[Federal Register Volume 62, Number 94 (Thursday, May 15, 1997)]
[Notices]
[Pages 26896-26900]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-12789]



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Part V





Environmental Protection Agency





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Sustainable Development Grant Program; Notice

  Federal Register / Vol. 62, No. 94 / Thursday, May 15, 1997 / 
Notices  

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ENVIRONMENTAL PROTECTION AGENCY

[FRL-5825-6]


Sustainable Development Challenge Grant Program

AGENCY: Environmental Protection Agency (EPA).

ACTION: Solicitation of Proposals for FY 1997.

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SUMMARY: The Environmental Protection Agency (EPA) is soliciting 
proposals for the FY 1997 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 has a total of $5 million dollars available for 
this program in FY 1997. Of the total resources available through this 
program in FY 1997, approximately 80% will support city/metropolitan-
related projects. Other rural, tribal and non-metropolitan projects are 
encouraged and will be funded at approximately 20% of the total amount.
    We are encouraging proposals that place an emphasis on city/
metropolitan-related projects because approximately 80% of the U.S. 
population lives in metropolitan areas where the goals of a healthy 
environment compete with economic development, affordable housing, 
public safety, and mobility for attention from both government and the 
private sector. EPA's program to protect the health of Americans by 
protecting their community's air, water and land must acknowledge this 
reality. The SDCG program provides an opportunity to develop place-
based approaches to problem solving related to current patterns of 
urban growth and public investment/disinvestment, patterns that 
accelerate loss of open space and wetlands, and increase consumption of 
fossil fuels for energy and transportation. Projects will be selected 
on a competitive basis using the criteria outlined below. Applicants 
may compete for funding in two ranges for FY 1997: (1) $50,000 or less, 
and (2) between $50,001 and $250,000. Proposals will compete with other 
proposals in the same range (i.e., a proposal for $50,000 will not 
compete with a proposal for $250,000). Applicants in each category are 
required to demonstrate how they will meet the minimum 20% match.
    The Sustainable Development Challenge Grant program strongly 
encourages partnering among community, business and government entities 
to work cooperatively to develop flexible, locally-oriented approaches 
that link place-based environmental management, and quality of life 
activities with sustainable development and revitalization. This 
program challenges communities to invest in a sustainable future that 
links environmental protection, economic prosperity and community well-
being. These grants are intended to: catalyze community-based projects 
to promote environmentally and economically sustainable development; 
build partnerships which increase a community's capacity to take steps 
that will ensure the long-term health of ecosystems and humans, 
economic vitality, and community well-being; and leverage public and 
private investments to enhance environmental quality by enabling 
sustainable community efforts to continue beyond the period of EPA 
funding. While EPA expects to award approximately 80% of the funds 
available for this program in FY 1997 to support projects that 
comprehensively address environmental and economic issues in cities and 
metropolitan areas which stimulate broad participation by engaging all 
sectors of the community, all applications which demonstrate the 
requisite criteria will be considered.
    This document includes: background information on the Sustainable 
Development Challenge Grant program; a description of the FY 1997 
program which incorporates comments received through the FY 1996 pilot 
program (both public and Agency comments/suggestions) on the design of 
the program; the criteria successful projects must meet; the process 
for selection of projects; and the program's relationship to other 
related EPA activities. Also included is a summary of projects funded 
under the pilot program. (More detailed information is available via 
Internet at: http://www.epa.gov/ecocommunity)

DATES: The period for submission of proposals for FY 1997 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 proposals must be postmarked by August 
15, 1997 to be considered for funding.

ADDRESSES: Please provide three copies of your proposal to Pamela Hurt, 
U.S.EPA, Office of Air & Radiation (MC-6101), 401 M Street, SW., 
Washington, DC 20460.

