98-22655. Sustainable Development Challenge Grant Program

[Federal Register Volume 63, Number 163 (Monday, August 24, 1998)]
[Notices]
[Pages 45156-45161]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-22655]



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Part VI





Environmental Protection Agency





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Sustainable Development Challenge Grant Program; Notice

Federal Register / Vol. 63, No. 163 / Monday, August 24, 1998 / 
Notices

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ENVIRONMENTAL PROTECTION AGENCY

[FRL-6150-4]


Sustainable Development Challenge Grant Program

AGENCY: Environmental Protection Agency (EPA).

ACTION: Solicitation of proposals for FY 1998.

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

SUMMARY: The Environmental Protection Agency (EPA) is soliciting 
proposals for the FY 1998 Sustainable Development Challenge Grant 
(SDCG) program, one of President Clinton's ``high priority'' actions 
described in the March 16, 1995 report, ``Reinventing Environmental 
Regulation.'' The EPA has a total of $5 million available for this 
program in FY 1998. The SDCG program provides an opportunity to develop 
place-based approaches to problem solving that can be replicated in 
other communities. Approaches should address problems related to 
current patterns of growth and public investment/disinvestment that 
accelerate loss of open space and wetlands, fragment habitat, and 
increase consumption of fossil fuels for energy and transportation. 
These grants are intended to encourage communities to recognize and 
build upon the fundamental connection between environmental protection, 
economic prosperity and community well-being. EPA will select projects 
on a competitive basis using the criteria outlined below. Applicants 
may compete for funding from EPA in two ranges for FY 1998: (1) 
requesting $50,000 or less, and (2) requesting between $50,001 and 
$200,000. Proposals will compete with other proposals in the same range 
(i.e., a proposal for $50,000 will not compete with a proposal for 
$200,000). Applicants in each category are required to provide a 
minimum 20% match from non-federal funding sources.
    The Sustainable Development Challenge Grant program strongly 
encourages partnering among community members, business and government 
entities to work cooperatively to develop flexible, locally-oriented 
approaches that link place-based environmental management and quality 
of life activities with sustainable development and revitalization. 
This program challenges communities to invest in a sustainable future 
that links environmental protection, economic prosperity and community 
well-being. These grants are intended to: catalyze community-based 
projects to promote environmentally and economically sustainable 
development; build partnerships which increase a community's capacity 
to take steps that will ensure the long-term health of ecosystems and 
humans, economic vitality, and community well-being; and leverage 
public and private investments to enhance environmental quality by 
enabling sustainable community efforts to continue beyond the period of 
EPA funding.
    This document includes the following: background information on the 
Sustainable Development Challenge Grant program; a description of the 
FY 1998 program which incorporates comments on the FY 1996 pilot and FY 
1997 program (both public and Agency comments/suggestions) on the 
design of the program; the criteria projects must meet to be considered 
for funding; the process for selection of projects; and the program's 
relationship to other related EPA activities. More detailed information 
is available via Internet at: http:www.epa.gov/ecocommunity. A guidance 
document to assist applicants in developing their proposal is also 
available at this Internet site and from regional offices.

DATES: The period for submission of proposals for FY 1998 will begin 
upon publication of this Federal Register document pursuant to the 
Information Collection Request (ICR No. 938.06) approved by the Office 
of Management and Budget (OMB Approval No. 2030-0020) under the 
Paperwork Reduction Act. Project proposals must be postmarked by 
November 24, 1998 to be considered for funding.

ADDRESSES: Please provide an original and four copies of your entire 
proposal to the regional representative listed below for the state in 
which your project will take place.

