[Federal Register Volume 63, Number 193 (Tuesday, October 6, 1998)]
[Notices]
[Pages 53764-53774]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-26459]
[[Page 53763]]
_______________________________________________________________________
Part III
Environmental Protection Agency
_______________________________________________________________________
Performance Partnership Grants for State and Tribal Environmental
Program: Revised Interim Guidance; Notice
Federal Register / Vol. 63, No. 193 / Tuesday, October 6, 1998 /
Notices
[[Page 53764]]
ENVIRONMENTAL PROTECTION AGENCY
[FRL-6171-7]
Performance Partnership Grants for State and Tribal Environmental
Program: Revised Interim Guidance
AGENCY: Environmental Protection Agency.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The ``Performance Partnership Grants for State and Tribal
Environmental Programs: Revised Interim Guidance'' is the revised
version of the Performance Partnership Grant (PPG) guidance dated July
1996. This revision reflects the expanded authority provided in EPA's
FY 1998 Appropriation Act to award PPGs to Interstate Agencies,
Intertribal Consortia, and Air Pollution Control Agencies. The revision
also incorporates some of the policy decisions made since July 1996
that impact PPGs. These decisions include items such as replacing
references to four different application requirements with one set of
requirements, adding new definitions and terms to reflect results-based
management, adding the term ``workplan component'' along with
requirements that the work plan be organized by workplan components,
incorporating the use of multi-year grant budget periods, and adding
Government Performance and Results Act (GPRA) reporting language. This
revised guidance will serve as the operating guidance for States and
Tribes interested in applying for PPGs. EPA will be proposing
regulations governing the PPG program in FY1999.
PPGs are intended to provide States and Tribes with greater
flexibility to address their highest environmental priorities, improve
environmental performance, achieve administrative savings, and
strengthen partnerships between EPA and the States or Tribes.
EFFECTIVE DATE: October 6, 1998.
FOR FURTHER INFORMATION CONTACT: Ellen Haffa, Office of Water (4102),
U.S. Environmental Protection Agency, 401 M Street, SW, Washington,
D.C. 20460, Telephone: (202) 260-3617, FAX: (202) 260-7926.
SUPPLEMENTARY INFORMATION: PPGs are a powerful funding tool that EPA is
offering to eligible States and Tribes. A PPG is a multi-program grant
awarded to a State or Interstate Agency, or Tribe or Intertribal
Consortium from funds otherwise available for categorical grant
programs. A State or Tribe can combine funds from 2 or more of 17
eligible grant programs into 1 or more PPGs. Recipients may then use
PPGs to fund activities that are within the cumulative eligibilities of
the 17 eligible grant programs.
EPA encourages States and Tribes to take advantage of PPGs. These
grants enable State and Tribes to better direct their funding toward
their most critical environmental problems while continuing to address
core program requirements, better address multi-media high priority
strategies such as community-based environmental protection, pollution
prevention, and environmental justice, and reduce administrative
burdens and costs by reducing the numbers of grants applications,
budget, workplans, and reports. States and Tribes interested in
pursuing PPGs should work in partnership with their Regional office to
develop a PPG that funds solutions to the highest environmental
priorities and ensures that EPA statutory and program requirements are
met.
Submission to Congress and the General Accounting Office
The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the
Small Business Regulatory Enforcement Fairness Act of 1996, generally
provides that before a rule may take effect, the agency promulgating
the rule must submit a rule report, which includes a copy of the rule,
to each House of the Congress and to the Comptroller General of the
United States. EPA will submit a report containing this guidance rule
and other required information to the U.S. Senate, the U.S. House of
Representatives, and the Comptroller General of the United States prior
to publication of the rule in the Federal Register. This guidance is
not a ``major rule'' as defined by 5 U.S.C. 804(2).
Additional contacts for information on PPGs are:
Headquarters:
Scott McMoran, Chief, Grants Operations Branch, Grants
Administration Division, U.S. EPA (3903R), 401 M. Street, SW,
Washington, D.C. 20460, (202) 564-5376
Region 1:
Stanley Scott, Manager, Grants Management Unit, U.S. EPA--Region I,
John F. Kennedy Federal Building, One Congress Street, Boston, MA
02203-0001, (617) 565-3378
Robert Goetzl, Associate Director, State Grant and Indian Programs,
U.S. EPA--Region 1, John F. Kennedy Federal Building, One Congress
Street, Boston MA 02203-0001, (617) 565-3602
Region 2:
Donna Vizian, Chief, Grants and Contracts Management Branch, U.S.
EPA--Region II, 290 Broadway, New York, N.Y. 10007-1866, (212) 637-3402
Dennis Santella, Leader, Strategic Planning Team, U.S. EPA--Region
II, 290 Broadway, New York, N.Y. 10007-1866
Region 3:
Robert G. Reed, Jr. Chief, Grants and Audit Management Branch
(3PM70), U.S. EPA--Region III, 1650 Arch Street, Philadelphia, PA
19103-2029, (215) 215-5410
Mary Zielinski, Grants and Audit Management Branch, U.S. EPA--
Region III, 1650 Arch Street, Philadelphia, PA 19103-2029
Region 4:
Linda Barrett, Grants and Procurement Branch, U.S. EPA--Region IV,
61 Forsyth Street, Atlanta, GA 30303, (404) 562-8399
Region 5:
Pat Thompson, Chief, Assistance Section, U.S. EPA--Region V, 77
West Jackson Boulevard, Chicago, IL 60604-3507, (312) 886-6015
Region 6:
Brenda Durden, Chief, Program Planning and Grants Branch, U.S.
EPA--Region VI, 1445 Ross Avenue, Dallas, TX 75202-2733, (214) 665-6510
Hattie Brown, Program Planning and Grants Branch, U.S. EPA--Region
VI, 1445 Ross Avenue, Dallas, TX 75202-2733, (214) 665-7423
Region 7:
Carol Rompage, Grants Management Officer, U.S. EPA--Region VII 726
Minnesota Avenue, Kansas City, KS 66101, (913) 551-7346
Region 8:
Grants, Audits, Procurement Branch, U.S. EPA--Region VIII, 999 18th
Street, Suite 500, Denver, CO 80202-2466, (303) 312-6104
Region 9:
Melinda Taplin, Chief, Grants Management Section, P-4-4, U.S. EPA--
Region IX, 75 Hawthorne Street, San Francisco, CA 94105, (415) 744-1693
Region 10:
Grants Administration Branch, U.S. EPA--Region X, 1200 Sixth
Avenue, Seattle, WA 98101, (206) 553-2722
[[Page 53765]]
Dated: September 22, 1998.
Dana Minerva,
Deputy Assistant Administrator, Office of Water.
Dated: September 21, 1998.
Kerrigan Clough,
Assistant Regional Administrator, Office of Partnerships and Regulatory
Assistance, Region VIII.
Performance Partnership Grants Guidance
Executive Summary
Performance Partnership Grants (PPGs): A PPG is a multi-program
grant made to a State or Tribal agency by the U.S. Environmental
Protection Agency (EPA) from funds allocated and otherwise available
for categorical grant programs. PPGs provide States and Tribes with the
option to combine funds from two or more categorical grants into one or
more PPGs.
Purpose
Flexibility. States and Tribes will have the flexibility
to address their highest environmental priorities across all media and
establish resource allocations based on those priorities, while
continuing to address core program requirements.
Improved Environmental Performance. States and Tribes can:
(1) more effectively link program activities with environmental goals
and program outcomes; and (2) develop innovative pollution prevention,
ecosystem, and community-based strategies.
Administrative Savings. Recipients and EPA can reduce
administrative burdens and costs by greatly reducing the numbers of
grant applications, budgets, work plans, and reports.
Strengthened Partnerships. EPA will develop partnerships
with States and Tribes where both parties share the same environmental
and program goals and deploy their unique resources and abilities to
jointly accomplish those goals.
