receive payment by the letter of credit
method, the recipient must comply with the requirements regarding
letter of credit described in 2 CFR 200.305.* * *
    (2) * * * The recipient must comply with the requirements regarding
reimbursement described in 2 CFR 200.305.
    (3) * * * In such cases, the recipient must comply with the
requirements regarding working capital advances described in 2 CFR
200.305.

0
77. Section 35.6285 is amended by revising paragraph (b) second
sentence and paragraph (e) first sentence to read as follows:

Sec.  35.6285  Recipient payment of response costs.

* * * * *
    (b) * * * The recipient must comply with the requirements regarding
in-kind and donated services described in 2 CFR 200.306.
* * * * *
    (e) * * * The recipient must comply with the requirements regarding
cost sharing described in 2 CFR 200.306.* * *
* * * * *

0
78. Section 35.6290 is amended by revising the first sentence to read
as follows:

Sec.  35.6290  Program income.

    The recipient must comply with the requirements regarding program
income described in 2 CFR 200.307 and 2 CFR part 1500.* * *

0
79. Section 35.6405 is revised to read as follows:

Sec.  35.6405  Use.

    The recipient must comply with the requirements regarding real
property described in 2 CFR 200.311.

0
80. Section 35.6450 is amended by revising the first sentence to read
as follows:

Sec.  35.6450  General requirements.

    The recipient must comply with the requirements regarding
copyrights described in 2 CFR part 200.315.* * *

0
81. Section 35.6550 is amended by revising paragraph (a)(1) first
sentence, paragraph (a)(3), paragraph (a)(6) first sentence and
paragraph (a)(7) to read as follows:

Sec.  35.6550  Procurement system standards.

    (a)(1) * * * In addition to the procurement standards described in
2 CFR 200.317 through 200.326 and 2 CFR part 1500, the State shall
comply with the requirements in the following: Paragraphs (a)(5),
(a)(9), and (b) of this section, Sec. Sec.  35.6555(c), 35.6565 (the
first sentence in this section, the first sentence in paragraph (b) of
this section, and all of paragraph (d) of this section), 35.6570,
35.6575, and 35.6600.
* * * * *
    (3) * * * The recipient must comply with the requirements of 2 CFR
200.318 (c)(1) which describes standards of conduct for employees,
officers, and agents of the recipient.
* * * * *
    (6) * * * The recipient may award a contract only to a responsible
contractor, as described in 2 CFR 200.318 (h) and must ensure that each
contractor performs in accordance with all the provisions of the
contract. (See also Sec.  35.6020.)
* * * * *
    (7) * * * The recipient must comply with the requirements described
in 2 CFR 200.318 (k) regarding protest procedures.
* * * * *

0
82. Section 35.6555 is amended by revising paragraph (b)(2) to read as
follows:

Sec.  35.6555  Competition.

* * * * *
    (b) * * *
    (2) * * * Any contract or subcontract awarded by an Indian Tribe or
Indian intertribal consortium shall comply with the requirements of the
Indian Self Determination Act.
* * * * *

0
83. Section 35.6565 is amended by revising the first sentence of the
introductory text to read as follows:

Sec.  35.6565  Procurement methods.

    The recipient must comply with the requirements for payment to
consultants described in 2 CFR 1500.9. * * *
* * * * *

0
84. Section 35.6570 is amended by revising paragraph (b)(1)(i) to read
as follows:

Sec.  35.6570  Use of the same engineer during subsequent phases of
response.

* * * * *
    (b) * * *
    (1) * * *
    (i) That it complied with the procurement requirements in Sec.
35.6565 when it selected the engineer and the code of conduct
requirements described in 2 CFR 200.318(c)(1).
* * * * *

0
85. Section 35.6590 is amended by revising paragraph (a) first sentence
to read as follows:

Sec.  35.6590  Bonding and insurance.

