[Federal Register Volume 66, Number 155 (Friday, August 10, 2001)]
[Notices]
[Pages 42398-42404]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-20130]



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Part VI





Environmental Protection Agency





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Grants for Lead Programs; Notice of Availability of Funds; Notices

  Federal Register / Vol. 66, No. 155 / Friday, August 10, 2001 / 
Notices  

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ENVIRONMENTAL PROTECTION AGENCY

[OPPTS-00319; FRL-6796-5]


Solicitation of Applications for Lead-Based Paint Program Grants; 
Notice of Availability of Funds

AGENCY:  Environmental Protection Agency (EPA).

ACTION:  Notice.

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SUMMARY:  This notice announces EPA's intent to enter into cooperative 
agreements with States, Territories, eligible Indian Tribes and 
Intertribal Consortia, and the District of Columbia to provide 
financial assistance for purposes of developing and carrying out EPA-
authorized lead-based paint programs. These programs and this financial 
assistance are authorized by section 404(g) of the Toxic Substances 
Control Act (TSCA). In order for Indian Tribes and Intertribal 
Consortia to be eligible for financial assistance under this program, 
the Indian Tribes and Intertribal Consortia must demonstrate that they 
meet the criteria for treatment as a State. The total amount of FY 2001 
funding to be awarded to States, Territories, eligible Indian Tribes 
and Intertribal Consortia, and the District of Columbia for development 
and implementation of EPA-authorized lead-based paint programs, and for 
EPA's direct implementation of such programs for those States, 
Territories, eligible Indian Tribes and Intertribal Consortia, and the 
District of Columbia that do not have EPA-authorized programs is $12.5 
million. For FY 2001, the Agency is allocating up to $1.5 million of 
these funds for the Indian Tribes and Intertribal Consortia.

DATES:  Applications submitted by States, Territories, and the District 
of Columbia for financial assistance, identified by docket control 
number OPPTS-00319, must be received by EPA Regional staff on or before 
September 10, 2001. Applications submitted by Indian Tribes and 
Intertribal Consortia for financial assistance, identified by docket 
control number OPPTS-00319, must be received by EPA Regional staff on 
or before September 24, 2001.

ADDRESSES:  Applications may be submitted by mail, or in some instances 
electronically. Please follow the detailed instructions provided in 
Unit I. of the SUPPLEMENTARY INFORMATION. To ensure proper receipt by 
EPA, it is imperative that you identify docket control number OPPTS-
00319 in the subject line on the first page of your response.

FOR FURTHER INFORMATION CONTACT:  For general information contact: 
Barbara Cunningham, Acting Director, Environmental Assistance Division 
(7401), Office of Pollution Prevention and Toxics, Environmental 
Protection Agency, 1200 Pennsylvania Ave., NW., Washington, DC 20460; 
telephone number: (202) 554-1404; e-mail address: [email protected].
    For technical information contact: The appropriate Regional Lead 
Coordinator listed in Unit I.C. of the SUPPLEMENTARY INFORMATION.

SUPPLEMENTARY INFORMATION:

I. General Information

A. Does this Action Apply to Me?

    This action is directed to States, Territories, eligible Indian 
Tribes and Intertribal Consortia, and the District of Columbia to 
develop and carry out authorized lead-based paint programs under TSCA 
section 404(g). In order for Indian Tribes and Intertribal Consortia to 
be eligible for financial assistance under this program, the Indian 
Tribes or Intertribal Consortia must demonstrate that they meet the 
criteria at 40 CFR 35.693 for treatment as a State (Refs. 3 and 4). In 
order for Intertribal Consortia to be eligible for financial assistance 
under TSCA section 404(g), they must also meet the requirements at 40 
CFR 35.504. These eligibility requirements for Indian Tribes and 
Intertribal Consortia are in addition to the general eligibility 
requirements discussed in Unit I.D.3. If you have any questions 
regarding the applicability of this action to a particular entity, 
consult the technical person listed under FOR FURTHER INFORMATION 
CONTACT.

B. How Can I Get Additional Information, Including Copies of this 
Document or Other Related Documents?

    You may obtain electronic copies of this document from the EPA 
Internet Home Page at http://www.epa.gov/. To access this document, on 
the Home Page select ``Laws and Regulations,'' ``Regulations and 
Proposed Rules,'' and then look up the entry for this document under 
the ``Federal Register--Environmental Documents.'' You can also go 
directly to the Federal Register listings at http://www.epa.gov/fedrgstr/.
    You may also access this document on the Home Page for the Office 
of Pollution Prevention and Toxics (OPPT) at http://www.epa.gov/opptintr/lead. Select ``What's New.'' Hard copies of this document are 
available from the appropriate Regional Lead Coordinator listed in Unit 
I.C.