Authority
Authorization for PPGs is contained in the 1996 Omnibus
Consolidated Rescissions and Appropriations Act (PL 104-134). EPA's
1998 Appropriation Act expanded the authority to award PPGs to
Interstate Agencies, Intertribal Consortia, and Air Pollution Control
Agencies.
Authority applies to funds from seventeen program grants
funded from EPA's State and Tribal Assistance Grants (STAG)
appropriation.
Eligibility
All States and federally recognized Indian Tribes
(including environmental, health, agriculture, and other State/Tribal
agencies) eligible to receive more than one categorical grant in Fiscal
Year (FY) 1999 are eligible to receive PPGs.
Local agencies are eligible if they: (1) are eligible
under state authority to implement EPA funded programs; and (2) receive
direct funding from EPA for two or more of the eligible grant programs.
Certain Interstate Agencies and Intertribal Consortia are
eligible, to the extent of their eligibility for the underlying
categorical grant funds. Intertribal Consortia are eligible for the
following categorical grants: General Assistance Program (GAP) grants
(Indian Environmental General Assistance Program Act of 1992), Wetlands
Program Development Grants (CWA 104(b)(3)), Water Quality Cooperative
Agreements (CWA 104(b)(3)), and Water Pollution Control Grants (CWA
106). The proposed regulation established at 40 CFR Subpart B would
make Intertribal consortia eligible for all of the remaining programs.
PPGs do not affect State or Tribal agency ``pass-through''
grants to local or other agencies.
State/Tribal agency eligibility is subject to the
authority of the governor or State legislature, or Tribal authorities,
as appropriate.
Application
States and Tribes may apply for PPGs for any budget
period, including multi-year awards, though EPA recommends not
exceeding five years. The application must include a work plan
corresponding to the proposed budget period. PPG work plan commitments
are the programmatic basis for the PPG award and grant accountability.
Commitments may consist of environmental indicators, performance
measures (including measures of activity), and narrative descriptions
of program activities or work plan components. PPG work plan
commitments must include core performance measures or accountability
measures, as defined by appropriate environmental statutes, regulations
and EPA or State policy. PPG work plan commitments may be contained in
categorical or PPG work plans, in a Performance Partnership Agreement
(PPA) or Tribal Environmental Agreement (TEA).
Funding and State/Tribal Cost Share
EPA's allocation of grant funds to States will be the same
whether the funds are awarded as PPGs or categorically. PPGs do not
adversely affect a Tribe's ability to compete for any grant.
PPGs may fund any activities eligible to be funded under
seventeen specified EPA grant authorities.
EPA's policy is that States and Tribes should continue to
spend the same amount of funds for environmental programs under PPGs as
under categorical grants. Although, under PPGs, recipients will have
the flexibility to realign those resources among environmental programs
based on negotiated priorities including those in the PPG work plan,
the total resources of the State or Tribe, both Federal and non-
Federal, targeted to environmental programs should not be reduced,
except in exceptional circumstances, for example, where a State or
Tribe reduces funds across all State or Tribal agencies. Thus, the
required cost share (based on the match or maintenance of effort
requirements of the categorical grants included in the PPG) will be the
same under PPGs as under categorical grants, unless EPA determines that
there are exceptional circumstances justifying a reduction in cost
share for a PPG for the year that the PPG is awarded.
Applicants may have a single PPG budget for accounting and
reporting purposes.
State/Tribal Options
The content of each PPG depends on its purpose and the
extent to which a recipient would like to deviate from traditional
categorical work plans or enter the National Environmental Performance
Partnership System (NEPPS) or complete a Tribal-EPA Agreement (TEA).
PPGs may include all of an agency's federally-funded
environmental programs, a single media (e.g. water), or a single
function (e.g. compliance).
The State or Tribe usually decides which grants to include
in a PPG, with EPA concurrence.
EPA Regional Implementation
EPA's Regional Administrators will be the designated
approval and award officials for PPGs, with the ability to redelegate
authority within their Regions.
EPA Regions will designate a single grant Project Officer
for each PPG.
When State/Tribal PPG proposals present significant
national policy issues or propose to deviate from National Program
Guidance, EPA Regions will consult with EPA's national program
managers.
[[Page 53766]]
Table of Contents
Section 1. Overview of EPA's Performance Partnership Grant Program
Section 2. Authority
Section 3. Eligibility
Section 4. Preparing a PPG Application
Section 5. EPA and Recipient Roles and Responsibilities
Section 6. Funding
Section 7. Administrative Information
Section 8. Post-Award Requirements
Section 1. Overview of the U.S. Environmental Protection Agency's
Performance Partnership Grant Program
Section 1.1 Scope of Guidance. A Performance Partnership Grant
(PPG) is a single grant made to a State or Tribe (or Interstate Agency,
Intertribal Consortium, or local agency) from grant funds allocated and
otherwise available for existing categorical grant programs. PPGs are
voluntary and provide States and Tribes with the option to combine
funds from two or more categorical grants into one or more PPGs.
Recipients may receive their financial assistance as one or more
PPG(s), or continue receiving funds as categorical grants.
This Guidance applies to PPGs for FY 1999, and will remain in
effect until superseded by statute, federal regulation, or amended
guidance. It supersedes ``Performance Partnership Grants for State and
Tribal Programs: Revised Interim Guidance,'' published in the Federal
Register on August 19, 1996. This Guidance applies to: (1) State and
Interstate Agencies, Tribes, Intertribal Consortia, and local Agencies
that apply for or are awarded PPGs; (2) EPA Regions that approve,
award, and administer PPGs; (3) EPA National Program Managers for any
funds eligible for inclusion in PPGs; and (4) EPA Headquarters offices
responsible for the administrative or policy management of PPGs.
EPA expects to issue proposed regulations for PPGs during FY 1999.
The Agency has solicited extensive stakeholder involvement in the
development of these regulations, which are currently in draft. Final
regulations are anticipated in FY 1999.
Section 1.2 Organization. The guidance is divided into two parts.
Sections 1-3 present an overview of the new program, explaining the
purpose and expected benefits of PPGs, and identifying eligible grants,
recipients, and activities. Sections 4-8 provide more specific guidance
to Federal, State, and Tribal officials responsible for implementing
the grant program. States and Tribes are presented a variety of options
for how to apply for and manage PPGs. Section 4, in particular, helps
applicants identify reasons for applying for a PPG and provides
application criteria. Each section includes a checklist of steps and
options.
Section 1.3 Purpose And Goals. President Clinton announced
Performance Partnership Grants on March 16, 1995, as part of the
Administration's program to ``Reinvent Environmental Regulation.'' PPGs
are a part of EPA's continuing effort to reinvent government and build
State and Tribal environmental protection capacity. This voluntary
program is a response to recommendations from various internal and
external stakeholders 1 to:
---------------------------------------------------------------------------
\1\ The National Performance Review (``Creating a Government
That Works Better and Costs Less''), September 1992; EPA's State-EPA
Capacity Steering Committee recommendations in `'Strengthening
Environmental Management in the United States, Report of the Task
Force to Enhance State Capacity,'' Environmental Protection Agency,
Office of the Administrator, EPA-270-R-93-001, July 1993; and the
National Academy of Public Administration Report (``Setting
Priorities, Getting Results: A New Direction for EPA''), April 1995.
---------------------------------------------------------------------------
Increase State and Tribal flexibility,
Help States and Tribes improve environmental performance,
Achieve administrative savings by streamlining the grants
process, and
Strengthen EPA partnerships with State and Tribal
governments.
These previous recommendations have formed the basis for the
purposes and goals of the PPG program, as described below:
Flexibility. PPGs will provide States and Tribes with flexibility
to address their most pressing environmental priorities across all
media and establish resource allocations based on those priorities,
while continuing to address core work plan commitments. Potential
recipients may apply for a PPG to replace up to seventeen eligible
categorical grants, some of the seventeen (e.g., water media PPG), or
portions of some of them (e.g., an enforcement PPG). They will allow
recipients to more effectively administer core statutory, regulatory
and non-regulatory programs. Recipients will also be able to develop
innovative multimedia programs and activities that are difficult to
fund with separate categorical grants. Moreover, recipients will have
the option of developing multi-year planning.