    (a) * * * The recipient must meet the requirements regarding
bonding described in 2 CFR 200.325.
* * * * *

0
86. Section 35.6595 is amended by revising paragraph (b)(2) second
sentence and paragraph (b)(3) to read as follows:

Sec.  35.6595  Contract provisions.

* * * * *
    (b) * * *
    (2) * * * This notice shall also include EPA requirements and
regulations pertaining to copyrights and rights to data contained in 2
CFR 200.315.
    (3) * * * The recipient must comply with Appendix II to 2 CFR part
200--Contract Provisions for Non-Federal Entity Contracts Under Federal
Awards.
* * * * *

0
87. Section 35.6610 is amended by revising paragraph (e) to read as
follows:

Sec.  35.6610  Contracts awarded by a contractor.

* * * * *
    (e) The Federal cost principles in 2 CFR part 200 subpart E.
* * * * *

0
88. Section 35.6650 is amended by revising paragraph (a) second
sentence to read as follows:

Sec.  35.6650  Progress reports.

    (a) * * * Notwithstanding the requirements of 2 CFR 200.327 and
200.328, the reports shall be due within 60 days after the reporting
period.
* * * * *

0
89. Section 35.6670 is amended by revising paragraph (a) and paragraph
(b)(2)(i) second sentence to read as follows:

Sec.  35.6670  Financial reports.

    (a) * * * The recipient must comply with the requirements regarding
financial reporting described in 2 CFR 200.327.
    (b) * * *
    (2) * * *
    (i) * * * If quarterly or semiannual Financial Status Reports are
required, reports are due in accordance with 2 CFR 200.327;
* * * * *

0
90. Section 35.6705 is amended by revising paragraph (d) to read as
follows:

Sec.  35.6705  Records retention.

* * * * *
    (d) * * * The recipient must comply with the requirements regarding
the starting dates for records retention described in 2 CFR 1500.6.

0
91. Section 35.6710 is amended by revising paragraphs (a) and (c) to
read as follows:

Sec.  35.6710  Records access.

    (a) * * * The recipient must comply with the requirements regarding
records access described in 2 CFR 200.336.
* * * * *
    (c) * * * The recipient must require its contractor to comply with
the requirements regarding records access described in 2 CFR 200.336.
* * * * *

0
92. Section 35.6750 is revised to read as follows:

Sec.  35.6750  Modifications.

    The recipient must comply with the requirements regarding changes
to the Cooperative Agreement described by subject in 2 CFR part 200.

0
93. Section 35.6755 is revised to read as follows:

Sec.  35.6755  Monitoring program performance.

    The recipient must comply with the requirements regarding program
performance monitoring described in 2 CFR 200.328.

0
94. Section 35.6760 is revised to read as follows:

Sec.  35.6760  Enforcement and termination.

    The recipient must comply with all terms and conditions in the
Cooperative Agreement, and is subject to the requirements regarding
enforcement of the terms of an award and termination described in 2 CFR
200.338 and 200.339.

0
95. Section 35.6765 is revised to read as follows:

Sec.  35.6765  Non-Federal audit.

    The recipient must comply with the requirements regarding non-
Federal audits described in 2 CFR part 200 subpart F.

0
96. Section 35.6770 is revised to read as follows:

Sec.  35.6770  Disputes.

    The recipient must comply with the requirements regarding dispute
resolution procedures described in 2 CFR part 1500 subpart E.

0
97. Section 35.6780 is amended by revising paragraph (b) to read as
follows:

Sec.  35.6780  Closeout.

* * * * *
    (b) The recipient must comply with the closeout requirements
described in 2 CFR 200.343 and 200.344.
* * * * *

0
98. Section 35.6785 is revised to read as follows:

Sec.  35.6785  Collection of amounts due.

    The recipient must comply with the requirements described in 2 CFR
200.345 regarding collection of amounts due.

0
99. Section 35.6790 is revised to read as follows:

Sec.  35.6790  High risk recipients.

