PART 1

1.1 SCOPE [1](#scope)

1.1.1 Applicability [1](#applicability)

1.1.2 Publication of the BFAI [2](#publication-of-the-bfai)

1.1.3 Organization of the BFAI [2](#organization-of-the-bfai)

1.1.4 Deviations From the BFAI [2](#deviations-from-the-bfai)

1.1.5 Announcement of BPA's Financial Assistance Awards
[2](#announcement-of-bpas-financial-assistance-awards)

1.2 CATEGORIES OF FINANCIAL ASSISTANCE
[2](#categories-of-financial-assistance)

1.3 BASIC POLICIES [3](#basic-policies)

1.3.1 Standards of Conduct [3](#standards-of-conduct)

1.3.2 Application of Statutes, OMB Circulars and Other Regulations
[3](#application-of-statutes-omb-circulars-and-other-regulations)

1.3.2.1 General [3](#general)

1.3.2.2 Office of Management and Budget (OMB) Guidance
[3](#office-of-management-and-budget-omb-guidance)

1.3.3 Cost Sharing [4](#cost-sharing)

1.3.3.1 Cost Sharing for Commercial Projects
[4](#cost-sharing-for-commercial-projects)

1.3.4 Patents, Data and Copyrights [4](#patents-data-and-copyrights)

1.3.5 Financial Assistance Awards to Federal Agencies
[4](#financial-assistance-awards-to-federal-agencies)

1.4 DEFINITIONS [4](#definitions)

# 1.1 SCOPE

**INFORMATION:**

\(a\) The Bonneville Financial Assistance Instructions (BFAI) are
prescribed by the Head of the Contracting Activity (HCA) in accordance
with responsibilities assigned by BPA Manual (BPAM) 10.4 and 20.10. The
purpose of the BFAI is to establish the policy and procedural
requirements for financial assistance award decisions and
administration. The BFAI follows the intent of the Federal Grant and
Cooperative Agreement Act of 1977, Public Law 97-258 (31 U.S.C. 6301 et
seq.).

\(b\) The Bonneville Power Administration (BPA) was established by
Congress as an operational utility which is regional in scope and
businesslike in operation. It is funded through its own revenues, not
the appropriation of taxpayer funds. Although BPA follows many Federal
policies, it is directly involved in the complex and rapidly evolving
utility business world and must be able to operate competitively to meet
its responsibilities. See Bonneville Purchasing Instructions (BPI) which
regulates BPA\'s purchase of goods and services, Subpart 1.3 for related
information.

\(c\) The BFAI and the BPI have many common core concepts and
principles. Therefore, in the interest of efficiency, the BFAI may
reference the BPI where appropriate.

## 1.1.1 Applicability

**INFORMATION:** The BFAI applies to all assistance instruments awarded
by BPA. The BFAI does not apply to the purchase of goods or services,
transmission and power marketing contracts, nor to land acquisitions.

## 1.1.2 Publication of the BFAI

**POLICY:** The BFAI is not published in the Federal Register (Fed.
Reg.) or the Code of Federal Regulations (CFR). A notice announcing the
availability of the BFAI is placed in the Federal Register annually.

## 1.1.3 Organization of the BFAI

**INFORMATION:**

\(a\) Contents: The BFAI contains the policies and procedures which are
appropriate for all BPA financial assistance solicitations, grants,
simplified grants and cooperative agreements.

\(b\) Target audience: The BFAI is intended as a ready reference for:

\(1\) BPA\'s financial assistance professionals,

\(2\) BPA\'s financial assistance requisitioners and program personnel,

\(3\) Organizations that seek or receive financial assistance from BPA.

\(c\) Sequence of topics: Topics covered by the BFAI are generally
organized in the same chronological sequence as the steps of the
assistance process. Temporary Instructions are included at the end of
the BFAI and have the same force and effect as the preceding portions of
the BFAI. The BFAI, where appropriate, incorporates policy which can be
found in the Bonneville Purchasing Instructions (BPI).

## 1.1.4 Deviations From the BFAI

**POLICY:** Requests for deviations from mandatory requirements of the
BFAI, (those indicated by the words \"shall\" or \"shall not\") shall be
submitted in writing to the HCA for review and a final determination.

## 1.1.5 Announcement of BPA's Financial Assistance Awards

**Policy:** The Supply Chain Services Office or responsible agency VP
will publish reports describing financial assistance awarded by BPA.

**Procedure:** This report will include the name of the recipient, a
description of the project or program, any additional parties
participating, and the amount of the award, and shall be made available
to BPA personnel and to the public through the agency web sites.
Significant modifications to awards will be summarized in the report.

