The primary responsibility for administration of a grant must remain with the grantee, who is responsible for the success of the project for which the grant was made. Although grantees are encouraged to seek the advice and opinions of EPA on problems that may arise, the giving of such advice shall not shift the responsibility for final decisions to EPA. The primary concern of EPA is that granted funds be used to achieve the objectives of the grant project in a manner that will accord with program objectives and will make a maximum contribution to the betterment of the environment. Grantees and those assisting them on project work must direct their efforts to this end.

§ 30.601 Adherence to original budget

estimates.

EPA grant funds shall be paid in advance or by way of reimbursement for allowable project costs, in the manner provided by this subchapter and in the grant agreement. Payments may be made periodically and shall be based upon estimated requirements or actual costs. Such payments may be increased or decreased by the amount that prior payments are less than or exceed the EPA share of the costs of the project. All payments will be recorded by the grantee in separate fund accounts which identify such grant funds and their disposition. [36 FR 22716, Nov. 27, 1971, as amended at 37 FR 11650, June 9, 1972]

An amount not to exceed ten percent (10%) of the EPA grant funds may be withheld until the grantee has complied with all grant conditions, including the patent provisions (Appendix B), and with such other requirements as may be imposed pursuant to this Regulation, including the submission of reports.

§ 30.603 Grant related income.

Income derived from a project, including proceeds from the sale or disposition of assets (see § 30.800-3), during the period of EPA support until final settlement (see § 30.802) shall be credited to the EPA grant payments in a proportion equal to the ratio of the EPA grant to total project costs. Equitable title to interest or dividends earned or paid upon any deposit or investment by the grantee of grant funds shall vest in the United States, except where the grantee is a State (in accordance with OMB Circular No. A-102). Except as otherwise provided in this Regulation or in the grant agreement, such interest or dividends and refunds, rebates, and royalties from copyrights and patents shall be credited to the grant payments and fully accounted for by the grantee. State and local governments are not accountable for income earned by a facility in which the Federal financial participation was limited to assistance in developing, constructing, or equipping the facility. [36 FR 22716, Nov. 27, 1971, as amended at 37 FR 11651, June 9, 1972]

§ 30.604 Grantee publications and publicity.

Protection Agency under grant number

The contents do not necessarily reflect the views and policies of the Environmental Protection Agency, nor does mention of trade names or commercial products constitute endorsement or recommendation for use."

§ 30.604-3 Surveys and questionnaires. A grantee (or party to subagreement) collecting information from the public on his own initiative in connection with an EPA supported project may not represent that the information is being collected by or for EPA without prior agency approval. If reference is to be made to EPA, prior clearance of plans and report forms must be requested by the grantee through the Grants Officer to assure compliance with the Federal Reports Act of 1942 (44 U.S.C. 35013511).

§ 30.604-4 Signs.

Where project work is visible to the public, the grantee shall erect and suitably display such informational sign(s) as the Grants Officer may approve to identify the project and EPA grant support.

§ 30.605 Accounting.

Accounting for project funds (including receipts, grantee contributions, and expenditures) will be in accordance with generally accepted accounting principles and practices, consistently applied, regardless of the source of funds. Supporting records of grant expenditures must be recorded in sufficient detail to show that grant funds were used for the purpose for which the grant was made. § 30.605-1 Personnel.

Salaries and wages, whether treated as direct costs or allocated as indirect costs, will be supported by appropriate time distribution records.

§ 30.606 Audits and inspections.

Grant records are subject to audit and inspection by the Comptroller General of the United States and EPA in addition to other audit and inspections provided for in the grant agreement or this Regulation.

§ 30.607 Reports.

Grantees shall prepare and submit to the Grants Officer an acceptable final report and such progress, financial and other reports relating to the conduct and

results of the approved project as may be specified in the grant agreement. Failure to submit reports required by the grant agreement or this Regulation may result in (a) retention of grant funds (see § 30.602-1), (b) suspension or termination of the grant, (c) a finding of nonresponsibility for future grant

awards (see § 30.304), or (d) such other action as the Grants Officer may be authorized to take.

Subpart F-Expenditures by Grantee § 30.700 Use of funds.

All Federal assistance received under EPA grants shall be expended by the grantee solely for carrying out the approved project in accordance with the terms of the grant agreement and this Regulation. The grantee may not delegate or transfer his responsibility for the use of such funds.

§ 30.701 Allocation and allowability of

costs.

Except as otherwise provided by statute, allocation and allowability of costs will be governed in the case of grants to educational institutions by the provisions of Office of Management and Budget (OMB) Circulars Nos. A-21 (Revised), and A-88, and in the case of grants to State and local governments by the provisions of OMB Circular A-87. All other grants shall be governed by the policies and principles established in the Federal Procurement Regulations, Title 41, Code of Federal Regulations, Chapter 1, Subpart 1-15.2 to the greatest practicable extent.

§ 30.702 Cost sharing.

