[Federal Register Volume 65, Number 229 (Tuesday, November 28, 2000)]
[Notices]
[Pages 70899-70905]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-30279]



[[Page 70899]]

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ENVIRONMENTAL PROTECTION AGENCY

[FRL-6908-9]


Supplemental Guidelines for the Award of Section 319 Nonpoint 
Source Grants in FY 2001

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice of availability.

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SUMMARY: EPA has developed guidelines for the award of Clean Water Act 
Section 319 nonpoint source grants in FY 2001. The guidelines are 
intended to assist States, Territories, and Tribes in identifying the 
process and criteria to be used in distributing FY 2001 319 grants. The 
process and criteria are generally the same as were used last year, 
which are provided in four documents: Nonpoint Source Program and 
Grants Guidance for Fiscal Years 1997 and Future Years (May 1996); 
Process and Criteria for Funding State and Territorial Nonpoint Source 
Management Programs in FY 1999 (August 18, 1998); Funding the 
Development and Implementation of Watershed Restoration Action 
Strategies under Section 319 of the Clean Water Act (December 4, 1998); 
and Supplemental Guidance for the Award of Section 319 Nonpoint Source 
Grants in FY 2000 (December 21, 1999). The guidance provided by each of 
these four documents remains fully in effect except to the extent that 
they are specifically modified in today's guidelines.

DATES: The guidelines are effective November 28, 2000.

ADDRESSES: Persons requesting additional information or a complete 
draft of the document should contact Stacie Craddock at (202) 260-3788; 
<a href="/cdn-cgi/l/email-protection#7b18091a1f1f14181055080f1a18121e3b1e0b1a551c140d"><span class="__cf_email__" data-cfemail="7e1d0c1f1a1a111d15500d0a1f1d171b3e1b0e1f50191108">[email protected]</span></a>; or U.S. Environmental Protection Agency (4503-
F), 1200 Pennsylvania Avenue, NW., Washington, DC 20460.

FOR FURTHER INFORMATION CONTACT: Persons requesting additional 
information or a complete draft of the document should contact Stacie 
Craddock at (202) 260-3788; <a href="/cdn-cgi/l/email-protection#f390819297979c9098dd808792909a96b3968392dd949c85"><span class="__cf_email__" data-cfemail="ee8d9c8f8a8a818d85c09d9a8f8d878bae8b9e8fc0898198">[email protected]</span></a>; or U.S. 
Environmental Protection Agency (4503-F), 1200 Pennsylvania Avenue, 
NW., Washington, DC 20460. The complete text of today's guidelines, as 
well as each of the supplemental documents listed below, is also 
available on EPA's Internet site on the Nonpoint Source Control Branch 
homepage http://www.epa.gov/owow/nps>.

SUPPLEMENTARY INFORMATION: Congress enacted Section 319 of the Clean 
Water Act in 1987, establishing a national program to control nonpoint 
sources of water pollution. Section 319 authorizes EPA to issue annual 
grants to States, Territories, and Tribes who have EPA-approved 
nonpoint source assessment reports and nonpoint source management 
programs. Section 319 requires States, Territories and Tribes to 
provide at least a 40 percent non-Federal dollar match.
    The Section 319 grants process, criteria, and schedules are set 
forth in four documents: Nonpoint Source Program and Grants Guidance 
for Fiscal Years 1997 and Future Years (May 1996); Process and Criteria 
for Funding State and Territorial Nonpoint Source Management Programs 
in FY 1999 (August 18, 1998); Funding the Development and 
Implementation of Watershed Restoration Action Strategies under Section 
319 of the Clean Water Act (December 4, 1998); and Supplemental 
Guidance for the Award of Section 319 Nonpoint Source Grants in FY 2000 
(December 21, 1999).
    The Nonpoint Source Program and Grants Guidance for Fiscal Years 
1997 and Future Years (May 1996) is a product of joint discussions in 
1995 and 1996, with representatives of EPA Headquarters, Regions and 
the States, under the auspices of the Association of State and 
Interstate Water Pollution Control Administrators (ASIWPCA). These 
discussions resulted in new national Section 319 program and grant 
guidance jointly signed by EPA and ASIWPCA and issued by EPA on May 16, 
1996. The guidance reflects a joint commitment to upgrade States' and 
Territories' nonpoint source management programs to incorporate nine 
key program elements designed to achieve and maintain beneficial uses 
of water.
    On August 18, 1998, Robert H. Wayland III (Director, Office of 
Wetlands, Oceans, and Watersheds) issued a memorandum entitled Process 
and Criteria for Funding State and Territorial Nonpoint Source 
Management Programs in FY 1999. This document supplemented the 1996 
guidance with guidelines for the use of incremental (in excess of $100 
million appropriated by Congress) Section 319 nonpoint source grants in 
FY 1999. These guidelines were consistent with the goals of the Clean 
Water Action Plan, released by the President in February 1998. A 
central aspect of the Clean Water Action Plan is its set of actions 
that are designed to promote a renewed focus by States, Territories, 
and Tribes to identify watersheds with the most critical water quality 
problems and to work together to focus resources and implement 
effective strategies to solve these problems. A key way in which 
States, Territories, and Tribes would do this is to create Unified 
Watershed Assessments that identify watersheds that do not meet clean 
water and other natural resource goals and where preventative action is 
needed to sustain water quality and aquatic resources, and to develop 
Watershed Restoration Action Strategies for watersheds most in need of 
restoration. In accordance with the Clean Water Action Plan and the 
August 1998 guidelines, States and Territories were to focus 
incremental Section 319 grant funds on implementing their Watershed 
Restoration Action Strategies.
    A subsequent memorandum issued by Robert Wayland on December 4, 
1998, entitled Funding the Development and Implementation of Watershed 
Restoration Action Strategies under Section 319 of the Clean Water Act, 
expanded upon and reiterated the need for States and Territories to use 
their incremental Section 319 grant funds to support implementation of 
actions called for in Watershed Restoration Action Strategies.
    On December 21, 1999, Robert Wayland issued a memorandum entitled 
Supplemental Guidance for the Award of Section 319 Nonpoint Source 
Grants in FY 2000. The guidance was intended to supplement the three 
aforementioned documents by adding discussion on: use of Section 319 
funds for animal feeding operation strategies; increase of grant funds 
available to Indian Tribes; use of incremental Section 319 grant funds 
for Watershed Restoration Action Strategies; and use of Section 319 
grant funds to support Clean Lakes activities and American Heritage 
Rivers; and discussion of possible expansion of the computer-based 
Grants Reporting and Tracking System.
    The guidance provided by each of these four documents remains fully 
in effect except to the extent that they are specifically modified in 
this year's supplemental guidelines, as summarized immediately below:
    1. The incremental $100 million may be used to implement the 
nonpoint source components of total maximum daily loads (TMDLs) in all 
watersheds and of watershed restoration action strategies in Category I 
watersheds.
    2. The $38 million additional funds appropriated by Congress for FY 
2001 may be used to implement projects to control nonpoint source 
pollution throughout the State, Territory or Tribe. In other words, 
these additional funds are treated as part of the ``base funds'',

