[Federal Register Volume 61, Number 127 (Monday, July 1, 1996)]
[Notices]
[Pages 33913-33917]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-16696]


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ENVIRONMENTAL PROTECTION AGENCY

[FRL-5530-1]


Sustainable Development Challenge Grant Program

AGENCY: U.S. Environmental Protection Agency (EPA).

ACTION: Solicitation of Proposals for FY 1996; Request for Comments on 
Program Design for Full Implementation in FY 1997.

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SUMMARY: The U.S. Environmental Protection Agency (EPA) announces and 
solicits applications for a new competitive grant program, the 
Sustainable Development Challenge Grant (SDCG) program, one of 
President Clinton's ``high priority'' actions described in the March 
16, 1995 report, ``Reinventing Environmental Regulation.'' The EPA 
expects to fund a limited number of pilot projects in FY 1996 through 
the new SDCG program. EPA is also asking for comments on the program 
design to help develop a full scale program for FY 1997. The 
Sustainable Development Challenge Grant program is intended to 
``encourage community, business, and government to work cooperatively 
to develop flexible, locally-oriented approaches that link place-based 
environmental management with sustainable development and 
revitalization.'' The SDCG program will challenge communities to invest 
in a sustainable future that links environmental protection and 
economic prosperity to provide equitable opportunities for health, 
safety and well-being. These grants are intended to: catalyze 
community-based and regional projects to promote sustainable 
development; build partnerships to increase community long-term 
capacity to protect the environment; and leverage public and private 
investments to enhance environmental quality by enabling sustainable 
community efforts to continue beyond EPA funding.
    This document includes: background information on the Sustainable 
Development Challenge Grant program; a description of the program; the

[[Page 33914]]

criteria; the process for selection of projects; and the program's 
relationship to other related EPA activities.

DATES: The period for submission of proposals for FY 1996 will begin 
upon publication of this Federal Register notice pursuant to the 
Information Collection Request (ICR No. 1755.01) approved by the Office 
of Management and Budget (OMB Approval No. 2010-0026) under the 
Paperwork Reduction Act. Project pre-applications must be postmarked by 
August 1, 1996. Comments on this Federal Register notice concerning 
program design for full implementation in FY 1997 are due August 30, 
1996.

ADDRESSES: Comments on the FY 1997 program may be provided in writing. 
Please send your comments by mail or fax to: Pamela A. Hurt, U.S. EPA, 
Office of Regional Operations and State/Local Relations (1501), 401 M 
St., S. W., Washington, D.C. 20460. The fax number for the office is 
202-260-9365.
    Applications. Pre-application kits for FY 1996 project proposals 
are available upon request from EPA Headquarters. These kits will 
include more detailed guidance and may be requested in writing from the 
address above, or by fax addressed to Pamela A. Hurt at 202-260-9365, 
or by voice mail at 202-260-0422. EPA will notify successful applicants 
in writing and provide technical assistance in preparation of formal 
applications.
    The original plus one copy of the pre-application, should be sent 
to: Pamela A. Hurt, U.S. EPA, Office of Regional Operations and State/
Local Relations, (1501), 401 M Street, S.W., Washington, D.C. 20460. 
Pre-applications should include a one page cover sheet that summarizes: 
the amount of assistance requested from EPA; the various entities or 
organizations that will be partners in the project; and the project's 
anticipated results. The cover sheet should also include the 
applicant's name, address, and phone number. The project proposal 
narrative should be limited to five (5) double-sided pages and explain 
the relationship of the proposal to the criteria for project selection 
described in this notice.

FOR FURTHER INFORMATION CONTACT: Pamela A. Hurt, U.S. EPA, Office of 
Regional Operations and State/Local Relations (1501), 401 M Street, 
S.W., Washington, D.C. 20460, or by voice mail at (202) 260-0422.

