[Federal Register Volume 65, Number 248 (Tuesday, December 26, 2000)]
[Notices]
[Pages 81720-81726]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-32667]



[[Page 81719]]

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Part VI





Environmental Protection Agency





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Office of Environmental Justice Small Grants Program; Application 
Guidance FY 2001; Notice

  Federal Register / Vol. 65, No. 248 / Tuesday, December 26, 2000 / 
Notices  

[[Page 81720]]


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ENVIRONMENTAL PROTECTION AGENCY

[FRL-6921-8]


Office of Environmental Justice Small Grants Program; Application 
Guidance FY 2001

Introduction

    This guidance outlines the purpose, goals, and general procedures 
for application and award under the Fiscal Year (FY) 2001 Environmental 
Justice Small Grants Program (EJSGP). For FY 2001, the U.S. 
Environmental Protection Agency (EPA) will make available approximately 
$1,500,000 in grant funds to eligible organizations (pending 
availability of funds); $500,000 of this amount is available for 
Superfund projects only. Applications must be mailed to your 
appropriate EPA regional office (listed in Section III) and postmarked 
by the U.S. Postal Service no later than midnight Friday, March 9, 
2001.

This guidance includes the following:

I. Scope and Purpose of the OEJ Small Grants Program
II. Eligible Applicants and Activities
III. Application Requirements
IV. Process for Awarding Grants
V. Expected Time-frame for Reviewing and Awarding Grants
VI. Project Period and Final Reports
VII. Fiscal Year 2002 OEJ Small Grants Program

Translations Available

    A Spanish translation of this announcement may be obtained by 
calling the Office of Environmental Justice at 1-800-962-6215.
    Hay traducciones disponibles de este anuncio en espanol. Si usted 
esta interesado en obtener una traduccion de este anuncio en espanol, 
por favor llame a La Officina de Justicia Ambiental conocida como 
``Office of Environmental Justice,'' linea gratuita (1-800-962-6215).

I. Scope and Purpose of the OEJ Small Grants Program

    The purpose of this grant program is to provide financial 
assistance to eligible community groups (i.e., community-based/
grassroots organizations, churches, or other nonprofit organizations) 
and federally recognized tribal governments that are working on or plan 
to carry out projects to address environmental justice issues. 
Preference for awards will be given to community-based/grassroots 
organizations that are working on local solutions to local 
environmental problems. Funds can be used to develop a new activity or 
substantially improve the quality of existing programs that have a 
direct impact on affected communities. All awards will be made in the 
form of a grant not to exceed one year.

Background

    In its 1992 report, Environmental Equity: Reducing Risk for All 
Communities, EPA found that minority and low-income populations may 
experience higher than average exposure to toxic pollutants than the 
general population. The EPA established the OEJ in 1992 to help these 
communities identify and assess pollution sources, to implement 
environmental awareness and training programs for affected residents, 
and to work with community stakeholders to devise strategies for 
environmental improvements.
    In June of 1993, OEJ was delegated granting authority to solicit, 
select, supervise, and evaluate environmental justice-related projects, 
and to disseminate information on the projects' content and 
effectiveness. Fiscal year (FY) 1994 marked the first year of the OEJ 
Small Grants Program. The chart below shows how the grant monies have 
been distributed since FY 1994.

------------------------------------------------------------------------
                                                               Number of
                   Fiscal year                      $Amount     awards
------------------------------------------------------------------------
1994............................................     500,000          71
1995............................................   3,000,000         175
1996............................................   2,800,000         152
1997............................................   2,700,000         139
1998............................................   2,500,000         123
1999............................................   1,455,000          95
2000............................................     899,000          61
------------------------------------------------------------------------

How Does EPA Define Environmental Justice Under the Environmental 
Justice Small Grants Program?

    Environmental justice is the fair treatment and meaningful 
involvement of all people regardless of race, color, national origin, 
culture, education, or income with respect to the development, 
implementation, and enforcement of environmental laws, regulations, and 
policies. Fair treatment means that no one group of people, including 
racial, ethnic, or socioeconomic groups, should bear a disproportionate 
share of the negative environmental consequences resulting from 
industrial, municipal, and commercial operations or the execution of 
federal, state, local, and tribal environmental programs and policies. 
Meaningful involvement means that: (1) potentially affected community 
residents have an appropriate opportunity to participate in decisions 
about a proposed activity that will affect their environment and/or 
health; (2) the public's contribution can influence the regulatory 
agency's decision; (3) the concerns of all participants involved will 
be considered in the decision-making process; and (4) the decision-
makers seek out and facilitate the involvement of those potentially 
affected.