[[Page 70900]]

for a total base amount of $134.5 million for States. EPA strongly 
encourages the States and Territories to use these additional funds to 
implement WRASs in Category I watersheds and to implement TMDLs 
throughout the State.
    3. Regions should include in each 319 grant a written determination 
that the State, Territory, or Tribe has made satisfactory progress 
during the previous year to meet the schedule of milestones specified 
by the State, Territory, or Tribe in its nonpoint source management 
program.
    4. For each State or Territory that has a conditionally approved 
coastal nonpoint pollution control program under Section 6217 of the 
Coastal Zone Act Reauthorization Amendments of 1990 (CZARA), the 
Section 319 grant will provide that at least $100,000 of the grant 
dollars will be devoted to specific actions that are designed to meet 
all outstanding conditions.
    The full text of the Supplemental Guidelines for the Award of 
Section 319 Nonpoint Source Grants in FY 2001 is published below.

    Dated: November 21, 2000.
Robert H. Wayland III,
Director, Office of Wetlands, Oceans, and Watersheds.

Memorandum

    Subject: Supplemental Guidelines for the Award of Section 319 
Nonpoint Source Grants in FY 2001.
    From: Robert H. Wayland III, Director, Office of Wetlands, Oceans, 
and Watersheds.
    To: EPA Regional Water Division Directors, State and Interstate 
Water Quality Program Directors.
    I am pleased to inform you that Congress has appropriated $238 
million in FY 2001 for States, Territories, and Tribes to help them 
implement their nonpoint source (NPS) management programs under Section 
319 of the Clean Water Act (CWA). This funding increase of $38 million 
will enable the States, Territories, and Tribes to strengthen their 
efforts to implement effective, upgraded NPS programs. This memorandum 
provides guidelines for the award of the grants under Section 319(h) in 
FY 2001. We have also attached in Appendix A the allocations for each 
State and Territory based upon the long-standing 319 allocation 
formula, including a set-aside for Tribes with approved NPS programs.

Nonpoint Source Grants to Indian Tribes

    EPA is extremely pleased that in FY 2001, at EPA's request, 
Congress has again authorized removal of the \1/3\% cap in Section 
518(f) on awarding nonpoint source grants to Indian Tribes. We are very 
pleased with the number of excellent Tribal grant proposals that we 
received in FY 2000, which exceeded the $2.5 million provided for 
Tribal nonpoint source grants in FY 2000. In light of our experience in 
FY 2000, we are setting aside $6 million for grants to Tribes in FY 
2001. We are currently preparing a separate memorandum detailing the 
funding process that will be used in FY 2001 to make Section 319 grant 
awards to Tribes. We are currently circulating a draft of that 
memorandum to EPA Regions and to Tribes for review and comment prior to 
finalizing the memorandum.