SUPPLEMENTARY INFORMATION:

Purpose

    EPA intends these competitive grants to be catalysts that challenge 
communities to invest in a sustainable future, recognizing that 
sustainable environmental quality and economic prosperity are 
inextricably linked. The Sustainable Development Challenge Grant 
program is an important opportunity for EPA to award competitive grants 
for seed funding to leverage private and other public sector investment 
in communities (and larger geographic areas such as watersheds) to 
build partnerships that increase a community's long-term capacity to 
protect the environment through sustainable development. This grant 
program challenges local communities to invest in their own sustainable 
futures.

Overview of the Sustainable Development Challenge Grant Approach

    The grant program encourages communities to recognize and build the 
fundamental connection between environmental protection and economic 
development. Accomplishing this linkage requires integrating 
environmental protection in policy and decision-making at all levels of 
government and throughout the economy. The SDCG program recognizes the 
significant role that communities have and should play in environmental 
protection. The program acknowledges that sustainable development is 
often best designed and implemented at a community level. This program 
also requires a stakeholder process that will identify measurable 
milestones as steps in an iterative process that integrates 
environmental and economic goals. The EPA will implement this program 
consistent with the principles of Executive Order 12898, ``Federal 
Actions to Address Environmental Justice in Minority Populations and 
Low-Income Populations'' (February 11, 1994). Projects funded must 
ensure that no one is subjected to unjust or disproportionate 
environmental impacts.
    Achieving sustainability is a responsibility shared by 
environmental, community and economic interests at all levels of 
government and the private sector. This emphasis on strong community 
involvement requires a commitment to ensuring that all Americans, of 
varying economic and social groups, are afforded opportunities to 
participate in decision-making. Only through the combined efforts, and 
collaboration of governments, private organizations, and individuals 
can our communities, regions, states, and nation achieve the benefits 
of sustainable development.

Linkages to Other Initiatives

    The Sustainable Development Challenge Grant (SDCG) program is a new 
competitive grant program, one of 25 major environmental reforms 
announced by President Clinton in March 1995, as part of EPA's 
Reinventing Environmental Regulation.
    EPA and its state and local partners are reinventing the way 
environmental protection is accomplished in the United States. The 
Agency recognizes that environmental progress will not be achieved 
solely by regulation, but also requires individual, institutional, and 
corporate responsibility, commitment and stewardship. The Sustainable 
Development Challenge Grant program is consistent with other community-
based efforts EPA has introduced, such as Brownfields, Project XL, and 
the Community-Based Environmental Protection Approach, which stimulate 
broad community participation. The Sustainable Development Challenge 
Grant program is also a step in implementing Agenda 21, the Global Plan 
of Action on Sustainable Development, agreed to by the United States at 
the Earth Summit in Rio de Janeiro in 1992.
    Through the Sustainable Development Challenge Grant Program, EPA 
intends to further the vision and goals of the President's Council on 
Sustainable Development (PCSD), created in 1993 by President Clinton. 
The Council, composed of corporate, government, and non-profit 
representatives, was charged to find ways to ``bring people together to 
meet the needs of the present without jeopardizing the future.'' The 
Council has declared this vision:

    ``Our vision is of a life-sustaining Earth. We are committed to 
the achievement of a dignified, peaceful and equitable existence. We 
believe a sustainable United States will have a growing economy that 
equitably provides opportunities for satisfying livelihoods and a 
safe, healthy, high quality of life for current and future 
generations. Our nation will protect its environment, its natural 
resource base, and the functions and viability of natural systems on 
which all life depends.'' (February 1996)

    The Sustainable Development Challenge Grant program furthers this 
vision by encouraging community initiatives that achieve environmental 
quality with economic prosperity through public and private involvement 
and investment.