Improved Environmental Performance. PPGs will encourage States and
Tribes to improve environmental performance and more effectively link
program goals with program outcomes. Recipients will be able to
establish priorities across all environmental programs, and integrate
strategic goals such as pollution prevention and community-based
environmental protection into their program planning. States and Tribes
will be able to achieve these objectives by:
Coordinating and integrating activities which are now
fragmented under many statutes, regulations, and programs,
Conducting assessments to define environmental problems
and set priorities with the public,
Targeting the most significant environmental problems,
Building environmental protection capacity through
training, technical assistance and other appropriate means, and
Using common sense and multimedia environmental protection
strategies such as pollution prevention, ecosystem protection,
community-based protection and environmental justice.
The emphasis on improved environmental performance will be achieved
by increasing the use of environmental indicators and program
performance measures, and decreasing the reporting of inputs and
activities. Core Performance measures, to be developed jointly by EPA
and each State or Tribe, will gauge progress toward agreed upon goals
(see Section 1.6). Improved performance measures will provide the
foundation for better reporting, monitoring, and assessment of State,
Tribal and national environmental conditions. EPA expects that targeted
strategic approaches and improved performance measures, when
implemented together, will accelerate long-term systematic improvements
in environmental conditions. (Core performance measures for Tribal
programs are still evolving; until EPA has negotiated these measures
with the Tribes, the Regions should use key work plan goals and
objectives to reflect the new GPRA requirements.)
Administrative Savings. EPA, States, and Tribes expect PPGs to
reduce administrative burdens and costs by reducing the overall number
of grant applications, work plans, reports and certifications
associated with traditional, single media federal grants. Multi-year
planning may also contribute to reduced administrative costs.
Strengthened Partnerships. EPA will develop partnerships with
States and Tribes where both parties share the same environmental and
program goals and jointly deploy their unique resources and abilities
to accomplish those goals.
Section 1.4 The National Environmental Performance Partnership
System. On May 17, 1995, State and
[[Page 53767]]
EPA leaders signed a ``Joint Commitment to Reform Oversight and Create
a National Environmental Performance Partnership System'' (NEPPS). The
objective of signing this agreement was to accelerate the transition to
a new working relationship between EPA and the States--one which
reflects the advancement made in environmental protection over the
preceding two decades by both the States and EPA.
Key goals that this new partnership agreement share with PPGs are:
to allow States and EPA to achieve improved environmental results by
directing scarce public resources toward the highest priority, highest
value activities; to provide States with greater flexibility to achieve
those results; to improve public understanding of environmental
conditions and choices; and to enhance accountability to the public and
taxpayers. Other key goals of the NEPPS agreement are increased
reliance on self-management by State programs and a differential
approach to oversight that serves as an incentive for State programs to
perform well, rewarding strong programs and freeing up federal
resources to address problems where State programs need assistance.
NEPPS and PPGs share many of the same objectives. Of course, States
may apply for PPGs without entering NEPPS (and vice-versa) . But where
States wish to apply for PPGs and enter NEPPS, the processes and
documentation are integrated and, where appropriate, identical. The
Performance Partnership Agreement (PPA) is a document that is common to
both PPGs and NEPPS. For States doing both, the PPA will allow the
processes and documentation to be integrated (see Section 4.3 for more
details).
Section 1.5 Tribal Environmental Agreements. On July 14, 1994,
Administrator Browner issued a nine-point Action Memorandum on
Strengthening Tribal Operations which called for the development of
Tribal-EPA Workplans (now called Tribal Environmental Agreements) to be
jointly developed by EPA Regions and Tribes. In consultation with the
Agency's Tribal Operations Committee, the American Indian Environmental
Office and the National Indian Work Group developed guidance for the
Tribal Environmental Agreements (TEAs). Currently, EPA Regions and
Tribes are developing TEAs, many of which will be signed within the
next year.
The TEAs (signed by the EPA Regional Administrator and the Tribal
leadership) are a planning tool which clearly identifies the Tribe's
environmental objectives, expected outcomes and resource needs, and
implementation and management assistance needed from EPA. The
Agreements establish the Tribe's environmental objectives over 3-4
years, but are flexible documents that can be changed to meet Tribal
needs.
For Tribal PPGs, the TEAs are comparable to the State PPAs. In
order for the TEAs to serves as commitment documents where Tribes are
shifting funds, Tribes wanting to enter a PPG will have to include a
specific section on the anticipated PPG funds and work plan commitments
in addition to the other elements of the TEA or as an amendment to an
already signed TEA. By using the TEA instead of the PPA, the Tribes
will not have to conduct two planning processes. The addition of a
commitment section to the TEA should ensure that PPG funding shifts,
commitments, and expectations are clearly defined in one document
signed by both the Tribe and EPA. TEAs will be required for Tribes
wherever PPAs are required for States.
Section 1.6 PPG Accountability And Performance Measures. All PPGs
will be required to contain a legally binding set of work plan
commitments. These work plan commitments will be the primary basis for
evaluating the success of a PPG. Some work plan commitments will be
required in all PPGs because they are required by statute, regulation,
standing legal agreements between EPA and States/Tribes (e.g.,
Delegation Agreements), or National Program Manager/Regional program
guidance. Others will be optional.
For the purposes of this PPG guidance, work plan commitments are
``a description of the PPG program goals and objectives, results and
benefits expected, a plan of action, and quantifiable projections of
the program and environmental accomplishments to be achieved and the
performance measures to be used. Where accomplishments cannot be
quantified, activities can be listed to show the schedule of
accomplishments. PPG work plan commitments are the legal basis for the
expenditure of federal grant funds and the recipient's matching
requirement'' (see Section 1.7). EPA will continue to work with States
and Tribes to define the elements of work plan commitments, including
national environmental goals and performance measures.
As EPA and States/Tribes negotiate work plan commitments under
PPGs, they should use performance measures that measure program and
environmental outcomes and outputs. Performance measures that are PPG
work plan commitments should be quantifiable, measurable, and
verifiable. Specifically, all States and Tribes should adopt outcome
and output-oriented performance measures that track program performance
and environmental conditions and trends.
Appropriate accountability provisions are essential in designing
the new PPG program. A fundamental goal of EPA's efforts to design
accountability provisions into PPGs is to begin moving Federal, State,
and Tribal programs toward the use of results-oriented measures of
environmental and program performance that are understandable and
meaningful to the public. In recent years, EPA, States, and Tribes,
with input from the stakeholders and the public, have embarked on new
and innovative strategic directions and developed or tested innovative
performance measures that are a natural fit to incorporate into PPGs.
EPA believes that PPG performance measures should be consistent with
ongoing EPA and State or Tribal initiatives, such as The New Generation
of Environmental Protection: EPA's Five-Year Strategic Plan,
2 the National Environmental Goals Project, and EPA National
Program core performance measures (developed under the NEPPS). EPA's
National Program Guidances generally contain the national core
performance measures. A more comprehensive list of optional
environmental indicators may be found in Prospective Indicators for
State Use in Performance Agreements prepared under a cooperative
agreement with the Florida Center for Public Management, Florida State
University. Although this report provides a preliminary list of
national environmental indicators that may be helpful to States and EPA
looking for good ideas about available environmental
indicators,3 Tribes may also find them applicable.
---------------------------------------------------------------------------
\2\ EPA 200nB-94-002.
\3\ To obtain a copy of the document, contact EPA's Office of
Policy, at (202) 260-4332, or Florida State University at (904) 921-
0423.
