scholarships. Stipends are permitted when, in the judgment of the grantee, they are needed to attract qualified students provided that not more than $20,000 of amounts awarded for a budget period may be used for such stipends: And further provided, That no annual stipend may be less than $1,000 or more than $3,000 with payment prorated monthly.

(e) Training grants awarded under section 111 of the Federal Water Pollution Control Act will be subject to the following condition: Grantees must obtain the following agreement in writing from persons awarded scholarships under section 111 for undergraduate study of the operation and maintenance of treatment works:

I agree to enter and remain in an occupation involving the design, operation, or maintenance of waste treatment works for a period of 2 years arter the satisfactory completion of my studies under this program. I understand that if I fail to perform this obligation I may be required to repay the amount of my scholarship.

The grantee agrees to take such action as may reasonably be required to enforce the foregoing agreement. Any sums received by the grantee shall be credited or paid to the United States in accordance with § 30.603 of this chapter.

§ 45.145 Allocation and allowability of

46.103

award of fellowships by the Environmental Protection Agency.

§ 46.101 Applicability and scope.

This part establishes mandatory policies and procedures for all EPA fellowships.

§ 46.102 Authority.

The Environmental Protection Agency is authorized to grant fellowship awards under the following statutes:

(a) Section 103(b) (6) of the Clean Air Act as amended (42 U.S.C. 1857b(b) (6)).

(b) Sections 104(b) (5) and 104(g) (3) (B) of the Federal Water Pollution Control Act, as amended (33 U.S.C. 1254 (b) (5) and 1254(g) (3) (B)).

§ 46.103 Objectives.

Fellowships awarded under this part are intended to encourage and promote the specialized training of individuals as practitioners in pollution abatement and control.

§ 46.104 Type of fellowships.

(a) Agency fellowships are awarded to present or prospective employees of a regional, State, or local environmental pollution control or regulatory agency to provide training for and upgrading of personnel in the areas of pollution abatement and control.

(b) Special fellowships are awarded to individuals for education and training in pollution control science, engineering, and technology and in specialty areas supportive of pollution abatement and control efforts. § 46.105 § 46.105-1

Definitions.

Full-time fellow.

§ 46.105-3 Stipend.

Supplemental financial assistance to recipients of fellowships.

§ 46.110 Benefits.

(a) Recipients of assistance under this part shall be entitled to tuition and fees, an allowance for books and supplies up to a maximum of $250, and the normal student holidays observed by an academic institution.

(b) Agency fellows attending fulltime may, on the basis of need, set forth in the application, receive an annual stipend up to $6,500 from EPA funds.

(c) Agency fellows attending parttime may receive a small stipend when justified by needs related to the purpose of the fellowship.

(d) Special fellows may receive not more than $3,600 total annual amount from EPA for full-time attendance payable on a pro-rata monthly basis. § 46.115

Eligibility.

All applicants for fellowships under this part must be (a) citizens of the United States, its territories, or possessions, or lawfully admitted to the United States for permanent residence, and (b) accepted by an accredited educational institution for full or part-time enrollment for academic credit in an educational program which directly relates to pollution apatement and control. Applicants for agency fellowships must be present or prospective employees of a regional, State, or local environmental pollution control or regulatory agency. Present employees must be recommended for a fellowship by their employing agency. Priority in award of fellowships to prospective agency employees will be given to those applicants who provide evidence that they have explored, in direct agency contact, opportunities for agency employment. Such applicants are encouraged to obtain written appraisal of their employment potential and probability of actual employment assuming successful completion of the training.

§ 46.120 Application requirements.

All applications for EPA fellowships shall be submitted to the Grants Administration Division, Environmental Protection Agency, Washington, D.C. 20460, upon such forms as the Administrator shall prescribe and shall include copies

of transcripts of undergraduate and graduate courses, as appropriate. The applicant must arrange for the submission of supporting documents which substantiate his eligibility under § 46.115. In addition, the applicant shall submit such further information as may be required. Instructions for filing are contained in the application kit.

§ 46.122 Evaluation of application.

Periodically, fellowship applications will be evaluated for program relevance, and will compete for available funds according to priorities established by EPA. Evaluations shall be conducted by EPA staff, with advisory assistance as appropriate. Consideration will be given to the following criteria:

(a) Appropriateness of the fellow's proposed course of study to the objectives and mission of the Agency.

(b) Evaluation of the applicant in terms of his potential for study, as evidenced by his academic record, letters of reference, training plans, and other available information.

Notification of approval of a fellowship application shall be by transmittal of the fellowship agreement for execution by the applicant pursuant to § 46.140. Notification of disapproval shall be prompt and in writing. Disapproval of an application shall not preclude reapplication. Fellowships will not exceed 1 year.

§ 46.136 Initiation of studies.

Study must be initiated pursuant to an approved fellowship within 6 months following the date of the award notice or the fellowship will be terminated. § 46.140 Fellowship agreement.

The fellowship agreement is the written agreement, and amendments thereto, between EPA and a fellowship applicant in which the terms and conditions governing the fellowship are stated and agreed to by both parties.