Examples of Potential Projects

    EPA welcomes proposals for many types of projects. The following 
examples of the types of projects EPA envisions funding. These examples 
are

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only illustrative and are not intended to limit proposals in any way.
    <bullet> Demonstrate environmental and economic benefits in a rural 
community through the development of community-based agricultural 
pollution prevention practices. Reduced use of fertilizers and 
pesticides by area farmers should result in economic benefits in lower 
drinking water treatment and monitoring costs, and reduced water 
treatment costs for local businesses. It is also expected to lower 
human exposure to agricultural chemicals and minimize adverse impacts 
to habitat with associated quality of life benefits.
    <bullet> Demonstrate the design and establishment of an eco-
industrial park. Enlist the participation of local officials, 
environmental groups, and business interests in designing and 
establishing an eco-industrial park that will attract industries that 
can use each other's wastes as raw materials, and that pioneer 
environmentally sound technologies, thereby promoting new and existing 
locally based companies that are ``zero dischargers''. The goal would 
be to reduce costs for the businesses involved for water treatment, 
waste incineration, and landfilling. These improvements would be 
intended to have positive long-term water and air quality benefits.
    <bullet> Demonstrate a cooperative effort among business interests, 
environmental groups, and government agencies to design and implement a 
plan for managing timber lands in such a way that they continue to 
provide jobs and bring money into the local economy, but also protect 
critical habitats and sensitive species. As part of the plan 
development, wildlife agencies and organizations commit to conducting 
or funding the scientific research needed. The project will also 
explore opportunities for using extracted timber in local manufacturing 
and finished goods.
    <bullet> Demonstrate the interrelationship between federal 
environmental mandates and sound urban redevelopment as an alternative 
to suburban sprawl. The project will demonstrate the benefits of 
development that uses existing urban infrastructure close to the urban 
core and also protects drinking water sources, air quality, and 
wildlife habitat. By providing open spaces for natural sumps for the 
treatment of stormwater runoff, green spaces can be provided to 
increase aesthetic value and recreational opportunities. The project 
will increase residential spaces with good access to public 
transportation, and will assess improvements in air quality, as well as 
the impact on use of other infrastructure, sewers, sidewalks and roads. 
The project will assess the environmental quality benefits gained from 
urban redevelopment.

Selection Criteria

    After determining that the proposed project meets the two statutory 
threshold determinations described below in the Statutory Authority 
section, EPA will also consider the following criteria, weighting each 
as indicated:
(1) Sustainability: 40 points
    <bullet> How well does the proposal integrate environmental 
protection and economic prosperity?
    <bullet> Does the proposal define the community it will benefit, 
either by geographic or political boundaries? Does the proposal define 
how it relates to regional sustainability?
    <bullet> Does the proposal take a comprehensive multi-media 
approach (e.g. air, water, land) to assess environmental quality and 
set priorities for action?
    <bullet> Does the proposal use a proactive environmental approach, 
for example, pollution prevention or watershed protection?
    <bullet> Will the proposal result in sustainable economic 
development benefits, such as more appropriate, efficient use of 
resources so that jobs created will be sustained, or the amount of 
money retained in the local economy will be maximized?
    <bullet> Does the proposal represent new solutions for the 
community, given their previous history and current circumstances?
(2) Community Commitment and Contribution: 30 points
    <bullet> Do the partners fully represent those in the community who 
have an interest in or will be affected by the project?
    <bullet> Will the proposal's outcomes and results benefit all 
affected groups in the community?
    <bullet> Does the proposal describe effective methods for community 
involvement to assure that all affected by the project are provided an 
opportunity to participate?
    <bullet> Does the proposal describe the depth and breadth of the 
community's support (financial and in-kind) for the proposal? Does it 
provide evidence of long-term commitment to the proposal?
(3) Measurable Results: 30 points
    <bullet> Does the proposal describe the specific environmental and 
economic benefits to be gained by the community? What non-sustainable 
behaviors will be addressed by the proposal?
    <bullet> Does the proposal include achievable short-term (within 
three years) and long-term targets or benchmarks to measure the 
proposal's contribution to the community's sustainability? (These may 
be quantitative and/or qualitative.)
    <bullet> Does the proposal set goals for the proactive 
environmental approaches it employs?
    <bullet> After seed funds from EPA are exhausted, does the proposal 
demonstrate how the work will continue, or how it will evolve into or 
generate other sustainability efforts, either locally or regionally?
    <bullet> Will the experiences gained during the project be 
transferable to other communities?

