[Federal Register Volume 62, Number 214 (Wednesday, November 5, 1997)]
[Notices]
[Pages 59865-59869]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-29206]


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ENVIRONMENTAL PROTECTION AGENCY

[OPPTS-00219; FRL-5734-8]


Grants to Assist States in Implementing a Lead-based Paint 
Accreditation and Certification Program After Passing Enabling 
Legislation

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice of Funding Availability (NOFA); solicitation of 
applications for financial assistance.

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SUMMARY: EPA has entered into a Memorandum of Agreement (MOA), and has 
entered into an interagency agreement, with HUD to administer the 
remaining funds authorized under section 1011(g) of Title X of the 
Housing and Community Development Act of 1992. EPA will award grants 
from these funds under its authority in section 404(g) of the Toxics 
Substances Control Act (TSCA). This notice announces the availability 
of $3,548,910 to provide financial assistance to States for purposes of 
establishing training, accreditation, and certification programs for 
professionals engaged in lead-based paint activities listed under 
section 402 of TSCA, as promulgated on August 29, 1996. These grants 
are restricted to States seeking assistance in establishing a State 
training, accreditation, and certification program after passing 
enabling legislation. Although there is no deadline in submitting an 
application, applicants should note that the funds are limited to 
$3,548,910. These funds will be awarded to States, Territories and the 
District of Columbia on a first-come first-served basis. Agency receipt 
of the application will be logged by recording the date and hour of the 
day that the appropriate EPA Regional Office receives the application. 
Applications must be sent by certified mail, return receipt requested.

FOR FURTHER INFORMATION CONTACT: For general information, contact: 
Susan B. Hazen, Director, Environmental Assistance Division (7408), 
Office of Pollution Prevention and Toxics, Environmental Protection 
Agency, Rm E-543B, 401 M St., SW., Washington, DC 20460, (202) 554-
1404, TDD: (202) 554-0551, e-mail: TSCA-H[email protected]. For 
technical information, contact the appropriate Regional Primary Lead 
Contact person listed in Unit IX. of this document.

SUPPLEMENTARY INFORMATION: Title X of the Housing and Community 
Development Act of 1992, otherwise known as the Residential Lead-based 
Paint Hazard Reduction Act of 1992, authorized the Secretary of the 
Department of Housing and Urban Development to provide grants of up to 
$200,000 to State governments to develop the capacity to carry out the 
requirements of section 105(b)(16) of the Cranston-Gonzales National 
Affordable Housing Act and to carry out activities under this section. 
Section 1011(g) of Title X set aside $3,000,000 for each fiscal year of 
1993 and 1994 for the purpose of establishing State training, 
certification, or accreditation programs that meet the requirements of 
section 402 of the Toxic Substances Control Act (TSCA) once the State 
has enacted enabling legislation. HUD identified this money as Category 
II grants and announced the availability of the first year of the 
$3,000,000 set aside in the Federal Register of June 4, 1993 (58 FR 
31848).

    HUD had originally estimated that between 15 and 18 grants would be 
awarded with the FY93 funds. Under that grant cycle, HUD awarded only 
$2,451,090 to the following 13 States: Arkansas, California, 
Connecticut, Louisiana, Maryland, Massachusetts, Minnesota, Missouri, 
New Jersey, Ohio, Rhode Island, Vermont, and Virginia. The resulting 
balance of $548,910 from FY93 combined with $3,000,000 appropriated by 
Congress in FY94, provides for the total of $3,548,910 in grant dollars 
to be awarded by EPA under this notification.
    Approximately 18 grants of up to $200,000 each will be awarded. Any 
State that has previously received a Category II Grant from the 
Department of Housing and Urban Development (HUD) is not eligible to 
apply for these funds. These States include: Arkansas, California, 
Connecticut, Louisiana, Maryland, Massachusetts, Minnesota, Missouri, 
New Jersey, Ohio, Rhode Island, Vermont, and Virginia. States that have 
passed enabling legislation prior to August 29, 1996 may apply after 
they meet the program elements listed under Appendix E of HUD's Notice 
of Funding Availability document (58 FR 31848, June 4, 1993.) States 
that passed enabling legislation after August 29, 1996 must, at a 
minimum, meet the requirements set forth under the TSCA section 402 
final rule which was published on that date.