Upon approval of a fellowship for award, the fellowship agreement will be transmitted by certified mail (return receipt requested) to the applicant for execution. The fellowship agreement must be executed by the applicant and returned to the Grants Officer within 3 weeks after receipt, or within any exten

sion of such time that may be permitted by the Grants Officer. The fellowship shall constitute an obligation of Federal funds in the amount and for the purposes stated in the fellowship instrument only upon execution of the fellowship agreement by the parties thereto. No costs may be incurred prior to the execution of the fellowship agreement by the parties thereto.

§ 46.141 Fellowship agreement amend

ment.

Approved changes to a fellowship which do not substantially alter the objective or scope of the fellowship may give rise to fellowship amendments to increase or decrease the dollar amount, the term, or other provisions of a fellowship. A fellowship amendment shall be effected only by a written amendment to the fellowship agreement, executed by the Grants Officer on behalf of the Government and by the fellow on his own behalf, entered into after the effective date of the fellowship.

§ 46.145 Payment.

(a) Stipend allowance will be paid directly to the fellow on a monthly basis commencing with initiation of studies;

(b) Book allowance will be paid directly to the fellow upon initiation of studies.

(c) Tuition and fees will be paid directly to the sponsoring institution. § 46.150 Publications and thesis.

A copy of any publication (including any thesis) developed as a result of support under the EPA fellowship shall be submitted to the Grants Officer upon submission for publication. No prior approval by EPA is required for publication. Any written publications shall acknowledge as follows:

This publication has been financed in part with Federal funds from the Environmental Protection Agency under fellowship 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.

§ 46.155 Deviations.

Procedures of § 30.1001 of the EPA general grant regulations of this chapter be applicable to fellowships.

§ 46.165 Termination.

(a) Termination of studies by the fellow. A fellow must notify EPA in writing when he terminates or changes his status under the fellowship agreement. Studies supported by an EPA fellowship may be terminated only for good cause. If the Grants Officer finds that a fellow has terminated his studies without good cause, then he shall annul fellowship and all EPA fellowship funds previously paid to the fellow shall be payable to the United States as final settlement. If the Grants Officer finds that there is good cause for the termination of studies, he shall enter into a termination agreement effective with the date of termination of studies by the fellow.

(b) Termination by EPA.-The Grants Officer may terminate the fellowship provided that a termination action may not be taken unless the fellow has received written notice of the basis for the proposed action and has been afforded an opportunity to confer with appropriate EPA officials concerning the proposed action. Any termination action may be appealed in accordance with the Disputes Article of the EPA General Grant Conditions (appendix A to subchapter B of this title).

PART 48-[RESERVED]

Appendix A-General Grant Conditions 1. Access: The Government and any persons designated by the Grants Officer shall at all reasonable times have access to the premises where any portion of the project for which the grant was awarded is being performed. Subsequent to cessation of EPA grant support EPA personnel shall at all reasonable times have access to the project records (as defined in Article 2, below) and to the project site, to the full extent of the Grantee's right to access.

2. Audit and records: (a) The grantee shall maintain books, records, documents, and other evidence and accounting procedures and practices, sufficient to reflect properly (1) the amount, receipt and disposition by the grantee of all assistance received for the project, including both Federal assistance and any matching share or cost sharing, and (2) the total cost of the project, including all direct and indirect costs of whatever nature incurred for the performance of the project for which the EPA grant has been awarded. The foregoing constitute "records" for the purposes of this article.

(b) The grantee's facilities, or such facilitles as may be engaged in the performance of the project for which the EPA grant has been

awarded, and his records shall be subject at all reasonable times to inspection and audit by the Grants Officer, the Comptroller General of the United States, or any authorized representative, until completion of the project for which the EPA grant was awarded.

(c) The grantee shall preserve and make his records available to the Grants Officer, the Comptroller General of the United States, or any authorized representative (1) until expiration of 3 years from the date of final payment under this grant, or of the time periods for the particular records specified in 41 CFR Part 1-20, whichever expires earlier, and (2) for such longer period, if any, as is required by applicable statute or lawful requirement, or by (1) or (2) below.

(1) If this grant is terminated completely or partially, the records relating to the work terminated shall be preserved and made available for a period of 3 years from the date of any resulting final termination settlement. (2) Records which relate to (1) appeals under the "Disputes" clause of this grant, (11) litigation or the settlement of claims arising out of the performance of the project for which this grant was awarded, or (iii) costs and expenses of the project as to which exception has been taken by the Grants Offcer or any of his duly authorized representatives, shall be retained until such appeals, litigation, claims, or exceptions have been disposed of.

3. Reports: The grantee shall prepare and file with 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 are specified in the grant agreement. Failure to timely submit reports required by the grant agreement may result in (a) retention of grant funds pursuant to EPA-GR 30.602-1, (b) suspension of the grant pursuant to Article 4, EPA General Grant Conditions, (c) termination of the grant pursuant to Article 5, EPA General Grant Conditions, (d) 8 finding of nonresponsibility for future EPA grant awards pursuant to EPA-GR 30.304, or (e) such other action as the Grants Officer may be authorized to take.

