This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents.

Rules and Regulations Federal Register

30393 

Vol. 87, No. 97 

Thursday, May 19, 2022 

ENVIRONMENTAL PROTECTION 

AGENCY 

2 CFR Part 1500 

40 CFR Parts 33, 35, 45, 46 and 47 

[EPA–HQ OMS–2020–0018; 7573–01–OMS] 

Uniform Administrative Requirements, 

Cost Principles, and Audit 

Requirements for Federal Awards, 

Participation by Disadvantaged 

Business Enterprises in United States 

Environmental Protection Agency 

Programs, State and Local Assistance, 

Research and Demonstration Grants, 

National Environmental Education Act 

Grants 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Final rule. 

SUMMARY: This regulatory action 

finalizes an interim final rule and 

revises certain provisions of other 

Environmental Protection Agency (EPA) 

financial assistance regulations to make 

non-substantive technical corrections to 

the text of the rules. Revisions to these 

rules are exempt from the notice and 

comment requirements of the 

Administrative Procedure Act (APA) 

because it is a matter relating to agency 

management concerning grants. 

DATES: This final rule is effective May 

19, 2022. 

FOR FURTHER INFORMATION CONTACT: 

Suzanne Hersh, Office of Grants and 

Debarment, Office of Mission Support, 

U.S. Environmental Protection Agency; 

email address: hersh.suzanne@epa.gov; 

telephone number: (202) 564–3361. 

SUPPLEMENTARY INFORMATION: This Final 

Rule adopts as final with change the 2 

CFR part 1500 revisions that were 

promulgated in a September 30, 2020 

Federal Register document as an 

Interim Final Rule with request for 

comment. No comments were 

submitted. The Interim Final Rule was 

effective as of November 12, 2020, to 

coincide with the effective date of the 

Office of Management and Budget’s 

revisions to 2 CFR part 200. This Final 

Rule will also make technical 

corrections (described below) to the text 

in 2 CFR part 1500 and provisions of 

other EPA financial assistance rules in 

40 CFR part 33, 40 CFR part 35, 40 CFR 

part 40 and 40 CFR part 47. 

The Final Rule 

1. Amends 2 CFR 1500.3, 

Applicability, to add a citation to 2 CFR 

part 25, Universal Identifier and System 

for Award Management. 

2. Amends 2 CFR 1500.7, Retention 

requirements for records, to update the 

citation to record retention requirements 

in 2 CFR part 200 by changing the 

citation from 2 CFR 200.333 to 2 CFR 

200.334 to coincide with OMB’s 

renumbering of certain sections in 2 

CFR part 200. 

3. Amends 2 CFR 1500.11 Use of the 

same architect or engineer during 

construction, to update citations to 

procurement requirements in 2 CFR part 

200 and clarify certain terms. The 

current citations to 2 CFR 200.320(f) and 

2 CFR 200.326 have been changed to 2 

CFR 200.320(c)(4) and 2 CFR 200.327 

respectively based on OMB 

renumbering certain sections in 2 CFR 

part 200. Additionally, the term 

‘‘subaward’’ in 2 CFR 1500.11 has been 

changed to ‘‘contract’’ throughout this 

provision for consistency with the 

terminology in 2 CFR part 200 and 2 

CFR 1500.10. 

4. Amends 2 CFR 1500.12 to update 

the web addresses to Quality Assurance 

documents. 

5. Amends 2 CFR 1500.14, 

Definitions, to delete the definition of 

‘‘Review Official’’ at 2 CFR 1500.14(f). 

The definition is no longer necessary 

because the Interim Final Rule 

eliminated the role of the Review 

Official in the disputes process. 

6. Amends 2 CFR 1500.17 

Determination of Dispute, to clarify in 2 

CFR 1500.17(e) the time for requesting 

reconsideration of a Dispute Decision 

Official (DDO) decision is 15 calendar 

days from the issuance of a DDO 

decision. 

7. Amends 40 CFR 33.103, 

Definitions, to update the citation to the 

definition of Equipment by changing the 

citation from 2 CFR 200.33 to 2 CFR 

200.1 to coincide with OMB’s 

renumbering of certain sections in 2 

CFR part 200. 

8. Amends 40 CFR 33.105, What are 

the compliance and enforcement 

provisions of this subpart, to update the 

citation to the remedies for noncompliance provisions in 2 CFR part 

200 by changing the citation from 2 CFR 

200.338 to 2 CFR 200.339 to coincide 

with OMB’s renumbering of certain 

sections in 2 CFR part 200. 

9. Amends 40 CFR 35.113, 

Reimbursement for pre-award costs, to 

clarify that the only requirements for the 

allowability of pre-award costs is that 

the costs be incurred during the EPA 

approved budget period for the 

assistance agreement award, that the 

costs be otherwise allowable if incurred 

after award, and that the applicant 

identify pre-award costs in the 

application for EPA funding. This 

clarification will make the regulation 

consistent with EPA’s intent as 

described in the Preamble to the final 

rule for 40 CFR part 35, subpart A (66 

FR 1726, 1728 (January 9, 2001)). 

10. Amends 40 CFR 35.114, 

Amendments and other changes, to 

clarify that all adjustments to amounts 

of environmental program grants require 

prior EPA approval through grant 

amendments. Adjustments requiring 

prior EPA approval include increases or 

decreases in the amount of Federal 

funding as well as increases or 

decreases in the amount of recipients’ 

cost shares. 

11. Amends 40 CFR 35.115, 

Evaluation of performance, to update 

the citations to the provisions for 

performance reporting in 2 CFR part 200 

by changing the citation from 2 CFR 

200.328 to 2 CFR 200.329 and to update 

the citation to the remedies for noncompliance provisions in 2 CFR part 

200 by changing the citation from 2 CFR 

200.338 to 2 CFR 200.339–200.243 to 

coincide with OMB’s renumbering of 

certain sections in 2 CFR part 200. 

12. Amends 40 CFR 35.133(b), 

Changes in eligible programs, by adding 

a reference to an EPA website that 

provides current list of environmental 

programs eligible for inclusion in 

Performance Partnership Grants. 

13. Revises 40 CFR 35.503, Deviation 

from this subpart, to update the citation 

to EPA’s provisions for regulatory 

exceptions from 2 CFR 1500.3 to 2 CFR 

1500.4 to coincide with EPAs’ 

renumbering of certain sections in 2 

CFR part 1500. Additionally, the 

heading of the section and the text has 


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been revised to use the term 

‘‘Exception’’ rather than ‘‘Deviation’’ to 

be consistent with the terminology in 2 

CFR 1500.4. 

14. Amends 40 CFR 35.513(a), 

Reimbursement for pre-award costs, to 

clarify that the only requirements for the 

allowability of pre-award costs is that 

the costs be incurred during the EPA 

approved budget period for the 

assistance agreement award, that the 

costs be otherwise allowable if incurred 

after award, and that the applicant 

identify pre-award costs in the 

application for EPA funding. This 

clarification will make the regulation 

consistent with EPA’s intent as 

described in the Preamble to the final 

rule for 40 CFR part 35, subpart B (66 

FR 3782, 3783 (January 16, 2001)). 

15. Amends 40 CFR 35.514, 

Amendments and other changes, to 

clarify that all adjustments to amounts 

of environmental program grants require 

prior EPA approval through grant 

amendments. Adjustments requiring 

prior EPA approval include increases or 

decreases in the amount of Federal 

funding as well as increases or 

decreases in the amount of recipients’ 

cost shares. 

16. Revises 40 CFR 35.532(b), 

Requirements summary, to correct a 

typographical error in the numbering of 

the subsections. 

17. Amends 40 CFR 35.515, 

Evaluation of performance, to update 

the citations to the provisions for 

performance reporting in 2 CFR part 200 

by changing the citation from 2 CFR 

200.328 to 2 CFR 200.329 and to update 

the citation to the remedies for noncompliance provisions in 2 CFR part 

200 by changing the citation from 2 CFR 

200.338 to 2 CFR 200.339–200.243 to 

coincide with OMB’s renumbering of 

certain sections in 2 CFR part 200. 

18. Amends 40 CFR 35.533(a), 

Programs eligible for inclusion, to 

change the citation to the list of eligible 

programs from 40 CFR 35.101(a)(2) 

through (10) to 40 CFR 35.501(a)(2) 

through (10) to correct a typographical 

error. Additionally, the Final Rule 

amends 40 CFR 35.333(b), by adding a 

reference to an EPA website that 

provides current list of environmental 

programs eligible for inclusion in 

Performance Partnership Grants. 