II. Eligible Applicants and Activities

A. Who May Submit Applications and May an Applicant Submit More Than 
One?

    Any affected, non-profit community organization 501c(3) or 501c(4) 
\1\ or federally recognized tribal government may submit an application 
upon publication of this solicitation. Applicants must be non-profit to 
receive these federal funds. State-recognized tribes or indigenous 
peoples' organizations can apply for grant assistance if they meet the 
definition of a nonprofit organization. ``Non-profit organization'' 
means any corporation, trust, association, cooperative, or other 
organization that: (1) Is operated primarily for scientific, 
educational, service, charitable, or similar purposes in the public 
interest; (2) is not organized primarily for profit; and (3) uses its 
net proceeds to maintain, improve, and/or expand its operations. While 
state and local governments and academic institutions are eligible to 
receive grants, preference will be given to non-profit, community-
based/grassroots organizations and federally recognized tribal 
governments. Preference may be given to those organizations that have 
not received previous grants under the Environmental Justice Small 
Grants Program. Individuals are not eligible to receive grants.
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    \1\ As a result of the Lobbying Disclosure Act of 1995, EPA (and 
other federal agencies) may not award grants to non-profit, 
501(c)(4) organizations that engage in lobbying activities. This 
restriction applies to any lobbying activities of a 501(c)(4) 
organization without distinguishing between lobbying funding by 
federal money and lobbying funded by other sources.
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    The Environmental Justice Small Grants Program is a competitive 
process. To prevent preferential treatment to any single potential 
applicant, the Agency will offer training and/or conference calls on 
grant application guidelines. We encourage you to participate so that 
you can have your questions answered in a public forum. Please call 
your Regional office to inquire about the scheduled dates of the 
special training and conference calls. (See Contact List in this 
document).
    EPA will consider only one application per applicant for a given 
project. Applicants may submit more than one application if the 
applications are for separate and distinct projects or activities. 
Applicants that previously received funds under the Environmental 
Justice Small Grants Program may

[[Page 81721]]

submit an application for FY 2001. Every application for FY 2001 is 
evaluated based on the merit of the proposed project in comparison to 
other FY 2001 pre-applications. Past performance may be considered 
during the ranking and evaluation process for those applicants who have 
received previous grants.

B. What Types of Projects Are Eligible for Funding?

    While there are many applications submitted from community groups 
for equally worthwhile projects, EPA is emphasizing the need for 
projects in two categories: (1). Projects which address public health 
concerns/issues in minority and/or low-income communities. (2). 
Projects which address how environmental information is made available 
in minority and/or low-income communities. Both areas of concentration 
are important issues to local communities. To be considered for 
funding, the application must include the following information: (1) 
How the project proposes to address the issues related to at least two 
environmental statutes; and (2) how the proposed project meets at least 
two of the program goals.
(1) Multi-Media Statutory Requirement
    The Environmental Justice Small Grants Program awards grants under 
a multimedia granting authority. This means that recipients of these 
funds must implement projects that address pollution in more than one 
environmental medium (e.g., air, water). To show evidence of the 
breadth of the project's scope, the application must identify at least 
two environmental statutes that the project will address. Most often, 
your project will include activities outlined in the following 
environmental statutes:
    a. Clean Water Act, Section 104(b)(3): conduct and promote the 
coordination of research, investigations, experiments, training, 
demonstration, surveys, and studies relating to the causes, extent, 
prevention, reduction, and elimination of water pollution.
    b. Safe Drinking Water Act, Section 1442(b)(3): develop, expand, or 
carry out a program (that may combine training, education, and 
employment) for occupations relating to the public health aspects of 
providing safe drinking water.
    c. Solid Waste Disposal Act, Section 8001(a): conduct and promote 
the coordination of research, investigations, experiments, training, 
demonstrations, surveys, public education programs, and studies 
relating to solid waste (e.g., health and welfare effects of exposure 
to materials present in solid waste and methods to eliminate such 
effects).
    d. Clean Air Act, Section 103(b)(3): conduct research, 
investigations, experiments, demonstrations, surveys, and studies 
related to the causes, effects (including health and welfare effects), 
extent, prevention, and control of air pollution.
    Your project may be very research-oriented and specific to a 
particular environmental problem. If this is the case, you may 
reference the following environmental statutes (list either one of the 
following and one listed above or two of the following).
    e. Toxic Substances Control Act, Section 10(a): conduct research, 
development, and monitoring activities on toxic substances.
    f. Federal Insecticide, Fungicide, and Rodenticide Act, Section 
20(a): conduct research on pesticides.
    g. Marine Protection, Research, and Sanctuaries Act, Section 203: 
conduct research, investigations, experiments, training, 
demonstrations, surveys, and studies relating to the minimizing or 
ending of ocean dumping of hazardous materials and the development of 
alternatives to ocean dumping.
    h. Comprehensive Environmental Response, Compensation and Liability 
Act (CERCLA), Section 311(c) ``research with respect to the detection, 
assessment, and evaluation of the effects on and risks to human health 
of [due to] hazardous substances and detection of hazardous substances 
in the environment.'' The term ``hazardous substances'' in CERCLA 
Section 101(14) does not include many petroleum products. This Act is 
often referred to as ``Superfund.''
    EPA's grant regulations define ``research'' as ``systematic study 
directed toward a fuller scientific knowledge or understanding of the 
subject studied.'' 40 CFR 30.2(dd). EPA has interpreted ``research'' to 
include study that extends to socioeconomic, institutional, and public 
policy issues as well as the ``natural'' sciences.
    Please note: If your project includes scientific research and/or 
data collection, you must be prepared to submit a Quality Assurance 
Plan (QAP) to your EPA Project Officer prior to the beginning of the 
research.
(2) Special Requirements for ``Superfund'' grants funded under CERCLA
    a. CERCLA, Section 311(c), only authorizes research grants. 
Therefore, Superfund grants can only be awarded when the project is of 
a research nature. Research is the detection, assessment, and 
evaluation of the effects on, and risks to human health, from hazardous 
substances and/or the detection of hazardous substances in the 
environment.
    b. Applicants must demonstrate that the research project relates to 
``hazardous substances'' as that term is defined by CERCLA 101(14). 
There is a list of hazardous substances at 40 CFR 302.4 which, while 
not exclusive, does provide useful guidance.
    c. Research funded under CERCLA 311(c) cannot relate to petroleum 
products excluded from the definition of hazardous substances found at 
CERCLA 101(14).
    d. Applicants must meet the requirement that the project relate to 
two environmental grant authority statutes by proposing a research 
project authorized by both CERCLA 311(c) and another statute listed 
above which authorizes research funding.
    e. The project must be of a research nature only, i.e., survey, 
research, collecting and analyzing data which will be used to expand 
scientific knowledge or understanding of the subject studied. Projects 
which expand the scientific knowledge or understanding, of community 
members, about the hazardous substances issues that effect them can be 
funded as EJ Superfund grants.
    f. The project cannot carry out training activities, other than 
training in research techniques, or outreach, technical assistance, or 
public education or awareness activities.
    g. The project can include conferences only if the purpose of the 
conference is to present research results or to gather research data.
(3) Office of Environmental Justice Small Grants Program Goals
    In addition to the multi-statute requirement outlined above, the 
application must also include a description of how an applicant plans 
to meet at least two of the three program goals listed below. See 
Section III ``Application Requirements'' for more details.
    1. Identify necessary improvements in communication and 
coordination among all stakeholders, including existing community-
based/grassroots organizations and local, state, tribal, and federal 
environmental programs. Facilitate communication and information 
exchange, and create partnerships among stakeholders to address 
disproportionate, high and adverse environmental exposure (e.g., 
workshops, awareness conferences, establishment of community 
stakeholder committees);