C. How and to Whom Do I Submit an Application?

    You may submit an application through the mail, or in some 
instances electronically, to the Regional Lead Coordinator in the 
appropriate EPA Regional Office. (Note: On a trial basis, some EPA 
Regional Offices are allowing submission of applications electronically 
at this time. Please consult with the Regional Lead Coordinator in the 
appropriate EPA Regional Office to confirm if electronic submission of 
your application is permitted.) The mailing addresses and contact 
telephone numbers for these Offices are listed in this unit. To ensure 
proper receipt by EPA, it is imperative that you identify docket 
control number OPPTS-00319 in the subject line on the first page of 
your response.
    Region I: (Connecticut, Massachusetts, Maine, New Hampshire, Rhode 
Island, and Vermont), Regional Contact--James Bryson, U.S. 
Environmental Protection Agency (USEPA) Region I, One Congress St., 
Suite 1100 (CPT), Boston, MA 02114-0203; telephone number: (617) 918-
1524; e-mail address: [email protected].
    Region II: (New York, New Jersey, Puerto Rico, and the Virgin 
Islands), Regional Contact--Lou Bevilacqua, USEPA Region II, MS-225, 
2890 Woodbridge Ave., Edison, NJ 08837; telephone number: (732) 321-
6671; e-mail address: [email protected].
    Region III: (Delaware, Maryland, Pennsylvania, Virginia, West 
Virginia, and the District of Columbia), Regional Contact--Roberta 
Riccio, USEPA Region III (3WC33), 1650 Arch St., Philadelphia, PA 
19103-2029; telephone number: (215) 814-3107; e-mail address: 
[email protected].
    Region IV: (Alabama, Florida, Georgia, Kentucky, Mississippi, North 
Carolina, South Carolina, and Tennessee), Regional Contact--Rose Anne 
Rudd, USEPA Region IV, 61 Forsyth St., SW., Atlanta, GA 30303; 
telephone number: (404) 562-8998; e-mail address: 
[email protected].
    Region V: (Illinois, Indiana, Michigan, Minnesota, Ohio, and 
Wisconsin), Regional Contact--David Turpin, USEPA Region V (DT-8J), 77 
W. Jackson Blvd., Chicago, IL 60604; telephone number: (312) 886-7836; 
e-mail address: [email protected].
    Region VI: (Arkansas, Louisiana, New Mexico, Oklahoma, and Texas), 
Regional Contact--Jeffrey Robinson, USEPA Region VI, 1445 Ross Ave., 
12\th\ Floor, Dallas, TX 75202; telephone number: (214) 665-7577; e-
mail address: [email protected].
    Region VII: (Iowa, Kansas, Missouri, and Nebraska), Regional 
Contact--

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Mazzie Talley, USEPA Region VII, ARTD/RALI, 901 North 5\th\, Kansas 
City, KS 66101; telephone number: (913) 551-7518; e-mail address: 
[email protected].
    Region VIII: (Colorado, Montana, North Dakota, South Dakota, Utah, 
and Wyoming), Regional Contact--David Combs, USEPA Region VIII, 999-
18\th\ St., Suite 300, Denver, CO 80202; telephone number: (303) 312-
6021; e-mail address: [email protected].
    Region IX: (Arizona, California, Hawaii, Nevada, American Samoa, 
and Guam), Regional Contact--Patricia Norton, USEPA Region IX (CMD-4-
2), 75 Hawthorne St., San Francisco, CA 94105; telephone number: (415) 
744-1069; e-mail address: [email protected].
    Region X: (Alaska, Idaho, Oregon, and Washington), Regional 
Contact--Barbara Ross, USEPA Region X, Solid Waste and Toxics Unit 
(WCM-128), 1200 Sixth Ave., Seattle, WA 98101; telephone number: (206) 
553-1985; e-mail address: [email protected].