19. Amends 40 CFR 35.588, Award 

limitations, by changing the citation to 

the quality assurance provisions in 2 

CFR part 1500 from 2 CFR 1500.11 to 2 

CFR 1500.12 to coincide with EPA’s 

renumbering of certain sections of 2 

CFR part 1500. 

20. Amends 40 CFR 35.2036, Design/ 

build projects, to update the citations to 

procurement provisions in 2 CFR part 

200 by changing the citations from 2 

CFR 200.325 to 2 CFR 200.326 and 2 

CFR 200.326 to 2 CFR 200.327 to 

coincide with OMB’s renumbering of 

certain sections in 2 CFR part 200. 

Additionally, citations to the 

procurement provisions in 2 CFR part 

1500 are being changed from 2 CFR 

1500.9 and 2 CFR 1500.10 to 2 CFR 

1500.10 and 2 CFR 1500.11 to coincide 

with EPA’s renumbering of the sections 

in 2 CFR part 1500. EPA is also 

correcting a typographical error in 40 

CFR 35.2036(d)(2). 

21. Revises 40 CFR 35.2105, 

Debarment and suspension, to change 

the citation to the suspension and 

debarment provisions of 2 CFR part 200 

from 2 CFR 200.113 to 2 CFR 200.214 

to correct a typographical error. 

22. Amends 40 CFR 35.2300, Grant 

payments, to update the citation to the 

payment provisions of the Federal grant 

regulations from 40 CFR part 30 to 2 

CFR 200.305. The regulations at 40 CFR 

part 30 were rescinded. 

23. Amends Appendix A to subpart I 

of 40 CFR part 35 to update the citations 

to the procurement provisions in 2 CFR 

part 200 and 2 CFR part 1500 by 

changing the citations from 2 CFR 

200.326 to 2 CFR 200.327; from 2 CFR 

1500.9 to 2 CFR 1500.10; from 2 CFR 

1500.10 to 2 CFR 1500.11 to coincide 

with OMB’s renumbering of certain 

sections in 2 CFR part 200 and EPA’s 

renumbering of the sections in 2 CFR 

part 1500. 

24. Amends 40 CFR 35.3025, 

Overview of state performance under 

delegation, to update the citations to the 

remedies for noncompliance in 2 CFR 

part 200 by changing the citations from 

2 CFR 200.338 through 2 CFR 200.342 

to 2 CFR 200.339 through 2 CFR 200.343 

to coincide with OMB’s renumbering of 

certain sections in 2 CFR part 200. EPA 

is also correcting typographical errors in 

40 CFR 35.3025. 

25. Amends 40 CFR 35.3585, 

Compliance assurance procedures, to 

update the citations to the remedies for 

non-compliance provisions in 2 CFR 

part 200 by changing the citation from 

2 CFR 200.338 through 2 CFR 200.342 

to 2 CFR 200.339 through 2 CFR 200.343 

to coincide with OMB’s renumbering of 

certain sections in 2 CFR part 200. 

26. Amends 40 CFR 35.4012, If there 

appears to be a difference between the 

requirements of 2 CFR parts 200 and 

1500 and this subpart, which 

regulations should my group follow?, to 

update the citations to one of the 

procurement provisions of 2 CFR part 

200 by changing the citation from 2 CFR 

200.224(b)(2) to 2 CFR 200.225(b)(2) to 

coincide with OMB’s renumbering of 

certain sections in 2 CFR part 200. 

Additionally, EPA has made technical 

corrections to 40 CFR 35.4012 to clarify 

that 2 CFR 200.320, Methods of 

procurement to be followed, 2 CFR 

200.324, Cost or price analysis, and 2 

CFR 200.325(b)(2), Federal awarding 

agency or pass-through entity review, do 

not apply to procurements by Technical 

Assistance Grant recipients on the basis 

of the program specific procurement 

requirements in 40 CFR 35.4205 

35.4210. 

27. Revises 40 CFR 35.4120, What 

does my group do next? and 40 CFR 

35.4125, What else does my group need 

to do?, to make technical corrections for 

consistency with EPA’s policy on 

intergovernmental review published at 

85 FR 7510 (November 24, 2020). This 

revision codifies a class exception to 40 

CFR 35.4120 authorized on August 27, 

2021. 

28. Amends 40 CFR 35.4235, Are 

there specific provisions my group’s 

contract(s) must contain?, to update the 

citation to the access to records 

provision in 2 CFR part 200 by changing 

the citation from 2 CFR 200.336 to 2 

CFR 200.337 to coincide with OMB’s 

renumbering of certain sections in 2 

CFR part 200. 

29. Amends 40 CFR 35.4250, Under 

what circumstances would EPA 

terminate my group’s TAG?, to update 

the citation to the termination 

provisions of 2 CFR part 200 by 

changing the citation from 2 CFR 

200.339 to 2 CFR 200.340 to coincide 

with OMB’s renumbering of certain 

sections in 2 CFR part 200. 

30. Revises 40 CFR 35.4245, How does 

my group resolve a disagreement with 

EPA regarding our TAG?, to update the 

description of EPA’s grant dispute 

regulations at 2 CFR 1500.17. The 

regulation currently refers to an 

outdated version of 2 CFR 1500.17 

describing reviews of Dispute Decision 

Official decisions by EPA Regional 

Administrators which are no longer 

available under 2 CFR part 1500 due to 

streamlining of the dispute procedures 

in the Interim Final Rule. This revision 

codifies a class exception to 40 CFR 

35.4245 authorized on August 27, 2021. 

31. Amends 40 CFR 35.4260, What 

other steps might EPA take if my group 

fails to comply with the terms and 

conditions of our award?, to update the 

citation to the remedies for 

noncompliance in 2 CFR part 200 by 

changing the citation from 2 CFR 

200.338 to 2 CFR 200.339 to coincide 

with OMB’s renumbering of certain 

sections in 2 CFR part 200. 

32. Revises 40 CFR 35.6025, Deviation 

from this subpart, to update the citation 

to EPA’s regulatory exception 

provisions in 2 CFR part 1500 by 


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making technical corrections to the 

terminology and changing the citation 

from 2 CFR 1500.3 to 2 CFR 1500.4 for 

consistency with the terminology and 

numbering of the sections in 2 CFR part 

1500. 

33. Amends 40 CFR 35.6055, Statelead pre-remedial Cooperative 

Agreements, to update the citation to the 

quality assurance provisions of 2 CFR 

part 1500 by changing the citation from 

2 CFR 1500.11 to 2 CFR 1500.12 to 

coincide with EPA’s renumbering of the 

sections in 2 CFR part 1500. 

34. Amends 40 CFR 35.6105, Statelead remedial Cooperative Agreements, 

to update the citation to the quality 

assurance provisions of 2 CFR part 1500 

by changing the citation from 2 CFR 

1500.11 to 2 CFR 1500.12 to coincide 

with EPA’s renumbering of the sections 

in 2 CFR part 1500. 

35. Amends 40 CFR 35.6550, 

Procurement system standards, to 

update the citations to procurement 

provisions in 2 CFR part 200 by 

changing the citation from 2 CFR 

200.327 to 2 CFR 200.328 to coincide 

with OMB’s renumbering of certain 

sections in 2 CFR part 200 and to correct 

the cross references to 40 CFR 35.6565. 

36. Amends 40 CFR 35.6565, 

Procurement methods, to update the 

citations to the procurement provisions 

in 2 CFR part 1500 by changing the 

citation from 2 CFR 1500.9 to 2 CFR 

1500.10 to coincide with EPA’s 

renumbering of the sections in 2 CFR 

part 1500. 

37. Amends 40 CFR 35.6590, Bonding 

and insurance to update a citation to 

CFR part 200 by changing the citation 

from 2 CFR 200.325 to 2 CFR 200.326 

to coincide with OMB’s renumbering of 

certain sections in 2 CFR part 200. 

38. Amends 40 CFR 35.6650, Progress 

reports, to update the citations to the 

reporting provisions in 2 CFR part 200 

by changing the citations from 2 CFR 

200.327 and 2 CFR 200.328 to 2 CFR 

200.328 and 2 CFR 200.329 to coincide 

with OMB’s renumbering of certain 

sections in 2 CFR part 200. 

39. Amends 40 CFR 35.6670, 

Financial reports, to update the citation 

to the reporting provisions in 2 CFR part 

200 by changing the citation from 2 CFR 

200.327 to 2 CFR 200.328 to coincide 

with OMB’s renumbering of certain 

sections in 2 CFR part 200. 