APPLICATIONS: Proposal kits for FY 1997 are available via Internet at: 
http://www.epa.gov/ecocommunity or from EPA Headquarters and EPA 
Regional Offices. These kits will include more detailed guidance and 
may be requested in writing from your regional or headquarters 
representative, or by fax at 202-260-2555 or by voice mail at 202-260-
6812. Although you may fax your request, these documents are not 
available by fax. EPA will notify applicants of selected proposals in 
writing and provide technical assistance in preparation of formal 
applications. Please do not duplicate requests. Proposals must include 
the following: 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 must also include the applicant's name, 
address, and phone number. The project proposal narrative must 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. Please follow the format provided in criteria section of this 
notice to structure your narrative. A detailed budget along with 
letters of commitment from stakeholders contributing either in-kind 
services or dollars must be attached to the proposal in order to be 
considered. Applicants must also include a copy of documentation 
demonstrating non-profit status or articles of incorporation. A plan 
for overall project evaluation must also be attached. The budget page, 
commitment letters, project evaluation plan, and non-profit status 
documentation will not count toward the 5 double-sided narrative page 
limit. Proposals lacking complete documentation will not be considered. 
Any other attachments to the proposal will be discarded.

FOR FURTHER INFORMATION CONTACT: Pamela A. Hurt, U.S. EPA, Office of 
Air & Radiation (MC 6101), 401 M Street SW., Washington, DC 20460, 
[email protected] or the regional representative for your state.

Regional Offices

Rosemary Monahan, US EPA Region I, JF Kennedy Federal Bldg. (CSP), 
Boston, MA 02203, (617) 565-3551, States: ME, NH, VT, MA, CT, RI
Theresa Martella, US EPA Region 3, 841 Chestnut Building, 
Philadelphia, PA 19107, (215) 566-5423, States: DE, DC, MD, PA, VA, 
WV
Daniel Werbie, US EPA Region 5, 77 West Jackson Blvd., Chicago, IL 
60604-3507, (312) 353-5791, States: MN, WI, MI, IL, IN, OH
Anita Street, US EPA Region 2, 290 Broadway, New York, NY 10007-
1866, (212) 637-3590, States & Territories: NY, NJ, PR, VI

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Cory Berish, US EPA Region 4, 345 Courtland Street, NE, Atlanta, GA 
30365, (404) 562-8276, States: AL, FL, GA, KY, MS, NC, SC, TN
Karen Alvarez, US EPA Region 6, Fountain Place, Suite 1200, 1445 
Ross Avenue, Dallas, TX 75202-2733, (214) 665-7273, States: AR, LA, 
NM, OK, TX
Dick Sumpter, US EPA Region 7, 726 Minnesota Avenue, Kansas City, KS 
66101, (913) 551-7661, States: KS, MO, NE, IA
Debbie Schechter, US EPA Region 9, 75 Hawthorne Street, San 
Francisco, CA 94105, (415) 744-1624, States & Territories: CA, NV, 
AZ, HI, AS, GU
David Schaller, US EPA Region 8, 999 18th Street, Suite 500, Denver, 
CO 80202-2466, (202) 312-6146, States: CO, MT, ND, SD, UT, WY
Jim Werntz, US EPA Region 10, 1200 Sixth Avenue, Seattle, WA 98101, 
(206) 553-2634, States: AK, ID, OR, WA

SUPPLEMENTARY INFORMATION:

Purpose

    EPA intends these competitive grants to be catalysts that challenge 
communities to invest in a more sustainable future, recognizing that 
sustainable environmental quality, economic prosperity, and community 
well-being are inextricably linked. The Sustainable Development 
Challenge Grant program is an important opportunity for EPA to award 
competitive grants that leverage private and other public sector 
investment in communities (ranging in size from neighborhoods to cities 
to larger geographic areas such as watersheds or metropolitan areas) to 
build partnerships that increase the capacity of communities to ensure 
long-term environmental protection through the application of 
sustainable development strategies.

Overview of the Sustainable Development Challenge Grant Approach

    The grant program encourages communities to recognize and build 
upon the fundamental connection between environmental protection, 
economic prosperity and community well-being. 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 grantees to implement a 
stakeholder process to identify measurable milestones to assess 
progress towards integrating environmental and economic goals and 
community well-being.
    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 residents of a 
community, of varying economic and social groups, have 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.
    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.