APPLICATIONS: Complete proposal information for FY 1998 is available 
via Internet at: http:www.epa.gov/ecocommunity or from EPA Headquarters 
and EPA Regional Offices. This information will include more detailed 
guidance and may be requested in writing from your regional or 
headquarters representative, or by fax at 202-260-2555 or by voice mail 
at 202-260-6812. Although you may fax your request, these documents are 
not available by fax. If you have requested this information 
previously, your name has been added to our mailing list and you will 
be sent the application kit automatically as soon as it is available. 
EPA will notify applicants of selected proposals in writing. Please do 
not send duplicate requests. Proposals must include the following:
    (1) A one page cover sheet that provides:
    (a) The project title;
    (b) Applicant's name, address, phone number and organization type;
    (c) A list of entities or organizations that will be providing 
matching funds in the project and their organization type; and
    (d) A project abstract that includes a brief project description, 
the amount of assistance requested from EPA, amount of match, total 
project cost, and match percentage.
    (2) The project proposal narrative must be limited to five (5) 
double-sided pages. The proposal should contain the following: Project 
Goals; Project Tasks; Relationship of Project to Selection Criteria; 
All Confirmed Partners (including those providing match); Schedule; and 
Budget.
    (3) A plan for overall project evaluations (see guidance below on 
what to include in this plan).
    (4) All applicants (except public agencies) must attach 
documentation demonstrating non-profit status or articles of 
incorporation.
    (5) Letters of commitment from all partners contributing matching 
funds to the project. These letters must specify the nature of the 
match (whether it is in-kind services or cash) and the dollar value of 
the match. Applications without these commitment letters will not be 
considered.
    Attachments listed in (3), (4) and (5) above will not count toward 
the five double-sided narrative page limit. Any other attachments will 
not be considered. Please do not send letters of general support from 
non-match partners or others. Proposals lacking complete documentation 
will not be considered.

FOR FURTHER INFORMATION CONTACT: The regional representative for your 
state or Juanita Smith, U.S. EPA, Office of Air & Radiation (MC 6101), 
401 M Street SW, Washington, D.C. 20460, telephone [phone], fax 
[phone], e-mail [e-mail].

Regional Offices

Rosemary Monahan, US EPA Region I, JF Kennedy Federal Bldg. (RSP), 
Boston MA 02203, [phone], [e-mail], States: ME, 
NH, VT, MA, CT, RI
Theresa Martella, US EPA Region 3, 841 Chestnut Building, Philadelphia, 
PA 19107, [phone], [e-mail], States: DE, DC, MD, 
PA, VA, WV
Janette Marsh, US EPA Region 5, 77 West Jackson Blvd., Chicago, IL 
60604-3507, [phone], [e-mail], States: MN, WI, MI, 
IL, IN, OH

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Marcia Seidner, US EPA Region 2, 290 Broadway, 26th Floor, New York, NY 
10007-1866, [phone], [e-mail], States & 
Territories: NY, NJ, PR, VI
Annette N. Hill, US EPA Region 4, OPM, 61 Forsyth Street, SW, Atlanta, 
GA 30303, [phone], [e-mail], States: AL, FL, GA, 
KY, MS, NC, SC, TN
Karen Alvarez, US EPA Region 6, Fountain Place, Suite 1200, 1445 Ross 
Avenue, Dallas, TX 75202-2733, [phone], [e-mail], 
States: AR, LA, NM, OK, TX
Dick Sumpter, US EPA Region 7, 726 Minnesota Avenue, Kansas City, KS 
66101, [phone], [e-mail], States: KS, MO, NE, IA
Debbie Schechter, US EPA Region 9, 75 Hawthorne Street (CMD-7), 
Francisco, CA 94105, [phone], [e-mail], States & 
Territories: CA, NV, AZ, HI, AS, GU
David Schaller, US EPA Region 8, 999 18th Street, Suite 500, Denver, CO 
80202-2466, [phone], [e-mail], States: CO, MT, ND, 
SD, UT, WY
Anne Dalrymple, US EPA Region 10, 1200 Sixth Avenue, Seattle, WA 98101, 
[phone], [e-mail], States: AK, ID, OR, WA

SUPPLEMENTARY INFORMATION:

Purpose

    EPA intends these competitive grants to be catalysts that challenge 
communities to invest in a more sustainable future, recognizing that 
sustainable environmental quality, economic prosperity, and community 
well-being are inextricably linked. The Sustainable Development 
Challenge Grant program is an important opportunity for EPA to award 
competitive grants that leverage private and other public sector 
investment in communities (ranging in size from neighborhoods to cities 
to larger geographic areas such as watersheds or metropolitan areas) to 
build partnerships that will increase the capacity of communities to 
ensure long-term environmental protection through the application of 
sustainable development strategies.