40. Amends 40 CFR 35.6705, Records 

retention, to update the citations to the 

record retention provisions in 2 CFR 

part 1500 by changing the citation from 

2 CFR 1500.6 to 2 CFR 1500.7 to 

coincide with EPA’s renumbering of the 

sections in 2 CFR part 1500. 

41. Amends 40 CFR 35.6710, Records 

access, to update the citation to the 

record access provisions in 2 CFR part 

200 by changing the citation from 2 CFR 

200.336 to 2 CFR 200.337 to coincide 

with OMB’s renumbering of certain 

sections in 2 CFR part 200. 

42. Revises 40 CFR 35.6755, 

Monitoring program performance, by 

changing the citation from 2 CFR 

200.328 to 2 CFR 200.329 to coincide 

with OMB’s renumbering of certain 

sections in 2 CFR part 200. 

43. Revises 40 CFR 35.6760 

Enforcement and termination, by 

changing the title and text to refer to 

‘‘Remedies for noncompliance and 

termination’’ and the citations from 2 

CFR 200.338 and 2 CFR 200.339 to 2 

CFR 200.339 and 2 CFR 200.340 to 

coincide with the terminology and 

numbering of certain sections in 2 CFR 

part 200. 

44. Amends 40 CFR 35.6780 Closeout, 

by changing the citations from 2 CFR 

200.343 and 2 CFR 200.344 to 2 CFR 

200.344 and 2 CFR 200.345 to coincide 

with OMB’s renumbering of certain 

sections in 2 CFR part 200. 

45. Revises 40 CFR 35.6785 Collection 

of amounts due, by changing the 

citation from 2 CFR 200.345 to 2 CFR 

200.346 to coincide with OMB’s 

renumbering of certain sections in 2 

CFR part 200. 

46. Revises 40 CFR 35.6790 High risk 

recipients, by changing the citations 

from 2 CFR 200.207 and 2 CFR 200.338 

to 2 CFR 200.208 and 2 CFR 200.339 to 

coincide with OMB’s renumbering of 

certain sections in 2 CFR part 200. The 

title of the section has also been revised 

as ‘‘Specific Conditions’’ for consistency 

with the terminology in 2 CFR part 200. 

47. Amends 40 CFR 35.6815 

Administrative requirements, by 

changing the citation from 2 CFR 

200.345 to 2 CFR 200.346 to coincide 

with OMB’s renumbering of certain 

sections in 2 CFR part 200. 

48. Amends 40 CFR 35.9015 

Summary of annual process, to correct 

a typographical error in 40 CFR 

35.9015(d) by changing ‘‘score of work’’ 

to ‘‘scope of work’’. 

49. Amends 40 CFR 40.135–1 

Preapplication coordination, to 

reference with the requirement in 2 CFR 

200.204(a) to post notices of competitive 

funding opportunities on the OMBdesignated governmentwide website for 

funding and applying for Federal 

financial assistance as well as EPA 

policy and remove the reference to 

soliciting competitive applications on 

Commerce Business Daily. 

50. Amends 40 CFR 40.135–2 

Application requirements, by changing 

the citation from 2 CFR 200.206 to 2 

CFR 200.207 to coincide with OMB’s 

renumbering of certain sections in 2 

CFR part 200. 

51. Amends 40 CFR 40.155 

Availability of information, by changing 

the citations from 2 CFR 200.211 to 2 

CFR 200.212 and from 2 CFR 1500.3 to 

2 CFR 1500.4 to coincide with OMB’s 

renumbering of certain sections in 2 

CFR part 200 and EPA’s renumbering of 

certain sections of 2 CFR part 1500. 

52. Revises 40 CFR 40.160–2 

Financial status report, by changing the 

citation from 2 CFR 200.327 to 2 CFR 

200.328 to coincide with OMB’s 

renumbering of certain sections in 2 

CFR part 200 and to add a citation to 2 

CFR 200.344 which extends the date for 

submitting final financial status reports 

from 90 days to 120 days. The text of the 

regulation will be revised accordingly. 

53. Amends 40 CFR 40.160–3 

Reporting of inventions, to correspond 

to the requirement in 2 CFR 200.344 for 

submitting all required reports within 

120 days of the end date for the period 

of performance. 

54. Revises 40 CFR 40.160–4 

Equipment report, to reference the 

definition of Equipment at 2 CFR 200.1 

and the date for submission of final 

reports at 2 CFR 200.344. 

55. Revises 40 CFR 40.160–5 Final 

report, to correspond to the requirement 

in 2 CFR 200.344 for submitting all 

required reports within 120 days of the 

end date for the period of performance. 

56. Amends 40 CFR 45.130, 

Evaluation of applications, to by 

changing the citation from 2 CFR 

200.204 to 2 CFR 200.205 to coincide 

with OMB’s renumbering of certain 

sections in 2 CFR part 200. 

57. Revises 40 CFR 45.140, Budget 

and project period, to provide that the 

budget and project period for EPA 

financial assistance awards for training 

will be specified in the terms of the 

awards as provided by 2 CFR 200.211. 

This revision codifies a class exception 

to the 3-year training period limitation 

in 40 CFR 45.140 authorized on March 

29, 2018. 

58. Revises 40 CFR 45.150, Reports, to 

change the citations to 2 CFR 200.327 

and 2 CFR 200.328 to 2 CFR 200.328 

and 2 CFR 200.329 to coincide with 

OMB’s renumbering of certain sections 

of 2 CFR part 200 and revises the date 

for submission of the final report to 120 

days from the end of the project period 

to correspond to 2 CFR 200.344. 

59. Revises the Authority of 40 CFR 

part 46 and 40 CFR 46.105to update the 

citation to section 104(k)(7) of the 

Comprehensive Environmental 

Response, Compensation, and Liability 

Act (42 U.S.C. 9604(k)(7)) based on a 

recodification of the statute by the 

Brownfields Utilization, Investment, 


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and Local Development Act (BUILD 

Act). 

60. Amends 40 CFR 47.130 

Performance of grant, to update the 

citations to procurement provisions in 2 

CFR part 200 by changing the citation 

from 2 CFR 200.326 to 2 CFR 200.327 

to coincide with OMB’s renumbering of 

certain sections in 2 CFR part 200. 

I. General Information 

A. Affected Entities 

Entities affected by this action are 

those that apply for and/or receive 

Federal financial assistance (grants, 

cooperative agreements or fellowships) 

from EPA including but not limited to: 

State and local governments, Indian 

Tribes, Intertribal Consortia, Institutions 

of Higher Education, Hospitals, and 

other Non-profit Organizations, and 

Individuals. 

II. Background 

On September 30, 2020 (85 FR 61571– 

61575) EPA promulgated an Interim 

Final Rule revising 2 CFR part 1500, 

Uniform Administrative Requirements, 

Cost Principles and Audit Requirements 

for Federal Awards. These regulations 

supplement OMB’s 2 CFR part 200 

regulations covering the same subjects. 

The Interim Final Rule was effective on 

November 12, 2020 to coincide with the 

effective date of OMB’s revisions to 2 

CFR part 200. EPA offered the public an 

opportunity to comment on the 

revisions to 2 CFR part 1500. The 

preamble to the Interim Rule states that 

‘‘[T]he rule will become final without 

further revision if no changes are 

warranted based on comments EPA 

receives.’’ No comments were 

submitted. Consequently, EPA is issuing 

this Final Rule making technical 

corrections to 2 CFR part 1500. 

Additionally, EPA is making technical 

corrections to other provisions of EPA’s 

financial assistance regulations at 40 

CFR part 33, 40 CFR part 35, 40 CFR 

part 45, and 40 CFR part 47 without 

making substantive revisions to these 

regulations. 

III. Statutory and Executive Order 

Reviews 

A. Executive Order 12866: Regulatory 

Planning and Review 

This action is not a ‘‘significant 

regulatory action’’ and was therefore not 

submitted to the Office of Management 

and Budget (OMB) for review. 

B. Paperwork Reduction Act 

This action does not impose any new 

information collection burden. 

However, the Office of Management and 

Budget (OMB) has previously approved 

the information collection requirements 

contained in the existing regulations 2 

CFR parts 200 and 1500 under the 

provisions of the Paperwork Reduction 

Act, 44 U.S.C. 3501 et seq. and has 

assigned OMB control number 2030– 

0020. The OMB control numbers for 

EPA’s regulations in 40 CFR are listed 

in 40 CFR part 9. 