---------------------------------------------------------------------------
Specific performance measures are required only if they are
required by statute, regulation or standing legal agreements between
EPA and States/Tribes (e.g., Delegation Agreements), or if EPA National
Program Managers or Regions have required them in guidance or policy.
Section 1.7 Definitions. Agency--United States Environmental
Protection Agency (EPA).
Categorical Grant--Media-specific or multimedia grant for a
particular program or narrowly defined activities.
National Environmental Performance Partnership System (NEPPS)--A
new
[[Page 53768]]
approach to developing and implementing the State-EPA partnership
agreed to by the States and EPA. It contains seven principal
components: (1) increased use of environmental indicators; (2) a new
approach to program assessments by States; (3) Performance Partnership
Agreements; (4) differential oversight; (5) Performance Leadership
Programs; (6) public outreach and involvement; and (7) joint system
evaluation.
National Program Manager--Individual responsible for setting the
direction and policy for the management of an EPA media or enforcement
program on a National level.
Outcome--The environmental result, effect, or consequence that will
occur from carrying out an environmental program or activity that is
related to an environmental or programmatic goal or objective. Outcomes
must be quantitative, and they may not necessarily be achievable during
a grant budget period. See ``output''.
Output--An environmental activity or effort and associated work
products related to an environmental goal or objective that will be
produced or provided over a period of time or by a specified date.
Outputs may be quantitative or qualitative but must be measurable
during a grant budget period. See ``outcome''.
Performance Partnership Agreement (PPA)--A negotiated agreement
signed by the EPA Regional Administrator and an appropriate official of
a State or interstate agency and designated as such. These agreements
typically set out jointly developed goals, objectives, and priorities
and include work plan commitments that are the basis for grants; the
strategies to be used in meeting them; the roles and responsibilities
of the State and EPA; and the measures to be used in assessing
progress. A Performance Partnership Agreement may be used as all or
part of a work plan for a grant if it meets the requirements for a work
plan set out in Section 4.3.
Performance Partnership Grant (PPG)--A single grant combining funds
from more than one environmental program. A Performance Partnership
Grant may provide for administrative savings or programmatic
flexibility to direct grant resources where they are most needed to
address public health and environmental priorities. Each Performance
Partnership Grant has a single, integrated budget and recipients do not
need to account for grant funds in accordance with the funds' original
environmental program sources.
Performance Partnership Grant Work Plan Commitments--The outputs
and outcomes associated with each work plan component, as established
in the grant agreement.
Performance Partnership Grant Work Plan Component--A negotiated set
or group of work plan commitments established in the grant agreement. A
work plan may have one or more work plan components.
Program Flexibility--Reduction of effort or elimination of a work
plan component in order to invest in another media-specific or
multimedia work plan component.
Tribal Environmental Agreement (TEA)--A strategic planning document
designated as a TEA and signed by the Regional Administrator and an
appropriate Tribal official that sets out negotiated environmental
goals, objectives, outcomes, outputs, priorities, actions to be taken,
and measures of performance. A TEA may be used as all or part of a work
plan for a grant if it meets the requirements for a work plan set out
in Section 4.3.
Section 2. Authority
Section 2.1--Statutory Authority. Authority for PPGs is contained
in the 1996 Omnibus Consolidated Rescissions and Appropriations Act
(P.L. 104-134). The authorizing language reads as follows:
That beginning in fiscal year 1996 and each fiscal year
thereafter, and notwithstanding any other provision of law, the
Administrator is authorized to make grants annually from funds
appropriated under this heading, subject to such terms and
conditions as the Administrator shall establish, to any State or
federally recognized Indian tribe for multimedia or single media
pollution prevention, control and abatement and related
environmental activities at the request of the Governor or other
appropriate State official or the tribe.
Additional statutory authority for the awards of PPGs to interstate
agencies and intertribal consortia is contained in the Departments of
Veterans Affairs and Housing and Urban Development, and Independent
Agencies Appropriations Act, 1998, P.L.105-65 (111 Stat. 1344, 1373
(1997)).
Section 2.2--Other Authorities. The requirements of 40 CFR Part 31,
``Uniform Administrative Requirements for Grants and Cooperative
Agreements to State and Local Governments,'' will apply to a PPG as
they do to a categorical grant. Some limited exceptions to 40 CFR Part
31 may be necessary to accommodate these grants. EPA will manage such
exceptions through the grant deviation process. Additional requirements
are included in substantive program regulations, OMB Circulars A-87 and
A-102, the EPA Assistance Administration Manual, EPA-State/Tribal
Memoranda of Agreement (MOA), NPM-Regional Guidance and MOA, the NEPPS
agreement signed on May 17, 1995 (for States entering NEPPS), and E.O.
12372, ``Intergovernmental Review of Federal Programs.''
Section 3. Eligibility
Section 3.1--Eligible Applicants. All States, territories,
interstate agencies, local agencies, Federally recognized Indian
Tribes, and Intertribal Consortia eligible to receive more than one of
the categorical grants referred to in Section 3.2 are eligible to
receive a PPG(s). Any duly authorized State or Tribal entity that
currently receives or is eligible to receive EPA categorical program
grants may request a PPG for the funds it administers. This may include
environmental, agricultural, and other agencies where authorized by
State/Tribal law. Agencies that now receive pass-through funding from a
State or Tribe may continue to receive such funding subject to
applicable State, Tribal or Federal law. For any agency that now
receives direct Federal funding, but is not eligible for a PPG (e.g.,
local air districts), EPA will continue to make Federal funding
available pursuant to existing categorical grant authorities.
Eligibility for PPGs is subject to the appropriate State, Tribal, or
Territorial executive or legislative authorities. Interstate agencies
and intertribal consortia may combine funds into a PPG if they are
eligible under the authorizing statutory authorities to receive the
grant funds.
In the case of proposals which combine funds currently awarded to
separate, duly authorized State or Tribal agencies--such as combining
funds from an environmental department with funds from program grants
to an agriculture or health department--a joint proposal signed by the
appropriate officials should indicate a method for sharing funds in
addition to demonstrating the eligibility, planning, accountability and
evaluation elements of PPGs described in this guidance.
If program eligibility, formerly referred to as Treatment as State
(TAS), is required for a Tribal applicant to be eligible to receive
categorical funding for a specific program, the Agency will require the
same eligibility if the Tribal applicant intends to include funds for
that categorical grant in the PPG or to use PPG funds for activities
under that program.
EPA encourages applicants to combine funds from as many categorical
[[Page 53769]]
program grants as possible into a PPG to achieve maximum flexibility.
Section 3.2 Eligible Grant Programs. Funds available for the
following seventeen grants identified in EPA's State and Tribal
Assistance Grants (STAG) appropriation are eligible to be combined into
a PPG:
(1) Air pollution control (section 105 of the Clean Air Act).
(2) Water pollution control (section 106 of the Clean Water Act).
(3) Public water system supervision (section 1443(a) of the Safe
Drinking Water Act).
(4) Underground water source protection (section 1443(b) of the Safe
Drinking Water Act).
(5) Hazardous waste management (section 3011(a) of the Solid Waste
Disposal Act).
(6) Pesticide cooperative enforcement (section 23(a)(1) of the Federal
Insecticide, Fungicide, and Rodenticide Act).
(7) Pesticide applicator certification and training (section 23(a)(2)
of the Federal Insecticide, Fungicide, and Rodenticide Act).
(8) Pesticide program implementation (section 23(a)(1) of the Federal
Insecticide, Fungicide, and Rodenticide Act).
(9) Nonpoint source management (sections 205(j)(5) and 319(h) of the
Clean Water Act).
(10) Lead-based paint program (section 404(g) of the Toxic Substances
Control Act).
(11) State indoor radon grants (section 306 of the Toxic Substances
Control Act).
(12) Toxic substances compliance monitoring (section 28(a) and (b) of
the Toxic Substances Control Act).
(13) State underground storage tanks (section 2007(f)(2) of the Solid
Waste Disposal Act).