Overview of the Sustainable Development Challenge Grant Approach

    The grant program encourages communities to recognize and build 
upon the fundamental connection between environmental protection, 
economic prosperity and community well-being. Accomplishing this 
linkage requires integrating environmental protection in policy and 
decision-making at all levels of government and throughout the economy. 
The SDCG program recognizes the significant role that communities have 
and should play in environmental protection. The program acknowledges 
that sustainable development is often best designed and implemented at 
a community level and encourages projects that can be replicated in 
other communities. This program also requires grantees to implement a 
stakeholder process to identify measurable milestones to assess 
progress toward integrating environmental and economic goals and 
community well-being.
    Achieving sustainability is a responsibility shared by 
environmental, community and economic interests at all levels of 
government and the private sector. This emphasis on strong community 
involvement requires a commitment to ensuring that all residents of a 
community, of varying economic and social groups, have opportunities to 
participate in decision-making and benefit from successful sustainable 
development activities. Only through the combined efforts and 
collaboration of governments, private organizations and individuals can 
our communities, regions, states, and nation achieve the benefits of 
sustainable development. In keeping with this philosophy, the EPA will 
implement this program consistent with the principles of Executive 
Order 12898, ``Federal Actions to Address Environmental Justice in 
Minority Populations and Low-Income Populations' (February 11, 1994). 
Projects funded must ensure that no person(s) is subjected to unjust or 
disproportionate environmental impacts. We encourage submissions from 
Empowerment Zones and Enterprise Communities.

Linkages to Other Initiatives

    The EPA initiated the SDCG program as a pilot effort in 1996 and 
funded ten of the 600 proposals for a total of $500,000. In 1997, the 
Agency received 962 proposals requesting $38,000,000 in assistance and 
selected 45 of the proposals for funding at a total of approximately 
$5,000,000. Project descriptions are available via the Internet at 
http:www.epa.gov/ecocommunity.
    EPA and its state and local partners continue to refine how 
environmental protection is accomplished in the United States. The 
Agency recognizes that environmental progress will not be achieved 
solely by regulation. Innovative attitudes of regulatory agencies 
combined with individual, institutional, and corporate responsibility, 
commitment and stewardship will be needed to assure adequate protection 
of the earth's resources. The Sustainable Development Challenge Grant 
program is consistent with other community-based efforts EPA has 
introduced, such as the Brownfields Initiative, Environmental Justice 
Small Grants Program, Project XL, the President's American Heritage 
Rivers Initiative, Watershed Protection Approach, Transportation 
Partners, the $mart Growth Network, the Community-Based Environmental 
Protection Approach, and the Sustainable Urban Environment effort. The 
Sustainable Development Challenge Grant program is also a step in 
implementing ``Agenda 21, the Global Plan of Action on Sustainable 
Development,'' signed by the United States at the Earth Summit in Rio 
de Janeiro in 1992. All of these programs require broad community 
participation to identify and address environmental issues.
    Through the Sustainable Development Challenge Grant program, EPA 
also intends to further the vision and goals of the President's Council 
on Sustainable Development (PCSD), created in 1993 by President 
Clinton. EPA is coordinating existing urban environmental programs 
within the Agency and with other federal, state and local agencies. The 
President charged the Council, composed of corporate, government, and 
non-profit representatives, to find ways to ``bring people together to 
meet the needs of the present without jeopardizing the future.'' The 
Council has declared this vision:

``Our vision is of a life-sustaining Earth. We are committed to the 
achievement of a dignified, peaceful and equitable existence. We 
believe a sustainable United States will have a growing economy that 
equitably provides opportunities for satisfying livelihoods and a 
safe, healthy, high quality of life for current and future 
generations. Our nation will protect its environment, its natural 
resource base, and the functions and viability of natural systems on 
which all life depends.'' (February 1996)

The Sustainable Development Challenge Grant program furthers this 
vision by encouraging community initiatives that achieve environmental 
quality with economic prosperity through public and private involvement 
and investment.

Examples of Potential Projects

    EPA welcomes proposals for many types of projects, as demonstrated 
in the projects funded in the previous two years. The following are 
examples of the types of projects EPA could consider for