C. Regulatory Flexibility Act 

This final rule is not subject to the 

Regulatory Flexibility Act (RFA), which 

generally requires an agency to prepare 

a regulatory flexibility analysis for any 

rule that will have a significant 

economic impact on a substantial 

number of small entities. The RFA 

applies only to rules subject to notice 

and comment rulemaking requirements 

under the Administrative Procedure Act 

(APA) or any other statute. This rule is 

not subject to notice and comment 

requirements under the APA or any 

other statute because this rule pertains 

to grants, which the APA expressly 

exempts from notice and comment 

rulemaking requirements. 5 U.S.C. 

553(a)(2). 

D. Unfunded Mandates Reform Act 

This action contains no Federal 

mandates under the provisions of Title 

II of the Unfunded Mandates Reform 

Act of 1995 (UMRA), 2 U.S.C. 1531– 

1538 for State, local, or tribal 

governments or the private sector. The 

action imposes no enforceable duty on 

any State, local or tribal governments or 

the private sector. Therefore, this action 

is not subject to the requirements of 

sections 202 or 205 of the UMRA. 

This action is also not subject to the 

requirements of section 203 of UMRA 

because it contains no regulatory 

requirements that might significantly or 

uniquely affect small governments. This 

action affects all applicants and 

recipients of EPA financial Federal 

assistance and therefore no one entity 

type will be impacted disproportionally 

or significantly. 

E. Executive Order 13132 (Federalism) 

This action does not have federalism 

implications. It will not have substantial 

direct effects on the States, on the 

relationship between the National 

Government and the States, or on the 

distribution of power and 

responsibilities among the various 

levels of government, as specified in 

Executive Order 13132. This action 

affects all applicants and recipients of 

EPA financial Federal assistance and 

therefore no one entity type will be 

impacted disproportionally. Thus, 

Executive Order 13132 does not apply 

to this action. 

F. Executive Order 13175 

This action does not have tribal 

implications, as specified in Executive 

Order 13175 (65 FR 67249, November 9, 

2000). This action affects all applicants 

and recipients of EPA financial Federal 

assistance and therefore no one entity 

type will be impacted disproportionally. 

Thus, Executive Order 13175 does not 

apply to this action. Consistent with the 

EPA Policy on Consultation and 

Coordination with Indian Tribes, the 

EPA consulted with tribal officials on 

these changes. 

G. Executive Order 13045: Protection of 

Children From Environmental Health 

Risks and Safety Risks 

This action is not subject to E.O. 

13045 (62 FR 19885, April 23, 1997) 

because it is not economically 

significant as defined in E.O. 12866. 

H. Executive Order 13211: Actions 

Concerning Regulations That 

Significantly Affect Energy Supply, 

Distribution, or Use 

This action is not subject to Executive 

Order 13211 (66 FR 28355, May 22, 

2001), because it is not a significant 

regulatory action under Executive Order 

12866. 

I. National Technology Transfer and 

Advancement Act 

This action does not involve technical 

standards. 

J. Executive Order 12898: Federal 

Actions To Address Environmental 

Justice in Minority Populations and 

Low-Income Populations 

The EPA believes that it is not 

practicable to determine whether this 

action has disproportionately high and 

adverse effects on minority populations, 

low-income populations, and/or 

indigenous peoples, as specified in 

Executive Order 12898 (59 FR 7629, 

February 16, 1994). 

K. Congressional Review Act 

The Congressional Review Act (CRA), 

5 U.S.C. 801 et seq., as added by the 

Small Business Regulatory Enforcement 

Fairness Act of 1996, generally provides 

that before a rule may take effect, the 

agency promulgating the rule must 

submit a rule report, which includes a 

copy of the rule, to each House of the 

Congress and to the Comptroller General 

of the United States. Section 808 allows 

the issuing agency to make a rule 

effective sooner than otherwise 

provided by the CRA if the agency 

makes a good cause finding that notice 

and public procedure is impracticable, 

unnecessary or contrary to the public 

interest. This determination must be 


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supported by a brief statement. 5 U.S.C. 

808(2). EPA will submit a report 

containing this rule and other required 

information to the U.S. Senate, the U.S. 

House of Representatives, and the 

Comptroller General of the United 

States prior to publication of the rule in 

the Federal Register. This action is not 

a ‘‘major rule’’ as defined by 5 U.S.C. 

804(2). 

List of Subjects 

2 CFR Part 1500 

Accounting, Grant programs, Grants 

administration, Grant programs— 

environmental protection, Loan 

programs, Reporting and recordkeeping 

requirements, Water pollution control, 

Water supply. 

40 CFR Parts 33, 35, 45, 46, and 47 

Accounting, Grant programs, Grants 

administration, Grant programs— 

environmental protection, Loan 

programs, Reporting and recordkeeping 

requirements, Water pollution control, 

Water supply, Grant programs—Indians. 

Kimberly Patrick, 

Principal Deputy Assistant Administrator 

Office of Mission Support. 

For the reasons set forth in the 

preamble, the Environmental Protection 

Agency amends 2 CFR part 1500 and 40 

CFR parts 33, 35, 45, 46 and 47 as 

follows: 

TITLE 2—GRANTS AND AGREEMENTS 

CHAPTER XV—ENVIRONMENTAL 

PROTECTION AGENCY 

PART 1500—UNIFORM 

ADMINISTRATIVE REQUIREMENTS, 

COST PRINCIPLES, AND AUDIT 

REQUIREMENTS FOR FEDERAL 

AWARDS 

■ 1. The authority citation for part 1500 

continues to read as follows: 

Authority: 5 U.S.C. 301, 7 U.S.C. 136 et 

seq., 15 U.S.C. 2601 et seq., 20 U.S.C. 4011 

et seq., 33 U.S.C. 1251 et seq., and 1401 et 

seq., 42 U.S.C. 241, 242b, 243, 246, 300f et 

seq., 1857 et seq., 6901 et seq., 7401 et seq., 

and 9601 et seq.; 2 CFR part 200. 

■ 2. Revise § 1500.3 (b) to read as 

follows: 

§ 1500.3 Applicability. 

* * * * * 

(b) Requirements for subrecipient 

monitoring and management at 2 CFR 

200.331 through 200.333 do not apply to 

loan, loan guarantees, interest subsidies 

and principal forgiveness, purchases of 

insurance or local government debt or 

similar transactions with borrowers by 

recipients of Clean Water State 

Revolving Fund (CWSRF) capitalization 

grants and Drinking Water State 

Revolving Fund (DWSRF) capitalization 

grants. Requirements in 2 CFR part 25, 

Universal Identifier and System for 

Award Management, 2 CFR part 170, 

Reporting subaward and executive 

compensation and internal controls 

described at 2 CFR 200.303 continue to 

apply to CWSRF and DWSRF grant 

recipients and borrowers. 

■ 3. Revise § 1500.7(b) to read as 

follows: 

§ 1500.7 Retention requirements for 

records. 

* * * * * 

(b) When there is a difference between 

the retention requirements for records of 

the Uniform Administrative 

Requirements, Cost Principles, and 

Audit Requirements for Federal Awards 

(2 CFR 200.334) and the applicable 

statute, the non-federal entity will 

follow to the retention requirements for 

records in the statute. 

■ 4. Amend § 1500.11 by revising 

paragraphs (a)(2), (a)(3)(i) and (iv), and 

(b) to read as follows: 

§ 1500.11 Use of the same architect or 

engineer during construction. 

(a) * * * 

(2) The award official approves 

noncompetitive procurement under 2 

CFR 200.320(c)(4) for reasons other than 

simply using the same individual or 

firm that provided facilities planning or 

design services for the project; or 

(3) * * * 

(i) The initial request for proposals 

clearly stated the possibility that the 

firm or individual selected could be 

awarded a contract for services during 

construction; and 

* * * * * 

(iv) None of the recipient’s officers, 

employees or agents solicited or 

accepted gratuities, favors or anything of 

monetary value from contractors or 

other parties to contracts. 

(b) However, if the recipient uses the 

procedures in paragraph (a) of this 

section to retain an architect or 

engineer, any Step 3 contracts between 

the architect or engineer and the grantee 

must meet all other procurement 

provisions in 2 CFR 200.317 through 

200.327. 

■ 5. Revise § 1500.12(e) to read as 

follows: 

§ 1500.12 Quality Assurance. 

* * * * * 

(e) EPA Quality Policy is available at: 

https://www.epa.gov/quality. 

* * * * * 

§ 1500.14 [Amended] 

■ 6. Amend § 1500.14 by removing 

paragraph (f). 

■ 7. Revise § 1500.17(e) to read as 

follows: 

§ 1500.17 Determination of Dispute. 