Statutory Authority

    EPA expects to award Sustainable Development Challenge Grants 
program under the following eight grant authorities: Clean Air Act 
section 103(b)(3); Clean Water Act section 104 (b)(3); Resource 
Conservation and Recovery Act section 8001; Toxics Substances Control 
Act section 10; Federal Insecticide, Fungicide, and Rodenticide Act 
section 20; Safe Drinking Water Act sections 1442(a) and (b); National 
Environmental Education Act, section 6; and Pollution Prevention Act, 
section 6605.
    As a threshold determination, to be selected for funding, a project 
must consist of activities within the statutory terms of these EPA 
grant authorities. Most of the statutes authorize grants for the 
following activities: ``research, investigations, experiments, 
training, demonstrations, surveys and studies.'' These activities 
relate generally to the gathering or transferring of information or 
advancing the state of knowledge. Grant proposals should emphasize this 
``learning'' concept, as opposed to ``fixing'' an environmental problem 
via a well-established method. For example, a proposal to plant some 
trees in an economically depressed area, in order to prevent erosion, 
would probably not, in itself, fall within the statutory terms 
``research, studies'' etc., nor would a proposal to start a routine 
recycling program.
    On the other hand, the statutory term ``demonstration'' can 
encompass the first instance of the application of a pollution control 
technique, or an innovative application of a previously used method. 
Similarly, the application of established practices may qualify when 
they are part of a broader project which qualifies under the term 
``research.''
    As a second threshold determination, in order to be funded, a 
project's subject generally must be one that is specified in the 
statutes listed above. For most of

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the statutes, a project must address the causes, effects, extent, 
prevention, reduction, and elimination of air, water, or solid/
hazardous waste pollution, or, in the case of grants under the Toxic 
Substances Control Act or the Federal Insecticide, Fungicide and 
Rodenticide Act, to ``carrying out the purposes of the Act.'' While the 
purpose of this program's grants will include the other two aspects of 
sustainable development and economic prosperity, the overarching 
concern or principal focus must be on the statutory purpose of the 
applicable grant authority, in most cases ``to control pollution.'' 
Note that proposals relating to other topics which are sometimes 
included within the term ``environment'' such as recreation, 
conservation, restoration, protection of wildlife habitats, etc., 
should describe the relationship of these topics to the statutorily 
required purpose of pollution control.

Definitions

    Sustainable Development: Sustainable development means integrating 
environmental protection, and community and economic goals. Sustainable 
development meets the needs of the present generation without 
compromising the ability of future generations to meet their own needs. 
The sustainable development approach seeks to encourage broad-based 
community participation and public and private investment in decisions 
and activities that define a community's environmental and economic 
future.
    Community: The scale used to define ``community'' under this 
challenge grant program will vary with the issues, problems, or 
opportunities that an applicant intends to address. The SDCG program 
recognizes the significant role that communities have and should play 
in environmental protection. ``Community'' means a geographic area 
within which different groups and individuals share common interests 
related to their homes and businesses, their personal and professional 
lives, the surrounding natural landscape and environment, and the local 
or regional economy. A community can be one or more local governments, 
a neighborhood within a small or large city, a large metropolitan area, 
a small or large watershed, an airshed, tribal lands, ecosystems of 
various scales, or some other specific geographic area with which 
people identify.

Who Should Apply

    Eligible applicants include: (1) Incorporated non-profit (or not-
for-profit) private agencies, institutions and organizations; and (2) 
public (state, county, regional or local) agencies, institutions and 
organizations, including those of federally-recognized Indian tribes. 
While state agencies are eligible they are encouraged to work in 
partnership with community groups to strengthen their proposals.
    Applicants are not required to have a formal Internal Revenue 
Service (IRS) non-profit designation, such as 501(c)(3) or 501(c)(4), 
however they should present their letter of incorporation or other 
documentation demonstrating their nonprofit or not-for-profit status. 
Applicants who do have an IRS 501(c)(4) designation are not eligible 
for grants if they engage in lobbying, no matter what the source of 
funding for the lobbying activity. (No recipient may use grant funds 
for lobbying.) Further, profit-makers are not eligible to receive sub-
grants from eligible recipients, although they may receive contracts, 
subject to EPA's regulations on procurement under assistance 
agreements, 40 Code of Federal Regulations (CFR) 30.40 (for non-
governmental recipients) and 40 CFR 31.36 (for governments).