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funding. These examples are illustrative and are not intended to limit 
proposals in any way.
     Demonstrate the range of environmental, economic and 
community benefits associated with alternative development patterns. 
This project would examine drinking water quality, air quality, and 
wildlife habitat. For instance, open spaces may offer protection of 
water quality by acting as natural retention areas for the treatment of 
storm water runoff and increase aesthetic value and recreation 
opportunities. Elements of the project may include the comparison of 
the environmental, fiscal and community benefits of the purchase and 
trade of development rights, and alternative zoning provisions related 
to various densities and degrees of automobile, bicycle and pedestrian 
accessibility.
     Demonstrate a cutting edge approach to the cleanup and 
redevelopment of contaminated property. This project would demonstrate 
a comprehensive, interagency, intergovernmental approach to the 
challenges of abandoned, idled, or under-used properties that blight 
the landscape of our urban centers. In addition to strategies being 
used at Brownfield assessment pilot sites across the country, it would 
move beyond the narrow limits of the Superfund law and include issues 
of contamination from oil fields and leaking underground storage 
tanks--currently excluded by the Superfund law, yet thought to be the 
cause of significant contamination. Instead of staying within the 
confines of land-based contamination, this effort would address issues 
with other environmental media, including water, non-point source 
permitting and non-point sources in air quality non-attainment areas 
relating to the siting of new businesses and industries. Practical 
applications of environmental justice principles, public participation 
and environmental job training/workforce development strategies would 
be woven throughout the entire effort. Training would be provided for 
public officials as well as local citizens to ensure that local land 
use decision-making processes will be fair, open and inclusive.
     Demonstrate how a stakeholder group can comprehensively 
identify the multiple sources of pollution contributing to 
environmental problems within their watershed; collaboratively develop 
solutions to address these causes to the satisfaction of stakeholders; 
develop policy and financial support and commitment for the solution 
along with the plan to implement the necessary actions. Project 
elements may include: how you would organize and develop your 
stakeholders and community-based support; watershed-based problem 
identification, priority-setting and monitoring; the mix of voluntary 
and regulatory programs; the most promising approaches to the 
restoration of urban river corridors and wetlands; to identify and 
eliminate, to the maximum extent possible, activities and programs that 
create unintended barriers and disincentives to community 
revitalization.
     Support a regional bottom-up process for better managing 
rapid, sprawling development. Local governments along with public and 
private interests will join together to secure written agreements on 
actions to be taken to carry out the community's vision of a 
sustainable future, and to prepare a State of the Region report 
outlining the area's most significant challenges and opportunities for 
improving local conditions.
     Demonstrate the benefits of implementing metropolitan-
wide transportation programs that promote sustainable development. 
Specific projects would examine new and innovative ways of integrating 
air quality, storm water and other urban wet weather flows management, 
transportation, and land use planning processes to effectively reduce 
vehicle miles traveled, thereby reducing congestion, lowering energy 
consumption, improving air quality, and reducing green house gas 
emissions. Specific pilots could focus on demonstrating effective 
methods of community collaboration and linkage with other planning 
efforts traditionally conducted at different jurisdiction levels (e.g., 
state, city, county). In addition, pilots could integrate a number of 
important, but to date, separate federal initiatives such as Federal 
Transit Administration's Livable Communities, Federal Highway 
Administration's Congestion Mitigation and Air Quality Program, 
Department of Energy's Clean Cities program, or the Department of 
Agriculture's Urban Resources Partnership, the Department of 
Transportation's Transportation and Community System Preservation Pilot 
Program, or Empowerment Zones and Enterprise Communities along with 
various innovative transportation control measures. Both short and 
long-term strategies could be selected.
     Nature-based tourism: Demonstrate a cooperative effort 
among environmental groups, business interests, and community leaders 
to design and implement a community-based strategy for ecology-based 
tourism. The strategy would identify techniques to manage appropriate 
travel to, and recreation within, natural areas which are designed to 
contribute substantially to the area's conservation and improvement of 
the welfare of local people, through education and the dedication of 
tourism dollars to protect natural resources. The goal would be to 
support properly planned and managed nature tourism, which will have 
minimal impacts on the environment, conserve and enhance social and 
cultural values, and improve the economic well-being of residents. EPA 
encourages projects that correct existing environmental problems and 
are restorative in their outcome.
     Changing unsustainable behaviors can begin through 
visioning and planning projects. Such proposals are welcomed and 
encouraged. Visioning and planning proposals should address geographic 
and jurisdictional areas appropriate and applicable to the scope of the 
proposal. Proposals should demonstrate how actions and collaborations 
and outreach efforts are intended to result in a vision or plan with a 
sufficient consensus in the community to take the proposal beyond the 
preparation of a summary report. The proposal should address to the 
extent possible next steps that would be taken toward plan 
implementation and how these steps would be carried out after 
completion of the visioning/planning effort.