(14) Pollution prevention incentives for states (section 6605 of the
Pollution Prevention Act of 1990).
(15) Water quality cooperative agreements (section 104(b)(3) of the
Clean Water Act).
(16) Wetlands development grants program (section 104(b)(3) of the
Clean Water Act).
(17) General Assistance Grants to Indian Tribes (Indian Environmental
General Assistance Program Act of 1992). Only eligible Tribes can
propose to include these funds in a PPG application.
Generally, grant funds that states combine into PPGs are those that
provide for continuing, ongoing, environmental programs. Grants to
capitalize Clean Water and Drinking Water State Revolving Funds, and
other amounts specified for stated purposes in the STAG account, are
not eligible for inclusion in PPGs.
Because all EPA grants to Tribes are awarded through a competitive
or discretionary process, Tribes will be allowed to include these
grants in a PPG without adversely affecting their ability to compete
for any grant. For competitive grants on the above list (e.g.,
pollution prevention incentives for states, wetlands program
development, water quality cooperative agreements, general assistance
program grants to Tribes) to be combined in a PPG, the state or tribe
must first be approved to receive the competitive grant, and must
identify specific output or outcome measures as a condition for adding
the funds to a PPG. A State or Tribe may include these grant output
measures in its PPG work plan. EPA will add the funds to the PPG by a
grant amendment.
Section 3.3 Eligible Activities. Recipients may use PPGs to fund
activities that are within the cumulative eligibilities of the grants
listed in Section 3.2. Within these eligibilities, a PPG may fund
multimedia regulatory and non-regulatory activities that could be
difficult to fund under any individual categorical grant. EPA, in
consultation with the States and Tribes, has developed a list of
activities indicative of those it hopes PPGs will encourage. The list
does not indicate pre-approval of activities and is not intended to be
exhaustive. It merely illustrates the kind of activities which States,
Tribes, the Agency and other stakeholders have identified as difficult
to conduct with categorical grants and for which PPGs would be
appropriate.
PPGs may support multi-media activities, such as:
Pollution prevention-oriented multi-media rules,
permitting, compliance assistance, inspections, enforcement, training,
and facility planning ( e.g., one industry/one rule, one stop emission
reporting, permitting and compliance assistance),
Non-regulatory pollution prevention technical assistance,
technology development and diffusion, and partnerships with
accountants, financiers, insurers, risk managers, urban planners,
chemists, product designers and marketers, and other professions,
Ecosystem, community, sector, watershed, or airshed
environmental protection strategies (e.g., watershed targeted NPDES
permits, empowerment zones),
Support of Agency initiatives including Common Sense
Initiative & Regulatory Reinvention (e.g., XL strategy implementation,
market based strategies, local community risk assessment, negotiated
rulemaking, third-party auditing, self certification for compliance),
Environmental justice,
Children's health programs,
Public outreach and involvement,
Information clearinghouses,
Environmental monitoring,
Capacity building and environmental code development, and
Integration of regulatory and non regulatory strategies.
Section 4. Preparing a PPG Application
Section 4.1--Components of a complete application. A complete
application for a PPG must:
(a) Meet the requirements in 40 CFR Part 31, Subpart B if the
applicant is a State, interstate, or local agency, a Tribe or an
Intertribal Consortium;
(b) Specify the environmental programs and the amount of funds
requested from each program to be combined in the Performance
Partnership Grant;
(c) Include a consolidated budget;
(d) Include a work plan that addresses each program being combined
in the grant and that meets the requirements of Section 4.3; and
(e) Provide a rationale, commensurate with the extent of any
programmatic flexibility (i.e., increased effort in some programs and
decreased effort in others) indicated in the work plan, that explains
the basis for the applicant's priorities, the expected environmental or
other benefits to be achieved, and the anticipated impact on any
environmental programs or program areas proposed for reduced effort.
The applicant and the Regional Administrator will negotiate
regarding the information necessary to support the rationale for
programmatic flexibility required in paragraph (f) of this section. The
rationale may be supported by information from a variety of sources,
including a Performance Partnership Agreement or comparable negotiated
document, the evaluation report required in Sec. 31.40, and other
environmental and programmatic data sources. A State agency seeking
programmatic flexibility is encouraged to include a description of
efforts to involve the public in developing the State agency's
priorities.
Section 4.2.--Time frame for submitting an application for EPA
Action. An applicant should submit a complete application to EPA at
least 60 days before the beginning of the proposed budget period.
Section 4.3--Work plans. (a) Bases for negotiating work plans. The
work plan
[[Page 53770]]
is negotiated between the applicant and the Regional Administrator and
reflects consideration of national, regional, and State environmental
and programmatic needs and priorities.
(1) Negotiation considerations. In negotiating the work plan, the
Regional Administrator and applicant will consider such factors as
national program guidance; any regional supplemental guidance; goals,
objectives, and priorities proposed by the applicant; other jointly
identified needs or priorities; and the applicant's planning target.
(2) National program guidance. If an applicant proposes a work plan
that differs significantly from the goals and objectives, priorities,
or core performance/accountability measures in the national program
guidance, the Regional Administrator must consult with the appropriate
National Program Manager before agreeing to the work plan.
(3) Use of existing guidance. An applicant should base the grant
application on the national and regional program guidance in place at
the time the application is being prepared.
(b) Work plan requirements.
(1) The work plan is the basis for the management and evaluation of
performance under the grant agreement.
(2) The work plan must correspond to the budget period of the PPG
(e.g. a two-year PPG requires a two-year work plan.).
(3) An approvable work plan must specify:
(i) The work plan components to be funded under the grant;
(ii) The estimated work years and funding amounts for each work
plan component;
(iii) The work plan commitments for each work plan component and a
time frame for their accomplishment;
(iv) A performance evaluation process and reporting schedule in
accordance with Sec. 31.40 of this subpart; and
(v) The roles and responsibilities of the recipient and EPA in
carrying out the work plan commitments.
(4) The work plan must be consistent with applicable federal
statutes, regulations, circulars, executive orders, and delegation or
authorization agreements.
(c) Performance Partnership Agreement (PPA) or Tribal-EPA Agreement
(TEA) as work plan. An applicant may use a PPA or TEA as all or part of
the work plan for an environmental program grant if the portions of the
PPA or TEA that is to serve as the grant work plan:
(1) Is clearly identified and distinguished from other portions of
the PPA/TEA; and
(2) Meets the requirements in Section 4.3(b).
Section 4.5 Explanation of Certain Elements of a Performance
Partnership Agreement. The following explains in more detail some of
the elements of the PPA/TEA not previously addressed:
(a) Negotiated Environmental Priorities and Goals. This part of the
PPA/TEA is the product of negotiation between senior Regional officials
and State or Tribal officials in positions to negotiate across grant
programs, where this is appropriate. This part identifies the
applicant's most significant environmental problems and the goals the
applicant expects to achieve with the PPG. This strategic planning
process reflects the applicant's priorities (as contained in any State
or Tribal strategic plans or self-assessments), comparative risk
studies or other risk-based approaches, and national priorities
(enumerated in EPA's five-year strategic plan,4 the National
Environmental Goals Project and National program priorities specified
in EPA HQ/Regional Memorandums of Agreement). Major new strategic or
program directions or investments/ disinvestments should be identified
here.
---------------------------------------------------------------------------
\4\ ``The New Generation of Environmental Protection: EPA's
Five-Year Strategic Plan,'' (EPA 200-B-94-002)
---------------------------------------------------------------------------
(b) EPA Roles and Responsibilities in Supporting State or Tribal
Efforts. To strengthen the federal partnership with States and Tribes,
the PPA/TEA should describe how EPA will carry out its federal
responsibilities and how it will support the State's or Tribe's
environmental protection efforts. The negotiated agreement should
include the work plan commitments (goals, performance measures, and/or
program activities) the recipient expects to achieve under the PPG. The
agreement should also set forth procedures (e.g., mid-year and end-of-
year reviews, reporting requirements, joint activities) that EPA and
the recipient will use for evaluating accomplishments, discussing
progress, and making adjustments to meet milestones.