States' and Territories' Upgraded Nonpoint Source Programs

    I would like to take this opportunity to express my great 
appreciation and admiration for the fine work that the States and 
Territories have done during the past several years to upgrade their 
nonpoint source management programs. I am confident that these upgraded 
programs will provide the basis for accelerating our success in solving 
NPS problems and in achieving our water quality goals.
    The States' and Territories' upgraded programs collectively 
represent a tremendous effort by the States and Territories to 
strengthen their programs. The increased level of effort and 
sophistication of the States' and Territories' programs is reflected in 
many ways. First, the States and Territories have developed objective 
long-term and short-term goals and milestones that provide a framework 
for future actions over the next five, ten, and fifteen years. Second, 
the States and Territories have developed plans to enhance their 
existing partnerships among State, Territory, and Federal agencies; 
industry, agriculture, and environmental groups; and other interested 
groups. Third, they have targeted their nonpoint source funds and 
technical assistance efforts to geographic priorities, such as 303(d)-
listed waters and Category I watersheds identified through the States' 
and Territories' Unified Watershed Assessments.
    Other key State and Territory program improvements include 
increased and enhanced coordination with key related programs such as 
the coastal nonpoint pollution control program under Section 6217 of 
the Coastal Zone Act Reauthorization Amendments of 1990 (CZARA); new 
and increased State funding programs to address nonpoint sources well 
above the levels needed to match the Federal 319 dollars, including 
both significant new State nonpoint source funding programs as well as 
the increased use of State revolving loan funds in many States to 
address nonpoint source pollution; and increased development of new 
State and Territory enforcement authorities to address high-priority 
problems such as animal waste and stormwater.
    EPA Headquarters staff have begun to prepare brief summaries of the 
most salient aspects of each approved State and Territory's upgraded 
nonpoint source program, and we will forward them to each of you when 
they are complete.

State/EPA NPS Partnership

    To build upon this success, the States and EPA have developed and 
are beginning to implement a new State/EPA NPS Partnership. The purpose 
of this new cooperative process is to identify, prioritize, and address 
the needs of States, Territories, and Tribes for technical, 
programmatic, and financial assistance to overcome any remaining 
obstacles to successfully implementing your nonpoint source programs. 
Building upon the three-day meeting that EPA and the Association of 
State and Interstate Water Pollution Control Administrators (ASIWPCA) 
held in April 2000 in Riverside, California, we have formed seven work 
groups that have already begun the work of identifying the States', 
Territories', and Tribes' highest needs and jointly developing and 
implementing appropriate plans and strategies to address those needs. 
The work groups are:

1. Watershed Planning and Implementation, including total maximum daily 
loads (TMDLs)
2. Rural Nonpoint Sources
3. Urban Nonpoint Sources
4. NPS Grants Management
5. NPS Capacity Building and Funding
6. Information Transfer and Outreach
7. NPS Results (discussed below)

    I am pleased that, to date, many State and EPA Regional staff have 
already volunteered to co-chair or join one or more of the seven work 
groups that are guiding this State/EPA NPS Partnership. I welcome you 
to encourage additional State, Territorial and Tribal experts to get 
involved in this process and provide assistance in solving our 
remaining nonpoint source problems. Any experts interested in getting 
involved should contact either Dov Weitman, Chief of EPA's Nonpoint 
Source Control Branch Chief, at (202) 260-7088, <a href="/cdn-cgi/l/email-protection#8dfae8e4f9e0ece3a3e9e2fbcde8fdeca3eae2fb"><span class="__cf_email__" data-cfemail="5e293b372a333f30703a31281e3b2e3f70393128">[email protected]</span></a>, or 
Linda Eichmiller, Deputy Director of ASIWPCA, at (202) 898-0905, 
<a href="/cdn-cgi/l/email-protection#55397b303c363d383c393930271534263c222536347b3a2732"><span class="__cf_email__" data-cfemail="1f73317a767c77727673737a6d5f7e6c76686f7c7e31706d78">[email protected]</span></a>.

[[Page 70901]]