    If EPA determines that a recipient is not responsible, EPA may
impose specific conditions on the award as described in 2 CFR 200.207
or restrictions on the award as described in 2 CFR 200.338.

0
100. Section 35.6815 is amended by revising paragraph (a)(2) to read as
follows:

Sec.  35.6815  Administrative requirements.

* * * * *
    (a) * * *
    (2) * * * The State and/or political subdivision must comply with
the requirements described in 2 CFR 200.345 regarding collection of
amounts due.
* * * * *

Subpart P--Financial Assistance for the National Estuary Program

0
101. Section 35.9000 is amended by revising the second sentence to read
as follows:

Sec.  35.9000  Applicability.

    * * *These provisions supplement the EPA general assistance
regulations in 2 CFR parts 200 and 1500.

0
102. Section 35.9040 is amended by revising the second sentence to read
as follows:

Sec.  35.9040  Application for assistance.

    * * *In addition to meeting applicable requirements contained in 2
CFR parts 200 and 1500, a complete application must contain a
discussion of performance to date under an existing award, the proposed
work program, and a list of all applicable EPA-approved State
strategies and program plans, with a statement certifying that the
proposed work program is consistent with these elements.* * *

0
103. Section 35.9045 is amended by revising paragraph (a) first
sentence to read as follows:

Sec.  35.9045  EPA action on application.

    (a) * * * The Regional Administrator will approve the application
only if it satisfies the requirements of CWA section 320; the terms,
conditions, and limitations of this subpart; and the applicable
provisions of 2 CFR parts 200 and 1500, and other EPA assistance
regulations. * * *
* * * * *

0
104. Section 35.9055 is amended by revising the sixth sentence to read
as follows:

Sec.  35.9055  Evaluation of recipient performance.

    * * *If agreement is not reached, the Regional Administrator may
impose sanctions under the applicable provisions of 2 CFR parts 200 and
1500.

PART 40-- RESEARCH AND DEMONSTRATION GRANTS

0
105. The authority citation for part 40 is revised to read as follows:

    Authority: 7 U.S.C. 136 et seq.; 15 U.S.C. 2609 et seq.; 33
U.S.C. 1254 et seq. and 1443; 42 U.S.C. 241 et seq., 300f et seq.,
1857 et seq., 1891 et seq., and 6901 et seq., 2 CFR part 200.

0
106. Section 40.105 is revised to read as follows:

Sec.  40.105  Applicability and scope.

    This part establishes mandatory policies and procedures for all EPA
research and demonstration grants. The provisions of this part
supplement the EPA general grant regulations and procedures in 2 CFR
parts 200 and 1500. Accordingly, all EPA research and demonstration
grants are awarded subject to the Uniform Administrative Requirements,
Cost Principles, and Audit Requirements for Federal Awards to Non-
Federal Entities (2 CFR part 200) and to the applicable provisions of
this part 40.

0
107. Section 40.125-2 is amended by revising the introductory text to
read as follows:

Sec.  40.125-2  Limitations on assistance.

    In addition to the cost-sharing requirements pursuant to 2 CFR
200.306, research and demonstration grants shall be governed by the
specific assistance limitations listed below:
* * * * *

0
108. Section 40.130 is amended by revising the introductory text to
read as follows:

Sec.  40.130  Eligibility.

    Except as otherwise provided below, grants for research and
demonstration projects may be awarded to any responsible applicant in
accordance with 2 CFR part 200.
* * * * *

0
109. Section 40.135-2 is amended by revising the introductory text to
read as follows:

Sec.  40.135-2  Application requirements.

    All applications for research and demonstration grants shall be
submitted to the Environmental Protection Agency, in accordance with 2
CFR 200.206.
* * * * *

0
110. Section 40.145 is amended by revising the introductory text and
paragraph (b) to read as follows:

Sec.  40.145  Supplemental grant conditions.