(c) Core commitments. All PPG work plans must include core work
plan commitments (goals, core performance or accountability measures,
program activities) derived from statutes, regulations, and standing
legal agreements between EPA and States/Tribes (e.g., Delegation
Agreements). As appropriate and negotiated between EPA Regions and
recipients, core work plan commitments and performance measures should
reflect National Program Manager/Regional guidance, EPA Headquarters-
Regional MOA, Regional-State/Tribal MOA, and other EPA or State/Tribal
policies. EPA should work with States and Tribes to balance the need to
maintain core program requirements with the need to incorporate program
flexibility and move toward program performance measures and
environmental indicators. A PPA/TEA may also include measures for which
data sources are not yet available if there is a commitment to develop
reliable data sources.
(d) Public Participation. States and Tribes should continue to use
their current public participation processes in conjunction with PPGs.
EPA believes that it is critical to involve all stakeholders in the
process of determining environmental priorities and goals, and
therefore strongly encourages States and Tribes to involve stakeholders
in identifying priority environmental problems. Recognizing the role
and contribution of general purpose and special purpose local
governments in the Nation's overall protection of the environment, EPA
strongly encourages States to engage local jurisdictions which would be
affected by a PPG. EPA also encourages recipients to share with
stakeholders the results of their goals and activities defined in the
PPA/TEA. Effective public participation will establish the foundation
for greater program flexibility and the achievement of better
environmental results.
(e) PPG Evaluation. The recipient should prepare a PPG annual
report (as described in 40 CFR 31.40(b)) as well as satisfy any other
reporting requirements required in the PPG agreement. In addition to
evaluating performance based on PPG work plan commitments, the
recipient should identify any problems, delays or conditions which
materially affected the recipient's ability to meet the PPG objectives
or commitments, any benefits that enabled the recipient to perform
better than expected, and EPA's performance in helping the recipient to
achieve work plan commitments. EPA and the States/Tribes are also
interested in knowing whether the work undertaken under the grant: (1)
addressed the stated strategic priorities and goals; (2) achieved
administrative cost savings; (3) where appropriate, improved
environmental results (to the extent environmental performance measures
were part of the PPG work plan commitments); and (4) improved EPA/
grantee working relationships. After reviewing the annual report, the
EPA Project Officer will provide evaluation findings to the
[[Page 53771]]
recipient and will include such findings in the official PPG file.
Where required in NPM guidance, the EPA project officer will also
provide copies to appropriate NPM personnel.
Evaluating the National PPG Program. EPA will request the
assistance of PPG recipients to evaluate the overall PPG process.
Lessons learned from FY 1996-1999 experiences will be used to modify
the program in subsequent years. The overall PPG grant process will be
evaluated by EPA and program participants in order to understand how
well it is being implemented as a national program. In addition to the
criteria used to evaluate individual PPGs, national criteria will
address whether PPGs: (1) led to greater State and Tribal flexibility;
(2) resulted in States and Tribes adopting innovative environmental
protection strategies; (3) changed polluter behavior; and (4) improved
public health and the environment.
Section 5. EPA And Recipient Roles And Responsibilities
Section 5.1 EPA Headquarters. National Program Manager (NPM). The
NPMs set national strategic direction and core program requirements and
priorities for all environmental programs. NPM and Regional Guidance
for State grant programs should be issued in a timely fashion to
accommodate EPA-applicant negotiations of grant work plans. In any
circumstance where a State or Tribe proposes activities that will lead
it to significantly deviate from NPM Guidance or EPA policy, the
Regional Administrator will consult with the appropriate NPM. In many
cases, NPMs also allocate categorical grant funds to EPA's Regions
based on established allocation criteria. EPA NPMs should provide
Regions with grant allocations in a timely fashion to accommodate the
development of grant applications and the negotiation of grant work
plans.
Grants Administration Division (GAD). The GAD's responsibilities
include: (1) sponsoring the PPG Delegation of authority; (2) reviewing
and acting on deviation requests from EPA's grant regulations to
implement PPGs; (3) sponsoring the proposed PPG regulations; (4)
answering questions regarding the administration of PPGs; (5)
interpreting 40 CFR Part 31 and Part 35, Subpart A and the draft 40 CFR
Part 35, Subparts A and B.
Office of the Chief Financial Officer (OCFO). The OCFO's
responsibilities include: (1) distributing categorical grant funds to
the Regions; (2) approving requests by the Regions to reprogram
categorical grant funds into the PPG program element; (3) upon request
of Appropriations Committees, provides periodic reports on the number
of states participating in PPGs and the grant funds they are using; and
(4) developing guidance for Regions to crosswalk State grant work plan
budget and performance information to EPA's GPRA budget and reporting
system.
Office of Congressional and Intergovernmental Relations (OCIR).
OCIR responsibilities include: (1) providing guidance on EPA and State
implementation of the National Environmental Performance Partnership
System (NEPPS); (2) general interpretation and implementation of NEPPS
policies; and (3) general national liaison with state and local
governments and related organizations.
American Indian Environmental Office (AIEO). AIEO responsibilities
include: (1) developing Guidance on EPA's partnerships with Tribes and
Intertribal Consortia and the negotiation of Tribal-EPA Agreements
(TEAs); (2) developing other crosscutting program guidance related to
EPA's implementation of Tribal environmental programs; (3) general
liaison with Tribal governments and related organizations; and (4)
answering questions regarding PPG implementation in Indian Country.
Section 5.2 EPA Regions. Regional Administrator (RA). The RA is
the designated approval and award official for PPGs with redelegation
authority to the Deputy Regional Administrator or the Division Director
or equivalent level. The RA, or a senior regional official(s)
designated by the RA, should conduct the initial negotiations with
applicants to establish environmental priorities and goals. The RA is
also responsible for establishing many State grant allocations and a
work plan negotiation process that will result in timely award of PPGs.
The RAs should provide applicants with grant planning allocations in a
timely fashion to accommodate the development of grant applications and
the negotiation of grant work plans.
The RA should designate a single PPG Project Officer (PO) for each
award. Because PPGs cross programs, the PO should coordinate
negotiations with the recipient on behalf of all the relevant EPA
programs. The RA may wish to designate a team of technical program
staff to support the designated Project Officer, or set additional
criteria for designating the PO. In any circumstance where an applicant
proposes activities that will lead it to significantly deviate from NPM
Guidance or EPA policy, the Regional Administrator will consult with
the appropriate NPM.
Regional Program Managers. The managers of all programs included in
the PPG will jointly be the program managers of the PPG, as will other
appropriate Regional management officials. Regional Program Managers
should (1) be consulted about or participate in negotiations with
States and Tribes; (2) articulate Agency, NPM and Regional goals and
priorities and work with recipients to assure they are incorporated
into PPG work plans; (3) serve as the principal source for technical
program assistance to recipients; and (4) participate in PPG program
evaluation as defined by the PPG work plan.
Regional Project Officer. The PPG Project Officer (PO) will be the
primary point of contact for grant recipients. The PO is responsible
for coordinating programmatic and technical aspects of the PPA/TEA, PPG
work plan, and the PPG agreement. All project officers must have
successfully completed the EPA training course ``Managing Your
Financial Assistance Agreement--Project Officer Responsibilities.'' The
PO should work closely with the Regional Indian Coordinator/Regional
Indian Office for Tribal PPGs.
Regional Grants Management Office (GMO). Regional GMOs are
responsible for carrying out all administrative functions associated
with the receipt of the PPG application, processing the PPG award, and
post-award administrative management of PPGs. (These functions are the
same as those for the award and management of categorical grants.)