General Guidelines for NPS Grants Are Unchanged in FY 2001

    The Section 319 grants process and criteria to be used in FY 2001 
are generally the same as were used last year. The process, criteria, 
and schedules are set forth in four documents: (1) Nonpoint Source 
Program and Grants Guidance for Fiscal Years 1997 and Future Years (May 
1996); (2) Process and Criteria for Funding State and Territorial 
Nonpoint Source Management Programs in FY 1999 (August 18, 1998); (3) 
Funding the Development and Implementation of Watershed Restoration 
Action Strategies under Section 319 of the Clean Water Act (December 4, 
1998); and Supplemental Guidance for the Award of Section 319 Nonpoint 
Source Grants in FY 2000 (December 21, 1999). The guidance provided by 
each of these four documents remains fully in effect except to the 
extent that they are specifically modified in this memorandum, as 
summarized immediately below:
    1. The incremental $100 million may be used to implement the 
nonpoint source components of TMDLs in all watersheds and of watershed 
restoration action strategies in Category I watersheds.
    2. The States and Territories will receive an additional $34.5 
million above the FY 2000 level of $200 million; Tribes will receive an 
additional $3.5 million that is being added to the Tribal set-aside to 
provide a total of $6 million for Tribes in FY 2001. Each State and 
Territory may use its additional funds to implement projects to control 
nonpoint source pollution throughout the State or Territory. In other 
words, these additional funds are treated as part of the ``base 
funds'', for a total base amount of $134.5 million for States. However, 
EPA strongly encourages the States and Territories to use these new 
funds to implement WRASs in Category I watersheds and to implement 
TMDLs throughout the State or Territory. In other words, they may be 
spent in the same manner as the other $100 million of ``base funds''.
    3. Regions should include in each 319 grant a written determination 
that the State, Territory, or Tribe has made satisfactory progress 
during the previous year to meet the schedule of milestones specified 
by the State, Territory, or Tribe in its nonpoint source management 
program.
    4. For each State or Territory that has a conditionally approved 
coastal nonpoint pollution control program under Section 6217 of the 
Coastal Zone Act Reauthorization Amendments of 1990 (CZARA), the 
Section 319 grant will provide that at least $100,000 of the grant 
dollars will be devoted to specific actions that are designed to meet 
all outstanding conditions.
    Each of the documents listed above is attached to the electronic 
version of this memorandum and also may be reviewed online or 
downloaded from the nonpoint source website at www.epa.gov/owow/nps.

Watershed Restoration Action Strategies and TMDLs

    As discussed in my December 21, 1999, memorandum and the Clean 
Water Action Plan, the incremental 100 million Section 319 dollars are 
to be used to implement Watershed Restoration Action Strategies (WRASs) 
to control nonpoint source pollution. As in the previous two years, 
however, States and Territories may use up to 20 percent of the 
incremental funds (as well as up to 20 percent of the ``base'' funds) 
to develop WRASs. We recommend that EPA Regions and the States and 
Territories review the Framework for developing Unified Watershed 
Assessments (``UWA'') and Watershed Restoration Action Strategies (June 
9, 1998), and the memorandum, ``Unified Watershed Assessment Framework: 
2000 Supplement'', published jointly by USDA and EPA on November 30, 
1999.
    In FY 1999 and 2000, we recognized that many States and Territories 
had not completed development of WRASs or may have completed 
development of only one or two. Therefore, we authorized the funding of 
critical components of a WRAS that is not yet complete but that the 
State or Territory has committed to completing, provided that those 
components have been developed and are ready for implementation. We 
encouraged States and Territories to begin funding the implementation 
of nonpoint source components of TMDLs that have been approved under 
Section 303(d) of the Clean Water Act in Category I watersheds. 
Similarly, we stated that implementation of CZARA Section 6217 
management measures in Category I watersheds, or of a program that 
addresses the results of a completed source water assessment, should be 
considered for funding prior to completion of the entire WRAS.
    In my December 21, 1999, memorandum, I stated our expectation that, 
beginning with the FY 2001 grants cycle, only completed or fully 
drafted WRASs in Category I watersheds would be eligible for funding 
with the incremental Section 319 dollars. I am reiterating at this time 
that the incremental ($100 million) FY 2001 funds may be used only to 
implement completed or fully drafted WRASs, or to develop WRASs (using 
up to 20% of the incremental funds), with one exception discussed 
immediately below.
    It is apparent to all of us who are working in nonpoint source 
management and, more generally, watershed management, that TMDLs have 
become a critical tool for addressing water quality impairments at the 
watershed level. This fact has manifested itself on many levels. First, 
as indicated above, most State and Territory nonpoint source programs 
have been re-aligned in the past few years to focus on implementing 
watershed projects that help solve identified water quality problems in 
high-priority waters, most of which are listed by the States and 
Territories under Section 303(d) of the Clean Water Act. Second, many 
WRASs themselves are being developed on a foundation established by a 
TMDL or set of TMDLs. Third, most States' TMDL programs have by now 
been the subject of litigation that has resulted in court orders which 
require the development of TMDLs that address both point sources and 
nonpoint sources in accordance with expeditious schedules. All of these 
factors have properly focused greatly increased attention on solving 
identified water quality problems in impaired waters.
    These factors all point to the need to increasingly focus Section 
319 grant dollars on implementing approved TMDLs, under EPA's existing 
effective TMDL regulations and guidance, for nonpoint sources. Most 
Section 303(d) waters are contained in UWA Category I watersheds. 
However, where a waterbody impaired by nonpoint sources is not 
contained within a Category I watershed, EPA believes that it is 
essential that the waterbody be eligible for incremental 319 funds to 
help bring the waterbody back into compliance with water quality 
standards. Therefore, beginning in FY 2001, incremental Section 319 
funds may be used to fund: (1) the development of WRASs and the 
implementation of completed or fully drafted WRASs in Category I 
watersheds, and (2) the development and implementation of approved 
TMDLs for any 303(d)-listed waterbodies.
    States and Territories may use up to 20% of both the base and 
incremental dollars to fund the development of the nonpoint source 
components of WRASs and TMDLs and to conduct related assessment 
activitites; at least 80% of the funds must be used for