In addition to direct and in-kind contributions, the grantee's cost share (see § 30.207) may include allowable indirect costs. The grantee must maintain records to adequately evidence the required costsharing contribution in relation to actual allowable project costs.

Subpart G-Grantee Accountability § 30.800 Equipment, materials, or supplies.

Except as may be otherwise provided by law or in this Regulation or in the grant agreement, title to movable or fixed equipment, materials, or supplies (materials) shall vest in the grantee, subject to such equitable interest in the United States as may be provided for in this Regulation or in the grant agreement.

The grantee shall assure that the interest of the United States in the materials is adequately reflected and protected in compliance with all recordation or registration requirements of the Uniform Commercial Code or other applicable local laws. Expenditures of project funds for materials may be allowed as direct costs only to the extent such materials are required for the conduct of the approved project during the period for which EPA grant support is provided. Any materials on hand on the date of termination or conclusion of EPA grant support (excluding expendable supplies within such limitations as the Grants Officer may prescribe) shall be accounted for, or accountability waived, by one or a combination of the following methods: § 30.800-1 Waiver of equipment accountability.

Under research grants where the grantee is an organization within the terms of the Grant Act of September 6, 1958 (42 U.S.C. 1891–93), the obligation to account for the value of any fixed or movable equipment purchased with funds under a research grant may be waived. § 30.800-2 Retention by the grantee.

Upon written approval by the Grants Officer prior to the final accounting (see § 30.801), materials may be retained, without adjustment of accounts, for use by the grantee in the approved program or project, other EPA grants, or other Federal grant programs. Materials may be retained by the grantee for use in other operations provided that the grantee compensates the United States for the latter's equity in the property in the final accounting (see § 30.801) as part of final settlement (see § 30.802). § 30.800-3 Sale or other disposition by grantee.

Upon written approval by the Grants Officer prior to final accounting (see § 30.801), materials (a) may be sold by the grantee and the (1) net proceeds of sale or (2) fair market value at the time of sale, whichever is greater, shall be paid to the United States in the proportion which EPA assistance bears to the actual allowable project cost, or (b) may be disposed of in any other manner by the grantee upon payment to the United States of such proportion of the fair market value at time of final accounting.

§ 30.800-4 Transfer to the United States.

Prior to the final accounting the Grants Officer may require or approve, transfer of title to materials to the United States or its designee for such use or disposition as may be authorized by law, except for materials utilized in construction under grants, with equitable settlement for the grantee's matching share.

§ 30.800-5 Other provisions.

When materials purchased with grant funds are used for credit or "trade-in" on the purchase of new materials, the foregoing requirements shall apply to such new materials.

§ 30.801 Final accounting.

In addition such other accounting as may be required pursuant to this Regulation or the grant agreement, each grantee shall render an acceptable final account no later than 90 days following the end of the project period or the date of complete termination of grant support, whichever occurs first, or within such additional time as the Grants Officer may allow for good cause.

§ 30.802 Final settlement.

an

At the time EPA grant support for a project terminates or ceases, there shall be payable to the United States as final settlement the total sum of (a) any unexpended grant funds, (b) any amounts payable to the United States for equipment, materials, or supplies, (c) other grant related income, and (d) amount equivalent to that portion of project costs which have been disallowed or which are unallowable, in proportion to the EPA share and to the extent grant payments therefor have been made. Such final settlement shall constitute a debt owed by the grantee to the United States and if not paid at the time of final accounting shall be recovered from the grantee or its successors by setoff or other action as provided by law. Subpart H-Modification, Suspension and Termination of Grants

(a) Rebudgeting (see § 30.601); (b) Changes in the technical plans or specifications for the project;

(c) Acceleration or deceleration in the time for performance of the project, or any major phase thereof;

(d) Changes which may increase or decrease the total cost of a project;

(e) Changes which may affect the approved scope of a project;

(f) Changed site conditions;

(g) Changes in personnel identified as key personnel in the grant agreement; (h) Absence of personnel identified as key personnel in the grant agreement from the project at critical project points or for periods of time longer than 3 months;

(i) Substantial reduction of effort on the project by personnel identified as key personnel in the grant agreement; or

(j) Changes or amendments to nonFederal enabling legislation, regulations, standards, ordinances, or enforcement procedures which may affect the project. § 30.900-2 Disapproval of project changes.

The Grants Officer may disapprove project changes in writing by certified mail (return receipt requested) not later than 3 weeks after receipt of notice pursuant to § 30.900-1. Failure on the part of the grantee to give notice pursuant to § 30.900-1 or disapproval by the Grants Officer of the proposed change shall result in disallowance of costs incurred which are attributable to the change or in termination of the grant. No action taken pursuant to this section shall commit or obligate the United States to any increase in the amount of a grant or payments thereunder, but shall not preclude consideration of a request for a grant amendment pursuant to § 30.901. § 30.901 Grant amendments.