Regional Comptroller Offices. Regional Comptroller Offices are
responsible for submitting approval requests to Headquarters Budget
Division for Regional reprogramming of funds from categorical grant
program resource codes to PPG distribution accounts and, upon approval,
completing the reprogramming of the funds. Both the PPG award and
obligation must include the State identifier code on transactions in
IFMS.
Section 5.3 Recipients. Recipients may wish to designate a single
point of contact for each PPG to serve as the counterpart to the EPA
Project Officer. This individual should be responsible for coordinating
all programmatic and technical aspects of the PPG as well as for all
intra-State or intra-Tribal agreements. Recipients should identify
these points of contact in their PPG application.
Section 6. Funding
Section 6.1 Project Period and Availability of Funds. In
consultation with the Regional Administrator, the applicant may choose
to submit either
[[Page 53772]]
annual or multi-year PPG work plans. Project periods may remain open to
reflect the continuing nature of PPGs. The Regional Administrator and
applicant may negotiate the length of the budget period for PPGs,
subject to limitations in appropriations acts. The approved work plan
must cover the entire PPG budget period.
Section 6.2 Award Amounts and Distribution of Funds. A state's or
tribe's choice of PPGs or categorical grants will not affect its
allocation of grant funds.
Section 6.3 Reprogramming of Funds. EPA's Budget Division will
allocate grant funds to the Regions by objective. Regional Budget
Officers will request the reprogramming of funds from program resource
codes into a PPG distribution account. For FY 1999, the reprogramming
of funds to implement PPGs is exempt from the $500,000 Congressional
reprogramming limitation. Reprogramming requests will be made only
after the PPG project officer, EPA approval official and the Grants
Management Office find the PPG application acceptable. Please refer to
Office of the Comptroller Announcement No. 98--xx, ``Accounting for
Resources under the Government Performance and Results Act'' for more
details on budget execution and reporting for PPGs. The purpose
statement/justification that should be included in the reprogramming
request is:
Purpose: This action reprograms resources ($ ) from existing
categorical grants, air ($ .), water ($ ), etc. to support the
implementation of the Performance Partnership Grant for the State/
Tribe of ____________. This transfer is authorized by the/this
decision memorandum dated ____________ and signed by ____________.
Person to contact:-----------------------------------------------------
Phone: ____________ (including area code)
Section 6.4 Carryover And Unexpended Prior Year Funds. Funds
recovered from an applicant's FY 1996-98 categorical grants will be
available to fund PPGs awarded in FY 1999 and beyond, provided there is
consistency with the appropriation and/or the underlying categorical
program statutes and Comptroller Policy No. 88-09 ``Disposition of
Unobligated Balances of Assistance Awards.'' Carryover of unobligated
balances will be allowed provided that the recipient uses the carryover
award amount to support either ongoing programmatic goals, a multi-year
PPG work plan, a special project falling within the PPG's
eligibilities, or those activities contemplated for the next PPG award
cycle's goals. As with all grant funds, the source of funds (e.g. CAA
Sec. 105, CWA Sec. 106, PPG) determines the cost-share for unexpended
prior-year funds. Therefore, unexpended prior-year PPG funds take on
the final cost-share for the previous year's PPG, as described in
Section 6.5.
If the PPG work plan commitments include activities that cannot be
fully funded at the time of award (e.g. multi-year PPG work plans,
competitive grants), additional funding can be added as it becomes
available. The Regions may also forward-fund PPG awards.
Section 6.5 Cost-share Requirements. (a) An applicant for a
Performance Partnership Grant must provide a non-federal cost share
that is not less than the sum of the minimum non-federal cost share
required under each of the environmental programs that are combined in
the Performance Partnership Grant. Cost share requirements for the
individual environmental programs are described in Secs. 35.200 to
35.260, and other relevant documents.
(b) When an environmental program included in the Performance
Partnership Grant has both a matching and maintenance of effort
requirement, the greater of the two amounts will be used to calculate
the minimum cost share attributed to that environmental program.
(c) Example. A State or Tribe that applies for a PPG combining
its Water-106, Nonpoint Source, UIC, UST, RCRA and Air-105
categorical grants. The portion of the federal categorical grant
funding from each program designated by the recipient to be
reprogrammed to the PPG is listed in the third column below. (This
amount does not necessarily reflect all the Federal dollars
available to the recipient for that specific categorical program.
The recipient may choose to continue to receive some of the
program's funding categorically.) The fourth column illustrates the
minimum recipient cost share for each piece (based on the cost share
requirements of the program that is the source of the funds). The
fifth column notes the basis for the requirement. The total amount
of federal money awarded in the PPG is the sum of the contributed
portions dollars in the third column. The minimum recipient PPG cost
share is the sum of the minimum recipient cost shares for each of
the contributed portions shown in the fourth column.
----------------------------------------------------------------------------------------------------------------
Recipient cost
Funding source share PPG total Federal share share Basis of cost
----------------------------------------------------------------------------------------------------------------
Water-106........................ 1,239,064 1,087,995 \5\151,069 MOE.
Nonpoint Source.................. 924,333 554,600 \6\369,733 MOE or 40% match.
UIC.............................. 78,796 59,097 19,699 25% match.
UST.............................. 216,667 162,500 54,167 25% match.
RCRA............................. 465,989 349,492 116,497 25% match.
Air-105.......................... 2,290,230 1,374,198 6,7 916,132
MOE or 40%
match.
PPG.............................. 5,215,079 3,587,882 1,627,297 PPG guidance
----------------------------------------------------------------------------------------------------------------
[[Page 53773]]
The minimum composite cost share for the PPG in this example is
$1,627,297, which is 31.2% of the PPG total of $5,215,079. The
percentage is based on the ratio between the total dollar value
(Federal and non-Federal) of each program, activity, etc., included
in the PPG(s) and the dollar value of its respective cost sharing
requirement. EPA uses this percentage to determine the recipient's
share of each dollar expended for the PPG(s).
---------------------------------------------------------------------------
\5\ The Water 106 program has no match requirement for states.
However, it has a MOE requirement based on recurrent expenditures in
the FY year ending (1) June 30, 1971 or (2) October 1, 1977, if the
State is expending funds awarded in any fiscal year for construction
grants management under section 205(g). This requirement obligates a
State to spend at least the base year amount of money each year
without regard to the amount of the federal award. EPA will continue
to use this MOE requirement amount to calculate recipient minimum
cost share when the Water 106 program in part of a PPG. For Tribes,
there is a 5% match, but no MOE.
\6\ The Air 105 and the Nonpoint Source programs have both a
match and a MOE requirement. The greater of the MOE or the match
requirements of these two programs will be used to calculate the
minimum cost share requirement for a PPG, when the programs are part
of a PPG.
\7\ Revenue generated by the collection of Clean air Act Title V
fees can only be used for the Title V Operating Permit program and
cannot be used to meet cost share requirements for any grants,
including PPGs as well as section 105 grants.
---------------------------------------------------------------------------
If a recipient chooses to split federal categorical funding
between a PPG and a categorical grant, the minimum required cost
share for the PPG will be directly related to the portion of the
categorical grant funds moving to the PPG. The following is an
example of how this would apply to the UST funding cited above. If
half of the funding was maintained in a categorical grant ($81,250
went to both the PPG and the categorical grant), the minimum cost
share for the PPG would be half of $54,167 or $27,083.50.
If the cost share requirement for a categorical grant is a
minimum percentage of the total grant program (combined federal and
recipient contributions), the minimum allowable recipient
contribution can be calculated using a two step process. Following
is an example of how this would apply to the RCRA funding above:
(1) Divide the available federal funding by the maximum federal
share ($349,492 divided by 75%) The result is the minimum total
program amount (federal and State shares combined) for the grant
($465,989). (2) Subtract the federal contribution from the minimum
total program amount to determine the minimum required recipient
contribution. ($465,989- $349,492 = $116,497. $116,497 represents
25% of the total.)