[[Page 70902]]

implementation activities. We recognize the importance of TMDL 
development activities. For that reason, EPA has not only made 20% of 
both the base and incremental Section 319 funding available for this 
purpose, but EPA also requested, and Congress has appropriated, 
significantly increased funding under Section 106 of the CWA that can 
be used for TMDL development. With regard to the remaining 80% of 
Section 319 funds, however, it is essential that they be devoted to the 
primary purpose of Section 319--implementing actions that will directly 
assist in solving identified nonpoint source pollution problems.
    One question that is likely to arise this year is how the 
additional $34.5 million that is being awarded to States and 
Territories in FY 2001 should be classified and spent. EPA's request to 
Congress for an increase in FY 2001 Section 319 funds was intended to 
provide further support for States and Territories to solve their high-
priority water quality problems. EPA is providing States and 
Territories with the flexibility to select those implementation 
activities that they believe are of the highest priority. EPA 
encourages States and Territories to use these funds, like the 
incremental $100 million, to implement WRASs in Category I watersheds 
and TMDLs to restore 303(d)-listed waterbodies. Finally, as indicated 
in the preceding paragraph, States and Territories may use up to 20% of 
the additional $34.5 million for assessment and development activities, 
including the development of TMDLs and WRASs.
    Like last year, Section 319(h) grants to States and Territories in 
FY 2001 should clearly indicate which activities will be implemented 
using the base funds ($134.5 million) and which projects will be 
supported by the incremental ($100 million) funds. The work plans 
should clearly identify: (1) The Category I watersheds and sub-
watersheds where the incremental funds will be used to implement WRASs 
and TMDLs, and (2) the activities to be undertaken to assist in the 
assessment and development of WRASs and TMDLs. Activities supported by 
the incremental funds should be separately tracked.

State and Territory Coastal Nonpoint Pollution Control Programs

    In 1997 and 1998, EPA and the National Oceanic and Atmospheric 
Administration (NOAA) approved, subject to certain conditions, the 
coastal nonpoint pollution control programs (``coastal nonpoint 
programs'') that States and Territories submitted pursuant to Section 
6217(a) of the Coastal Zone Act Reauthorization Amendments of 1990 
(CZARA). Under CZARA, States and Territories were required to include 
in their coastal nonpoint programs (1) management measures in 
conformity with the guidance published by EPA as required by Section 
6217(g) of CZARA, and (2) enforceable policies and mechanisms that 
ensure implementation of the management measures. The NOAA/EPA approval 
documents contained findings that identified those management measures 
with which the State's or Territory's program did or did not conform, 
and those measures for which the program did or did not have 
enforceable policies and mechanisms that ensure implementation.
    Some States' and Territories' conditional approvals have recently 
expired, and many more are set to expire during the next year. For the 
reasons discussed below, and subject to the further conditions 
discussed below, NOAA and EPA have decided to grant these States and 
Territories, where needed, no more than an additional two years to 
complete the development and obtain full approval of their coastal 
nonpoint program. The most significant condition is that any FY 2001 
Section 319 grant to a State or Territory that has conditional approval 
of its CZARA program must include a provision that the State or 
Territory will devote at least $100,000 of its FY 2001 319 grant 
dollars to specific actions that are designed to meet all outstanding 
conditions.

Discussion

    In 1997 and 1998, twenty-nine States and Territories received 
``conditional approval'' of their coastal nonpoint programs in 
accordance with the provisions of CZARA and NOAA/EPA guidance. This 
effectively stayed the provisions of Section 6217(c) that provide for 
grant reductions for unapproved programs. Each State's or Territory's 
conditions required the State or Territory to address identified 
shortcomings in its management measures or in its enforceable policies 
and mechanisms to ensure implementation of particular management 
measures. Each condition stated a deadline for completion, generally 
within 3 years after conditional approval and, in a few instances, up 
to 5 years.
    Despite significant efforts by many States and Territories to 
complete the development of their coastal nonpoint programs, only three 
States and one Territory have received full approval to date. Fourteen 
States and Territories are scheduled to have all of their conditions 
expire by the end of 2000. Eleven other States and Territories will 
have all of their conditions expire sometime in 2001.
    NOAA and EPA recognize that many States and Territories have 
encountered significant difficulties in completing the program 
development process expeditiously, for instance:
    <bullet> Appropriations for State and Territory participation have 
been limited and no new appropriations were provided to NOAA and EPA 
for program development support purposes;
    <bullet> The statute sets ambitious goals that address a number of 
politically difficult issues such as imposing a mandatory ``enforceable 
policy'' approach on traditionally voluntary programs;
    <bullet> There has been, in some states, a lack of support for the 
adoption of specific nonpoint source management measures.
    NOAA and EPA recognize these limitations, but agree that in the 
interest of improving the quality of coastal waters and other coastal 
resources, efforts to adopt full CZARA programs should continue. We 
have thus established the following process to assist States and 
Territories in a cooperative effort to achieve a goal of attaining full 
approval as soon as possible within the next two years, recognizing 
that for some States and Territories the completion of products is the 
only principal action delaying approval.