[[Page 81722]]

    2. Build community capacity to identify local environmental justice 
problems and involve the community in the design and implementation of 
activities to address these concerns. Enhance critical thinking, 
problem-solving, and active participation of affected communities. 
(e.g., train-the-trainer programs).
    3. Enhance community understanding of environmental and public 
health information systems and generate information on pollution in the 
community. If appropriate, seek technical experts to demonstrate how to 
access and interpret public environmental data (e.g., Geographic 
Information Systems (GIS), Toxic Release Inventories (TRI) and other 
databases).
    The issues discussed above may be defined differently among 
applicants from various geographic regions, including areas outside the 
continental U.S. (Alaska, American Samoa, Guam, Hawaii, Puerto Rico, 
and the U.S. Virgin Islands). Each application should define its issues 
as they relate to the specific project. In your narrative/work plan, 
include a succinct explanation of how the project may serve as a model 
in other settings and how it addresses a high-priority environmental 
justice issue. The degree to which a project addresses a high-priority 
environmental justice issue will vary and must be defined by applicants 
according to their local environmental justice concerns.

C. How Much Money May Be Requested, and are Matching Funds Required?

    The ceiling in federal funds for an individual grant is $15,000 for 
non-Superfund projects or $20,000 for Superfund projects. Please check 
with your regional contact for the amount of funds that will be 
available in each region. Applicants are not required to provide 
matching funds.

D. Are There Any Restrictions on the Use of the Federal Funds?

    Yes. EPA grant funds can only be used for the purposes set forth in 
the grant agreement. Grant funds from this program cannot be used for 
matching funds for other federal grants, lobbying, or intervention in 
federal regulatory or adjudicatory proceedings. In addition, the 
recipient may not use these federal assistance funds to sue the federal 
government or any other government entity. Refer to 40 CFR 30.27, 
entitled ``Allowable Costs''. Further, the scope of Environmental 
Justice Small Grants may not include construction, personal gifts 
(e.g., t-shirts, buttons, hats), and furniture purchases.