D. What Should I Consider as I Prepare My Application for EPA?

    1. Purpose and scope. EPA awards non-matching cooperative 
agreements under TSCA section 404(g) to States, Territories, eligible 
Indian Tribes and Intertribal Consortia, and the District of Columbia 
to develop and carry out authorized lead-based paint programs. The term 
``Territory'' includes the Commonwealth of Puerto Rico, the Virgin 
Islands, Guam, American Samoa, the Northern Mariana Islands, and any 
other Territory or possession of the United States. Also, hereinafter, 
the term ``States'' includes the ``District of Columbia.'' In the past, 
recipients of the grants have used the funds to assist in program 
development and to prepare for program authorization. EPA intends to 
continue to support the development and authorization of these programs 
as well as implementation of authorized programs as budget constraints 
allow. This Notice has been developed based on the knowledge that some 
States have received authorization and that several States and Indian 
Tribes are continuing to develop their programs. This Notice addresses 
the criteria EPA will consider when evaluating the grant proposals 
submitted to the Agency.
    Under TSCA section 404, EPA authorizes States, Territories, Indian 
Tribes, and Intertribal Consortia to administer lead-based paint 
programs in lieu of the corresponding Federal program. These lead-based 
paint programs are intended to reduce the incidence of childhood lead 
poisoning by ensuring that individuals conducting lead-based paint 
activities are properly trained and certified and that renovation 
contractors provide lead-hazard information to building owners and 
residents. EPA issued regulations to establish these lead-based paint 
programs under the authority of TSCA sections 402 and 406. See 40 CFR 
part 745. The procedures for authorizing States, Territories, Indian 
Tribes, and Intertribal Consortia to implement lead-based paint 
programs are found at 40 CFR part 745, subpart Q.
    2. Goal and objectives. Pursuant to Title IV of TSCA, EPA 
encourages States, Territories, Indian Tribes, and Intertribal 
Consortia to seek authorization of their own lead-based paint programs. 
EPA's goal is to have authorized programs in all States and a large 
number of Territories, and on a large number of Indian Tribal lands. 
EPA therefore recommends that parties seek funding through the TSCA 
Title IV section 404(g) assistance program, which is now being 
implemented to assist with development and implementation of lead-based 
paint programs.
    Since 1994, EPA has been offering financial assistance under TSCA 
section 404(g) in the form of cooperative agreements without matching-
fund requirements. In the upcoming funding cycle (which is the eighth 
year of awarding Federal assistance pursuant to TSCA section 404(g)), 
the Agency will continue to work with eligible applicants to develop 
cooperative agreements consistent with the objectives critical to the 
ultimate success of implementation of a national lead program, with the 
emphasis on State, Territorial, Indian Tribal, and Intertribal 
Consortia programs. Although EPA's goal is to have authorized programs 
in all States and a large number of Territories, and on a large number 
of Indian Tribal lands, the Agency and Congress anticipated that there 
would be a number of States, Territories, and Indian Tribes that would 
not seek program authorization. Consistent with authority granted in 
the Agency's FY 1998 Appropriation Act (Ref. 7), and the provisions 
contained within, EPA is authorized to use TSCA section 404(g) funds to 
implement a Federal lead-based paint program for non-authorized States, 
Territories, and Indian Tribes. See 40 CFR 35.116, effective April 9, 
2001, and 40 CFR 35.516, effective April 17, 2001 (Refs. 1, 2, 3, and 
4). (Note: Where the Agency has direct implementation responsibilities, 
EPA cannot provide financial assistance under this grant program to 
non-authorized States, Territories, Indian Tribes, or Intertribal 
Consortia to assist the Agency in implementing and enforcing a Federal 
program under TSCA section 404(h).)
    The cooperative agreements must be used to develop and implement 
authorized programs. States, Territories, Indian Tribes, and 
Intertribal Consortia that do not have authorized programs may receive 
cooperative agreement funding, but only for the continued development 
of lead-based paint programs which will meet the requirements of TSCA 
Title IV. To receive continued funding, States, Territories, Indian 
Tribes, and Intertribal Consortia without an authorized program must be 
making progress toward an authorized program. Therefore, the Regional 
Offices, as part of their grant oversight responsibilities, will work 
with the grantees to determine the appropriate amount of continued 
funding based upon the amount of developmental work to be completed as 
the grantee makes progress towards authorization. Eligible parties may 
utilize this grant support in a way that complements and does not 
duplicate activities for which they already receive or could receive 
financial assistance from other Federal sources (i.e., the Centers for 
Disease Control and Prevention (CDC) and the U.S. Department of Housing 
and Urban Development (HUD)).
    This Notice is one of three notices that announce the availability 
of funds for Indian Tribes and Intertribal Consortia conducting various 
lead-based paint activities. The specific details regarding the 
companion notices are described in separate notices published elsewhere 
in this Federal Register issue. The notices are entitled:
    a. Baseline Assessment of Existing Exposure and Risks of Exposure 
to Lead Poisoning of Native American Children and
    b. Lead Awareness (Educational) Outreach for Native American 
Tribes.
As stated in this unit, Indian Tribes and Intertribal Consortia, as 
well as all grantees, will not be awarded funds to fund the same 
activities from more than one source. Although an Indian Tribe may 
apply to receive grant funding from all three notices, they each have 
very distinct objectives. The grant program opportunities described in 
the companion notices may serve as precursors to, but not as an 
equivalents or supplements to, the TSCA section 404(g) lead-based paint 
grant program described in this Notice. The TSCA section 404(g) lead-
based paint grant program for which funding is provided in this Notice 
involves infrastructure development for the anticipated implementation 
of a lead program and