    In addition to the EPA General Grant Conditions (http://www.epa.gov/ogd/tc.htm), all grants are awarded subject to the
following requirements:
* * * * *
    (b) In addition to the notification of project changes required
pursuant to 2 CFR 200.308, prior written approval by the grants officer
is required for project changes which may alter the approved scope of
the project, substantially alter the design of the project, or increase
the amount of Federal funds needed to complete the project. No approval
or disapproval of a project change pursuant to 2 CFR 200.308 or this
section shall commit or obligate the United States to an increase 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 2 CFR 200.308.
* * * * *

0
111. Section 40.145-3 is amended by revising paragraph (k) to read as
follows:

Sec.  40.145-3  Projects involving construction.

* * * * *
    (k) In addition to the notification of project changes pursuant to
2 CFR 200.308, a copy of any construction contract or modifications
thereof, and of revisions to plans and specifications must be submitted
to the grants officer.

0
112. Section 40.155 is amended by revising paragraph (b) and (c) to
read as follows:

Sec.  40.155  Availability of information.

* * * * *
    (b) An assertion of entitlement to confidential treatment of part
or all of the information in an application may be made using the
procedure described in 2 CFR 200.211. See also Sec. Sec.  2.203 and
2.204 of this chapter.
    (c) All information and data contained in the grant application
will be subject to external review unless deviation is approved for
good cause pursuant to 2 CFR 1500.3.

0
113. Section 40.160-2 is revised to read as follows:

Sec.  40.160-2  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 2 CFR 200.327.

0
114. Section 40.160-3 is amended by revising introductory text to read
as follows:

Sec.  40.160-3  Reporting of inventions.

    Immediate and full reporting of all inventions to the Environmental
Protection Agency is required. In addition:
* * * * *

PART 45--TRAINING ASSISTANCE

0
115. The authority citation for part 45 is revised to read as follows:

    Authority: Sec. 103 of the Clean Air Act, as amended (42 U.S.C.
7403), secs. 104(g), 109, and 111 of the Clean Water Act, as amended
(33 U.S.C. 1254(g), 1259, and 1261), secs. 7007 and 8001 of the
Solid Waste Disposal Act, as amended (42 U.S.C. 6977 and 6981); sec.
1442 of the Safe Drinking Water Act, as amended (42 U.S.C. 300j-1).
2 CFR 200.

0
116. Section 45.100 is revised to read as follows:

Sec.  45.100  Purpose and scope.

    This part establishes the policies and procedures for the award of
training assistance by the Environmental Protection Agency (EPA). The
provisions of this part supplement EPA's general grant regulations and
procedures 2 CFR parts 200 and 1500.

0
117. Section 45.115 is amended by revising the introductory text to
read as follows:

Sec.  45.115  Definitions.

    The following definitions supplement the definitions in 2 CFR part
200, subpart A.
* * * * *

0
118. Section 45.130 is amended by revising paragraph (a) introductory
text to read as follows:

Sec.  45.130  Evaluation of applications.

    (a) Consistent with 2 CFR 200.204, the appropriate EPA program
office staff will review training applications in accordance with the
following criteria:
* * * * *

0
119. Section 45.145 is amended by revising paragraph (a) to read as
follows:

Sec.  45.145  Allocability and allowability of costs.

    (a) Allocability and allowability of costs will be determined in
accordance with 2 CFR part 200, subpart E.
* * * * *

0
120. Section 45.150 is amended by revising paragraph (a) to read as
follows:

Sec.  45.150  Reports.

    (a) Recipients must submit the reports required in 2 CFR 200.327
and 200.328.
* * * * *

PART 46--FELLOWSHIPS

0
121. The authority citation for part 46 is revised to read as follows:

    Authority: Section 103(b)(5) of the Clean Air Act, as amended
(42 U.S.C. 7403(b)(5)); sections 104(b)(5) and (g)(3)(B) of the
Clean Water Act, as amended (33 U.S.C. 1254(b)(5) and (g)(3)(B));
section 1442 of the Safe Drinking Water Act, as amended (42 U.S.C.
300j-1); section 8001 of the Solid Waste Disposal Act, as amended
(42 U.S.C. 6981); section 10 of the Toxic Substances Control Act, as
amended (15 U.S.C. 2609); section 20 of the Federal Insecticide,
Fungicide, and Rodenticide Act, as amended (7 U.S.C. 136r); sections
104(k)(6) and 311 of the Comprehensive Environmental Response,
Compensation, and Liability Act (42 U.S.C. 9604(k)(6) and 42 U.S.C.
9660). 2 CFR part 200.