Approved project changes which do not substantially alter the objective or scope of a project may give rise to grant amendments to increase or decrease the dollar amount, the term, or other provisions of a grant. A grant amendment shall be effected only by a written amendment to the grant agreement executed by the Grants Officer on behalf of the Government and by an authorized representative of the Grantee entered into after the effective date of the grant. No grant amendment may be made unless the Grants Officer has received timely notifi

cation of the proposed project change and has approved the proposed change provided, that the Grants Officer, if he decides that the circumstances justify such action, may receive and act upon any request for grant amendment submitted prior to final payment under the grant. Failure to agree upon the amount of a grant amendment shall constitute a dispute under the "Disputes" article of the grant agreement.

[36 FR 22716, Nov. 27, 1971, as amended at 37 FR 11650, June 9, 1972]

§ 30.902 Suspension of grants.

Work on a project or on a portion or phase of a project for which a grant has been awarded may be ordered stopped by the Grants Officer pursuant to Article 4 of the Grant Conditions.

§ 30.902-1 Use of stop-work orders.

Work stoppage may be required for good cause including default by the grantee, failure to comply with the terms and conditions of the grant, realignment of programs, lack of adequate funding, or advancements in the state of the art. Inasmuch as stop work orders may result in increased costs to the Government by reason of standby costs, such orders will be issued only with prior approval at a level above the Grants Officer. Generally, use of a stop-work order will be limited to those situations where it is advisable to suspend work on the project or a portion or phase of the project for important program or agency considerations and a supplemental agreement providing for such suspension is not feasible. Although a stop-work order may be used pending a decision to terminate by mutual agreement or for other cause, it will not be used in lieu of the issuance of a termination notice after a decision to terminate has been made.

§ 30.902-3 Subsequent action.

As soon as feasible after a stop-work order is issued, (a) the grant will be terminated, or (b) the stop-work order will either be canceled or-if necessary and if the grantee agrees-be extended beyond the period specified in the order. In any event, this must be done before the specified stop-work period expires. When an extension of the stop-work order is necessary, it shall be evidenced by a written grant amendment. Any cancellation or bilateral extension of a stopwork order shall be subject to the same approvals as were required for the issuance of the order.

§ 30.902-4 Disputes provision.

Failure to agree upon the amount of an equitable adjustment due under a stop-work order shall constitute & dispute under the "Disputes" article of the grant instrument.

§ 30.903 Termination of grants.

A grant may be terminated in whole or in part by the Grants Officer pursuant to Article 5 of the Grant Conditions: Provided, That no termination will be effected without prior approval at a level above the Grants Officer.

§ 30.903-1 Termination agreement.

The parties may enter into an agreement to terminate the grant at any time pursuant to terms which are consistent with this Regulation.

§ 30.903-2 Project termination by grantee.

A grantee may not terminate a project for which a grant has been awarded except for good cause. If the Grants Officer finds that a grantee has terminated the project work without good cause, then he shall annul the grant and all EPA grant funds previously paid to the grantee shall be returned to the United States as final settlement. If the Grants Officer finds that there is good cause for the termination of project work, he shall (a) enter into a termination agreement pursuant to § 30.903-1 or (b) terminate the grant pursuant to § 30.903-3, effective with the date of termination of the project by the grantee.

§ 30.903-3 Termination by EPA.

The Grants Officer, by written notice and after consultation with the grantee, may terminate a grant, in whole or in

part, pursuant to the Article 5 of the grant agreement, for cause including default by the grantee, failure to comply with the terms and conditions of the grant, realignment of programs or change in program requirements or priorities, lack of adequate funding, or advancements in the state of the art.

§ 30.903-4 Termination costs.

If a grant is terminated, the Government shall be liable only for payment in accordance with the termination provisions of the grant.

§ 30.903-5 Disputes provision.

Failure to agree upon the amount of termination costs or upon a good cause determination pursuant to § 30.903-2 shall constitute a dispute under the "Disputes" article of the grant agreement. Subpart I-Miscellaneous

§ 30.1000 Definitions.

All terms used in this Regulation which are defined in the statutes cited in § 30.101 and which are not defined in this section, shall have the meaning given to them in the relevant statutes. As used throughout this Regulation, the words and terms defined in this paragraph shall have the meanings set forth below, unless (a) the context in which they are used clearly requires a different meaning, or (b) a different definition is prescribed for a particular part or portion thereof. The words and terms defined in this section shall have the meanings set forth herein whenever used in any correspondence, directives, orders, or other documents of the Environmental Protection Agency relating to grants, unless the context clearly requires a different meaning.

§ 30.1000-1 Administrator.

The Administrator of the Environmental Protection Agency, or his delegee. The term "Regional Administrator" refers to the Regional Administrators of the 10 EPA regions, or their delegees. [37 FR 11651, June 9, 1972] § 30.1000-2

Agency.

The U.S. Environmental Protection Agency (EPA).

§ 30.1000-3 Applicant.

Any party which has filed an application for a grant pursuant to this Regulation.