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does not include activities (testing for lead in blood, paint, dust, or 
soil samples, or general outreach and education activities) listed in 
the companion notices.
    Under TSCA, States are required to collect fees to cover certain 
costs incurred by the program. These fees are considered ``program 
income,'' which is defined as ``gross income received by a grantee or 
subgrantee directly generated by a grant supported activity, or earned 
only as a result of the grant agreement during the grant period.'' See 
40 CFR 31.25(b). It includes income from fees for services performed by 
the recipient. Program income generated by activities supported under 
TSCA section 404(g) grants may include fees that a State, Territory, 
Indian Tribe, or Intertribal Consortium charges for training, 
accreditation, certification, licensing, or other services performed by 
the lead training and certification programs, as well as fees that are 
collected which provide for enforcement of standards and regulations. 
Consequently, States, Territories, Indian Tribes, and Intertribal 
Consortia must comply with the rules governing ``program income,'' 
found at 40 CFR 31.25, and use the funds generated by grant supported 
activities to assist with program operation costs.
    3. Eligibility. States, Territories, Indian Tribes, and Intertribal 
Consortia are eligible to apply for financial assistance under this 
program if they are either implementing an EPA authorized program 
pursuant to 40 CFR part 745, subpart Q or if they are developing a 
program that may be authorized in the future. However, funds will be 
awarded based upon the progress made by the applicant in developing an 
acceptable program, including implementing regulations. Failure to make 
satisfactory progress toward program authorization may result in a 
State, Territory, Indian Tribe, or Intertribal Consortium not receiving 
funding. The EPA Regional Offices, as part of their grant oversight 
responsibilities, will have discretion with respect to determining 
whether sufficient progress is being made by a given State, Territory, 
Indian Tribe, and/or Intertribal Consortium toward the development and 
implementation of a program under TSCA Title IV.
    States, Territories, Indian Tribes, and Intertribal Consortia may 
choose to combine TSCA section 404(g) grant funds with other 
environmental program grants as part of a performance partnership grant 
(PPG) if the requirements in 40 CFR 35.130 through 35.138 (applies to 
States) and 40 CFR 35.530 through 35.538 (applies to Indian Tribes and 
Intertribal Consortia) are adhered to by the grantee. The final rules 
which promulgated these provisions were published in the Federal 
Register on January 9, 2001 (Ref.1), effective April 9, 2001 (Ref. 2) 
and January 16, 2001 (Ref. 3), effective April 17, 2001 (Ref. 4).
    4. Authority. The TSCA Title IV lead-based paint program is a 
cooperative agreement program administered by EPA under the authority 
of TSCA section 404(g). Regulations governing these cooperative 
agreements are found at 40 CFR part 31 (Uniform Administrative 
Requirements for Grants and Cooperative Agreements to State and Local 
Governments). Regulations which supplement the EPA general assistance 
regulations found in 40 CFR part 31 are found at 40 CFR part 35, 
subpart A (Ref. 1), effective April 9, 2001 (Ref. 2), and subpart B 
(Ref. 3), effective April 17, 2001 (Ref. 4). Contained within 40 CFR 
part 35 are specific sections which govern grants and cooperative 
agreements for the lead-based paint program under TSCA section 404(g); 
40 CFR 35.270 through 35.273 (applicable to States, Territories, and 
the District of Columbia) (Ref. 1), effective April 9, 2001 (Ref. 2), 
and 40 CFR 35.690 through 35.693 (applicable to Indian Tribes and 
Intertribal Consortia) (Ref. 3), effective April 17, 2001 (Ref. 4). The 
EPA Regional Offices administer the TSCA section 404(g) cooperative 
agreements pursuant to a delegation of authority which permits the 10 
EPA Regional Administrators to enter into cooperative agreements with 
States, Territories, Indian Tribes, and Intertribal Consortia.
    5. Activities to be funded. This Notice was developed by OPPT in 
cooperation with the Agency's 10 Regional Offices, to set forth in more 
detail the required elements of grant agreements funded under TSCA 
section 404(g), to describe some of the eligible activities that will 
be considered for funding, and to facilitate and support Regional 
administration of this program as they work closely with the States, 
Territories, Indian Tribes, and Intertribal Consortia to develop work 
plans that reflect both EPA and State, Territory, and Tribal program 
priorities. EPA's list of eligible grant activities includes activities 
that are outlined as required elements of authorized lead-based paint 
programs, including development of enabling legislation and 
regulations, enforcement components, as well as other items associated 
with performance reporting. The elements are specified in 40 CFR 
745.325 through 745.327, and are repeated in this unit to assist with 
the development of applicant work plans. This year's list of activities 
was updated to account for the following regulation changes which will 
directly impact the authorized programs.
    EPA promulgated its final TSCA section 403 lead hazard standards on 
December 22, 2000. A rule was published in the Federal Register on 
January 5, 2001 (Ref. 5). The TSCA section 403 standards amend the work 
practice standards for lead-based paint activities found at 40 CFR 
745.227. The TSCA section 403 standards amend the TSCA section 402 
regulations by establishing clearance standards for dust; limiting 
reuse of abated soil; adding a requirement for interpreting composite 
dust clearance samples; and changing risk assessment and clearance 
sampling requirements to ensure compatibility between sampling results 
and the TSCA section 403 hazard standards and section 402 clearance 
standards. Authorized State, Territory, Indian Tribe, and Intertribal 
Consortium lead-based paint activities programs are required to develop 
lead hazard standards and clearance standards that are as protective of 
human health and the environment as the Federal standards pursuant to 
40 CFR 745.324, and, as specified in the January 5, 2001, Federal 
Register, these amendments must occur by February 5, 2003, for grantees 
to maintain their authorization. Therefore, TSCA section 404(g) funds 
can be utilized by authorized States, Territories, Indian Tribes, and 
Intertribal Consortia to develop and/or adopt lead hazard standards and 
clearance standards for lead in soil, dust, and paint.
    Another potential regulatory change should be considered by 
applicants. Pursuant to TSCA section 402(c)(3), EPA is developing a 
proposed regulation to govern the conduct of renovation and remodeling 
activities that create lead-based paint hazards. If promulgated, this 
regulation will amend the existing TSCA section 402 rules for lead-
based paint activities. EPA has developed a model renovators training 
curriculum entitled Minimizing Lead-Based Paint Hazards During 
Renovation, Remodeling, and Repainting (Ref. 6). EPA plans to make this 
course available, and publicly encourage its use until the renovation 
and remodeling rule is effective. As in the existing EPA lead-based 
paint program regulations, States, Territories, Indian Tribes, and 
Intertribal Consortia will be given the opportunity to seek 
authorization for a renovation and remodeling activities program. While 
it will be several years before the regulation is finalized, States, 
Territories, Indian Tribes, and Intertribal Consortia are encouraged to