Linkages to Other Initiatives

    The EPA initiated this program as a pilot effort in 1996. With only 
$500,000 in funding to distribute, the Agency received more than 600 
proposals requesting $20,000,000 in assistance. Approximately 75% of 
the projects received were urban or urban-related. Through a highly 
competitive process and after careful review, ten projects were chosen 
for funding: Community Supported Agriculture in the Mid-Atlantic 
Region, Washington Smart Wood Certification Program, Sustainable Craft 
Industry in Appalachia, Building Materials Exchange in New Orleans, 
Sustainable Forestry in New Hampshire, Marketing the Economic Benefits 
of Sustainable Development in the Rappahannock River Watershed, 
Preserving Sustainability in Jefferson County Virginia, Eco-Park 
Development in Omaha, Implementing a Strategic Plan for Sustainable 
Development in South Carolina, Sustainable Neighborhood Design for the 
Desert Southwest. Projects descriptions are available via the Internet 
at http://www.epa.gov/ecocommunity/)
    EPA and its state and local partners continue to refine how 
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 the Brownfields Initiative, 
Project XL, the President's American Heritage Rivers Initiative, 
Watershed Protection Approach, Transportation Partners, the $mart 
Growth Network, and the Community-Based Environmental Protection 
Approach. All of these programs require broad community participation 
to identify and address environmental issues. EPA welcomes proposals 
for many different types of projects, however, approximately 80% of 
funds available in FY 1997 will support those proposals that address 
comprehensive environmental and economic issues in cities and 
metropolitan areas which stimulate broad community participation and 
apply innovative problem-solving techniques. The Sustainable 
Development Challenge Grant program is also a step in implementing 
Agenda 21, the Global Plan of Action on Sustainable Development, signed 
by the United States at the Earth Summit in Rio de Janeiro in 1992.
    Through the Sustainable Development Challenge Grant Program, EPA 
also intends to further the vision and goals of the President's Council 
on Sustainable Development (PCSD), created in 1993 by President 
Clinton. The President charged the Council, composed of corporate, 
government, and non-profit representatives, 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, as demonstrated 
in the description of projects funded in the pilot year. The following 
are examples of the types of projects EPA could consider for funding. 
These examples