* * * * * 

(e) The DDO may consider untimely 

filed reconsideration petitions only if 

necessary, to correct a DDO Decision 

that is manifestly unfair and inequitable 

in light of relevant and material 

evidence that the Affected Entity could 

not have discovered during the 15- 

calendar day period for petitioning for 

reconsideration. This evidence must be 

submitted within six months of the date 

of the DDO Decision. The DDO will 

advise the Affected Entity within 30 

days of receipt of an untimely filed 

reconsideration petition whether the 

DDO will accept the petition. Denial of 

an untimely filed reconsideration 

petition constitutes final agency action. 

TITLE 40—PROTECTION OF THE 

ENVIRONMENT 

CHAPTER I—ENVIRONMENTAL 

PROTECTION AGENCY 

PART 33—PARTICIPATION BY 

DISADVANTAGED BUSINESS 

ENTERPRISES IN UNITED STATES 

ENVIRONMENTAL PROTECTION 

AGENCY PROGRAMS 

■ 8. The authority citation for 40 CFR 

part 33 continues to read as follows: 

Authority: 15 U.S.C. 637 note; 42 U.S.C. 

4370d, 7601 note, 9605(f); E.O. 11625, 36 FR 

19967, 3 CFR, 1971 Comp., p. 213; E.O. 

12138, 49 FR 29637, 3 CFR, 1979 Comp., p. 

393; E.O. 12432, 48 FR 32551, 3 CFR, 1983 

Comp., p. 198, 2 CFR part 200. 

■ 9. Amend § 33.103 by revising the 

definition of ‘‘Equipment’’ to read as 

follows: 

§ 33.103 What do the terms in this part 

mean? 

* * * * * 

Equipment means items procured 

under a financial assistance agreement 

as defined by 2 CFR 200.1. 

* * * * * 

■ 10. Amend § 33.105 by revising the 

introductory text to read as follows: 

§ 33.105 What are the compliance and 

enforcement provisions of this part? 

If a recipient fails to comply with any 

of the requirements of this part, EPA 

may take remedial action under 2 CFR 

200.339, Remedies for noncompliance, 

or 40 CFR part 35, as appropriate, or any 

other action authorized by law, 

including, but not limited to, 

enforcement under 18 U.S.C. 1001 and/ 


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or the Program Fraud Civil Remedies 

Act of 1986 (31 U.S.C. 3801 et seq.). 

Examples of the remedial actions under 

2 CFR 200.339 or 40 CFR part 35 

include, but are not limited to: 

* * * * * 

PART 35—STATE AND LOCAL 

ASSISTANCE 

■ 11. The authority citation for 40 CFR 

part 35 continues to read as follows: 

Authority: 42 U.S.C. 7401 et seq.; 33 U.S.C. 

1251 et seq.; 42 U.S.C. 300f et seq.; 42 U.S.C. 

6901 et seq.; 7 U.S.C. 136 et seq.; 15 U.S.C. 

2601 et seq.; 42 U.S.C. 13101 et seq.; Pub. L. 

104–134, 110 Stat. 1321, 1321–299 (1996); 

Pub. L. 105–65, 111 Stat. 1344, 1373 (1997), 

2 CFR part 200. 

Subpart A—Environmental Program 

Grants 

■ 12. Revise § 35.113(a) to read as 

follows: 

§ 35.113 Reimbursement for pre-award 

costs. 

(a) Notwithstanding the requirements 

of 2 CFR parts 200 and 1500, EPA may 

reimburse recipients for pre-award costs 

incurred from the beginning of the 

budget period established in the grant 

agreement if such costs would have 

been allowable if incurred after the 

award. Pre-award costs must be 

identified in the grant application EPA 

approves. 

* * * * * 

■ 13. Revise § 35.114(b) to read as 

follows: 

§ 35.114 Amendments and other changes. 

* * * * * 

(b) Changes requiring approval. 

Recipients must request, in writing, 

grant amendments for changes requiring 

adjustments in environmental program 

grant amounts and extensions of the 

funding period. Recipients may begin 

implementing a change before the 

amendment has been approved by EPA 

but do so at their own risk. If EPA 

approves the change, EPA will issue a 

grant amendment. EPA will notify the 

recipient in writing if the change is 

disapproved. 

* * * * * 

■ 14. Amend § 35.115 by revising 

paragraphs (a) and (c) to read as follows: 

§ 35.115 Evaluation of performance. 

(a) Joint evaluation process. The 

applicant and the Regional 

Administrator will develop a process for 

jointly evaluating and reporting progress 

and accomplishments under the work 

plan. A description of the evaluation 

process and a reporting schedule must 

be included in the work plan (see 

§ 35.107(b)(2)(iv)). The schedule must 

require the recipient to report at least 

annually and must satisfy the 

requirements for progress reporting 

under 2 CFR 200.329. 

* * * * * 

(c) Resolution of issues. If the joint 

evaluation reveals that the recipient has 

not made sufficient progress under the 

work plan, the Regional Administrator 

and the recipient will negotiate a 

resolution that addresses the issues. If 

the issues cannot be resolved through 

negotiation, the Regional Administrator 

may take appropriate measures under 2 

CFR 200.339 through 200.343. The 

recipient may request review of the 

Regional Administrator’s decision under 

the dispute processes in 2 CFR part 

1500, subpart E. 

* * * * * 

■ 15. Revise § 35.133(b) to read as 

follows: 

§ 35.133 Programs eligible for inclusion. 

* * * * * 

(b) Changes in eligible programs. The 

Administrator may, in guidance or 

regulation, describe subsequent 

additions, deletions, or changes to the 

list of environmental programs eligible 

for inclusion in Performance 

Partnership Grants. A current list of 

environmental programs eligible for 

inclusion in Performance Partnership 

Grants is available at www.epa.gov/ 

nepps. 

Subpart B—Environmental Program 

Grants for Tribes 

■ 16. Revise § 35.503 to read as follows: 

§ 35.503 Exceptions from this subpart. 

EPA will consider and may approve 

requests for official exceptions from 

non-statutory provisions of this 

regulation in accordance with 2 CFR 

1500.4. 

■ 17. Revise § 35.513(a) to read as 

follows: 

§ 35.513 Reimbursement for pre-award 

costs. 

(a) Notwithstanding the requirements 

of 2 CFR parts 200 and 1500, EPA may 

reimburse recipients for pre-award costs 

incurred from the beginning of the 

budget period established in the grant 

agreement if such costs would have 

been allowable if incurred after the 

award. Pre-award costs must be 

identified in the grant application EPA 

approves. 

* * * * * 

■ 18. Revise § 35.514(b) to read as 

follows: 

§ 35.514 Amendments and other changes. 

* * * * * 

(b) Changes requiring approval. 

Recipients must request, in writing, 

grant amendments for changes requiring 

adjustments in environmental program 

grant amounts and extensions of the 

funding period. Recipients may begin 

implementing a change before the 

amendment has been approved by EPA 

but do so at their own risk. If EPA 

approves the change, EPA will issue a 

grant amendment. EPA will notify the 

recipient in writing if the change is 

disapproved. 

* * * * * 

■ 19. Amend § 35.515 by revising 

paragraphs (a) and (c) to read as follows: 

§ 35.515 Evaluation of performance. 

(a) Joint evaluation process. The 

applicant and the Regional 

Administrator will develop a process for 

jointly evaluating and reporting progress 

and accomplishments under the work 

plan (see § 35.507(b)(2)(iv)). A 

description of the evaluation process 

and reporting schedule must be 

included in the work plan. The 

schedule must require the recipient to 

report at least annually and must satisfy 

the requirements for progress reporting 

under 2 CFR 200.329. 

* * * * * 

(c) Resolution of issues. If the joint 

evaluation reveals that the recipient has 

not made sufficient progress under the 

work plan, the Regional Administrator 

and the recipient will negotiate a 

resolution that addresses the issues. If 

the issues cannot be resolved through 

negotiation, the Regional Administrator 

may take appropriate measures under 2 

CFR 200.339–200.243. The recipient 

may request review of the Regional 

Administrator’s decision under the 

dispute processes in 2 CFR part 1500, 

subpart E. 

* * * * * 

■ 20. Revise § 35.532(b) to read as 

follows: 

§ 35.532 Requirements summary. 

* * * * * 

(b) In order to include funds from an 

environmental program grant listed in 

§ 35.501(a) of this subpart in a 

Performance Partnership Grant, 

applicants must: 

(1) Meet the requirements for award of 

each environmental program from 

which funds are included in the 

Performance Partnership Grant, except 

the requirements at §§ 35.548(c), 

35.638(b) and (c), 35.691, and 35.708(c), 

(d), (e), and (g). These requirements can 

be found in this regulation beginning at 

§ 35.540. If the applicant is an Intertribal 


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Consortium, each Tribe that is a member 

of the Consortium must meet the 

requirements. 