III. Application Requirements

A. What Is Required for Applications?

    In order to be considered for funding under this program, proposals 
from eligible organizations must have the following:
    1. Application for Federal Assistance (SF 424) the official form 
required for all federal grants that requests basic information about 
the grantee and the proposed project. The applicant must submit the 
original application, plus two copies, signed by a person duly 
authorized by the governing board of the applicant.
    Please complete Part 10 of the SF 424 form, ``Catalog of Federal 
Domestic Assistance Number'' with the following information: 66.604--
Environmental Justice Small Grants Program.
    2. The Federal Standard Form (SF 424A) and budget detail, which 
provides information on your budget. For the purposes of this grants 
program, complete only the non-shaded areas of SF 424A. Budget figures/
projections should support your work plan/narrative. The EPA portion of 
these grants will not exceed $15,000 for non-Superfund or $20,000 for 
Superfund projects. Therefore, your budget should reflect this limit on 
federal funds.
    3. Narrative/work plan of the proposal, not to exceed five pages. 
Applications may not be considered if they exceed five single pages. A 
narrative/work plan describes the applicant's proposed project. The 
pages of the work plan must be letter size (8\1/2\  x  11 inches), with 
normal type size (12 characters per inch), and at least 1'' margins.
    The narrative/work plan is one of the most important aspects of 
your application and (assuming that all other required materials are 
submitted) will be used as the primary basis for selection. Work plans 
must be submitted in the format described below:
    a. A one page summary that:
     Identifies the environmental justice issue(s) to be 
addressed by the project;
     Identifies the EJ community/target audience;
     Identifies at least two environmental statutes/Acts 
addressed by the project; and
     Identifies at least two program goals that the project 
will meet and how it will meet them.
    b. A concise introduction that states the nature of the 
organization (i.e., how long it has been in existence, if it is 
incorporated, if it is a network, etc.), how the organization has been 
successful in the past, purpose of the project, the EJ community/target 
audience, project completion plans/time frames, and expected results.
    c. A concise project description that describes how the applicant 
is community-based and/or plans to involve the target audience in the 
project and how the applicant plans to meet at least two of the three 
program goals outlined in Section IIB: ``Office of Environmental 
Justice Small Grants Program Goals.'' Additional credit will not be 
given for projects that fulfill more than two goals.
    d. A conclusion discussing how the applicant will evaluate and 
measure the success of the project, including the anticipated benefits 
and challenges in implementing the project.
    e. An appendix with resumes of up to three key personnel who will 
be significantly involved in the project.
    4. Letter(s) of commitment. If your proposed project includes the 
significant involvement of other community organizations, your 
application must include letters of commitment from these 
organizations. This requirement may not apply to your proposed 
project--only include if applicable.
    Applications that do not include the information listed above in 
items 1-3 and, if applicable, item 4, will not be considered for an 
award.
    Please note: your application to this EPA program may be subject to 
your state's intergovernmental review process and/or the consultation 
requirements of Section 204, Demonstration Cities and Metropolitan 
Development Act. Check with your state's Single Point of Contact to 
determine your requirements--some states do not require this review. 
Applicants from American Samoa, Guam, Puerto Rico, and the U.S. Virgin 
Islands should also check with their Single Point of Contact. If you do 
not know who your Single Point of Contact is, please call your EPA 
regional contact (Section III) or EPA Headquarters at (202) 564-5325. 
Federally recognized tribal governments are not required to comply with 
this procedure.

B. When and Where Must Applications be Submitted?

    The applicant must submit/mail one signed original application with 
required attachments and one copy to the primary contact at the EPA 
regional office listed below. The application must be postmarked by 
United Parcel Postal Service no later than Friday, March 9, 2001.

[[Page 81723]]

Regional Contact Names and Addresses

Region 1  Connecticut, Maine, Massachusetts, New Hampshire, Rhode 
Island, Vermont

    Primary Contact: Ronnie Harrington (617) 918-1703, USEPA Region 1 
(SAA), 1 Congress Street--1100, Boston, MA 02203-0001;
    Secondary Contact: Pat O'Leary (617) 565-3834

Region 2  New Jersey, New York, Puerto Rico, U.S. Virgin Islands

    Primary Contact: Natalie Loney (212) 637-3639, USEPA Region 2, 290 
Broadway, 26th Floor, New York, NY 10007,
    Secondary: Terry Wesley (212) 637-3576

Region 3  Delaware, District of Columbia, Maryland, Pennsylvania, 
Virginia, West Virginia

    Primary Contact: Reginald Harris (215) 814-2988, USEPA Region 3 
(3DA00), 1650 Arch Street, Philadelphia, PA 19103-2029

Region 4  Alabama, Florida, Georgia, Kentucky, Mississippi, North 
Carolina, South Carolina, Tennessee

    Primary Contact: Gloria Love (404) 562-9672, USEPA Region 4, 61 
Forsyth Street, SW, Atlanta, GA 30303-8960,
    Secondary: Connie Raines (404) 562-9671

Region 5  Illinois, Indiana, Michigan, Minnesota, Ohio, Wisconsin

    Primary Contact: Margaret Millard (312) 353-1440, USEPA Region 5 
(MC T-175), 77 West Jackson Boulevard, Chicago, IL 60604-3507,
    Secondary: Karla Owens (312) 886-5993