Selection Criteria

    The proposed project must meet the two statutory threshold 
determinations described below in the Statutory Authority section, then 
EPA will also consider the following criteria, weighting each as 
indicated. Please describe how your project addresses the following 
criteria in the section of your proposal on Relationship of Project to 
Selection Criteria. We recommend that you address each bullet point 
listed.

(1) Sustainability: 50 points

     How well does the proposal integrate environmental 
protection, economic prosperity and community well-being at the 
community level? Does the proposal address how current and future 
generations are affected?
     Does the proposal address what type of sustainable 
behavior is desired, and what type of non-sustainable behavior needs to 
be changed?
     Does the proposal take a comprehensive approach to 
specific environmental problems that reflects a good understanding of 
the larger ecosystem context within which the problems occur? Does the 
proposal offer

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a locally and regionally appropriate solution that does not shift the 
problem to another area or create a new problem as a result? Does this 
proposal benefit a significant percentage of the population in the 
affected community or region?
     How does the proposal assure that economic activities 
do not exhaust or degrade the environment?
     Explain how the proposal will result in long-term 
environmental protection as well as sustainable economic vitality, 
(such as more appropriate, efficient use of resources and changes in 
consumption patterns) so that jobs created will be sustained, or the 
amount of money retained in the local economy will be maximized?
     How does the proposal represent new solutions for the 
community, given their previous history and current circumstances?

(2) Community Commitment and Contribution: 25 points

     Explain how the partners fully represent those in the 
community who have an interest in or will be affected by the project?
     Will the proposal's outcomes and results benefit all 
affected groups to the maximum extent possible?
     Does the proposal describe effective methods for 
community involvement to assure that all affected by the project are 
provided an opportunity to participate?
     Does the proposal describe the depth and breadth of the 
community's support (financial and in-kind) for the proposal? Does the 
community have in place the legal and regulatory authority they need to 
implement the project? Does it provide evidence of long-term commitment 
to the proposal?

(3) Measurable Results: 25 points

     Does the proposal describe the specific environmental, 
economic, and quality of life benefits to be gained by the community? 
Is there a plan to identify which non-sustainable behaviors will be 
addressed by the proposal and how will behavior change be measured?
     How does the proposal include significant achievable 
short-term (within three years) and long-term targets or benchmarks to 
measure the proposal's contribution to the community's environmental 
and economic sustainability? (These should be both quantitative and 
qualitative.) For planning or visioning proposals, explain how the plan 
or vision that is developed, and any next steps that will be taken 
toward plan implementation, will contribute to the community's 
environmental or economic sustainability, and how the contribution will 
be measured.
     Does the proposal set goals for the proactive 
environmental approaches it employs?
     After seed funds from EPA are exhausted, does the 
proposal demonstrate how the work will continue, or how it will evolve 
into or generate other sustainability efforts, either locally or 
regionally?
     Will the experiences gained during the project be 
transferable to other communities? If so, how?
     Does the proposal describe how the success of the 
project will be evaluated? Does the proposal explain how to determine 
and measure whether expected results have been accomplished? How will 
the project's contribution to sustainability be measured and evaluated? 
Who will be responsible for performing the evaluation and what process 
they will use? How will needed changes to the project be identified and 
incorporated on an ongoing basis?