(2) Apply for the environmental 

program grant. 

(3) Obtain the Regional 

Administrator’s approval of the 

application for that grant. 

* * * * * 

■ 21. Revise § 35.533(a) to read as 

follows: 

§ 35.533 Programs eligible for inclusion. 

(a) Eligible programs. Except as 

provided in paragraph (b) of this 

section, the environmental programs 

eligible for inclusion in a Performance 

Partnership Grant are listed in 

§ 35.501(a)(2) through (10) of this 

subpart. Funds awarded to tribes under 

Tribal Response Program Grants 

(§ 35.501(a)(10)) to capitalize a revolving 

loan fund for Brownfield remediation or 

purchase insurance or develop a risk 

sharing pool, an indemnity pool, or 

insurance mechanism to provide 

financing for response actions may not 

be included in Performance Partnership 

Grants. A current list of environmental 

programs eligible for inclusion in 

Performance Partnership Grants is 

available at www.epa.gov/nepps. 

* * * * * 

■ 22. Revise § 35.588(a)(1) to read as 

follows: 

§ 35.588 Award limitations. 

(a) * * * 

(1) All monitoring and analysis 

activities performed by the Tribe or 

Intertribal Consortium meets the 

applicable quality assurance and quality 

control requirements in 2 CFR 1500.12. 

* * * * * 

Subpart I—Grants for Construction of 

Treatment Works 

■ 23. Amend § 35.2036 by revising 

paragraphs (a)(4), (b), and (d)(2) to read 

as follows: 

§ 35.2036 Design/build project grants. 

(a) * * * 

* * * * * 

(4) The grantee obtains bonds from 

the contractor in an amount the 

Regional Administrator determines 

adequate to protect the Federal interest 

in the treatment works (see 2 CFR 

200.326); 

* * * * * 

(b) Procurement. (1) Grantee 

procurement for developing or 

supplementing the facilities plan to 

prepare the pre-bid package, as well as 

for designing and building the project 

and performing construction 

management and contract 

administration, will be in accordance 

with the procurement standards at 2 

CFR 200.317 through 200.327 and 2 CFR 

1500.10 through 1500.11. 

(2) The grantee will use the sealed bid 

(formal advertising) method of 

procurement to select the design/build 

contractor. 

(3) The grantee may use the same 

architect or engineer that prepared the 

facilities plan to provide any or all of 

the pre-bid, construction management, 

and contract and/or project 

administration services provided the 

initial procurement met EPA 

requirements (see 2 CFR 1500.11). 

* * * * * 

(d) * * * 

(2) An estimated cost of 

supplementing the facilities plan and 

other costs necessary to prepare the prebid package (see appendix A.I.1(a) of 

this subpart); and 

* * * * * 

■ 24. Revise § 35.2105 to read as 

follows: 

§ 35.2105 Debarment and suspension. 

The applicant shall indicate whether 

it used the services of any individual, 

organization, or unit of government for 

facilities planning or design work whose 

name appears on the master list of 

debarments, suspensions, and voluntary 

exclusions. See 2 CFR 200.214 and 2 

CFR part 1532. If the applicant indicates 

it has used the services of a debarred 

individual or firm, EPA will closely 

examine the facilities plan, design 

drawings and specifications to 

determine whether to award a grant. 

EPA will also determine whether the 

applicant should be found nonresponsible under 2 CFR parts 200 and 

1500 or be the subject of possible 

debarment or suspension under 2 CFR 

part 1532. 

■ 25. Revise § 35.2300(e)(1) to read as 

follows: 

§ 35.2300 Grant payments. 

* * * * * 

(e) Payment under grants to States for 

advances of allowance—(1) Advance 

payment to State. Notwithstanding the 

provisions of the introductory paragraph 

of this section, the Regional 

Administrator, under a State grant for 

advances of allowance (see § 35.2025), 

may make payments on an advance or 

letter-of-credit payment method in 

accordance with the requirements under 

2 CFR 200.305. The State and the 

Regional Administrator shall agree to 

the payment terms. 

* * * * * 

■ 26. Amend Appendix A to subpart I 

of part 35 by: 

■ a. Under the heading ‘‘A. Costs 

Related to Subagreements’’ revising 

paragraph 1.b.; and 

■ b. Under the heading ‘‘E. Equipment, 

Materials and Supplies’’ revising 

paragraph 2.a. 

The revisions read as follows: 

Appendix A to Subpart I of Part 35— 

Determination of Allowable Costs 

* * * * * 

A. Costs Related to Subagreements 

1. * * * 

b. The costs of complying with the 

procurement standards in 2 CFR 200.317 

through 200.327 and 2 CFR 1500.10 and 

1500.11. 

* * * * * 

E. Equipment, Materials and Supplies 

* * * * * 

2. * * * 

a. The costs of equipment or material 

procured in violation of the procurement 

standards in 2 CFR 200.317 through 2 CFR 

200.327 and 2 CFR 1500.10 and 1500.11. 

* * * * * 

Subpart J—Construction Grants 

Program Delegation to States 

■ 27. Revise § 35.3025(c) to read as 

follows: 

§ 35.3025 Overview of State performance 

under delegation. 

* * * * * 

(c) Monitoring and evaluating 

program performance. Monitoring and 

evaluation of program performance 

(including State reporting) is based on 

the plan for overview agreed to in 

advance and should be appropriate to 

the delegation situation existing 

between the Region and State. It should 

take into account past performance of 

the State and the extent of State 

experience in administering the 

delegated functions. An on-site 

evaluation will occur at least annually 

and will cover, at a minimum, 

negotiated annual outputs, performance 

expected in the delegation agreement 

and, where applicable, evaluation of 

performance under the assistance 

agreement as provided in 40 CFR 

35.150. The evaluation will cover 

performance of both the Region and the 

State. Upon completion of the 

evaluation, the delegation agreement 

may be revised, if necessary, to reflect 

changes resulting from the evaluation. 

The Regional Administrator may 

terminate or annul any section 205(g) 

financial assistance for cause in 

accordance with 2 CFR 200.339 through 

2 CFR 200.343, Remedies for 

Noncompliance. 


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Subpart L—Drinking Water State 

Revolving Funds 

■ 28. Revise § 35.3585(a) to read as 

follows: 

§ 35.3585 Compliance assurance 

procedures. 

(a) Causes. The RA may take action 

under this section and the remedies of 

noncompliance of 2 CFR 200.339 

through 200.343, if a determination is 

made that a State has not complied with 

its capitalization grant agreement, other 

requirements under section 1452 of the 

Act, this subpart, 2 CFR parts 200 and 

1500, or has not managed the DWSRF 

program in a financially sound manner 

(e.g., allows consistent and substantial 

failures of loan repayments). 

* * * * * 

Subpart M—Grants for Technical 

Assistance 

■ 29. Amend § 35.4012 by revising 

paragraphs (b) and (c) and adding 

paragraphs (d) and (e) to read as follows: 

§ 35.4012 If there appears to be a 

difference between the requirements of 2 

CFR Parts 200 and 1500 and this subpart, 

which regulations should my group follow? 

* * * * * 

(b) 2 CFR 200.320, Methods of 

procurement to be followed. 

(c) 2 CFR 200.325(b)(2), Federal 

awarding agency or pass-through entity 

review. 

(d) 2 CFR 200.324, Cost or price 

analysis. 

(e) 2 CFR part 1500 Subpart E— 

Disputes. 

■ 30. Revise § 35.4120 to read as 

follows: 

§ 35.4120 What does my group do next? 

(a) After you submit an LOI, you must 

determine whether your application is 

subject to Federal intergovernmental 

review requirements under 40 CFR part 

29 or intergovernmental review 

procedures established in state or local 

law. 

(b) To determine whether your TAG 

application is subject to Federal 

intergovernmental review, you must 

consult EPA’s list of financial assistance 

programs subject to intergovernmental 

review under 40 CFR part 29 posted at 

https://www.epa.gov/grants/epafinancial-assistance-programs-subjectexecutive-order-12372-and-section-204- 

demonstration (EPA IR List). The EPA 

IR List identifies the Assistance Listing 

Numbers for EPA financial assistance 

programs that have Federal 

intergovernmental review requirements. 

The Assistance Listing Number for the 

TAG program is 66.806. 

■ 31. Revise § 35.4125 to read as 

follows: 

§ 35.4125 What else does my group need 

to do? 