Funding Ranges and Match

    Applicants may compete for funding in two ranges for FY 1996: (1) 
$50,000 or less, and (2) between $50,001 and $100,000. [Please note 
that for FY 1997 these levels may be changed based on EPA's assessment 
of FY 1996 experience.] Proposals will be compared to other proposals 
in the same range (i.e. a proposal for $50,000 will not compete against 
a proposal for $100,000.)
    In FY 1996, EPA expects to fund a limited number of projects in the 
two funding ranges. Applicants may submit multiple proposals, but each 
specific proposal can only be submitted in one funding range and must 
be for a separate and distinct project. A separate solicitation will be 
issued for FY 1997. No organization may receive funding for more than 
one proposal each year. In addition, projects awarded will be 
ineligible for future competition. The number of grants awarded in FY 
1997 for each range will depend on the total amount of funds available 
for the Sustainable Development Challenge Grantsprogram.
    This program is intended to provide seed money to leverage a 
broader public and private investment in sustainability activities. As 
a result, the program requires a minimum non-Federal match of at least 
20 percent of the total project budget. EPA strongly encourages 
applicants to leverage as much investment in community sustainability 
as possible. EPA funds can be used for no more than 80 percent of the 
total cost of the project. The match can come from a variety of public 
and private sources and can include in-kind goods and services. No 
Federal funds, however, can be used as matching funds without specific 
statutory authority.

Selection Process

    In order to ensure a fair selection process, an evaluation panel 
consisting of EPA Regional and Headquarters staff will evaluate the 
pre-applications. The evaluation panel will assess how well the 
proposals meet the selection criteria outlined above. The panel's 
recommendations will be presented to EPA Senior Management for final 
selection.

What Costs Can Be Paid

    Even though a proposal may involve an eligible applicant, eligible 
activity, and eligible purpose, grant funds cannot necessarily pay for 
all of the costs which the recipient might incur in the course of 
carrying out the project. Allowable costs are determined by reference 
to the EPA regulations cited below and to OMB Circulars A-122, ``Cost 
Principles for Non-profit Organizations'', A-21 ``Cost Principles for 
Education Institutions'' and A-87, ``Cost Principles for State, Local, 
and Indian Tribal Governments.'' Generally, costs which are allowable 
include salaries, equipment, supplies, training, rental of office 
space, etc., as long as these are ``necessary and reasonable.'' 
Entertainment costs are an example of unallowable costs.

Applicable Grant Regulations

    40 CFR Part 30 (for other than State/local governments e.g. non-
profit organizations) (recently revised, see 61 FR 6065 (Feb. 15, 
1996)), and Part 31 (for State and local governments and Indian 
tribes).

Paperwork Reduction Act

    The information collection provisions in this Notice, for 
solicitation of proposals, have been approved by the Office of 
Management and Budget (OMB) under the Paperwork Reduction Act, 44 
U.S.C. 3501 et seq. (ICR No. 1755.01 and OMB Approval No. 2010-0026). 
The approved Information Collection Request (ICR No. 1755.01) is in 
effect and will cover all burdens associated with Sustainable 
Development Challenge Grants. Copies of the ICRs (ICR Nos. 1755.01 and 
1755.02) may be obtained from the Information Policy Branch, EPA, 401 M 
Street, SW., (Mail Code 2136), Washington, DC 20460 or by calling (202) 
260-2740.


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    Dated: June 25, 1996.
Fred Hansen,
Deputy Administrator.
[FR Doc. 96-16696 Filed 6-28-96; 8:45 am]
BILLING CODE 6560-50-P