Subpart D--During the Fellowship

0
122. Section 46.205 is amended by revising the second sentence to read
as follows:

Sec.  46.205  Intangible property.

    * * * EPA's requirements for dealing with such intangible property
are found at 2 CFR 200.315.

0
123. Section 46.220 is amended by revising paragraph (b) third sentence
to read as follows:

Sec.  46.220  Disputes.

* * * * *
    (b) * * * The dispute procedures outlined at 2 CFR part 1500
subpart E, will apply.

PART 47--NATIONAL ENVIRONMENTAL EDUCATION ACT GRANTS

0
124. The authority citation for part 47 is revised to read as follows:

    Authority: 20 U.S.C. 5505. 2 CFR part 200.

0
125. Section 47.100 is amended by revising the third sentence to read
as follows:

Sec.  47.100  Purpose and scope.

    * * * Projects funded under this part are also subject to 2 CFR
parts 200 and 1500. * * *

0
126. Section 47.105 is amended by revising paragraph (g) to read as
follows:

Sec.  47.105  Definitions.

* * * * *
    (g) Refer to 2 CFR part 200, subpart A and 40 CFR 35.6015 for
definitions for budget period, project period, cooperative agreement,
grant agreement, and other Federal assistance terms.

0
127. Section 47.130 is amended by revising paragraph (c) to read as
follows:

Sec.  47.130  Performance of grant.

* * * * *
    (c) Procurement procedures for all recipients are described in 2
CFR part 200 subpart D--Post Federal Award Requirements, Procurement
Standards (2 CFR 200.317 through 200.326). These procedures include
provisions for small purchase procedures.

0
128. Section 47.135 is revised to read as follows:

Sec.  47.135  Disputes.

    Disputes arising under these grants shall be governed by 2 CFR part
1500 subpart E.

Gina McCarthy,
Administrator.

National Aeronautics and Space Administration

    For the reasons set forth in the common preamble, Part 1800 of
Title 2, Chapter XVIII of the Code of Federal Regulations is added and
14 CFR parts 1260 and 1273 are removed to read as follows:

Title 2--Grants and Agreements

CHAPTER XVIII--NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

PART 1800--UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES,
AND AUDIT REQUIREMENTS FOR FEDERAL AWARDS

Sec.
1800.1 Authority.
1800.2 Purpose.
1800.3 Applicability.
1800.4 Amendment.
1800.5 Publication.
1800.6 Deviations.
Subpart A--Acronyms and Definitions
1800.10 Acronyms.
1800.11 Definitions.
Subpart B--Pre-Federal Award Requirements and Contents of Federal
Awards
1800.208 Certifications and representations.
1800.209 Pre-award costs.
1800.210 Information contained in a Federal award.
Subpart C--Post Federal Award Requirements

Standards for Financial and Program Management

1800.305 Payment.
1800.306 Cost sharing or matching.

Property Standards

1800.312 Federally-owned and exempt property.
1800.315 Intangible property.

Remedies for Noncompliance

1800.339 Termination.
1800.400 Policy guide.
Appendix A to Part 1800--Certifications, Assurances, and
Representations
Appendix B to Part 1800--Terms and Conditions

    Authority:  51 U.S.C. 20113 (e), Pub. L. 97-258, 96 Stat. 1003
(31 U.S.C. 6301 et seq.), and 2 CFR part 200.

Sec.  1800.1  Authority.