[[Page 59866]]



I. Eligibility

    1. Eligible applicants. Eligible applicants are the governments of 
all remaining 37 States that have not already received a grant under 
this program from HUD, the District of Columbia, the Commonwealth of 
Puerto Rico, the Virgin Islands, Guam, the Canal Zone, American Samoa, 
the Northern Mariana Islands, and any other territory or possession of 
the United States that has passed enabling legislation for a State 
certification program, and that have a currently approved consolidated 
plan. States will become eligible to apply for Stage One of these 
grants upon enactment of State certification legislation.
    Awards shall be made on a first-come first-served basis in the 
order of the date an acceptable application is received by the 
appropriate EPA Regional Office until the money is exhausted. In the 
event of a tie between two or more States competing for the last grant 
money to be awarded, the State which passed acceptable legislation 
first by date will receive the funds.
    2. Eligible activities--a. All necessary and reasonable costs that 
directly support the purpose of a Category II Grant will be considered 
by EPA in the applicant's Stage-One proposal plan and budget. Funds may 
be used for start-up expenses such as salaries, renting space, and 
supplies. The funds may also be used for start-up capital expenditures 
such as office furniture or equipment. However, purchase or 
rehabilitation of real property is not an eligible activity. Capital 
acquisitions occurring under this grant shall become and remain the 
property of the grantee, subject to the limitations of 40 CFR part 31.
    b. At least 90 percent of the grant sum shall be for the use of the 
State agency established or designated to implement the State 
certification program. The remainder may be used by any other part of 
the administrative costs of the grant (see Unit X. of this document for 
a full definition of administrative costs) applicable to this grant 
program.
    c. EPA reserves the right, in negotiating the grant agreement, to 
delete budget items that, in its judgement, are not necessary for the 
direct support of program purposes, and to request the grantee to 
redirect the deleted sums to other acceptable purposes or make a 
corresponding reduction in the grant request.
    3. Limitations on use of assistance. The Grant shall be used solely 
for the purpose described in the applicant's approved implementation 
plan and the budget, including any changes that may be negotiated and 
adopted in the grant agreement.
    4. Threshold requirements-applicant's matching contribution. At a 
minimum, the applicant shall provide a matching contribution of at 
least 10 percent of the requested grant sum. That contribution may be 
in cash or in-kind. In-kind contributions shall be given a monetary 
value.

II. Purpose and Authority

    Section 1021 of Title X of the Housing and Community Development 
Act of 1992 amended TSCA to add Title IV. TSCA Title IV, at section 
404(g), provides authority for EPA to award these grants. However, 
because the funds for these grants were originally appropriated to HUD 
for award pursuant to HUD's section 1011(g) grant authority, EPA will 
impose the statutory restrictions relating to 1011(g) grants, such as 
the 10 percent match requirement of section 1011(h); the 10 percent 
limit on administrative expenses imposed by section 1011(j); and the 
section 1011(n) prohibition on award more than 2 years after the 
promulgation of section 402 regulations unless the State has an 
authorized program.
    These grants are intended to assist applicant State governments 
seeking EPA authorization under Title IV of TSCA to develop and carry 
out State Training, Accreditation and Certification Programs, once 
States have enacted enabling legislation. To achieve authorization 
under Title IV, programs must: (1) Be as protective of human health and 
the environment as the federal program established under TSCA Title IV 
sections 402 (as promulgated in final on August 29, 1996) or 406, or 
both, and (2) provide adequate enforcement.
    Just as many building inspection departments are wholly or 
partially self-supporting from permits and license fees, it is expected 
that State lead-based paint certification programs, under TSCA section 
402 - 404 rules, can become at least partially self-supporting. During 
the startup of such efforts, however, there may be a period before 
potential revenues achieve expected levels. These grants are intended 
to help States bridge that gap, by providing the initial seed money for 
the implementation and staffing of a certification program.