Approach

    On page 5 of the 1995 guidance entitled ``Flexibility Guidance for 
State Coastal Nonpoint Programs'', NOAA and EPA stated that States and 
Territories may receive ``up to five years after conditional approval 
to meet conditions. * * *'' In light of the current expectation that a 
significant majority of States and Territories that were given 3-year 
conditions will not meet these conditions prior to their expiration 
dates, NOAA and EPA believe that it is in the best interest of assuring 
the completion of robust State and Territory CZARA programs to extend 
the current conditions up to a total of no more than 5 years where 
needed. This action is in conformance with the five year timeframe 
authorized in the 1995 guidance, and will be coupled with the steps 
outlined below to help the States and Territories meet all conditions 
by the end of their overall 5-year conditional approval period:

1. Draft National Report

    a. By early 2001, NOAA and EPA will issue a draft National Report 
on the current status of each of the

[[Page 70903]]

conditionally approved State and Territory programs. The report will 
highlight State and Territory successes and obstacles in developing and 
implementing coastal nonpoint programs to protect coastal waters and 
will also include a State-by-State summary of the conditions that 
remain and the necessary actions to be taken to meet the conditions. 
Additionally, in certain cases, activities taking place in other 
related programs (e.g., implementation of TMDLs in coastal waters that 
will simultaneously address additional management measures intended to 
protect coastal water quality, and implementation of stormwater 
construction management measures under Phase II of the NPDES stormwater 
program) may expedite the completion of the conditions, and these 
programs and activities will be reflected in the National Report.
    b. NOAA and EPA will provide the States, Territories, and other 
interested persons an opportunity to review and comment on the draft 
National Report. After receiving the comments and making appropriate 
changes, NOAA and EPA will publish the final report by late Spring 
2001.
    2. EPA and NOAA, having identified those States and Territories 
that are currently close to obtaining full approval, will target 
assistance to those programs to achieve approval within the next year.
    3. EPA, NOAA, and each State and Territory will develop a workplan 
to address the significant remaining issues in each State and 
Territory, with the intension of achieving full approval as soon as 
feasible but in all cases within the two-year extension.
    4. By late Spring, 2001, EPA and NOAA will, working closely with 
the States and Territories, develop a National Strategy to assist the 
States and Territories in achieving full approval of their programs. 
This National Strategy will include a summary of the State and 
Territory workplans identified in item 3 immediately above; recommended 
approaches to provide financial or other incentives to promote States' 
and Territories' progress in completing their programs; and targeted 
technical assistance workshops that address those management measures 
or other issues that have proven the most difficult for State and 
Territory coastal nonpoint programs to successfully address.
    5. To assure that States and Territories make progress over the 
next two years, EPA and NOAA will, in FY 2001 grants, direct that the 
States and Territories dedicate a reasonable portion of their grant 
funds towards finalizing these programs. Specifically, EPA will direct 
that each State and Territory with conditional approval must devote at 
least $100,000 of its FY 2001 319 grant dollars to specific actions 
that are designed to meet all outstanding conditions (and, for the four 
States that do not yet have conditional approval, to develop new 
coastal nonpoint programs) for NOAA and EPA approval. NOAA will use its 
grant process under its laws to achieve corresponding dedication of 
funds to meet all outstanding conditions.
    To effectuate this requirement, the FY 2001 Section 319 grants 
issued by EPA's regional offices to States and Territories that have 
conditional approval at the time the grants are issued will include the 
following grant condition:
    ``[Name of State or Territory] will devote at least $100,000 of its 
FY 2001 Section 319 grant dollars to specific actions that are designed 
to meet all outstanding Section 6217 conditions in its conditional 
approval under Section 6217 of CZARA. This grant condition will expire 
immediately upon full EPA approval of [name of State or Territory]'s 
coastal nonpoint program.''

Conclusion

    The development and implementation of fully approved CZARA programs 
provides to States and Territories an excellent opportunity to realize 
their goals of achieving cleaner coastal waters through the 
implementation of the best available, economically achievable practices 
that have been proven to work. Moreover, these will help strengthen the 
set of tools that States and Territories utilize to implement their 
recently upgraded nonpoint source management programs under Section 319 
of the CWA.

