[Federal Register Volume 67, Number 181 (Wednesday, September 18, 2002)]
[Notices]
[Pages 58788-58794]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-23747]


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ENVIRONMENTAL PROTECTION AGENCY

[OPPT-2002-0047; FRL-7191-8]


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, Indian Tribes, 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 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 must 
demonstrate that they meet the criteria for treatment as a State. The 
total amount of FY2002 funding to be awarded to States, Territories, 
Indian Tribes, 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, the District of Columbia, and Indian Tribes 
that do not have EPA-authorized programs is $12.5 million. For FY2002, 
the Agency is allocating up to $1.0 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 ID number 
OPPT-2002-0047, must be received by EPA Regional Staff on or before 
October 18, 2002. Applications submitted by Indian Tribes and 
Intertribal Consortia for financial assistance, identified by docket ID 
number OPPT-2002-0047, must be received by EPA Regional Staff on or 
before November 4, 2002.

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 ID number OPPT-2002-0047 
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 
(7408M), Office of Pollution Prevention and Toxics, Environmental 
Protection Agency, 1200 Pennsylvania Ave., N.W., Washington, D.C. 
20460; telephone number: (202) 554-1404; e-mail address: [email protected].
    For technical information contact: The appropriate Regional Lead 
Coordinator listed in Unit I. 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. 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. 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. 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 at http://www.epa.gov/opptintr/lead. 
Select ``What's New.'' Hard copies of this document are available from 
the appropriate Regional Primary Lead person 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. The mailing addresses and contact 
telephone numbers for these Offices are listed below. To ensure proper 
receipt by EPA, it is imperative that you identify docket ID number 
OPPT-2002-0047 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, EPA 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, EPA 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, EPA 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, EPA 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, EPA 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, EPA 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--Tom

[[Page 58789]]

Hogan, EPA Region VII, ARTD/RALI, 901 North 5\th\, Kansas City, KS 
66101; telephone number: (913) 551-7684; e-mail address: 
[email protected].
    Region VIII: (Colorado, Montana, North Dakota, South Dakota, Utah, 
and Wyoming), Regional Contact--David Combs, EPA 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--Paula Bisson, PA Region IX (CMD-4-2), 75 
Hawthorne St., San Francisco, CA 94105; telephone number: (415) 947-
4184; e-mail address: [email protected].
    Region X: (Alaska, Idaho, Oregon, and Washington), Regional 
Contact--Barbara Ross, EPA 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 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, and 
eligible 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.
    In 40 CFR part 745, subpart L, EPA promulgated regulations pursuant 
to TSCA section 402 that cover the training and certification of 
individuals engaged in lead-based paint activities. In 40 CFR part 745, 
subpart E, EPA issued regulations pursuant to TSCA section 406. The 
regulation requires persons performing renovation in residential 
housing to provide a lead hazard information pamphlet to the owner and 
occupant of the housing prior to renovation. The procedures for 
authorizing States, Territories, and eligible Indian Tribes and 
Intertribal Consortia to implement these lead-based paint programs are 
found at 40 CFR part 745, subpart Q.
    2. Goal and objectives. Pursuant to TSCA Title IV, 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, 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 (Departments of Veterans Affairs 
and Housing and Urban Development, and Independent Agencies 
Appropriations Act, Public Law 105-65, 111 Stat. 1374)., 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 
and 40 CFR 35.516. Note: Where the Agency has direct implementation 
responsibilities, EPA cannot provide financial assistance under this 
grant program to non-authorized States, Indian Tribes, or Intertribal 
Consortia, or Territories 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 toward 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., Center for 
Disease Control (CDC) and U.S. Department of Housing and Urban 
Development (HUD)).
    This TSCA section 404(g) notice is one of two notices that announce 
the availability of funds for Indian Tribes and Intertribal Consortia 
conducting various lead-based paint activities. The specific details 
regarding the other notice is described in a separate Federal Register 
notice, titled Educational Outreach and Baseline Assessment of Existing 
Exposure and Risks of Exposure to Lead Poisoning of Native American 
Children to be published in an upcoming issue. 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 both notices, they each have very distinct objectives. The grant 
program opportunities described in the other notice may serve as 
precursors to, but not as an equivalents or supplements to, the TSCA 
section 404(g) lead-based paint