III. Background

    1. Policy. The purpose of this program is to implement a national 
strategy, as defined in the Residential Lead-Based Paint Hazard 
Reduction Act of 1992 (Title X), to build the infrastructure necessary 
to eliminate lead-based paint hazards in all housing as widely and 
expeditiously as possible. Lead-based paint hazard-reduction activities 
present potentially substantial hazards to workers and supervisors, 
occupants and neighboring residents (particularly children under the 
age of 6 and pregnant women), and inspectors and others who must visit 
the site during the course of work. If improperly carried out, the work 
may result in substantially greater exposure to hazards than previously 
existed; therefore, this work should be performed only by thoroughly 
trained and licensed or certified workers, supervisors, contractors, 
inspectors and risk assessors. To meet this need, EPA promulgated the 
final TSCA Title IV, section 402 rule on August 29, 1996 to establish 
Model State Programs that set minimum standards for a qualified and 
properly trained workforce to assist in the prevention, detection and 
elimination of hazards associated with lead-based paint. This rule 
helps ensure that individuals and firms conducting lead-based paint 
activities in target housing and child-occupied facilities will do so 
in a way that safeguards the environment and protects the health of 
building occupants, especially children under the age of 6.
    Traditionally, States and local governments have provided oversight 
and protection for the public against the general hazards of 
construction and chemical hazards. It is thus the Federal government's 
policy to draw upon this State source of knowledge and expertise in 
providing the needed oversight and protection for the public against 
the hazards of lead-based paint and the work of reducing those hazards.
    2. Development of EPA requirements. To assure safe and effective 
performance of the work, Congress required that performance of lead-
hazard testing and lead-hazard reduction activities under this Grant 
program shall be performed by certified contractors, supervisors, 
workers, inspectors and risk assessors. Sections 402 and 404 of TSCA 
Title IV were promulgated in final on August 29, 1996, establishing the 
requirements of a Model State Program that contains certification and 
accreditation requirements, and regulations on certification. Subpart Q 
of the 402 Rule provides a description of the minimum basic elements 
that need to be included in State legislation. Under section 1011(n) of 
Title X, any State that does not have an EPA-approved certification 
program by August 31, 1998, will not receive further funding through 
these grants.

[[Page 59867]]

    For further information on this subject, including technical 
assistance, interested States may contact their EPA Regional Lead 
Coordinator. A list of current Regional Lead Contacts can be found in 
Unit IX. of this document.
    3. Deadline for State enabling legislation. There are no time 
limitations associated with these grant funds; rather, the grant 
program will cease when the funds are exhausted. States, however, are 
reminded that they have until August 31, 1998, to receive EPA 
authorization or the Agency will begin to administer and enforce the 
regulations in any non-authorized State.

IV. Allocation Amounts

    This Grant program is making available $3,548,910 for approximately 
18 grants, not to exceed $200,000 each.