Once you’ve determined whether 

Federal intergovernmental review 

requirements apply, you must prepare a 

TAG application on EPA SF–424, 

Application for Federal Assistance, or 

those forms and instructions provided 

by EPA that include: 

(a) A ‘‘budget’’; 

(b) A scope of work; 

(c) Assurances, certifications and 

other pre-award paperwork as 2 CFR 

part 200 requires. Your EPA regional 

office will provide you with the 

required forms. 

■ 32. Revise § 35.4235(g)(3) to read as 

follows: 

§ 35.4235 Are there specific provisions my 

group’s contract(s) must contain? 

* * * * * 

(g) * * * 

(3) Access to records (2 CFR 200.337); 

and 

* * * * * 

■ 33. Revise § 35.4245 to read as 

follows: 

§ 35.4245 How does my group resolve a 

disagreement with EPA regarding our TAG? 

The regulations at 2 CFR part 1500 

Subpart E will govern disputes except 

that, before you may obtain judicial 

review of the dispute, you must have 

sought reconsideration of the Dispute 

Decision Official’s Appeal decision 

under 2 CFR 1500.17. 

■ 34. Revise § 35.4250(b) to read as 

follows: 

§ 35.4250 Under what circumstances 

would EPA terminate my group’s TAG? 

* * * * * 

(b) EPA may also terminate your grant 

with your group’s consent in which case 

you and EPA must agree upon the 

termination conditions, including the 

effective date as 2 CFR 200.340 

describes. 

■ 35. Revise § 35.4260 introductory text 

to read as follows: 

§ 35.4260 What other steps might EPA 

take if my group fails to comply with the 

terms and conditions of our award? 

EPA may take one or more of the 

following actions, under 2 CFR 200.339, 

depending on the circumstances: 

* * * * * 

Subpart O—Cooperative Agreements 

and Superfund State Contracts for 

Superfund Response Actions 

■ 36. Revise § 35.6025 to read as 

follows: 

§ 35.6025 Exceptions from this subpart. 

On a case-by-case basis, EPA will 

consider requests for official exceptions 

from the non-statutory provisions of this 

subpart. Refer to the requirements 

regarding exceptions described in 2 CFR 

1500.4. 

■ 37. Revise § 35.6055(b)(2)(i) to read as 

follows: 

§ 35.6055 State-lead pre-remedial 

Cooperative Agreements. 

* * * * * 

(b) * * * 

(2) Quality assurance. (i) The 

recipient must comply with the quality 

assurance requirements described in 2 

CFR 1500.12. 

* * * * * 

■ 38. Revise § 35.6105(a)(2)(vi)(A) to 

read as follows: 

§ 35.6105 State-lead remedial Cooperative 

Agreements. 

* * * * * 

(a) * * * 

(2) * * * 

(vi) Quality assurance—(A) General. If 

the project involves environmentally 

related measurements or data 

generation, the recipient must comply 

with the requirements regarding quality 

assurance described in 2 CFR 1500.12. 

* * * * * 

■ 39. Revise § 35.6550(a)(1) to read as 

follows: 

§ 35.6550 Procurement system standards. 

(a) * * * (1) In addition to the 

procurement standards described in 2 

CFR 200.317 through 200.327 and 2 CFR 

part 1500, the State shall comply with 

the requirements in the following: 

Paragraphs (a)(5), (a)(9), and (b) of this 

section, § 35.6555(c), in § 35.6565 the 

first sentence of the introductory text, 

the first sentence of paragraph (b), 

paragraph (d), and §§ 35.6570, 35.6575, 

and 35.6600. Political subdivisions and 

Tribes must follow all of the 

requirements included or referenced in 

this section through § 35.6610. 

* * * * * 

■ 40. Revise § 35.6565 introductory text 

to read as follows: 

§ 35.6565 Procurement methods. 

The recipient must comply with the 

requirements for payment to consultants 

described in 2 CFR 1500.10. In addition, 

the recipient must comply with the 

following requirements: 

* * * * * 

■ 41. Revise § 35.6590(a) to read as 

follows: 

§ 35.6590 Bonding and insurance. 

(a) General. The recipient must meet 

the requirements regarding bonding 


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described in 2 CFR 200.326. The 

recipient must clearly and accurately 

state in the contract documents the 

bonds and insurance requirements, 

including the amounts of security 

coverage that a bidder or offeror must 

provide. 

* * * * * 

■ 42. Revise § 35.6650(a) to read as 

follows: 

§ 35.6650 Progress reports. 

(a) Reporting frequency. The recipient 

must submit progress reports as 

specified in the Cooperative Agreement. 

Progress reports will be required no 

more frequently than quarterly, and will 

be required at least annually. 

Notwithstanding the requirements of 2 

CFR 200.328 and 200.329, the reports 

shall be due within 60 days after the 

reporting period. 

* * * * * 

■ 43. Amend § 35.6670 by revising 

paragraphs (a) and (b)(2)(i) to read as 

follows: 

§ 35.6670 Financial reports. 

(a) General. The recipient must 

comply with the requirements regarding 

financial reporting described in 2 CFR 

200.328. 

(b) * * * 

(2) * * * 

(i) If a Financial Status Report is 

required annually, the report is due 90 

days after the end of the Federal fiscal 

year or as specified in the Cooperative 

Agreement. If quarterly or semiannual 

Financial Status Reports are required, 

reports are due in accordance with 2 

CFR 200.328; 

* * * * * 

■ 44. Revise § 35.6705(d) to read as 

follows: 

§ 35.6705 Records retention. 

* * * * * 

(d) Starting date of retention period. 

The recipient must comply with the 

requirements regarding the starting 

dates for records retention described in 

2 CFR 1500.7. 

* * * * * 

■ 45. Amend § 35.6710 by revising 

paragraphs (a) and (c) to read as follows: 

§ 35.6710 Records access. 

(a) Recipient requirements. The 

recipient must comply with the 

requirements regarding records access 

described in 2 CFR 200.337. 

* * * * * 

(c) Contractor requirements. The 

recipient must require its contractor to 

comply with the requirements regarding 

records access described in 2 CFR 

200.337. 

■ 46. Revise § 35.6755 to read as 

follows: 

§ 35.6755 Monitoring program 

performance. 

The recipient must comply with the 

requirements regarding program 

performance monitoring described in 2 

CFR 200.329. 

■ 47. Revise § 35.6760 to read as 

follows: 

§ 35.6760 Remedies for noncompliance 

and termination. 

The recipient must comply with all 

terms and conditions in the Cooperative 

Agreement and is subject to the 

remedies for noncompliance with the 

terms of an award and termination 

described in 2 CFR 200.339 and 

200.340. 

■ 48. Revise § 35.6780(b) to read as 

follows: 

§ 35.6780 Closeout. 

* * * * * 

(b) The recipient must comply with 

the closeout requirements described in 

2 CFR 200.344 and 200.345. 

* * * * * 

■ 49. Revise § 35.6785 to read as 

follows: 

§ 35.6785 Collection of amounts due. 

The recipient must comply with the 

requirements described in 2 CFR 

200.346 regarding collection of amounts 

due. 

■ 50. Revise § 35.6790 to read as 

follows: 

§ 35.6790 Specific conditions. 

If EPA determines that a recipient is 

not responsible, EPA may impose 

specific conditions on the award as 

described in 2 CFR 200.208 or 

restrictions on the award as described in 

2 CFR 200.339. 

■ 51. Revise § 35.6815(a)(2) to read as 

follows: 

§ 35.6815 Administrative requirements. 

* * * * * 

(a) * * * 

(2) Collection of amounts due. The 

State and/or political subdivision must 

comply with the requirements described 

in 2 CFR 200.346 regarding collection of 

amounts due. 

* * * * * 

Subpart P—Financial Assistance for 

the National Estuary Program 

■ 52. Revise § 35.9015(d) to read as 

follows: 

§ 35.9015 Summary of annual process. 

* * * * * 

(d) The Regional Administrator may 

use funds not awarded to an applicant 

to supplement awards to other 

recipients who submit a scope of work 

approved by the management 

conference for NEP funds. 

* * * * * 

PART 40—RESEARCH AND 

DEMONSTRATION GRANTS 

■ 53. The authority citation for part 40 

continues to read as follows: 

Authority: 7 U.S.C. 136 et seq.; 15 U.S.C. 

2609 et seq.; 33 U.S.C. 1254 et seq. and 1443; 

42 U.S.C. 241 et seq., 300f et seq., 1857 et 

seq., 1891 et seq., and 6901 et seq., 2 CFR 

part 200. 