[[Page 58790]]

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 does not include activities (testing for lead in 
blood, paint, dust, or soil samples, or general outreach and education 
activities) listed in the other notice.
    Under TSCA, authorized lead-based paint training and certification 
programs 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 Consortia 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, Indian Tribes, Intertribal Consortia, and 
Territories 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 lead-based 
paint program pursuant to 40 CFR part 745, subpart Q or developing a 
lead-based paint 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 will 
result in a State, Territory, Indian Tribe, or Intertribal Consortia 
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 Consortia toward the 
development and implementation of a program under TSCA Title IV.
    States, Territories, eligible 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.
    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 and subpart B. 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), and 40 CFR 35.690 through 35.693 (applicable to Indian 
Tribes and Intertribal Consortia). 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 eligible States, Territories, Indian 
Tribes, and Intertribal Consortia.
    5. Activities to be funded. This notice was developed by EPA's 
Office of Pollution Prevention and Toxics (OPPT) in cooperation with 
the Agency's 10 Regional Offices, to describe in more detail the 
required elements of grant agreements funded under TSCA section 404(g), 
to describe the eligible activities that will be considered for 
funding, and to facilitate and support Regional administration of this 
program. 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.
    EPA promulgated its final TSCA section 403 lead hazard standards on 
December 22, 2000. The hazard standards can be found at 40 CFR part 
745, subpart D. The final TSCA section 403 standards also amend the 
work practice standards for lead-based paint activities found at 40 CFR 
745.227. These amendments establish clearance standards for dust, limit 
reuse of abated soil, add a requirement for interpreting composite dust 
clearance samples, and change risk assessment and clearance sampling 
requirements to ensure compatibility between sampling results and the 
TSCA section 403 hazard standards and section 402 clearance standards. 
In order to maintain their authorization, authorized State, Territory, 
Indian Tribe, and Intertribal Consortia lead-based paint activities 
programs must develop lead hazard and clearance standards that are as 
protective of human health and the environment as the Federal standards 
pursuant to 40 CFR 745.324. 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. When promulgated, this 
regulation will amend the existing TSCA section 402 rules for lead-
based paint activities. EPA has developed a model renovators training 
curriculum, titled Minimizing Lead-Based Paint Hazards During 
Renovation, Remodeling, and Repainting. EPA has made this course 
available, and is encouraging its use voluntarily until the renovation 
and remodeling rule is effective. The course is available on the 
internet at www.epa.gov/lead/rrmodel.htm. In addition, a limited number 
of printed copies are available from the National Lead Information 
Center at 1-800-424-LEAD. 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 
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

[[Page 58791]]