V. Selection Criteria and Process

    1.  Generally. For many States, the enactment of an acceptable 
certification program and the implementation of an acceptable agency 
plan will be several months to a year or more after the publication of 
this document. Publication of detailed regulations applicable to the 
State program are likely to take up to an additional 6 months. For 
these reasons, this grants program has been divided into two stages to 
ease the application burden on interested States. Stage One, described 
in paragraph 2 of this unit, will be the initial application for a 
grant, after satisfactory enabling legislation has been signed into 
State law. That application will include the text of the State 
legislation, a program implementation plan, a budget, and a request for 
one-half of the total grant sum shown in the budget. Stage Two, 
described in paragraph 3 of this unit, includes the text of promulgated 
regulations, detailing the functions of the Agency, and a request for 
the balance of the grant sum. If requested, EPA will provide technical 
assistance to an applicant or grantee on legislation, regulations, the 
implementation plan, or budget elements, before funding either Stage 
One or Stage Two.
    2.  Stage One. A State that was not previously awarded a HUD 
Category II grant may file a formal grant application at any time after 
an enabling statute, or amendment to the existing legislation, is 
signed into law, but not sooner. States that have existing enabling 
legislation may file a formal Stage One Grant application at any time. 
Upon acceptance by EPA of the statutory language, the implementation 
plan, and the budget, the State will receive one-half its total grant 
sum requested in its application. States that passed enabling 
legislation prior to promulgation of the TSCA Title IV section 402 
final rule (August 29, 1996) will be eligible to apply for Stage One 
grant funding, even though their enabling legislation may not be 
consistent with the TSCA Title IV section 402 requirements. These 
States, however, do need to meet the program elements discussed in 
Appendix E of HUD's Notification of Funding Availability document 
published in the June 4, 1993 Federal Register. EPA does not want to 
withhold partial funding from States that enacted their enabling 
legislation more rapidly than EPA could promulgate its rule. However, 
States in this situation will be ineligible for Stage Two funding under 
this grant program until they pass additional legislation consistent 
with TSCA section 402 requirements. The application shall include:
    a. The text of the statute.
    b. An implementation plan that establishes or designates an agency, 
or agencies, to carry out the training and certification functions, and 
to promulgate or revise the detailed regulations, if necessary, 
including:
    (i) A proposed schedule for regulation development, if applicable.
    (ii) The plan to address potential conflicts in overall State 
program design if enabling statutes are significantly prescriptive.
    (iii) Delineation of agency responsibilities.
    (iv) Key contacts.
    c. A proposed budget.
    3. Stage Two. States that have filed an acceptable application 
under Stage One may file either the enabling regulations or the amended 
regulations, and request the final half of the grant sum at any time.

VI. EPA Review of the Applications

    EPA will provide a prompt response to the State applicant at each 
stage of the application cycle. If the grant is disapproved, EPA will 
provide comments on why the application is not acceptable. The State 
may then resubmit a new application for reconsideration with a new 
corresponding receipt date.
    Upon completion of the review and acceptance of a Stage One 
application, EPA will schedule an appointment for negotiating and 
signing of the Grant Agreement. Upon completion of the review and 
acceptance of a Stage Two request for funds, EPA will make the balance 
of the grant sum available to the grantee.
    Approval of a State's Stage One or Stage Two application under this 
program does not equate to Federal approval of the State's 
Certification Program: approval of this grant only constitutes approval 
for funding. TSCA section 404 lists the procedure for the approval of 
State programs.

VII. Application Requirements

    1.  Contents. To be considered for funding, a Stage One application 
shall, at a minimum, include the following forms and certifications 
which are contained in EPA's ``Application Kit for Assistance'':
      Standard Form 424 (Application for Federal Assistance).
      EPA Form 5700-48 (Procurement Certification).
      Drug-Free Workplace Certification.
      Debarment and Suspension Certification.
      Disclosure of Lobbying Activities.
      A return mailing address.
      A copy of the enacted or amended State legislation.
      A detailed implementation plan including staffing for 
carrying out the implementation described in this document.
      A detailed line-item budget with sufficient information 
to clearly justify costs. The budget shall be by task and subtask.
      The application shall be in compliance with Federal civil 
rights laws and requirements.
      The application shall include assurances of 
nondiscrimination on the basis of age or handicap, in compliance with 
the Age discrimination Act of 1975, section 504 of the Rehabilitation 
Act of 1973, and all regulations issued pursuant to these authorities.
    2.  Environmental review. The activities to be supported under this 
grant program do not involve physical intervention at any real 
properties, and therefore do not require an environmental review. 
However, the use of these grants to assist in the purchase of equipment 
for use in a building in special flood hazard area can only be 
undertaken where the community participates in the National Flood 
Insurance Program and flood insurance is purchased in accordance with 
the applicable regulations (44 CFR parts 59 through 79), or less than a 
year has passed since FEMA notification regarding these hazards; and 
flood insurance on the property is obtained in accordance with section 
102(a) of the Flood Disaster Protection Act (42 U.S.C. 4012a(a)). 
Applicants are responsible for assuring that flood insurance is 
obtained and maintained for the appropriate amount and term, unless the 
property is covered by a FEMA-approved State policy of self-insurance.


[[Page 59868]]



VIII. Reports

    Grantees shall submit quarterly progress reports to their EPA 
Regional Office's Lead Contact that reflect the grantee's expenditures 
and technical progress to date, compared with the original plan, and a 
narrative describing important events and problems encountered during 
the period.