Region 6  Arkansas, Louisiana, New Mexico, Oklahoma, Texas

    Primary Contact: Nelda Perez (214) 665-2209, USEPA Region 6 (6EN), 
1445 Ross Avenue, 12th Floor, Dallas, Texas 75202-2733,
    Secondary Contact: Shirley Augurson (214) 665-7401

Region 7  Iowa, Kansas, Missouri, Nebraska

    Primary Contact: Cecil Bailey (913) 551-7462 or 1-800-223-0425, 
USEPA Region 7, 726 Minnesota Avenue, Kansas City, KS 66101
    Secondary Contact: Althea Moses (913) 551-7649

Region 8  Colorado, Montana, North Dakota, South Dakota, Utah, Wyoming

    Primary Contact: Nancy Reish (303) 312-6040, USEPA Region 8 (8ENF-
EJ), 999 18th Street, Suite 500, Denver, CO 80202-2466,
    Secondary: Marcella Devargas (303) 312-6161

Region 9  Arizona, California, Hawaii, Nevada, American Samoa, Guam

    Primary Contact: Willard Chin (415) 744-1204, USEPA Region 9 (A-2-
2), 75 Hawthorne Street, San Francisco, CA 94105
    Secondary: EJ Information Line (415) 744-1565

Region 10  Alaska, Idaho, Oregon, Washington

    Primary Contact:Victoria Plata (206) 553-8580, USEPA Region 10 
(CEJ-163), 1200 Sixth Avenue, Seattle, WA 98101,
    Secondary: Mike Letourneau (206) 553-1687

IV. Process for Awarding Grants

A. How Will Applications Be Reviewed?

    EPA regional offices will review, evaluate, and select grant 
recipients. Applications will be screened to ensure that they meet all 
eligible activities and requirements described in Sections II and III. 
Applications will also be evaluated by regional review panels based on 
the criteria outlined in this solicitation. Applications will be 
disqualified if they do not meet these criteria.

B. How Will the Final Selections Be Made?

    After the individual projects are reviewed and ranked, EPA regional 
officials will compare the best applications and make final selections. 
Additional factors that EPA will take into account include geographic 
and socioeconomic balance, diverse nature of the projects, cost, and 
projects whose benefits can be sustained after the grant is completed. 
Regional Administrators will select the final grants.
    Please note that this is a very competitive grant's program. 
Limited funding is available and many grant applications are expected 
to be received. Therefore, the Agency cannot fund all applications. If 
your project is not funded, a listing of other EPA grant programs may 
be found in the Catalog of Federal Domestic Assistance. This 
publication is available at local libraries, colleges, or universities.

C. How Will Applicants Be Notified?

    After all applications are received, EPA regional offices will mail 
acknowledgments to applicants in their regions. Once applications have 
been recommended for funding, the EPA Regions will notify the finalists 
and request any additional information necessary to complete the award 
process. The finalists will be required to complete additional 
government application forms prior to receiving a grant, such as the 
EPA Form SF-424B (Assurances--Non-Construction Programs), EPA Form 
5700-48, and the Certification Regarding Debarment, Suspension, and 
Other Responsibility Matters. The federal government requires all 
grantees to certify and assure that they will comply with all 
applicable federal laws, regulations, and requirements.
    The EPA Regional Environmental Justice Coordinators or their 
designees will notify those applicants whose projects are not selected 
for funding.

V. Expected Time-Frame for Reviewing and Awarding Grants

December 22, 2000: FY 2001 Environmental Justice Small Grants Program 
Application Guidance is available and published in the Federal 
Register.
December 22, 2000 to March 3, 2001: Eligible grant recipients develop 
and complete their applications.
March 9, 2001: Applications must be postmarked by this date and mailed 
or delivered to the appropriate EPA regional office.
March 10, 2001 to April 9, 2001: EPA regional program officials review 
and evaluate applications and select grant finalists.
April 10, 2001 to August 6, 2001: Applicants will be contacted by the 
Region if their application is being considered for funding. Additional 
information may be required from the finalists, as indicated in Section 
IV. EPA regional grant offices process grants and make awards.
September 28, 2001: EPA expects to release the national announcement of 
the FY 2001 Office of Environmental Justice Small Grant Recipients.

VI. Project Period and Final Reports

    Activities must be completed and funds spent within the time frame 
specified in the grant award, usually one year. Project start dates 
will depend on the grant award date (most projects begin in August or 
September). The recipient organization is responsible for the 
successful completion of the project. The recipient's project manager 
is subject to approval by the EPA project officer but EPA may not state 
that any particular person be the project manager.
    All recipients must submit final reports for EPA approval within 
ninety

[[Page 81724]]

(90) days of the end of the project period. Specific report 
requirements (e.g., Final Technical Report and Financial Status Report) 
will be described in the award agreement. EPA will collect, review, and 
disseminate grantees' final reports to serve as model programs.
    For further information about this program, please visit EPA's 
website at www.epa.gov/oeca/ej/ or call our hotline at 1-800-962-6215.