Statutory Authority

    EPA expects to award Sustainable Development Challenge Grants 
program under the following eight grant authorities: Clean Air Act 
section 103(b)(3); Clean Water Act section 104 (b)(3); Resource 
Conservation and Recovery Act section 8001; Toxics Substances Control 
Act section 10; Federal Insecticide, Fungicide, and Rodenticide Act 
section 20; Safe Drinking Water Act sections 1442(a) and (b); National 
Environmental Education Act, section 6; and Pollution Prevention Act, 
section 6605.
    In addition to the selection criteria listed above, a proposal must 
meet the following two important threshold criteria to be considered 
for funding. (1) A project must consist of activities within the 
statutory terms of these EPA grant authorities. Most of the statutes 
authorize grants for the following activities: ``research, 
investigations, experiments, training, demonstrations, surveys and 
studies.'' These activities relate generally to the gathering or 
transferring of information or advancing the state of knowledge. Grant 
proposals should emphasize this ``learning'' concept, as opposed to 
``fixing'' an environmental problem via a well-established method. For 
example, a proposal to plant some trees in an economically depressed 
area in order to prevent erosion would probably not in itself fall 
within the statutory terms ``research, studies'' etc., nor would a 
proposal to start a routine recycling program.
    On the other hand, the statutory term ``demonstration'' can 
encompass the first instance of the application of a pollution control 
and prevention techniques, or an innovative application of a previously 
used method. Similarly, the application of established practices may 
qualify when they are part of a broader project which qualifies under 
the term ``research.''
    (2) In order to be funded, a project's focus generally must be one 
that is specified in the statutes listed above. For most of the 
statutes, a project must address the causes, effects, extent, 
prevention, reduction, and elimination of air, water, or solid/
hazardous waste pollution, or, in the case of grants under the Toxic 
Substances Control Act or the Federal Insecticide, Fungicide and 
Rodenticide Act, to ``carrying out the purposes of the Act.'' While the 
purpose of the SDCG program will include the other two aspects of 
sustainable development (economic prosperity and community well-being), 
the overarching concern or principal focus must be on the statutory 
purpose of the applicable grant authority, in most cases ``to control 
pollution.'' Note that proposals relating to other topics which are 
sometimes included within the term ``environment'' such as recreation, 
conservation, restoration, protection of wildlife habitats, etc., 
should describe the relationship of these topics to the statutorily 
required purpose of pollution control. For assistance in understanding 
statutory authorities under which EPA is providing these grants contact 
your regional representatives.

Definitions

    Sustainable Development: Sustainable development means integrating 
environmental protection, and community and economic goals. Sustainable 
development meets the needs of the present generation without 
compromising the ability of future generations to meet their own needs. 
The sustainable development approach seeks to encourage broad-based 
community participation and public and private investment in decisions 
and activities that define a community's environmental and economic 
future and community well-being.
    Community well-being: In the sustainable development context this 
means understanding and considering the impacts of activity on the 
diversity of cultures, values, and traditions in a community. It 
acknowledges both current and future generations. Community well-being 
means ensuring that all members of the community, regardless of ethnic 
or cultural group, age or income, have access to services

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provided through the sustainable development project, and those 
benefits/burdens of the project are fairly distributed.
    Community: The scale used to define ``community'' under this 
challenge grant program will vary with the issues, problems, or 
opportunities that an applicant intends to address. The SDCG program 
recognizes the significant role that communities have and should play 
in environmental protection. ``Community'' means a geographic area 
within which different groups and individuals share common interests 
related to their homes and businesses, their personal and professional 
lives, the surrounding natural landscape and environment, and the local 
or regional economy. A community can be one or more local governments, 
a neighborhood within a small or large city, a large metropolitan area, 
a small or large watershed, an airshed, tribal lands, ecosystems of 
various scales, or some other specific geographic area with which 
people identify.
    Non-sustainable Behavior: Development, or land and water 
activities, management or uses, which limit the ability of humans and 
ecosystems to live sustainably by destroying or degrading ecological 
values and functions, diminishing the material quality of life, and 
diverting economic benefits away from long-term community prosperity 
and decreases the long-term capacity for sustainability.

Who Should Apply?

    Eligible applicants include: (1) Incorporated non-profit (or not-
for-profit) private agencies, institutions and organizations, and (2) 
public (state, county, regional or local) agencies, institutions and 
organizations, including those of Native Americans (American Indians 
and Alaskan Native Villages). While state agencies are eligible they 
are encouraged to work in partnership with community groups to 
strengthen their proposals. Federal agencies are not eligible for 
funding, however, they are also encouraged to work in partnership with 
state and local agencies on these projects. For instance, the Urban 
Resources Partnership places government resources into the service of 
community-led environmental projects.
    Applicants are not required to have a formal Internal Revenue 
Service (IRS) non-profit designation, such as 501(c)(3) or 501(c)(4), 
however they must present their letter of incorporation or other 
documentation demonstrating their non-profit or not-for-profit status. 
This requirement does not apply to public agencies. Failure to enclose 
the letter of incorporation or other documentation demonstrating their 
non-profit or not-for-profit status will result in an incomplete 
submission and will not be reviewed. Applicants who do have an IRS 
501(c)(4) designation are not eligible for grants if they engage in 
lobbying, no matter what the source of funding for the lobbying 
activity. No recipient may use grant funds for lobbying. Further, 
profit-makers are not eligible to receive sub-grants from eligible 
recipients, although they may receive contracts, subject to EPA's 
regulations on procurement under assistance agreements, 40 Code of 
Federal Regulations (CFR) 30.40 (for non-governmental recipients) and 
40 CFR 31.36 (for governments). Profit-making organizations are 
encouraged to participate in sustainability efforts in their community 
by becoming partners with eligible organizations.