# 1.2 CATEGORIES OF FINANCIAL ASSISTANCE

**INFORMATION:**

\(a\) The major categories of assistance awards fall under BPA organic
statutes regarding energy, environment, and fish and wildlife. Education
programs may include conference sponsorship, science competition,
science camp, exhibits, and annual events such as Earth Day. Subject
areas may include generation and transmission of energy, conservation,
environment, fish and wildlife, renewable resources and research and
development.

\(b\) Also see the definitions of grants and cooperative agreements in
1.4.

# 1.3 BASIC POLICIES

## 1.3.1 Standards of Conduct

**POLICY:** BPA employees, the recipient and employees of the recipient
are expected to follow established conflict of interest and professional
ethics policies at all times in order to avoid the appearance of
conflict of interest, favoritism, or other improper behavior. Standards
of conduct guidance is found in BPI 3.1 and 3.4.

## 1.3.2 Application of Statutes, OMB Circulars and Other Regulations

### 1.3.2.1 General

**INFORMATION:** Although many statutes might have some application to
agency financial assistance efforts, those listed below are ones that
Financial Assistance Officer's (FAO\'s) or Financial Assistance Officer
Representative's (FAOR\'s) encounter most frequently.

\(a\) Davis-Bacon Act (40 U.S.C. 276a to a-7). Applicable where funding
is used for the construction of public facilities/works as defined in
that Act.

\(b\) Endangered Species Act of 1973, PL 93-205 (16 U.S.C. 1531 et
seq.), as amended by PL 95-632.

\(c\) Drug-Free Workplace Act of 1988 (Pub. L. 100-690).

\(d\) Lobbying, 31 U.S.C. 1352.

### 1.3.2.2 Office of Management and Budget (OMB) Guidance

**POLICY:**

\(a\) OMB Circular A-89, Catalog of Federal Domestic Assistance, is not
binding on BPA, but is utilized by other Federal Agencies. OMB Circular
A-110, Grants and Agreements with Institutions of Higher Education,
Hospitals, and Other Non-Profit Organizations, and OMB Circular A-102,
Uniform Administrative Requirements for Grants to State and Local
Governments. BPA shall not impose the detailed requirements of these
circulars on its recipients, but will comply with their spirit to the
extent good business principles permit. These OMB Circulars and other
regulations for financial assistance also assure that various reporting
requirements are implemented in a consistent manner throughout the
Government. BPA's simplified application and administration procedures
for financial assistance, does not impose different or more restrictive
requirements for recipients, so OMB guidance is followed. BPA will not
reject as incomplete, requests that meet the federal standards
established by OMB as incomplete.

\(b\) BPA will apply cost and audit principles applicable to Educational
Institutions, State Local and Indial Tribal Governments, and Non-Profit
Organizations, respectively (OMB Circulars A-21, A-87, A-122, and
A-133).

##  

## 1.3.3 Cost Sharing

**POLICY:** Program offices are encouraged to seek cost-sharing by
participants or others on projects supported by BPA financial assistance
awards in order to multiply the impact of BPA funds.

### 1.3.3.1 Cost Sharing for Commercial Projects 

**POLICY:** BPA will provide only a portion of the costs for a project
which is aimed at commercialization. The degree of potential benefit to
the recipient will determine the extent of BPA's participation.

## 1.3.4 Patents, Data and Copyrights

**POLICY:** Financial assistance instruments shall be awarded and
administered by BPA in compliance with the patent, data and copyright
provisions of Part 17 of the BPI. BPA will specify applicable BPI
patent, data and copyright provisions. If specific transactions require
an approach different from that outlined in Part 17 of the BPI, the FAO
shall contact the HCA for guidance.

## 1.3.5 Financial Assistance Awards to Federal Agencies

**POLICY:** Financial assistance awards to appropriated Federal agencies
are not authorized, as the funding would represent an augmentation of
appropriations, which is prohibited by law.

# 1.4 DEFINITIONS

"Applicant" means any individual or entity that files a written
application for financial assistance with BPA or with a recipient (i.e.
for a subaward).

\"Application\" means a written document from an applicant that contains
details of the project or program for which they are seeking BPA\'s
financial assistance and support.

\"Award\" means the written instrument executed by a BPA Financial
Assistance Officer (FAO) after an application is approved, which
contains the terms and conditions for providing financial assistance to
the recipient. \"Award\" can refer to any of the specific instruments
referred to in the BFAI. An award authorizes funds for a specific
project.

\"BPI\" means the Bonneville Purchasing Instructions.

\"Contract\" means a legal instrument reflecting an agreement between
BPA and a contractor whenever the principal purpose of the instrument is
the acquisition by purchase or lease of goods or services for the direct
use or benefit of BPA.