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begin considering the need for such an authorized program in their 
jurisdiction. TSCA section 404(g) funds can be utilized to assist in 
this process.
    Although the list is not exhaustive, the following activities are 
eligible for funding under TSCA section 404(g) if they are in support 
of developing and implementing lead-based paint programs authorized 
pursuant to 40 CFR part 745, subpart Q. In addition, the Agency will 
consider for funding other activities which focus on the development 
and implementation of authorized programs, such as:
    a. Developing and/or adopting lead hazard standards and clearance 
standards for lead in soil, dust, and paint;
    b. Developing and/or enacting enabling legislation;
    c. Adopting implementing regulations;
    d. Developing a system to document certification of inspectors, 
risk assessors, supervisors, workers, and project designers;
    e. Adjusting or enhancing the appropriate infrastructure to 
accommodate additional program responsibilities;
    f. Maintaining, improving, and/or developing the appropriate 
infrastructure to successfully administer and enforce a program to 
ensure that individuals engaged in lead-based paint activities are 
properly trained, that training programs are accredited, that 
contractors and firms engaged in such activities are certified;
    g. Maintaining, improving, and/or developing the appropriate 
infrastructure to successfully administer and enforce a program to 
ensure that renovation contractors provide lead-hazard information to 
building owners and residents;
    h. Overseeing the conduct of certified contractors engaged in lead-
based paint activities to ensure that they are conducting their 
activities according to all applicable regulations, including 
monitoring inspection, risk assessment, and abatement activities per 
the authorized program;
    i. Overseeing accredited training programs per the authorized 
program;
    j. Developing and/or revising, as needed, work practice standards 
for the conduct of lead-based paint activities associated with 
inspections, risk assessments, and abatement;
    k. Monitoring compliance with work practice standards or 
regulations for the conduct of abatement per the authorized program;
    l. Implementing the timely training of enforcement inspectors;
    m. Implementing lead-based paint compliance assistance programs;
    n. Implementing compliance and enforcement inspection sampling 
techniques;
    o. Adopting or developing specific lead-based paint hazard values 
or standards;
    p. Maintaining, improving, and/or developing specific procedures 
and supporting documentation to carry out the enforcement program as 
described in an authorized program. Typical activities could include 
development of administrative or civil action procedures and the 
associated warning letters, notices of noncompliance, or the 
equivalent;
    q. Maintaining, improving, and/or developing specific procedures 
and supporting documentation to carry out the tracking of tips and 
complaints as described in the authorized program. Typical activities 
could include development of methods of recording the receipt of 
complaints, referring lead-based paint complaints to appropriate State 
or local agencies, tracking the follow-up investigation, tracking any 
enforcement action associated with the complaint, and notifying 
citizens of the disposition of their complaints;
    r. Preparing a report per 40 CFR 745.327(d) and/or 40 CFR part 31, 
grant reporting requirements, on the applicant's program progress and 
performance;
    s. Developing and/or revising, as needed, the lead-based paint 
programs, including regulations or procedures for decertification, 
suspension, revocation or modification of approvals, and certificates;
    t. Developing and/or revising, as needed, requirements for the 
administration of a third-party certification exam;
    u. Developing and/or revising, as needed, the lead-based paint 
programs' authority to enter, for purposes of inspection, and other 
relevant enforcement authorities;
    v. Developing and/or revising, as needed, enforcement remedies, 
procedures, etc.;
    w. Maintaining, improving, and/or developing techniques for 
targeting lead-based paint activities' inspections;
    x. Improving the timeliness of the processing and follow-up of 
inspection reports and other information generated through enforcement 
related activities associated with a lead-based paint program;
    y. Enhancing the capacity to improve compliance with Lead Program 
laws, and effectively develop and issue enforcement remedies/responses 
to violations;
    z. Fostering activities that would increase the efficiency of an 
applicant's program to ensure that individuals engaged in lead-based 
paint activities are properly trained; that training programs are 
accredited; and that contractors engaged in such activities are 
certified. These activities could include initiatives to develop local 
capacity in low-income and rural areas, to promote increased 
competition in the regulated community through agreements which permit 
entities recognized by an outside jurisdiction to operate in the 
grantees jurisdiction (referred to as ``reciprocity''), and similar 
efforts.
    6. Award and distribution of funds. EPA currently expects that up 
to $12.5 million of FY 2001 appropriated funds will be available during 
the FY 2001 funding cycle for financial assistance under TSCA section 
404(g) for awards to States, Territories, Indian Tribes, and 
Intertribal Consortia for development and implementation of EPA-
authorized lead-based paint programs, and for EPA's direct 
implementation of programs in States, Territories, and Indian Tribes 
that do not have EPA authorized programs. Additional TSCA section 
404(g) carry-over funds from previous years may also be available from 
some Regions. For FY 2001 funding, the Agency is setting aside $1.5 
million of the $12.5 million for eligible Indian Tribes and Intertribal 
Consortia. The remaining $11 million plus any available carry-over 
dollars will be used to fund State, Territorial, and Federal lead-based 
paint programs. Because of the timing of this Notice, it is likely that 
the TSCA section 404(g) funds will be not be awarded until late in FY 
2001 or early FY 2002.
    a. Financial assistance to Indian Tribes and Intertribal Consortia. 
Each Indian Tribe and Intertribal Consortium that submits a qualifying 
proposal and is making sufficient progress toward the development and/
or implementation of an acceptable lead-based paint program, as 
determined by the EPA Regional Offices, may receive base funding of 
$50,000. Though Indian Tribes and Intertribal Consortia may submit 
qualifying proposals, the award of funds will be based upon the 
applicants progress in developing an acceptable program, including 
implementing regulations and seeking program authorization from EPA. 
Failure to make satisfactory progress toward program authorization may 
result in the Indian Tribe or Intertribal Consortium receiving reduced 
or no funding. The Regional Offices will have the discretion, as part 
of their grant oversight responsibilities, to determine