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are only illustrative and are not intended to limit proposals in any 
way.
     Demonstrate the range of environmental, economic and 
community benefits associated with alternative development patterns. 
This project would examine drinking water quality, air quality, and 
wildlife habitat. For instance, open spaces may offer protection of 
water quality by acting as natural retention areas for the treatment of 
storm water runoff and increase aesthetic value and recreation 
opportunities. Elements of the project may include the comparison of 
the environmental, fiscal and community benefits of the purchase and 
trade of development rights, and alternative zoning provisions related 
to various densities and degrees of automobile, bicycle and pedestrian 
accessibility.
     Demonstrate a cutting edge approach to the cleanup and 
redevelopment of contaminated property. This project would demonstrate 
a comprehensive, interagency, inter-governmental approach to the 
challenges of abandoned, idled, or under used properties that blight 
the landscape of our urban centers. In addition to strategies being 
used at Brownfield assessment pilot sites across the country, it would 
move beyond the narrow limits of the Superfund law and include issues 
of contamination from oil fields and leaking underground storage 
tanks--currently excluded by the Superfund law, yet thought to be the 
cause of significant contamination. Instead of staying within the 
confines of land-based contamination, this effort would address issues 
with other environmental media, including water, non-point source 
permitting and non-point sources in air quality non-attainment areas 
relating to the siting of new businesses and industries.
    Practical applications of environmental justice principles, public 
participation and environmental job training/workforce development 
strategies will be woven throughout the entire effort. Training will be 
provided for public officials as well as local citizens to ensure that 
local land use decision-making processes will be fair, open and 
inclusive.
     Demonstrate how a stakeholder group can comprehensively 
identify the multiple sources of pollution contributing to 
environmental problems within their watershed; collaboratively develop 
solutions to address these causes to the satisfaction of stakeholders; 
develop policy and financial support and commitment for the solution 
along with the plan to implement the necessary actions. Project 
elements may include: how you will organize and develop your 
stakeholders and community-based support; watershed-based problem 
identification, priority-setting and monitoring; the mix of voluntary 
and regulatory programs; the most promising approaches to the 
restoration of urban river corridors and wetlands; to identify and, to 
the maximum extent possible, eliminate EPA activities and programs that 
create unintended barriers and disincentives to sustainable 
revitalization.
     Support a regional bottom-up process for better managing 
rapid, sprawling development. Local governments along with public and 
private interests will join together to secure written agreements on 
actions to be taken to carry out the community's vision of a 
sustainable future, and to prepare a State of the Region report 
outlining the area's most significant challenges and opportunities for 
improving local conditions.
     Demonstrate the benefits of implementing metropolitan-
wide transportation programs that promote sustainable development. 
Specific projects would examine new and innovative ways of integrating 
air quality, storm water and other urban wet weather flows management, 
transportation, and land use planning processes to effectively reduce 
vehicle miles traveled, thereby reducing congestion, lowering energy 
consumption, improving air quality, and reducing green house gas 
emissions. Specific pilots could focus on demonstrating effective 
methods of community collaboration and linkage with other planning 
efforts traditionally conducted at different jurisdiction levels (e.g. 
state, city, county). In addition, pilots could integrate a number of 
important, but to date, separate federal initiatives such as Federal 
Transit Administration's Livable Communities, Federal Highway 
Administration's Congestion Mitigation and Air Quality Program, 
Department of Energy's Clean Cities program, or the Department of 
Agriculture's Urban Resources Partnership along with various innovative 
transportation control measures. Both short and long-term strategies 
could be selected.
     Nature-based tourism: Demonstrate a cooperative effort 
among environmental groups, business interests, and community leaders 
to design and implement a community-based strategy for ecological-based 
tourism. The strategy would identify techniques to manage appropriate 
travel to, and recreation within, natural areas which are designed to 
contribute substantially to the area's conservation and improvement of 
the welfare of local people, through education and the dedication of 
tourism dollars to protect natural resources. The goal would be to 
support properly planned and managed nature tourism which will have 
minimal impacts on the environment, conserve and enhance social and 
cultural values, and improve the economic well-being of residents.

Selection Criteria

    The proposed project must meet the two statutory threshold 
determinations described below in the Statutory Authority section, then 
EPA will also consider the following criteria, weighting each as 
indicated. Please format your proposal using the numbered sections 
below and addressing each bullet point listed.

(1) Sustainability: 50 Points

     How well does the proposal integrate environmental 
protection and economic prosperity and community well-being?
     Does the proposal address what type of sustainable 
behavior is desired, and what type of non-sustainable behavior needs to 
be changed?
     Does the proposal take into account a multi-media 
perspective and a regionally appropriate geographic solution to 
specific human or ecosystem environmental problems? Explain how the 
proposal aims to benefit a substantial or significant population or 
significant portion of a community or region?
     How does the proposal assure that economic activities do 
not exhaust or degrade the environment?
     Explain how the proposal will result in long-term 
environmental protection as well as sustainable economic vitality, 
(such as more appropriate, efficient use of resources and changes in 
consumption patterns) so that jobs created will be sustained, or the 
amount of money retained in the local economy will be maximized?
     How does the proposal represent new solutions for the 
community, given their previous history and current circumstances?

(2) Community Commitment and Contribution: 25 Points

     Explain how the partners fully represent those in the 
community who have an interest in or will be affected by the project?
     Will the proposal's outcomes and results benefit all 
affected groups to the maximum extent possible?
     Does the proposal describe effective methods for community 
involvement to

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assure that all affected by the project are provided an opportunity to 
participate?
     Does the proposal describe the depth and breadth of the 
community's support (financial and in-kind) for the proposal? Does the 
community have in place the legal and regulatory authority they need to 
implement the project? Does it provide evidence of long-term commitment 
to the proposal? Are the EPA grant funds leveraged beyond the 20% 
match?