Reporting NPS Results

    Working under the umbrella of the newly formed EPA/State NPS 
Partnership discussed above, EPA and the States have formed a Nonpoint 
Source Results Workgroup, whose first task is to reevaluate and, as 
appropriate, revise the current reporting requirements for Section 319 
grants. With the ever-increasing amount of Section 319 funds (over a 
billion dollars appropriated in FY 1990-2000), EPA and the States and 
Territories must be able to assure the public and the Congress that the 
funds are being used in both a legally appropriate and environmentally 
effective manner. This work group met in St. Louis in February 2000 and 
has held several conference calls since that time to develop an agreed-
upon set of appropriate data elements that will do the best job, with 
the least burden, of telling us and our constituencies what we are 
accomplishing with the funds. Once the work group has developed a 
workable draft proposal, we intend to provide a thorough opportunity 
for all States, Territories and EPA Regions to review and comment on 
the proposal before it is implemented.
    We intend that the revised set of NPS reporting elements will be 
implemented beginning with the FY 2001 grants cycle. We will modify the 
associated computer-based data system, the Grants Reporting and 
Tracking System (GRTS), to accommodate the modified data elements that 
are to be reported. In addition, to provide a broad variety of user 
benefits, we have just begun efforts to Web-enable GRTS. (This system 
will still require protected passwords to enter and use the system, to 
assure data integrity.) We anticipate that this effort will be 
completed within 6 months. Furthermore, we plan to link GRTS with the 
new data system being constructed for both section 305(b) and 303(d) 
data (called WATERS, which in turn will be supported by the 
Comprehensive Assessment and Listing Methodology, or CALM). Thus, 319-
funded watershed projects will be linked through geo-locational data to 
water quality status and improvement data contained in WATERS, 
providing a long-term ability to relate actions on the ground to 
improvements in water quality.

Determining Satisfactory Progress

    Section 319(h)(8) of the CWA provides that no Section 319 grant may 
be made to a State (or Territory) in any fiscal year unless the 
Administrator ``determines that such State made satisfactory progress 
in such preceding fiscal year in meeting the schedule specified by such 
State under subsection (b)(2).'' Section 319(b)(2) provides that 
States' and Territories' approved Section 319 management programs shall 
include:

    A schedule containing annual milestones for (i) utilization of 
the program implementation methods identified in subparagraph (B), 
and (ii) implementation of the best management practices identified 
in subparagraph (A) by the categories, subcategories, or particular 
nonpoint sources designated under paragraph (1)(B). Such schedule 
shall provide for utilization of the best management practices at 
the earliest practicable date.

    The May 1996 Nonpoint Source Program and Grants Guidance explains: 
``The Region will determine, based on review of annual reports, other 
documents and discussions with the State, whether the State's progress 
for the previous fiscal year was satisfactory.'' The guidance does not,

[[Page 70904]]

however, state what form the determination must take. In discussions 
with the Regions, we have noted the Regions have adopted various 
methods to make determinations of satisfactory progress. We are 
providing the following guidelines to assure that all 319 grants 
comport with applicable legal requirements.
    Beginning in FY 2001, Regions should include in each Section 319 
grant (or in a separate document, such as the grant-issuance cover 
letter, that is signed by the same EPA official who signs the grant), a 
written determination that the State or Territory has made satisfactory 
progress during the previous fiscal year to meet the schedule of 
milestones specified by the State or Territory in its nonpoint source 
management program. Regions should base these determinations on annual 
reports, mid-year and end-of-year reviews, and other documents and 
discussions with the State or Territory that provide information 
relevant to making these determinations, and should include a brief 
explanation that supports their determinations.

Conclusion

    With the new grants cycle in FY 2001, we are entering the second 
decade of nonpoint source program implementation. With newly upgraded 
State programs, enlarged resources that are targeted more effectively 
than ever before, and a broad array of technical, programmatic, and 
regulatory tools, I envision that our successes during the next ten 
years in restoring waterbodies impaired by nonpoint source pollution 
and protecting threatened waters from nonpoint source pollution will 
accelerate and eclipse those of the previous decade. I look forward to 
working with you to make this vision a reality.
    If you have any questions or comments, please contact me at 202-
260-7166 or <a href="/cdn-cgi/l/email-protection#d8afb9a1b4b9b6bcf6aab7babdaaac98bda8b9f6bfb7ae"><span class="__cf_email__" data-cfemail="fb8c9a82979a959fd58994999e898fbb9e8b9ad59c948d">[email protected]</span></a>, or have your staff contact Dov 
Weitman, Chief of the Nonpoint Source Control Branch, at 202-260-7088 
or <a href="/cdn-cgi/l/email-protection#4d3a282439202c236329223b0d283d2c632a223b"><span class="__cf_email__" data-cfemail="2a5d4f435e474b44044e455c6a4f5a4b044d455c">[email protected]</span></a>.

Attachments (to the Emailed Version of This Guidance)

1. Nonpoint Source Program and Grants Guidance for Fiscal Years 1997 
and Future Years (May 1996)
2. Process and Criteria for Funding State and Territorial Nonpoint 
Source Management Programs in FY 1999 (August 18, 1998)
3. Funding the Development and Implementation of Watershed Restoration 
Action Strategies under Section 319 of the Clean Water Act (December 4, 
1998)
4. Supplemental Guidance for the Award of Section 319 Nonpoint Source 
Grants in FY 2000 (December 21, 1999)
    cc: State Nonpoint Source Coordinators
    EPA Regional Water Quality Branch Chiefs
    EPA Regional Nonpoint Source Coordinators
    EPA Regional Clean Lakes Coordinators
    Kathy Gorospe
    Robbi Savage (ASIWPCA)