[[Page 42402]]

if the progress being made toward program authorization is sufficient 
to warrant funding. Further distribution of the Indian Tribal and 
Intertribal Consortia set-aside funds will be dependent upon the number 
of applicants, the progress that the grantee is making in developing a 
program, the status of expenditures of previously awarded funds, 
population, and the relative strength of the proposal. After the 
closing date for submittal of Indian Tribe and Intertribal Consortium 
applications specified in this Notice, EPA Headquarters and Regional 
Offices will consider each of the proposals, and make decisions about 
the level of funding to be awarded to each of the applicants. Following 
those decisions, EPA Headquarters will transfer the funds to the 
Regional Offices for award to the Indian Tribes and Intertribal 
Consortia. Because of the timing of this Notice, it is likely that the 
FY 2001 TSCA section 404(g) funds will not be awarded until FY 2002. 
Indian Tribal and Intertribal Consortia set-aside funds will not be 
included in the formula funds pool for States and Territories discussed 
in Unit I.D.6.b.
    b. Financial assistance to States and Territories. The process used 
by EPA for determining award funding levels for States and Territories 
involves two steps. EPA Headquarters first determines, based on various 
factors discussed in this unit, the funding level that will be made 
available to each of the EPA Regional Offices for grantee awards in the 
respective regions. Following distribution of the funds to the EPA 
Regional Offices, the Regional Offices then make decisions on the 
actual funding level to be received by each of the grantees.
    The Agency currently uses a three-tiered system to implement the 
process for deciding the amount of FY 2001 cooperative agreement funds 
that will be distributed to the EPA Regional Offices. This system is 
designed to provide a base funding level for each qualified applicant 
and to provide funding for EPA Headquarters and Regional Offices to 
address direct program implementation responsibilities, while providing 
funds targeted to areas with the greatest potential lead burden. The 
system accomplishes this first by providing a discretionary funding 
set-aside that is used to fund special needs among the grantees; second 
by providing a base funding set-aside for every potential State and 
Territorial applicant; and third by providing funding based on a 
formula that considers the relative lead burden estimated to exist 
within a State or Territory.
    The discretionary funding set-aside involves setting aside $200,000 
of funds for each of the 10 EPA Regional Offices (total $2.0 million) 
for discretionary funding of grantee activities as well as the Regional 
direct implementation activities. These funds are primarily intended to 
provide each Region with the means of awarding funds to States and 
Territories based upon the progress that the grantee is making in 
developing a program, the overall quality of the program, and/or 
identified needs. The EPA Regional Offices will also have the 
discretion to use these dollars to help support the Federal program 
within the Region.
    The base funding set-aside provides a base level of funds for every 
potential State and Territorial applicant, and where it is necessary 
for EPA to implement lead-based paint programs in various States and 
Territories, it provides funds to help support Federal program 
implementation. Each State that submits a qualifying proposal and is 
making sufficient progress toward development and implementation of an 
authorized lead-based paint program may receive a base funding 
allotment of $100,000. Each Territory that submits a qualifying 
proposal and is making sufficient progress toward implementation of an 
acceptable program may receive a $50,000 base. However, base level 
funding for non-authorized States and Territories may be reduced by the 
Regional Offices depending on progress made toward the development and/
or implementation of acceptable programs. A base level funding of 
$50,000 for each State and Territory within the given Region which does 
not submit an application and/or receive a grant under this funding 
program will be set aside for EPA use to help implement these programs 
in non-authorized program areas. The base funds set-aside for non-
authorized and/or non-participants in the program are apportioned to 
EPA Regional and EPA Headquarters Offices based upon direct 
implementation funding needs, and are intended to ensure that EPA has 
adequate funds to directly implement the lead-based paint programs in 
non-authorized States, Territories, and Indian Tribes.
    Once base and discretionary funding set-asides are accounted for, 
the remaining State and Territorial funds are set aside for 
distribution through the third tier of the process which involves 
allocating funds for every potential State and Territorial applicant 
based on a formula that considers the relative lead burden estimated to 
exist within States and Territories. States and Territories whose 
funding requests exceed their base allotments can be given additional 
funds (``formula funds'') based upon their relative lead burden, and 
for this exercise, all 50 States, the District of Columbia, and the 
Territories are used to calculate the formula distribution. Formula 
funds determined for all non-authorized States and Territories will be 
set aside for Federal program implementation, and will also be 
apportioned to EPA Headquarters offices and EPA Regional Offices based 
upon direct implementation funding needs.
    In calculating the lead burden for the formula rankings, EPA uses 
readily available data derived from the 1990 Census of Population and 
Housing (new data is expected out sometime in calendar year 2001 or 
2002), along with other data from HUD. The formula uses four factors to 
generate an estimate of the potential lead problem, or ``lead burden,'' 
in each State and Territory. Two of these factors, the number of 
housing units with lead-based paint and the number of children under 
age 6, express the potential magnitude of the lead problem. The 
remaining two factors, the percentage of young children in poverty and 
the percentage of low-income housing units with lead-based paint, 
express the potential severity of the problem.
    In determining formula rankings, each State and Territory is scored 
independently for each factor, and the four individual factor scores 
for each of the States and Territories are then summed to obtain an 
overall score for that applicant (a combined factor score). The 
combined factor scores of all States and Territories applying for 
formula funds are then summed, and the percentage of the total sum 
represented by the individual State's or Territory's score is then 
identified. The applicant's formula allotment is determined by 
multiplying the total formula funding by the percentage scores of the 
individual State or Territory.
    After funding levels (base, discretionary, and formula set-asides) 
are determined for each State and Territory, the funds will be pooled 
for each Region and transferred in bulk to the respective Regional 
accounts. This distribution includes formula and base set-aside funds 
determined for all non-authorized States and Territories, which are 
apportioned to EPA Headquarters and Regional Offices based upon direct 
implementation funding needs, and used by the Agency to support the 
administration and enforcement of lead-based paint programs in all non-
authorized areas including Indian Tribal areas. Prior to the Regional 
distribution, any formula and base funds set-aside for