■ 54. Revise § 40.135–1(b) to read as 

follows: 

§ 40.135–1 Preapplication coordination. 

* * * * * 

(b) Applications for grants for 

demonstration projects funded by the 

Office of Resource Conservation and 

Recovery will be solicited in accordance 

with 2 CFR 200.204 and selections will 

be made on a competitive basis to the 

extent required by EPA policy. 

■ 55. Revise § 40.135–2 introductory 

text to read as follows: 

§ 40.135–2 Application requirements. 

All applications for research and 

demonstration grants shall be submitted 

to the Environmental Protection 

Agency, in accordance with 2 CFR 

200.207. 

* * * * * 

■ 56. Amend § 40.155 by revising 

paragraphs (b) and (c) to read as follows: 

§ 40.155 Availability of information. 

* * * * * 

(b) An assertion of entitlement to 

confidential treatment of part or all of 

the information in an application may 

be made using the procedure described 

in 2 CFR 200.212. See also §§ 2.203 and 

2.204 of this chapter. 

(c) All information and data contained 

in the grant application will be subject 

to external review unless deviation is 

approved for good cause pursuant to 2 

CFR 1500.4. 

■ 57. Revise § 40.160–2 to read as 

follows: 

§ 40.160–2 Financial status report. 

A financial status report must be 

prepared and submitted within 120 days 

after completion of the budget and 

project periods in accordance with 2 

CFR 200.328 and 2 CFR 200.344. 

■ 58. Revise § 40.160–3(b) to read as 

follows: 


jspears on DSK121TN23PROD with RULES1
30402 Federal Register / Vol. 87, No. 97 / Thursday, May 19, 2022 / Rules and Regulations 

§ 40.160–3 Reporting of inventions. 

* * * * * 

(b) A final invention report is required 

within 120 days after completion of the 

project period as provided in 2 CFR 

200.344. 

* * * * * 

■ 59. Revise § 40.160–4 to read as 

follows: 

§ 40.160–4 Equipment report. 

As provided in 2 CFR 200.344 within 

120 days of the completion or 

termination of a project, the grantee will 

submit a listing of all items of 

Equipment as defined at 2 CFR 200.1. 

■ 60. Revise § 40.160–5 to read as 

follows: 

§ 40.160–5 Final report. 

The grantee shall submit a draft of the 

final report for review no later than 90 

days prior to the end of the approved 

project period. The report shall 

document project activities over the 

entire period of grant support and shall 

describe the grantee’s achievements 

with respect to stated project purposes 

and objectives. The report shall set forth 

in complete detail all technical aspects 

of the projects, both negative and 

positive, grantee’s findings, conclusions, 

and results, including, as applicable, an 

evaluation of the technical effectiveness 

and economic feasibility of the methods 

or techniques investigated or 

demonstrated. The final report shall 

include EPA comment when required 

by the grants officer. Within 120 days of 

the end of the project period, one 

reproducible copy suitable for printing 

and such other copies as may be 

stipulated in the grant agreement shall 

be transmitted to the grants officer as 

required by 2 CFR 200.344. 

PART 45—TRAINING ASSISTANCE 

■ 61. The authority citation for part 45 

continues to read as follows: 

Authority: Sec. 103 of the Clean Air Act, 

as amended (42 U.S.C. 7403), secs. 104(g), 

109, and 111 of the Clean Water Act, as 

amended (33 U.S.C. 1254(g), 1259, and 1261), 

secs. 7007 and 8001 of the Solid Waste 

Disposal Act, as amended (42 U.S.C. 6977 

and 6981); sec. 1442 of the Safe Drinking 

Water Act, as amended (42 U.S.C. 300j–1). 2 

CFR part 200. 

■ 62. Amend § 45.130 by revising 

paragraph (a) introductory text, to read 

as follows: 

§ 45.130 Evaluation of applications. 

(a) Consistent with 2 CFR 200.205, the 

appropriate EPA program office staff 

will review training applications in 

accordance with the following criteria: 

* * * * * 

■ 63. Revise § 45.140 to read as follows: 

§ 45.140 Budget and project period. 

The budget and project periods for 

training awards will be specified in the 

terms of the awards as provided by 2 

CFR 200.211. 

■ 64. Revise § 45.150 to read as follows: 

§ 45.150 Reports. 

(a) Recipients must submit the reports 

required in 2 CFR 200.328 and 200.329. 

(b) A draft of the final project report 

is required 90 days before the end of the 

project period. The recipient shall 

prepare the final projects report in 

accordance with the project officer’s 

instructions and submit the final project 

report within 120 days after the end of 

the project period as provided in 2 CFR 

200.344. 

PART 46—FELLOWSHIPS 

■ 65. The authority citation for part 46 

is revised to read as follows: 

Authority: Section 103(b)(5) of the Clean 

Air Act, as amended (42 U.S.C. 7403(b)(5)); 

sections 104(b)(5) and (g)(3)(B) of the Clean 

Water Act, as amended (33 U.S.C. 1254(b)(5) 

and (g)(3)(B)); section 1442 of the Safe 

Drinking Water Act, as amended (42 U.S.C. 

300j–1); section 8001 of the Solid Waste 

Disposal Act, as amended (42 U.S.C. 6981); 

section 10 of the Toxic Substances Control 

Act, as amended (15 U.S.C. 2609); section 20 

of the Federal Insecticide, Fungicide, and 

Rodenticide Act, as amended (7 U.S.C. 136r); 

sections 104(k)(7) and 311 of the 

Comprehensive Environmental Response, 

Compensation, and Liability Act (42 U.S.C. 

9604(k)(7) and 42 U.S.C. 9660). 2 CFR part 

200 and 2 CFR part 1500. 

■ 66. Revise § 46.105(g) to read as 

follows: 

§ 46.105 Authority. 

* * * * * 

(g) Sections 104(k)(7) and 311 of the 

Comprehensive Environmental 

Response, Compensation, and Liability 

Act (42 U.S.C. 9604(k)(7) and 42 U.S.C. 

9660). 

PART 47—NATIONAL 

ENVIRONMENTAL EDUCATION ACT 

GRANTS 

■ 67. The authority citation for part 47 

continues to read as follows: 

Authority: 20 U.S.C. 5505. 2 CFR part 200. 

■ 68. Revise § 47.130(c) to read as 

follows: 

§ 47.130 Performance of grant. 

* * * * * 

(c) Procurement procedures for all 

recipients are described in 2 CFR part 

200 subpart D—Post Federal Award 

Requirements (2 CFR 200.317 through 

200.327). These procedures include 

provisions for small purchase 

procedures. 

[FR Doc. 2022–09725 Filed 5–18–22; 8:45 am] 

BILLING CODE 6560–50–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2022–0585; Project 

Identifier MCAI–2022–00603–T; Amendment 

39–22053; AD 2022–11–03] 

RIN 2120–AA64 

Airworthiness Directives; Airbus SAS 

Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule; request for 

comments. 

SUMMARY: The FAA is adopting a new 

airworthiness directive (AD) for certain 

Airbus SAS Model A350–941 and –1041 

airplanes. This AD was prompted by an 

indication that both elevator actuators of 

the PRIMary flight control computers 

(PRIMs) were considered faulty due to 

incorrect instructions with a new PRIM 

standard. This AD requires revising the 

existing airplane flight manual (AFM), 

and revising the operator’s existing 

FAA-approved minimum equipment list 

(MEL) by incorporating certain master 

minimum equipment list (MMEL) 

provisions, to include limitations and 

procedures to mitigate the risk of 

elevator failure during flare, as specified 

in a European Union Aviation Safety 

Agency (EASA) Emergency AD, which 

is incorporated by reference. The FAA 

is issuing this AD to address the unsafe 

condition on these products. 

DATES: This AD becomes effective June 

3, 2022. 

The Director of the Federal Register 

approved the incorporation by reference 

of a certain publications listed in this 

AD as of June 3, 2022. 

The FAA must receive comments on 

this AD by July 5, 2022. 

ADDRESSES: You may send comments, 

using the procedures found in 14 CFR 

11.43 and 11.45, by any of the following 

methods: 

• Federal eRulemaking Portal: Go to 

https://www.regulations.gov. Follow the 

instructions for submitting comments. 

• Fax: 202–493–2251. 

• Mail: U.S. Department of 

Transportation, Docket Operations, M– 

30, West Building Ground Floor, Room 

W12–140, 1200 New Jersey Avenue SE, 

Washington, DC 20590. 


jspears on DSK121TN23PROD with RULES1