If a recipient decides to withdraw an environmental program with
an MOE requirement from the PPG and seek funding for the
environmental program under a categorical grant, the MOE requirement
for the new categorical grant will be no less than the MOE
requirement in the fiscal year immediately preceding the entry of
the environmental program into the PPG. EPA may approve an
adjustment to the MOE requirement for the new categorical grant if
EPA determines that there are exceptional circumstances justifying
such an adjustment. This requirement is a condition of receiving a
PPG and, therefore, must be included in all PPG grant agreements.
Section 7. Administrative Information
Section 7.1 Delegation of Authority. The Regional Administrator is
the designated approval and award official for PPGs with approval
redelegation authority to the Deputy Regional Administrator or the
Division Director level. References: Delegation #1-14 -Assistance
Agreements; Delegation #1-101 -Performance Partnership Grants.
Section 7.2 Grant Budget Information. Applicants may merge funding
for all PPG programs and activities into a single budget for accounting
and reporting purposes. This budget must display a breakdown of costs
by object class categories on Standard Form 424B. For applicants
proposing multi-year PPG work plan commitments, the applicant need only
reflect object class costs for the initial year. However, the budget
information must accurately reflect the grant agreement and be able to
be tracked to support the program outcomes and outputs cited in that
grant agreement. The Regional Administrator may also require the
applicant to submit a level of supplemental budget detail necessary to
allow for adequate determination of the allowability, allocability,
necessity, and reasonableness of each element of program costs.
Section 7.3 Certifications. States/Tribes may submit one set of
grant certifications ((i.e. a bundled certification) for anti-lobbying,
debarment/suspension, SF424B--assurances and procurement with the PPG
application.
Section 7.4 Standard Terms And Conditions. EPA will add standard
terms and conditions to the PPG agreement as required by the
authorities set forth in sections 2.1 and 2.2. The PPG agreement must
cite the PPG work plan commitments as terms and conditions of the
agreement. The Region may add any additional State or Tribal specific
terms and conditions deemed appropriate and necessary on a case by case
basis.
Section 7.5 Grants Information And Control System (GICS) Data. The
following are the GICS codes for PPGs.
--Program Code: BG
--Description: Performance Partnership Grants
--Statutory Authority Code: 141
--Text: Appropriations Act of 1996 (PL-104-134)
--Regulatory Code: A4
--CFDA number: 66.605
Section 8. Post-Award Requirements
Section 8.1 Pre-award Costs. Consistent with 40 CFR Sec. 35.141
and subject to the availability of funds, EPA will reimburse applicants
for allowable costs incurred from the beginning of the approved budget
period.
Section 8.2 Financial Management And Reporting. Recipients. PPG
recipients will continue to follow the regulations for Standards for
Financial Management Systems contained in 40 CFR Part 31.20. Fiscal
control and accounting procedures of the recipient applicant must be
sufficient to permit preparation of Financial Status Reports for PPG
awards.
PPG recipients must maintain accounting and financial records which
adequately identify the source (i.e., Federal funds and match) and
application of funds provided for PPG activities. These records should
contain relevant information such as obligations, unobligated balances,
outlays, expenditures and program income.
Recipients will track PPG funds to the total effort or costs
incurred for the PPG work. EPA will reimburse the recipient for the
federal share of the costs from the PPG budgetary account. PPG costs
will not be tracked to each of the original individual categorical
source(s) of grant funding.
Government Performance and Results Act: EPA will use budget
information that States and tribes provide in PPG grant applications as
a basis for linking the Agency's expenditures to with EPA's GPRA budget
structure. EPA's Regional offices, with consultation with recipients,
will be responsible for cross-walking PPG application budget data into
the EPA's GPRA goals, objectives, and subobjective architecture. If a
PPG work plan is subsequently amended, the Region will consult with the
recipient to estimate the budget change associated with the amendment.
Please refer to Office of the Comptroller Policy Announcement No. 98--
xx, ``Accounting for Resources under the Government Performance and
Results Act'' for guidance on approach to use for the cross-walk to
ensure that the results achieved by States with EPA funds are captured
in the Agency's Annual Performance Reports.
Section 8.3 Payment. To reduce paperwork and facilitate payment,
EPA will encourage PPG recipients to receive electronic payments via
the Automated Clearinghouse (ACH) System. Inability to qualify for an
ACH method of payment will not preclude an otherwise eligible recipient
from receiving a PPG
[[Page 53774]]
award. Beginning January 1, 1999, all payments to grant recipients will
be made electronically, although recipients who do not have a formal
ACH established may still request payment using Standard Form 270.
Section 8.4 Allowable Costs. OMB Circular A-87 (cost principles)
and EPA regulations in 40 CFR Part 31 will apply to PPGs to determine
the reasonableness, allowability, necessity and allocability of costs.
Section 8.5 Additions/Deletions of Programs From Existing PPGs.
States/Tribes may elect, with Regional concurrence, which categorical
program or project grants will be included in its established PPG
award(s). In general, once an annual PPG is awarded for a given fiscal
year, EPA will authorize no programmatic deletions until the beginning
of the next fiscal year. Once PPG program commitments are approved and
funds have been reprogrammed by EPA, the funds lose their categorical
identity and cannot be pulled out by an applicant.
Funds for grants approved in the middle of the fiscal year and
appropriate competitive grants may be added to the PPG subject to PO
approval. The PO and recipient will renegotiate the approved
environmental performance agreement goals and revise the PPG program
commitments and budgets. EPA will reprogram the funds to be added to a
PPG. The recipient must submit a formal amendment to add funding to the
PPG. EPA will process the amendments as expeditiously as possible,
while maintaining fiduciary responsibility, to accommodate the
recipient.
If a recipient chooses to add a categorical grant program to a two-
year PPG, the match requirements of that program will then be
calculated as part of the overall PPG composite match (see Section
6.5).
If the recipient drops a program at the end of a cycle, based on
the recipient's decision to redirect its efforts and with the prior
approval of the PPG PO, the PPG recipient shall be reimbursed for
allowable costs incurred during the PPG project period.
If a recipient withdraws an environmental program with an MOE
requirement from the PPG at the end of the award cycle and seeks
funding for the program under a categorical grant, the MOE requirement
for the new categorical grant will be no less than the MOE requirement
in the fiscal year immediately preceding the entry of the environmental
program into the PPG. EPA may approve an adjustment to the MOE
requirement for the new categorical grant if EPA determines that there
are exceptional circumstances justifying such an adjustment (see
Section 6.5). This requirement is a condition of receiving a PPG and,
therefore, must be included in all PPG grant agreements.
Section 8.5 Enforcement. If a recipient materially fails to comply
with a term or condition in the PPG award, EPA may impose sanctions in
accordance with 40 CFR Sec. 31.43, including the conversion of a PPG
back to individual categorical grants during the next award cycle.
Section 8.6 Disputes. The dispute process set forth in 40 CFR
Sec. 31.70 will apply to PPGs. Disagreements between the recipient and
EPA regarding PPG applications, including PPG work plan commitments,
priorities and/or related performance indicators, or PPGs themselves,
including disallowances or enforcement actions, are to be resolved at
the lowest level possible, i.e., the project officer.
The Regional Administrator designates the Dispute Decision
Official. Because of the multi-media nature of the PPG program, it is
suggested that the Regional Administrator select a multi-media Division
Director in Regions where applicable, or the Region's Senior Resource
Official/Assistant Regional Administrator as the Disputes Decision
Official to resolve disputes arising under the PPG assistance
agreements.
The Regional Administrator will continue to be the final level of
appeal at the Regional level. The Deputy Administrator or his/her
designee will serve as the Headquarters Disputes Review Official to
resolve disputes arising under PPG assistance agreements appealed to
Headquarters.
[FR Doc. 98-26459 Filed 10-5-98; 8:45 am]
BILLING CODE 6560-50-U