[[Page 42403]]

Federal program implementation which exceed Regional and Headquarters 
needs will be re-apportioned to the Regional pots of money using 
information developed as part of the formula process, for distribution 
to State and Territories.
    Following distribution of the funds to the Regional Office 
accounts, then the second step in the distribution process occurs; 
Regional Offices determining the actual funding level to be received by 
each of the grantees. Funding levels per grantee will be determined by 
the Regional Offices based on the application submitted and may be 
decreased or increased based on performance and/or by fiscal need which 
may include an evaluation of the progress that the grantee is making in 
developing a program, an evaluation of the performance of the grantee 
in implementing a program, an evaluation of expenditures of previously 
awarded funds, and/or an evaluation of future funding needs.
    7. Submission requirements. Applicants are directed to 40 CFR part 
35, subpart A (Ref. 1) and subpart B (Ref. 3) for details on the 
submission requirements for grant applications. To be considered for 
funding, each application must include the following components listed 
in 40 CFR 35.104 (applicable to States and Territories) (Ref. 1) or 40 
CFR 35.505 (applicable to Indian Tribes and Intertribal Consortia) 
(Ref. 3):
    a. Meet the requirements in 40 CFR part 31, subpart B;
    b. Include a proposed work plan that meets the requirements in 40 
CFR 35.107 (for States and Territories) or 40 CFR 35.507 (for Indian 
Tribes or Intertribal Consortia); and
    c. Specify the environmental program and the amount of funds 
requested.
    For TSCA section 404(g) funding for Indian Tribes, EPA is 
soliciting pre-application grant proposals prior to the submittal of 
the forms and certifications listed in this unit. This pre-application 
procedure entails the applicants initially submitting only a work plan 
and a budget. The Agency will use the applicants' work plans and 
budgets to select programs to be funded under this grant program. After 
EPA conducts a review of all submitted pre-applications, successful 
applicants will be contacted and requested to submit the other required 
documents listed in this unit, such as the ``Application for Federal 
Assistance Form'' (Standard Form 424 or SF424), and the ``Budget 
Information: Non-Construction Programs Form'' (SF424A). In addition, as 
part of the pre-application, Indian Tribes and/or Intertribal Consortia 
must include all appropriate information to demonstrate that they meet 
the criteria at 40 CFR 35.693 (Ref. 3) for treatment as a State. In 
order for Intertribal Consortia to be eligible for financial assistance 
under TSCA section 404(g), they must include all appropriate 
information to demonstrate that they meet the requirements at 40 CFR 
35.504 (Ref. 1) concerning eligibility.
    The following forms and certifications, which are contained in 
EPA's ``Application Kit for Assistance,'' must be included in all 
applications:
    a. Standard Form 424 (Application for Federal Assistance);
    b. Standard Form 424A (Budget Information-Non-Construction 
Programs);
    c. Standard Form 424 B (Assurances-Non-Construction Programs);
    d. Standard Form LLL (Disclosure of Lobbying Activities );
    e. Certification Regarding Debarment and Suspension;
    f. EPA Form 4700-4 (Compliance Review Report Form); and
    g. Quality Assurance Statement.
Application Kits for Assistance are available from any of EPA's 10 
Regional Offices or may be accessed at http://www.epa.gov/region4/grants/grants.htm.
    The following regulations may also be helpful to the applicants as 
they prepare their financial assistance applications: 40 CFR part 7 
(Nondiscrimination in Programs Receiving Federal Assistance From the 
Environmental Protection Agency); 40 CFR part 12 (Nondiscrimination on 
the Basis of Handicap in Programs or Activities Conducted by the 
Environmental Protection Agency); 40 CFR part 29 (Intergovernmental 
Review of Environmental Protection Agency Programs and Activities); and 
40 CFR part 32 (Governmentwide Debarment and Suspension 
(Nonprocurement) and Governmentwide Requirements for Drug-Free 
Workplace (Grants); Clean Air Act and Clean Water Act Ineligibility of 
Facilities in Performance of Federal Contracts, Grants and Loans).
    Where a single State or Territorial agency has been designated as 
responsible for coordinating lead activities, EPA encourages that 
agency to apply for funding under TSCA section 404(g). Coordination of 
federally funded lead activities by a single agency is viewed as 
conducive to achieving integration of lead activities. Early 
consultations are recommended between prospective applicants and their 
EPA Regional Offices. Because TSCA grants will be administered at the 
Regional level, these consultations can be critical to the success of a 
project or program, and can also contribute substantially to efficient 
program operations. As part of the work plan, EPA Regional Offices may 
ask for additional information that will be useful in evaluating the 
program such as the status of enabling legislation, a detailed line-
item budget with sufficient information to clearly justify costs, a 
list of work products or deliverables, a schedule for their completion 
and application for program authorization under TSCA, and a description 
of any financial assistance received from other Federal sources 
concerning the lead program. Applicants must also include all 
appropriate information on program income in accordance with 40 CFR 
31.25.
    Work plans are to be negotiated between applicants and their 
Regional Offices to ensure that both EPA, State, Territorial, and 
Tribal priorities are addressed. Any application from a State, 
Territory, Indian Tribe, or Intertribal Consortium that is not making 
sufficient progress toward implementation of an acceptable program will 
not be funded. Also, any applicant proposing the collection of 
environmental or health related measurements or data generation must 
adequately address the requirements of 40 CFR 31.45 relating to quality 
assurance/quality control. EPA issued final guidance that provides 
details about EPA's requirements for the preparation of ``quality 
management plans.'' The finalized document is entitled EPA Requirements 
for Quality Management Plans (EPA QA/R-2, March 2001), and is available 
from each Regional Office.
    8. Application procedures. 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. In the case of electronic applications, if allowed by a 
particular EPA Regional Office, the applicant should follow the 
procedures required by the Regional Office for submission of electronic 
applications. After the formula funding calculations are determined and 
the funds are transferred to the appropriate EPA Regional account, the 
Regional Office lead contact person will contact the applicant and 
discuss the final award allotment. EPA Regional Offices may request the 
applicant to modify its proposed work plan and cooperative agreement 
based upon the final cooperative agreement allotment. For Tribal 
applicants, final negotiations for the award of the grants, including 
the completion of a final work plan and budget, will be completed after 
the determination of successful applicants.