VII. Fiscal Year 2002 OEJ Small Grants Program

A. How Can I Receive Information on the Fiscal Year 2002 Environmental 
Justice Grants Program?

    If you wish to be placed on the national mailing list to receive 
information on the FY 2002 Environmental Justice Small Grants Program, 
you must mail your request along with your name, organization, address, 
and phone number to: U.S. Environmental Protection Agency, Office of 
Environmental Justice Small Grants Program (2201A), FY 2002 Grants 
Mailing List, 1200 Pennsylvania Avenue, NW, Washington, DC 20460, 1 
(800) 962-6215.
    Thank you for your interest in our Small Grants Program and we wish 
you luck in the application process.

    Dated: December 18, 2000.
Barry E. Hill,
Director, Office of Environmental Justice.

Appendix A--Standard Forms 424 and 424A and Completed Sample Forms

    Copies of the forms are available by calling 1-800-962-6215 or 
off the Internet at http://www.whitehouse.gov/OMB/grants/#forms

Appendix B--40 CFR 30.27 ``Allowable Costs''

http://www.access.gpo.gov/nara/cfr/waisidx_00/40cfr30_00.html
[Code of Federal Regulations]
[Title 40, Volume 1, Part 1 to 49]
[Revised as of July 1, 2000]
From the U.S. Government Printing Office via GPO Access
[CITE: 40CFR30.27] [Page 311]

Title 40--Protection of Environment

Subpart C--Post-Award Requirements

Sec. 30.27  Allowable costs.

    (a) For each kind of recipient, there is a set of Federal 
principles for determining allowable costs. Allowability of costs 
shall be determined in accordance with the cost principles 
applicable to the entity incurring the costs. Thus, allowability of 
costs incurred by State, local or federally-recognized Indian tribal 
governments is determined in accordance with the provisions of OMB 
Circular A-87, ``Cost Principles for State and Local Governments.'' 
The allowability of costs incurred by non-profit organizations is 
determined in accordance with the provisions of OMB Circular A-122, 
``Cost Principles for Non-Profit Organizations.'' The allowability 
of costs incurred by institutions of higher education is determined 
in accordance with the provisions of OMB Circular A-21, ``Cost 
Principles for Educational Institutions.'' The allowability of costs 
incurred by hospitals is determined in accordance with the 
provisions of appendix E of 45 CFR part 74, ``Principles for 
Determining Costs Applicable to Research and Development Under 
Grants and Contracts with Hospitals.'' The allowability of costs 
incurred by commercial organizations and those non-profit 
organizations listed in Attachment C to Circular A-122 is determined 
in accordance with the provisions of the Federal Acquisition 
Regulation (FAR) at 48 CFR part 31. In addition, EPA's annual 
Appropriations Acts may contain restrictions on the use of 
assistance funds. For example, the Acts may prohibit the use of 
funds to support intervention in Federal regulatory or adjudicatory 
proceedings.
    (b) EPA will limit its participation in the salary rate 
(excluding overhead) paid to individual consultants retained by 
recipients or by a recipient's contractors or subcontractors to the 
maximum daily rate for level 4 of the Executive Schedule unless a 
greater amount is authorized by law. (Recipient's may, however, pay 
consultants more than this amount.) This limitation applies to 
consultation services of designated individuals with specialized 
skills who are paid at a daily or hourly rate. This rate does not 
include transportation and subsistence costs for travel performed; 
recipients will pay these in accordance with their normal travel 
reimbursement practices. Contracts with firms for services which are 
awarded using the procurement requirements in this part are not 
affected by this limitation.

Appendix C Guidance on Lobbying Restrictions

    The purpose of this guidance is to remind nonprofit 
organizations, universities, and other non-government recipients of 
EPA grants \2\ that, with very limited exceptions, you may not use 
Federal grant funds or your cost-sharing funds to conduct lobbying 
activities. The restrictions on lobbying are explained in Office of 
Management and Budget (OMB) Circular No. A-21, ``Cost Principles for 
Educational Institutions,'' 61 FR 20880 (May 8, 1996),\3\ and OMB 
Circular No. A-122, ``Cost Principles for Nonprofit Organizations; 
'Lobbying' Revision,'' 49 FR 18260 (April 27, 1984). As a recipient 
of EPA funds, you must be aware of and comply with these 
restrictions.\4\
    The general objective of the restrictions is to prohibit the use 
of appropriated funds for lobbying, publicity, or propaganda 
purposes designed to support or defeat legislation. The restrictions 
do not affect the normal sharing of information or lobbying 
activities conducted with your own funds (so long as they are not 
used to match the grant funds).
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    \2\ The term ``grant'' as used in this guidance refers to grants 
and cooperative agreements.
    \3\ Grants awarded before May 8, 1996, are subject to the 
previous version of Circular No. A-21, but the provisions on 
lobbying have remained essentially unchanged.
    \4\ This guidance does not address the restrictions on lobbying 
contained in 40 CFR Part 34, the EPA regulations implementing 
section 319 of Pub. Law No. 101-121, known as ``the Byrd 
Amendment,'' generally prohibit recipients of Federal grants, 
contracts, and loans from using Federal funds for lobbying the 
Executive or Legislative Branches of the Federal Government in 
connection with a specific grant, contract, or loan. Part 34 
includes detailed certification and disclosure requirements. This 
guidance also does not address section 18 of the Lobbying Disclosure 
Act of 1995, Pub. Law No. 104-65, which provides that organizations 
described in section 501(c)(4) of the Internal Revenue Code that 
engage in lobbying activities are not eligible for Federal grants or 
loans.
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Unallowable Lobbying Activities