    The National Aeronautics and Space Administration (NASA) awards
grants and cooperative agreements under the authority of 51 U.S.C.
20113 (e), the National Aeronautics and Space Act. This part 1800 is
issued under the authority of 51 U.S.C. 20113 (e), Pub. L. 97-258, 96
Stat. 1003 (31 U.S.C. 6301 et seq.), and 2 CFR part 200.

Sec.  1800.2  Purpose.

    This part adopts the Office of Management and Budget (OMB) guidance
in subparts A through F of 2 CFR part 200, as supplemented by this
part, as the NASA policies and procedures for uniform administrative
requirements, cost principles, and audit requirements for Federal
awards. It thereby gives regulatory effect for NASA to the OMB guidance
as supplemented by this part.

Sec.  1800.3  Applicability.

    (a) This part establishes policies and procedures for grants and
cooperative agreements awarded by NASA to non-Federal entities,
commercial firms (when cost sharing is not required), and foreign
organizations as allowed by 2 CFR 200.101 Applicability.
    (b) Throughout this Part, the term ``grant'' includes ``cooperative
agreement'' unless otherwise indicated.
    (c) When commercial firms are required to provide cost sharing
pursuant to 2 CFR 200.306, Cost Sharing, the terms and conditions of 14
CFR part 1274 apply.
    (d)(1) In general, research with foreign organizations will not be
conducted through grants, but instead will be accomplished on a no-
exchange-of-funds basis. In these cases, NASA enters into agreements
undertaking projects of international scientific collaboration. NASA
policy on performing research with foreign organizations on a no-
exchange-of-funds basis is set forth at NASA FAR Supplement (NFS)
1835.016-70. In rare instances, NASA may enter into an international
agreement under which funds will be transferred to a foreign recipient.
    (2) Grants to foreign organizations are made on an exceptional
basis only. Awards require the prior approval of the Headquarters
Office of International and Interagency Relations and the Headquarters
Office of the General Counsel. Requests to award grants to foreign
organizations are to be coordinated through the Office of Procurement,
Program Operations Division.

    (3) The requirements of this section do not apply to the purchase
of supplies or services from non-U.S. sources by grant to U.S.
recipients, when necessary to support research efforts.

(Authority: 14 CFR 1260.4(b), 14 CFR 1260.12(e)(1), 14 CFR
1260.12(e)(2), 14 CFR 1260.(e)(3), and 14 CFR 1260.(e)(5))

Sec.  1800.4  Amendment.

    This Part 1800 will be amended by publication of changes in the
Federal Register. Changes will be issued as final rules.

Sec.  1800.5  Publication.

    The official site for accessing the NASA Grant and Cooperative
Agreement Regulation, including current Grant Notices and internal
guidance, is on the internet at: http://www.hq.nasa.gov/office/procurement/grants/index.html.

Sec.  1800.6  Deviations.

    (a) A deviation is required for any of the following:
    (1) When prescribed term or condition set forth verbatim in this
Part 1800 is modified or omitted.
    (2) When a term or condition is set forth in this Part, but not for
use verbatim, and the Center substitutes a term or condition which is
inconsistent with the intent, principle, and substance of the term or
condition.
    (3) When a form prescribed by this Part is altered or another form
is used in its place.
    (4) When limitations, imposed by this regulation upon the use of a
grant term or condition, form, procedure, or any other grant action,
are changed.
    (5) When a form is created for recipient use that constitutes a
``Collection of Information'' within the meaning of the Paperwork
Reduction Act (44 U.S.C. 35) and its implementation in 5 CFR part 1320.
    (b) Requests for authority to deviate from this Part shall be
submitted to the Office of Procurement, NASA Headquarters, Program
Operations Division. Requests, signed by the procurement officer, shall
contain:
    (1) A full description of the deviation, the circumstances in which
it will be used, and identification of the requirement from which a
deviation is sought;
    (2) The rationale for the request, pertinent background
information, and the intended effect of the deviation;
    (3) The name of the recipient, identification of the grant
affected, and the dollar value;
    (4) A statement as to whether the deviation has been requested
previously, and, if so, details of that request; and
    (5) A copy of legal counsel's concurrence or comments.
    (c) Where it is necessary to obtain an exception from 2 CFR part
200, the Program Operations Division will process all necessary
documents. (See 2 CFR 200.102.)