Appendix A

                   FY2001 Sec.  319 Grant Allocations
------------------------------------------------------------------------
                                       Base      Increment      Total
------------------------------------------------------------------------
REGION 1                               7,512.7      5,691.3     13,204.0
CONNECTICUT......................      1,291.8        978.6      2,270.4
MAINE............................      1,549.0      1,173.5      2,722.5
MASSACHUSETTS....................      1,790.0      1,356.0      3,146.0
NEW HAMPSHIRE....................      1,009.1        764.4      1,773.5
RHODE ISLAND.....................        895.1        678.1      1,573.2
VERMONT..........................        977.7        740.7      1,718.4
REGION 2                               7,790.6      5,902.0     13,692.6
NEW JERSEY.......................      2,202.1      1,668.3      3,870.4
NEW YORK.........................      4,492.4      3,403.3      7,895.7
PUERTO RICO......................        739.5        560.2      1,299.7
VIRGIN ISLANDS...................        356.6        270.2        626.8
REGION 3                              11,480.9      8,697.6     20,178.5
DELAWARE.........................        947.6        717.9      1,665.5
DIST. OF COL.....................        825.3        625.2      1,450.5
MARYLAND.........................      1,763.0      1,335.6      3,098.6
PENNSYLVANIA.....................      3,887.7      2,945.2      6,832.9
VIRGINIA.........................      2,601.0      1,970.4      4,571.4
WEST VIRGINIA....................      1,456.3      1,103.3      2,559.6
REGION 4                              22,900.4     17,348.8     40,249.2
ALABAMA..........................      2,592.9      1,964.4      4,557.3
FLORIDA..........................      5,177.3      3,922.2      9,099.5
GEORGIA..........................      3,088.9      2,340.1      5,429.0
KENTUCKY.........................      2,262.5      1,714.0      3,976.5
MISSISSIPPI......................      2,536.4      1,921.5      4,457.9
N. CAROLINA......................      3,074.3      2,329.0      5,403.3
S. CAROLINA......................      2,063.1      1,562.9      3,626.0
TENNESSEE........................      2,105.0      1,594.7      3,699.7
REGION 5                              24,268.4     18,385.1     42,653.5
ILLINOIS.........................      5,440.3      4,121.4      9,561.7
INDIANA..........................      2,964.7      2,246.0      5,210.7
MICHIGAN.........................      3,864.4      2,927.6      6,792.0
MINNESOTA........................      4,564.0      3,457.5      8,021.5
OHIO.............................      4,014.1      3,041.0      7,055.1
WISCONSIN........................      3,420.9      2,591.6      6,012.5
REGION 6                              15,789.0     11,961.4     27,750.4
ARKANSAS.........................      2,599.4      1,969.2      4,568.6
LOUISIANA........................      3,215.5      2,436.0      5,651.5

[[Page 70905]]

 
NEW MEXICO.......................      1,615.3      1,223.7      2,839.0
OKLAHOMA.........................      2,091.0      1,584.1      3,675.1
TEXAS............................      6,267.8      4,748.4     11,016.2
REGION 7                              10,929.6      8,280.1     19,209.7
IOWA.............................      3,023.5      2,290.6      5,314.1
KANSAS...........................      2,442.4      1,850.3      4,292.7
MISSOURI.........................      3,055.1      2,314.5      5,369.6
NEBRASKA.........................      2,408.6      1,824.7      4,233.3
REGION 8                              11,280.2      8,545.6     19,825.8
COLORADO.........................      1,672.1      1,266.7      2,938.8
MONTANA..........................      1,749.8      1,325.6      3,075.4
N. DAKOTA........................      3,192.3      2,418.4      5,610.7
S. DAKOTA........................      2,162.9      1,638.6      3,801.5
UTAH.............................      1,214.0        919.7      2,133.7
WYOMING..........................      1,289.1        976.6      2,265.7
REGION 9                              12,436.3      9,421.5     21,857.8
ARIZONA..........................      2,170.7      1,644.5      3,815.2
CALIFORNIA.......................      7,051.6      5,342.0     12,393.6
HAWAII...........................      1,019.9        772.7      1,792.6
NEVADA...........................      1,124.3        851.7      1,976.0
TRUST TER........................          0.0          0.0          0.0
AM. SAMOA........................        356.6        270.2        626.8
GUAM.............................        356.6        270.2        626.8
MARIANAS.........................        356.6        270.2        626.8
REGION 10                              7,611.9      5,766.6     13,378.5
ALASKA...........................      1,609.5      1,219.3      2,828.8
IDAHO............................      1,633.0      1,237.1      2,870.1
OREGON...........................      1,831.4      1,387.4      3,218.8
WASHINGTON.......................      2,538.0      1,922.8      4,460.8
                                  --------------------------------------
    TOTAL to States..............    132,000.0    100,000.0    232,000.0
Tribal...........................      6,000.0  ...........      6,000.0
                                  ======================================
GRAND TOTAL......................    138,000.0    100,000.0    238,000.0
------------------------------------------------------------------------

[FR Doc. 00-30279 Filed 11-27-00; 8:45 am]
BILLING CODE 6560-50-U


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