    Under Circulars A-21 and A-122, the costs of the following 
activities are unallowable:
    (1) Contributions, endorsements, publicity or similar activities 
intended to influence Federal, State or local elections, referenda, 
initiatives or similar processes.
    (2) Direct and indirect financial or administrative support of 
political parties, campaigns, political action committees, or other 
organizations created to influence elections. Recipients may help 
collect and interpret information. These efforts must be for 
educational purposes only, however, and cannot involve political 
party activity or steps to influence an election.
    (3) Attempts to influence the introducing, passing, or changing 
of Federal or State legislation through contacts with members or 
employees of Congress or State legislatures, including attempts to 
use State and local officials to lobby Congress or State 
legislatures. For example, you may not charge a grant for your costs 
of sending information to Members of Congress to encourage them to 
take a particular action. Also prohibited are contacts with any 
government official or employee to influence a decision to sign or 
veto Federal or State legislation. The restriction does not address 
lobbying at the local level.
    (4) Attempts to influence the introducing, passing, or changing 
of Federal or State legislation by preparing, using, or distributing 
publicity or propaganda, i.e., grass roots lobbying efforts to 
obtain group action by members of the public, including attempts to 
affect public opinion and encourage group action. For example, the 
costs of printing and distributing to members of the public or the 
media a report produced under a grant, if intended to influence 
legislation, are unallowable. \5\
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    \5\ Circular A-122 addresses public information service costs 
that do not relate to lobbying. Attachment B to the Circular, at 
paragraph 36, makes allowable, with prior approval of the Federal 
agency, costs associated with pamphlets, news releases and other 
forms of information services if their purpose is: to inform or 
instruct individuals, groups or the general public; to interest 
individuals or groups in participating in a service program of the 
recipient; or to disseminate the results of sponsored and non-
sponsored activities.
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    (5) Attending legislative sessions or committee hearings, 
gathering information about legislation, and similar activities, 
when

[[Page 81725]]

intended to support or prepare for unallowable lobbying.

Exceptions

    There are three exceptions to this list of unallowable lobbying 
activities in Circulars A-21 and A-122. These exceptions do not 
necessarily make the cost of these activities allowable; they make 
the costs potentially allowable. Allowability will be determined 
based on whether the costs in a particular case are reasonable, 
necessary, and allocable to the grant.
    The first exception is for technical and factual (not advocacy) 
presentation to Congress, a State legislature, member, or staff, on 
a topic directly related to performance of the grant, in response to 
a request (not necessarily in writing) from the legislative body or 
individual. For requests that are not made in writing, recipients 
should make a note for their files documenting the requests. The 
information presented must be readily available and deliverable. 
Costs for travel, hotels, and meals related to the presentation are 
generally unallowable unless related to testimony at a regularly 
scheduled Congressional hearing at the written request of the 
chairperson or ranking minority member of the congressional 
committee.
    The second exception is for actions intended to influence State 
legislation in order to directly reduce the actual cost of 
performing the Federal grant project or to protect the recipient's 
authority to perform the project. The exception does not apply to 
actions intended merely to shift costs from one source to another. 
For example, in response to Federal funding cutbacks, a Federally-
funded recipient lobbies for State funds to replace or reduce the 
Federal share of project costs for next year. The cost of that 
lobbying activity would not be allowable because its purpose is not 
to directly reduce the actual cost of performing the work but merely 
to shift from Federal funding to State funding.
    Finally, Circulars A-21 and A-122 allow lobbying costs if they 
are specifically authorized by law.

Indirect Cost Rate

    When you seek reimbursement for indirect costs (overhead), you 
must identify your total lobbying costs in your indirect cost rate 
proposal so that the Government can avoid subsidizing lobbying. This 
is consistent with the circulars' requirement of disclosure of the 
costs spent on all unallowable activities. This requirement is 
necessary so that when the Government calculates the amount of an 
organization's indirect costs that it will pay. It does not include 
the costs of unallowable activities that the organization happens to 
count as indirect costs.

Enforcement

    In cases of improper lobbying with grant funds, EPA may recover 
the misspent money, suspend or terminate the grant, and take action 
to prevent the recipient from receiving any Federal grants for a 
certain period. Your project officer is available to handle any 
questions or concerns.

