Projects considered for award must be approved by the State water pollution control agency and also certified by such agency as to priority over any other eligible projects. Funds authorized by the Congress are allotted to the states in accordance with The Clean Water Act, as amended. Grant awards within individual states are limited by the funds which have been allotted to such states. This program operates under Section 202 of the Clean Water Act. The grantee must assure that they will provide funds for all remaining costs.
Some States assist grantees in providing all or part of the non-federal share.
The American Samoa, Guam, Northern Marianas Islands, and Virgin Islands will receive the funds allocated up to 100 percent of the cost of construction. Grant payments are based on work completed, equipment delivered, or sometimes off-site manufacturing or services rendered. Final grant payment is made after construction is completed and satisfactory final inspection. Periodic audits should be made as part of the recipient's systems of financial management, and internal control to meet terms and conditions of grants and other agreements. At least once a year EPA will conduct, or require the State to have independently conducted, a financial and compliance audit of the grant and the operations of the project.