Funding Ranges and Match

    Applicants may compete for funding from EPA in two ranges for FY 
1998: (1) requesting $50,000 or less, and (2) requesting between 
$50,001 and $200,000. Proposals will compete with other proposals in 
the same range (i.e., a proposal for $50,000 will not compete with a 
proposal for $200,000). Applicants in each category are required to 
demonstrate how they will meet the minimum 20% non-federal match. 
Applicants may submit multiple proposals, but each specific proposal 
must be for a separate and distinct project. However, no organization 
may receive funding for more than one grant each year under the SDCG 
program. In addition, projects awarded will be ineligible for future 
competition for this program.
    This program is intended to provide seed money to leverage a 
broader public and private investment in sustainability activities. As 
a result, the program requires a minimum non-federal match of at least 
20% of the total project budget (the total budget includes EPA's 
share). The match must be calculated in accordance with the example 
provided in EPA's guidance document. EPA strongly encourages applicants 
to leverage as much investment in community sustainability as possible. 
EPA views this leverage as a measure of community support and an 
indication of the possible longevity of the project. The match can come 
from a variety of public and private sources and can include in-kind 
goods and services. No federal funds, however, can be used as matching 
funds without specific statutory authority.

Selection Process

    EPA Regional Offices will assess how well the proposals meet the 
selection criteria outlined above. The Regional Offices will then 
forward their top proposals to Headquarters for review by a national 
panel consisting of Headquarters and Regional representatives. The 
panel's recommendations will be presented to EPA Senior Management for 
final selection. In making these final selections such factors as 
geographic diversity, project diversity, costs, matching funds, and 
project transferability or replicability may be considered.

What Costs Can Be Paid?

    Even though a proposal may involve an eligible applicant, eligible 
activity, and eligible purpose, grant funds cannot necessarily pay for 
all of the costs which the recipient might incur in the course of 
carrying out the project. Allowable costs, including those paid for by 
matching funds, are determined by reference to EPA regulations cited 
below and to OMB Circulars A-122, ``Cost Principles for Non-profit 
Organizations,'' A-21 ``Cost Principles for Education Institutions,'' 
and A-87, ``Cost Principles for State, Local, and Indian Tribal 
Governments.'' Generally, costs which are allowable include salaries, 
equipment, supplies, training, rental of office space, etc., as long as 
these are ``necessary and reasonable.'' Entertainment costs are an 
example of unallowable costs.

Applicable Grant Regulations

    40 CFR part 30 for other than state/local governments, for example, 
non-profit organizations (see 61 FR 6065 (Feb. 15, 1996)), and part 31 
for state and local governments and Indian tribes.

Paperwork Reduction Act

    The information collection provisions in this document for 
solicitation of proposals are approved by the Office of Management and 
Budget (OMB) under the Paperwork Reduction Act, 44 U.S.C. 3501 et seq. 
in a generic Information Collection Request titled Generic 
Administrative Requirements for Assistance Programs (ICR No. 938.06 and 
OMB Approval No. 2030-0020). A copy of the Information Collection 
Request (ICR No. 938.06) may be obtained from Sandy Farmer in the 
Regulatory Information Division, EPA, 401 M Street, S.W. (Mail Code 
2137), Washington, DC 20460 or by calling [phone].

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Submission to Congress and the General Accounting Office

    On May 15, 1997, EPA published the regulatory requirements that 
also are included in this document (62 FR 26896) and submitted a report 
containing that rule and other required information to the U.S. Senate, 
the U.S. House of Representatives and the Comptroller General of the 
General Accounting Office pursuant to the Congressional Review Act 
(CRA), 5 U.S.C. 801 et seq., as added by the Small Business Regulatory 
Enforcement Fairness Act of 1996. This action merely announces the 
availability of additional funds for this program and does not contain 
any new requirements; the regulatory requirements are included in thus 
document only for the convenience of the reader. Accordingly, the CRA 
does not apply because this action is not a rule, for purposes of 5 
U.S.C. 804(3).

    Dated: August 6, 1998.
Fred Hansen,
Deputy Administrator.
[FR Doc. 98-22655 Filed 8-21-98; 8:45 am]
BILLING CODE 6560-50-P