Appendix D--Tips for Preparing Grant Application

    This information is intended to help you put together a 
competitive proposal for the Environmental Protection Agency's (EPA) 
Environmental Justice Small Grants Program. Please read the 
Application Guidance carefully--this document is intended to enhance 
not replace the official FY 01 Guidance.

 Target your audience carefully

    Identify a specific group or community to work with to develop a 
program that will give the highest return for your dollars invested.

 Build partnerships and alliances

    You are strongly encouraged to enlist project involvement from 
community groups with similar or related goals and secure their 
commitment of services and/or dollars. Be sure to document this by 
obtaining letter(s) of commitment for your application. Initiate the 
partnerships early in your planning, since building alliances can 
take time and effort.

 Do some homework

    Allow time to review the literature on environmental justice 
issues both within EPA and the community you work in or with. Find 
out what materials exist on the subject and the procedures you are 
planning to include in your work plan. Use this information to back 
up your project plans or to explain how your group activities are 
unique and/or creative.

 Develop a project evaluation technique

    Define as carefully and precisely as possible what you want to 
achieve with this project and how you will test its success. Ask 
yourself: ``what do you expect to be different once the project is 
complete?'' Outline a plan you will use to measure the success of 
your activities/project.

 Develop a timeline or project accomplishment schedule

    List the major tasks that you will complete to meet the goals of 
the project. Break these broad goals into smaller tasks and lay them 
out in a schedule over the twelve months of the grant period. 
Determine and identify in the proposal the total estimated cost for 
each task. You may estimate this cost by the number of personnel, 
materials, and other resources you will need to carry out the tasks.

 Develop a project budget with the federal portion up to 
$15,000 for non-Superfund or $20,000 for Superfund projects

    The EPA portion of this grant should not exceed $15,000 for non-
Superfund or $20,000 for Superfund projects. Divide your budget into 
categories such as personnel salaries/fringe benefits, travel, 
equipment, supplies, contract costs, other.

 Stay within the format

    This makes it easier for the reviewer to read and therefore, 
understand your work plan. Please refer to the application 
requirements (pages 6-7).
     Communicate the nature of your project accurately, 
precisely, and concisely.
    Describe exactly what you propose to do, how you are going to do 
it, when you are going to do it, who will benefit, and how you will 
know you are successful. Indicate not only what you propose but what 
expertise your group has for completing the project (include 
resumes).

Evaluation of Your Proposal

    Your proposal will be evaluated by a committee of EPA 
Headquarters and Regional environmental justice personnel of diverse 
personal and professional backgrounds. Final selection is based on a 
variety of factors, including geographic and socioeconomic balance, 
diversity, cost of the project and how well the partnership benefits 
can be sustained after the grant is completed. Below are some common 
strengths and weaknesses we see in proposals.

Common Strengths

     Project proposal developed solidly from within the 
community.
     Broad based community support for a project that has 
the potential to positively affect local people.
     Project identifies established community advisory board 
or community group who will be involved in the project.
     Good partnership with industry, community, and 
environmental groups. Good coordination with a variety of community 
groups.
     Proposal does a good job of outlining a complex problem 
and approach to solving it--does not overlook any major issues or 
key players.
     Clear identification and background description of 
population to be served.
     Proposal identifies specific outputs, target 
accomplishments, and estimated budgets for each goal, and target 
dates for completion.
     Proposed project builds on existing projects or 
programs.
     The scope of the project can be completed in a funding 
year.
     Proposal clearly describes how the project will achieve 
at least two of the three program goals outlined on pages 4 and 5 of 
the application guidance.
     Proposal includes innovative ideas and creative 
thinking about how to motivate and involve youth in the communities 
where they live.
     Proposal includes honest discussion of challenges 
involved.
    If applying for a Superfund project, the proposal discusses why 
their project is for ``research'' to assure it meets statutory 
requirements.

Common Weaknesses

     Application did not include information specifically 
requested in the application guidance.
     Community members do not appear to be an integral part 
of the project planning process.
     Not specific enough about what EPA funds will be used 
for. If the proposal is for a project that has a budget of more than 
$15,000 or $20,000 for Superfund, proposal must indicate whether 
other funding has been secured.
     Applicant is not a non-profit organization (see 
application guidance page 2).

[[Page 81726]]

     Program may be too ambitious for one year.
     Project funds conferences or dialogues to discuss EJ 
issues but does not fund activities that make direct changes in a 
community.
     Immediacy of need is not established.
     Methods of evaluating the success of the project 
unclear.
     Failure to mention other groups that applicant will 
work with or to secure letters of commitment.
     Proposal seeks support for developing general 
environmental program with little mention of environmental justice 
issues. The link between goals of EPA's environmental justice 
program and the project is not clearly stated.
     Discussion of overall mission and goals of the 
organization but not enough detail on how the specific project and 
activities will help achieve the goals.
[FR Doc. 00-32667 Filed 12-22-00; 8:45 am]
BILLING CODE 6560-50-U