(3) Measurable Results: 25 Points

     Does the proposal describe the specific environmental, 
economic, and quality of life benefits to be gained by the community? 
Is there a plan to identify which non-sustainable behaviors will be 
addressed by the proposal and how will behavior change be measured?
     How does the proposal include significant achievable 
short-term (within three years) and long-term targets or benchmarks to 
measure the proposal's contribution to the community's environmental 
and economic sustainability? (These should be both quantitative and 
qualitative.)
     Does the proposal set goals for the proactive 
environmental approaches it employs?
     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?
     Will the experiences gained during the project be 
transferable to other communities? If so, how?

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.
    A proposal must meet the following 2 important criteria to be 
considered for funding. The first threshold determination for a project 
to be selected for funding, is that it 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.''
    The second threshold determination, in order to be funded, is that 
a project's focus generally must be one that is specified in the 
statutes listed above. For most of 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 and social equity.
    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.
    Metropolitan Area: A geographic area consisting of a large 
population nucleus together with adjacent communities which have a high 
degree of economic and social integration with that nucleus, generally 
these are cities of 50,000 or more population, or a total area in city 
and suburbs with a population of 100,000 or more. (U.S. Census Bureau)
    Non-sustainable Behavior: Development, or land and water 
activities, management or uses, which limit the ability of humans and 
ecosystems to live sustainably by destroying or degrading ecological 
values and functions, diminishing the material quality of life, and 
diverting economic benefits away from long-term community prosperity 
and decreases the long-term capacity for sustainability.
    Collaborative or Partnership Approach: A project which attempts to 
use various government and private programs, authorities, jurisdictions 
and sectors, to simultaneously achieve as many sustainability goals as 
possible, recognizing the interdependencies between environmental 
quality, community vitality and economic prosperity.

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. 
Federal agencies are not eligible for funding, however, they are also 
encouraged to work in partnership with state and local

[[Page 26900]]

agencies on these projects. For instance, the Urban Resources 
Partnership places government resources into the service of community-
led environmental projects.
    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 must present their letter of incorporation or other 
documentation demonstrating their nonprofit or not-for-profit status. 
Failure to enclose the letter of incorporation or other documentation 
demonstrating their nonprofit or not-for-profit status will result in 
an incomplete submission and will not be reviewed. 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: (1) $50,000 or 
less, and (2) between $50,001 and $250,000. Applicants may submit 
multiple proposals, but each specific proposal must be for a separate 
and distinct project. No organization may receive funding for more than 
one proposal each year. In addition, projects awarded will be 
ineligible for future competition for this program.
    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% of the project budget. EPA funds can be used for no more than 80% 
of the total cost of the project. EPA strongly encourages applicants to 
leverage as much investment in community sustainability as possible. 
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

    EPA Regional Offices will assess how well the proposals meet the 
selection criteria outlined above. The Regional Offices will then 
forward their top proposals to Headquarters for review by a National 
Panel consisting of Headquarters and Regional representatives. The 
panel's recommendations will be presented to EPA Senior Management for 
final selection. In making these final selections such factors as 
geographic diversity, project diversity, costs, and project 
transferabililty may be considered.

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, S.W. (Mail Code 2136), Washington, DC 20460 or by calling (202) 
260-2740.
    This action does not impose annual costs of $100 million or more, 
will not significantly or uniquely affect small governments, and is not 
a significant federal intergovernmental mandate. The Agency thus has no 
obligations under sections 202, 203, 204 and 205 of the Unfunded 
Mandates Reform Act. Moreover, since this action is not subject to 
notice-and-comment requirements under the Administrative Procedure Act 
or any other statute, it is not subject to sections 603 or 604 of the 
Regulatory Flexibility Act.

Submission to Congress and the General Accounting Office

    Under 5 U.S.C. 801(a)(1)(A) as added by the Small Business 
Regulatory Enforcement Fairness Act of 1996, EPA submitted 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 
General Accounting Office prior to publication of the rule in today's 
Federal Register. This rule is not a ``major rule'' as defined by 5 
U.S.C. 804(2).

    Dated: May 8, 1997.
Fred Hansen,
Deputy Administrator.
[FR Doc. 97-12789 Filed 5-14-97; 8:45 am]
BILLING CODE 6560-50-P