4. Stop-work order: (a) The Grants Offcer may, at any time, by written order to the grantee, require the grantee to stop all, or any part of the project work for a period of not more than thirty (30) days after the order is delivered to the grantee, and for any further period to which the parties may agree. Any such order shall be specifically identified as a stop-work order issued pursuant to this clause. Upon receipt of such an order, the grantee shall forthwith comply with its terms and take all reasonable steps to minimize the incurrence of costs allocable to the work covered by the order during the period of work stoppage. Within a period of not more than thirty (30) days after a stopwork order is delivered to the grantee, or within any extension of that period to which

the parties shall have agreed, the Grants Officer shall either

(1) Cancel the stop-work order, or

(2) Terminate the work covered by such order as provided in the "Termination" article of this grant.

(b) If a stop-work order issued under this article is canceled or the period of the order or any extension thereof expires, the grantee shall resume work. An equitable adjustment shall be made in the grant period, the project period, or grant amount, or all of these, and the grant instrument shall be amended accordingly, if:

(1) The stop-work order results in an increase in the time required for, or in the grantee's cost properly allocable to, the performance of any part of the project, and

(2) The grantee asserts a written claim for such adjustment within thirty (30) days after the end of the period of work stoppage: Provided, That if the Grants Officer decides the circumstances justify such action, he may receive and act upon any such claim asserted at any time prior to final payment under this grant.

(c) If a stop-work order is not canceled and the work covered by such order is terminated, the reasonable costs resulting from the stop-work order shall be allowed in arriving at the termination settlement.

(d) Costs incurred by the grantee after a stop-work order is delivered, or within any extension of the stop-work period to which the parties shall have agreed, which are not authorized by this article or by the Grants Officer shall not be allowable costs.

5. Termination: (a) Grant Termination by EPA. The Grants Officer, by written notice and after consultation with the grantee, may terminate the grant, in whole or in part: Provided, That such termination action has been authorized and approved by the appropriate EPA official (s) superior to the Grants Officer. Cause for termination shall include, but not be limited to, default by the grantee, failure by the grantee to comply with the terms and conditions of the grant, realignment of programs, change in program requirements or priorities, lack of adequate funding, or advancements in the state of the art. Upon such termination, the grantee shall refund to the United States any unexpended grant funds, except such portion thereof as may be required by the grantee to meet commitments which had become firm prior to the effective date of termination and are otherwise allowable.

(b) Project termination by grantee. A grantee may not terminate a project for which the grant has been awarded, except for good cause. If the Grants Officer finds that there is good cause for the termination of all or any portion of a project for which the grant has been awarded, he shall enter into a termination agreement or unilaterally terminate the grant, effective with the date of termination of the project by the grantee. If the Grants Officer finds that the grantee

has terminated the project without good cause, then he shall annul the grant and all EPA grant funds previously paid or owing to the grantee shall be returned to the United States as final settlement.

6. Project changes: The grantee shall promptly notify the Grants Officer in writing of all project changes pursuant to the provisions of EPA-GR 30.900. The Grants Officer may disapprove proposed project changes by written notice to the grantee within 3 weeks after receipt of notice. Failure on the part of the grantee to give timely notice of proposed project changes or disapproval by the Grants Officer of a project change may result in disallowance of costs incurred which are attributable to the change or in termination of the grant. Neither approval nor failure to disapprove a project change shall commit or obligate the United States to any increase in the amount of the grant or payments thereunder, but shall not preclude consideration of a request for a grant amendment. A grant amendment may not alter the objective or scope of a project for which the grant has been awarded.

7. Disputes: (a) Except as otherwise provided by law or any other grant provision, any dispute arising under this grant which is not disposed of by agreement shall be decided by the Grants Officer, who shall reduce his decision to writing and mail or otherwise furnish a copy thereof to the grantee. The decision of the Grants Officer shall be final and conclusive unless, within 30 days from the date of receipt of such copy, the grantee mails or otherwise furnishes to the Grants Officer a written appeal address to the Administrator. The decision of the Administrator or his duly authorized representative for the determination of such appeal, shall be final and conclusive unless determined by a court of competent jurisdiction to have been fraudulent or capricious, or arbitrary, or so grossly erroneous as necessarily to imply bad faith, or not supported by substantial evidence. In connection with an appeal proceeding under this clause, the grantee shall be afforded an opportunity to be heard and to offer evidence in support of any appeal.

(b) This "disputes" clause does not preclude consideration of questions of law in connection with decisions provided for in paragraph (a) above: Provided, That nothing in this grant shall be construed as making final the decision of any administrative offcial, representative, or board, on a question

of law.

8. Equal opportunity: During the performance of the project for which this grant is awarded, the grantee agrees to comply with the Civil Rights Act of 1964, 42 U.S.C. 2000s et seq., as amended and all regulations promulgated pursuant thereto.

9. Covenant against contingent fees: The grantee warrants that no person or agency has been employed or retained to solicit or secure this grant upon an agreement or understanding for a commission, percentage,