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. Develop and/or adopt lead hazard standards and clearance 
standards for lead in soil, dust, and paint;
    b. Develop and/or enact enabling legislation;
    c. Adopt implementing regulations;
    d. Develop a system to document certification of inspectors, risk 
assessors, supervisors, workers and project designers;
    e. Adjust or enhance the appropriate infrastructure to accommodate 
additional program responsibilities;
    f. Maintain, improve and/or develop 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. Maintain, improve and/or develop 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. Oversee 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. Oversee accredited training programs per the authorized program;
    j. Develop and/or revise as needed, work practice standards for the 
conduct of lead-based paint activities associated with inspections, 
risk assessments, and abatement;
    k. Monitor compliance with work practice standards or regulations 
for the conduct of abatement per the authorized program;
    l. Implement the timely training of enforcement inspectors;
    m. Implement lead-based paint compliance assistance programs;
    n. Implement compliance and enforcement inspection sampling 
techniques;
    o. Adopt or develop specific lead-based paint hazard values or 
standards;
    p. Maintain, improve, and/or develop 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. Maintain, improve, and/or develop 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. Prepare 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. Develop and/or revise as needed, the lead-based paint programs, 
including regulations or procedures for decertification, suspension, 
revocation or modification of approvals and certificates;
    t. Develop and/or revise as needed, requirements for the 
administration of a third-party certification exam;
    u. Develop and/or revise as needed, lead-based paint programs' 
authority to enter, for purposes of inspection, and other relevant 
enforcement authorities;
    v. Develop and/or revise as needed, enforcement remedies, 
procedures, etc.;
    w. Maintain, improve and/or develop techniques for targeting lead-
based paint activities' inspections;
    x. Improve 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. Enhance the capacity to improve compliance with Lead Program 
laws, and effectively develop and issue enforcement remedies/responses 
to violations;
    z. Foster 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 FY2002 appropriated funds will be available during 
the FY2002 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 FY2002 funding, the Agency is setting-aside $1 
million of the $12.5 million for eligible Indian Tribes and Intertribal 
Consortia. The remaining $11.5 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 section 404(g) funds will be not be awarded until late in FY 2002 
or early FY 2003.
    a. Financial assistance to Indian Tribes and Intertribal 
Consortium. 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 
applicant's 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 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

[[Page 58792]]

applicants. Following those decisions, EPA Headquarters will transfer 
the funds to the Regional Offices for award to the Tribes and 
Intertribal Consortia. Because of the timing of this Notice, it is 
likely that the FY 2002 section 404(g) funds will not be awarded until 
FY 2003. 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 step 
one: The process for deciding the amount of FY2002 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, 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 Federal program 
implementation which exceed Regional and Headquarters needs will be 
reapportioned 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

[[Page 58793]]

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 and subpart B 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 part 35.104 
(applicable to States and Territories) or 40 CFR part 35.505 
(applicable to Indian Tribes and Intertribal Consortia):
    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 Title IV 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 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 concerning 
eligibility.
    The following forms and certifications, which are contained in 
EPA's ``Application Kit for Assistance,'' must be included in all 
applications:
    [sbull] Standard Form 424 (Application for Federal Assistance);
    [sbull] Standard Form 424A (Budget Information-Non-Construction 
Programs);
    [sbull] Standard Form 424 B (Assurances-Non-Construction Programs);
    [sbull] Standard Form LLL (Disclosure of Lobbying Activities );
    [sbull] Certification Regarding Debarment and Suspension;
    [sbull] EPA Form 4700-4 (Compliance Review Report Form); and
    [sbull] Quality Assurance Statement.
Application Kits for Assistance are available from any of EPA's 10 
Regional Offices.
    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 
EPA); 40 CFR part 12 (Nondiscrimination on the Basis of Handicap in 
Programs or Activities Conducted by the EPA); 40 CFR part 32 
(Government Wide Debarment and Suspension and Government Wide 
Requirements for Drug-Free Workplace); and 40 CFR part 29 
(Intergovernmental Review of EPA Programs and Activities).
    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 titled 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.
    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 No. 2030-0020 (General 
Administrative Requirement for Assistance Programs). The individual 
Regional Offices may require that these reports be submitted on a 
quarterly or semiannual 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

[[Page 58794]]

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, Intertribal Consortia, and the District of Columbia for 
financial assistance for purposes of developing and carrying out EPA-
authorized lead-based paint programs. Approximately $12.5 million is 
available to fund cooperative agreements with States, Indian Tribes, 
Intertribal Consortia, Territories, and the District of Columbia 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 and 
part 35.

IV. 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 19, 2002.
Stephen L. Johnson,
Assistant Administrator for Prevention, Pesticides and Toxic 
Substances.

[FR Doc. 02-23747 Filed 9-17-02; 8:45 am]
BILLING CODE 6560-50-S