IX. Application Procedures and Schedule

    Applications must be submitted to the appropriate EPA regional 
office in duplicate; one copy to the regional lead program branch and 
the other to the regional grants management branch. Early consultations 
are recommended between prospective applicants and their EPA regional 
offices. Because TSCA section 404(g) grants will be administered at the 
regional level, these consultations can be critical to the ultimate 
success of a State's project or program. Work programs are to be 
negotiated between applicants and their EPA regional offices to ensure 
that both EPA and State priorities can be addressed. Any application 
from a State, Territory, or the District of Columbia without an 
authorized program must demonstrate how the proposed activities will 
lead to that State's pursuit of authorization. Also, any applicant 
proposing the collection of environmentally related measurements or 
data generation must adequately address the requirements of 40 CFR 
31.45 relating to quality assurance/quality control.
    For more information about this financial assistance program, or 
for technical assistance in preparing an application for funding, 
interested parties should contact the Regional Primary Lead Contact 
person in the appropriate EPA regional office. The mailing addresses 
and contact telephone numbers for these offices are listed below.
Region I: (Connecticut, Massachusetts, Maine, New Hampshire, Rhode 
Island, Vermont), JFK Federal Building, One Congress St., Boston, MA 
02203. Telephone: (617) 565-3836 (Jim Bryson)
Region II: (New York, New Jersey, Puerto Rico, Virgin Islands), 
Building 5, SDPTSB, 2890 Woodbridge Ave., Edison, NJ 08837-3679. 
Telephone: (908) 321-6671 (Lou Bevilacqua)
Region III: (Delaware, Maryland, Pennsylvania, Virginia, West Virginia, 
District of Columbia), 841 Chestnut Bldg., Philadelphia, PA 19107. 
Telephone: (215) 566-2084 (Gerallyn Valls)
Region IV: (Alabama, Florida, Georgia, Kentucky, Mississippi, North 
Carolina, South Carolina, Tennessee), 100 Alabama St., SW, Atlanta, GA 
30303. Telephone: (404) 562-8998 (Rose Anne Rudd)
Region V: (Illinois, Indiana, Michigan, Minnesota, Ohio, Wisconsin), 
SP-14J, 77 W. Jackson St., Chicago, IL 60604. Telephone: (312) 886-7836 
(David Turpin)
Region VI: (Arkansas, Louisiana, New Mexico, Oklahoma, Texas), 12th 
Floor, Suite 2000, 1445 Ross Ave., Dallas, TX 75202. Telephone: (214) 
665-7577 (Jeff Robinson)
Region VII: (Iowa, Kansas, Missouri, Nebraska), ARTD/RENV, 726 
Minnesota Ave., Kansas City, KS 66101. Telephone: (913) 551-7518 
(Mazzie Talley)
Region VIII: (Colorado, Montana, North Dakota, South Dakota, Utah, 
Wyoming), 999 18th St., Suite 500, Denver, CO 80202. Telephone: (303) 
312-6021 (David Combs)
Region IX: (Arizona, California, Hawaii, Nevada, American Samoa, Guam), 
75 Hawthorne St., San Francisco, CA 94105. Telephone: (415) 744-1094 
(Harold Rush)
Region X: (Alaska, Idaho, Oregon, Washington), Solid Waste and Toxics 
Unit (WCM-128), 1200 Sixth Ave., Seattle, WA 98101. Telephone: (206) 
553-1985 (Barbara Ross)

X. Explanation of Administrative Costs

A. Purpose

    The intent of this EPA Grant program is to allow the grantee to be 
reimbursed for the reasonable direct and indirect costs, subject to a 
top limit, for overall management of developing a State accreditation 
and certification program for professionals engaged in lead-based paint 
activities. Congress set a top limit of 10 percent of the total grant 
sum for the grantee to perform the function of overall management of 
the grant program. The cost of that function, for the purpose of this 
grant, is defined as the ``administrative cost'' of the grant, and is 
limited to 10 percent of the total grant amount. The balance of 90 
percent or more of the total grant sum is reserved for the development 
of the program.