[[Page 42404]]

    9. Reporting. Pursuant to 40 CFR 31.40, grantees shall, at a 
minimum, submit annual performance reports to the appropriate EPA 
Regional Office. These requirements were approved by the Office of 
Management and Budget (OMB) under OMB Control Number 2030-0020 (General 
Administrative Requirement for Assistance Programs). The individual 
Regional Offices may require that these reports be submitted on a 
quarterly or semi-annual basis, but not more frequently than quarterly. 
The specific information contained within the report will include, at a 
minimum, a comparison of actual accomplishments to the objectives 
established for the period. Regional Offices may ask for the inclusion 
of specific data (e.g., providing to EPA-specific address information 
associated with the abatement notifications that are received by the 
grantee) as part of the annual performance report from the grantees 
which may be useful for Agency reporting under the Government 
Performance and Results Act. It is assumed that any data that is 
requested to be submitted by the grantee will already have been 
collected pursuant to the grantee's work plan.

 II. What Action is the Agency Taking?

    EPA is soliciting applications from States, Territories, Indian 
Tribes, and Intertribal Consortia for financial assistance for purposes 
of developing and carrying out EPA-authorized lead-based paint 
programs. Approximately $12.5 million dollars is available to fund 
cooperative agreements with States, Territories, Indian Tribes, and 
Intertribal Consortia for development and implementation of EPA-
authorized lead-based paint programs.

III. Statutory Authority and Regulations

    EPA is authorized under TSCA section 404(g) to make grants to 
develop and carry out authorized lead-based paint programs. Regulations 
governing these cooperative agreements are found at 40 CFR part 31 
(http://www.access.gpo.gov/nara/cfr/cfrhtml_00/Title_40/40cfr31_00.html) and part 35 (http://www.access.gpo.gov/nara/cfr/cfrhtml_00/Title_40/40cfr35_00.html)..

IV. References

    1. USEPA, Grants Administration Division. Environmental Program 
Grants--State, Interstate, and Local Government Agencies; Final Rule. 
Federal Register (66 FR 1726, 1737, January 9, 2001).
    2. USEPA, Grants Administration Division. Environmental Program 
Grants-- State, Interstate, and Local Government Agencies; Final Rule; 
Delay of Effective Date. Federal Register (66 FR 9202, February 7, 
2001).
    3. USEPA, Grants Administration Division. Environmental Program 
Grants for Tribes; Final Rule. Federal Register (66 FR 3782, 3805, 
January 16, 2001).
    4. USEPA, Grants Administration Division. Environmental Program 
Grants for Tribes; Final Rule; Delay of Effective Date. Federal 
Register (66 FR 9661, February 9, 2001).
    5. USEPA, OPPT. Lead; Identification of Dangerous Levels of Lead; 
Final Rule. Federal Register (66 FR 1206, January 5, 2001) (FRL-6763-
5).
    6. USEPA, OPPT. Model Training Course; Minimizing Lead-Based Paint 
Hazards During Renovation, Remodeling, & Painting. Instructor Manual 
(EPA 747-B-00-005); Student Manual (EPA 747-B-00-06) (September 2000).
    7. Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, Public Law 
105-65, 111 Stat. 1374.

V. Submission to Congress and the Comptroller General

    Grant solicitations such as this are considered rules for the 
purpose of the Congressional Review Act (CRA). The CRA, 5 U.S.C. 801 et 
seq., as added by the Small Business Regulatory Enforcement Fairness 
Act of 1996 (SBREFA), generally provides that, before a rule may take 
effect, the agency promulgating the rule must submit a rule report, 
which includes a copy of the rule, to each House of the Congress and to 
the Comptroller General of the United States. EPA will submit 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 
United States prior to publication of the rule in the Federal Register. 
This rule is not a ``major rule'' as defined by 5 U.S.C. 804(2).

List of Subjects

    Environmental protection, Grants, Lead, Training and accreditation.

    Dated: August 1, 2001.
Susan B. Hazen,
Acting Assistant Administrator for Prevention, Pesticides and Toxic 
Substances.

[FR Doc. 01-20130 Filed 8-9-01; 8:45 am]
BILLING CODE 6560-50-S