\"Cooperative agreement\" means a legal instrument reflecting a
relationship between BPA and a State or local government or other
recipient whenever:

> \(1\) the principal purpose of the relationship is the transfer of
> money, property, services, or anything of value to the State, local
> government, tribe or other recipient to accomplish a public purpose of
> support or stimulation authorized by Federal statute, rather than
> acquisition, by purchase, lease, or barter, of property or services
> for the direct benefit or use of BPA; and
>
> \(2\) substantial involvement is anticipated between BPA and the
> State, local government, tribe or other recipient during performance
> of the activity. (31 U.S.C. 6305)

\"Federally recognized Indian tribal government\" or "Tribe" means the
governing body or a governmental agency of any Indian tribe, band,
nation, or other organized group or community (including any Native
village as defined in Section 3 of the Alaska Native Claims Settlement
Act, 85 Stat. 688) certified by the Secretary of the Interior as
eligible for the special programs and services provided through the
Bureau of Indian Affairs.

\"Field Representative\" or "FR" means the individual who has been
delegated responsibility by the Financial Assistance Official (FAO) for
inspecting the project for compliance with plans and specifications. The
field representative is not authorized to make changes to the award,
direct the recipient to take specific actions, issue stop or resume work
orders. Field representatives work under the direct supervision of the
FAO and Project Technical Representaitve (PTR).

\"Financial assistance\" means any form of assistance instrument where
the principal purpose of the relationship is the transfer of money,
property, services or anything of value to a recipient in order to
accomplish a public purpose of support or stimulation authorized by
Federal statute rather than of acquisition, by purchase, lease, or
barter, of property or services for the direct benefit or use of BPA.
Specific types of financial assistance instruments include, but are not
limited to, grants, cooperative agreements, and loans.

\"Financial Assistance Officer\" (FAO) means a BPA employee who
possesses the delegated authority to obligate BPA funds through the use
of financial assistance instruments.

\"Financial Assistance Officer\'s Representative\" or "FAOR" means the
individual designated by the FAO to perform administrative work
connected with the award.

"Financial Status Report (FSR) means a periodic report regularly
provided to the FAO or PTR to enable supervision of the recipient's
project implementation and success.

\"Government\" means a State or local government or a
federally-recognized Indian Tribal Government.

\"Grant\" means a legal instrument reflecting a relationship between BPA
and a State or local government or other recipient whenever:

> \(1\) the principal purpose of the relationship is the transfer of
> money, property, services, or anything of value to the State, local
> government, tribe or other recipient in order to accomplish a public
> purpose of support or stimulation authorized by Federal statute,
> rather than acquisition, by purchase, lease, or barter, of property or
> services for the direct benefit or use of BPA; and
>
> \(2\) no substantial involvement is anticipated between BPA and the
> State, local government, tribe or other recipient during performance
> of the contemplated activity. (31 U.S.C. 6304.)

"Grantee". See Recipient.

\"Head of the Contracting Activity (HCA)\" means a BPA official who has
overall responsibility for direction of purchasing and financial
assistance activities.

\"Local government\" means a county, municipality, city, town, township,
local public authority, school district, special district, intrastate
district, council of government (whether or not incorporated as a
nonprofit corporation under state law), any other regional or interstate
government entity, or any agency or instrumentality of a local
government.

"Negotiation" means the process through which BPA and the applicant
establish mutual agreement as to project purpose, definition, timing,
BPA's role in the project, and the resources appropriate to support and
carry out the project.

\"Participant\" means a non-Federal party which receives financial
assistance by means of a cooperative agreement. At BPA the term
\"recipient\" is used in lieu of \"participant.\"

"Principal Investigator" means a person designated by the recipient in
the award document as necessary to understand the goals of the project,
direct and manage the project, and whose participation is required for
successful completion of the project.

\"Program Office\" means the office that determines major program goals
and policies, and allocates funds, personnel, and other resources among
the programs for which it is responsible, and determines other major
facets of the financial assistance effort.

\"Project Manager\" means the person in the program office who is
responsible for developing a definitive project supported by a specific
award, and confers with the proposed modifications to agreements,
payments, etc., before action by the FAO. When an award modification
requires additional funding the Project Manager is responsible for
insuring that funds are available for that purpose. Normally, the
Project Manager does not interact directly with the recipient.

\"Project Technical Representative\" or "PTR" means the individual
designated by the FAO to perform technical award administration
activities on behalf of the FAO within limits specified by the FAO.

\"Recipient\" means the organization or individual that receives a
financial assistance award from BPA and is financially accountable for
the use of any BPA funds or property provided for the performance of the
project, and is legally responsible for carrying out the terms and
conditions of the award.

\"State\" means any of the several States of the United States, the
District of Columbia, the Commonwealth of Puerto Rico, any territory or
possession of the United States, or any agency or instrumentality of a
State exclusive of local governments.