B. Administrative Costs: What They Are Not

    For the purposes of this EPA grant program for the State 
government, the term ``administrative costs'' should not be confused 
with the terms of ``general and administrative cost,'' ``indirect 
cost,'' and ``overhead.'' These are accounting terms usually 
represented by a government-accepted standard percentage rate. The 
percentage rate allocates a fair share of an organization's costs that 
cannot be attributed to a particular project or department (such as the 
chief executive's salary or the costs of the organization's 
headquarters building) to all projects and operating departments (such 
as the Fire Department, the Police Department, the Community 
Development Department, the Health Department or this program). Such 
allocated costs are added to those projects' or departments' direct 
costs to determine their total costs to the organization.

C. Administrative Costs: What They Are

    For the purposes of this EPA grant program, ``Administrative 
Costs'' are the grantee's allowable direct costs for the overall 
management of the grant program plus the allocated indirect costs. The 
allowable limit of such costs that can be reimbursed under this program 
is 10 percent of the total grant sum. Should the grantee's actual costs 
for overall management of the grant program exceed 10 percent of the 
total grant sum, those excess costs shall be paid for by the grantee. 
However, excess costs paid for by the grantee may be shown as part of 
the requirement for cost-sharing funds to support the grant.

D. Administrative Costs: Definition

    1. General. Administrative costs are the allowable, reasonable, and 
allocable direct and indirect costs related to the overall management 
of the EPA grant. Those costs shall be segregated in a separate cost 
center within the grantee's accounting system, and are eligible for 
reimbursement as part of the grant, subject to the 10 percent limit. 
Administrative costs do not include any of the staff and overhead costs 
directly arising from developing and implementing an authorized State 
accreditation and certification program for professionals engaged in 
lead-based paint activities.
    2. Specific. Reasonable costs for the grantee's overall grant 
management, coordination, monitoring and evaluation are eligible 
administrative costs. Subject to the 10 percent limit, such costs 
include, but are not limited to necessary expenditures for the 
following goods, activities, and services:
    a. Salaries, wages, and related costs of the grantee's staff, the 
staff of affiliated public agencies, or other staff engaged in the 
grantee's overall grant management activities: In charging costs to 
this category the recipient may either include the entire salary, 
wages, and related costs allocated to the program for each person whose 
primary

[[Page 59869]]

responsibility (more than 65 percent of their time) with regard to the 
grant program involved direct overall grant management assignments, or 
the pro rate share of the salary, wages, and related costs of each 
person whose job includes any overall grant management assignments. The 
grantee may have one of these two methods during the program. Overall 
grant management includes the following kinds of activities:
    (i) Preparing grantee program budgets and schedules, and amendments 
thereto.
    (ii) Preparing presentations, reports, and other documents related 
to the program to EPA.
    (iii) Developing systems for assuring compliance with program 
requirements.
    (iv) Evaluating program results against stated objectives.
    (v) Managing or supervising persons whose responsibilities with 
regard to the program include such assignments as those described in 
paragraphs (i) through (iv) of this unit.
    b. Travel costs incurred for official business in carrying out the 
overall grant management.
    c. Administrative services performed under third party contract or 
agreement, for services directly allocable to overall grant management 
such as overall-grant legal services, overall-grant accounting 
services, and overall-grant audit services;
    d. Other costs for goods and services required for and directly 
related to the overall management of the grant program, including such 
goods and services as telephone, postage, rental of equipment, renter's 
insurance for the program management space, utilities, office supplies, 
and rental and maintenance (but not purchase) of office space for the 
program.
    To repeat, all of the above activities, goods and services (Items 
a. (i.-v.), b., c., and d. in Unit X.D.2. of this document) are subject 
to the 10 percent limit.

List of Subjects

    Environmental protection, Grants, Lead, Training and accreditation.

    Dated: October 28, 1997.
William H. Sanders III,
Director, Office of Pollution Prevention and Toxic Substances.

[FR Doc. 97-29206 Filed 11-4-97; 8:45 am]
BILLING CODE 6560-50-F