(Authority: 14 CFR 1260.7)

Subpart A--Acronyms and Definitions

Sec.  1800.10  Acronyms.

AO Announcement of Opportunity
CAN Cooperative Agreement Notice
HBCU Historically Black Colleges and Universities
NASA National Aeronautics and Space Administration
NFS NASA FAR Supplement
NPR NASA Procedural Requirements
NRA NASA Research Announcement
OMB Office of Management and Budget
ONR Office of Naval Research
RPPR Research Performance Progress Report
STI Program NASA Scientific and Technical Information Program

Sec.  1800.11  Definitions.

    (a) The following definitions are a supplement to the subpart A
definitions set forth at 2 CFR 200.2 through 200.99.
    Administrative grant officer means a Federal employee delegated
responsibility for grant administration; e.g., a NASA grant officer who
has retained grant administration responsibilities, or an Office of
Naval Research (ONR) grant officer delegated grant administration by a
NASA grant officer.
    Commercial firm means any corporation, trust or other organization
which is organized primarily for profit.
    Effective date means the date work can begin. This date is the
beginning of the period of performance and can be earlier or later than
the date of signature on a basic award. Expenditures made prior to
award of a grant are incurred at the recipient's risk.
    Historically Black Colleges and Universities (HBCUs) means any
historically Black college or university that was established prior to
1964, whose principal mission was, and is, the education of Black
Americans, and that is accredited by a nationally recognized
accrediting agency or association determined by the Secretary of
Education to be a reliable authority as to the quality of training
offered or is, according to such an agency or association, making
reasonable progress toward accreditation.
    Minority Institutions (MIs) means an institution of higher
education whose enrollment of a single minority or a combination of
minorities (minority meaning American Indian, Alaskan Native, Black
(not of Hispanic origin), Hispanic (including persons of Mexican,
Puerto Rican, Cuban, and Central or South American origin), Pacific
Islander or other ethnic group under-represented in science and
engineering.) exceeds 50 percent of the total enrollment.
    Research misconduct is defined in 14 CFR 1275.101. NASA policies
and procedures regarding Research misconduct are set out in 14 CFR part
1275, ``Investigation of Research Misconduct.''
    Summary of research means a document summarizing the results of the
entire project, which includes bibliographies, abstracts, and lists of
other media in which the research was discussed.

Subpart B--Pre-Federal Award Requirements and Contents of Federal
Awards

Sec.  1800.208  Certifications and representations.

    The certifications and representations for NASA may be found at
Appendix A of this Part and http://www.hq.nasa.gov/office/procurement/grants/index.html.

Sec.  1800.209  Pre-award costs.

    NASA waives the approval requirement for pre-award costs of 90 days
or less.

(Authority: 14 CFR 1260.125(3)(1))

Sec.  1800.210  Information contained in a Federal award.

    The terms and conditions for NASA may be found at Appendix B of
this Part and http://www.hq.nasa.gov/office/procurement/grants/index.html.

Subpart C--Post Federal Award Requirements

Standards for Financial and Program Management

Sec.  1800.305  Payment.

    Payments under grants with commercial firms will be made based on
incurred costs. Standard Form 425 is not required. Commercial firms
shall not submit invoices more frequently than quarterly. Payments to
be made on a more frequent basis require the written approval of the
grant officer.

(Authority: 14 CFR 1260.4(b)(5))

Sec.  1800.306  Cost sharing or matching.

    Where statute or section of NASA's Code of Federal Regulations
requires cost sharing or matching, recipients must secure matching
funds to receive the Federal award.

(Authority: 14 CFR 1260.54)

Property Standards