[Federal Register Volume 68, Number 65 (Friday, April 4, 2003)]
[Rules and Regulations]
[Pages 16708-16713]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-8153]



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Part VI





Environmental Protection Agency





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40 CFR Parts 9 and 46



Fellowships; Interim Final Rule

  Federal Register / Vol. 68, No. 65 / Friday, April 4, 2003 / Rules 
and Regulations  

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 9 and 46

[FRL-7476-2]
RIN 2030-AA77


Fellowships

AGENCY: Environmental Protection Agency (EPA).

ACTION: Interim final rule.

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SUMMARY: This rule revises EPA's current fellowship regulation to 
provide greater flexibility and clarify requirements in order to aid in 
the administration and monitoring of the EPA fellowships. EPA's 
fellowship programs provide financial assistance to individuals to 
further their education in environmental fields, such as environmental 
engineering and science. EPA is also amending certain approved 
information collection requirements.

DATES: This regulation is effective May 5, 2003, and applies to 
fellowship agreements awarded after May 5, 2003. Comments on this 
interim final rule must be submitted by June 3, 2003.

ADDRESSES: Comments must be submitted to W. Scott McMoran, Office of 
Grants and Debarment (3903R), United States Environmental Protection 
Agency, 1200 Pennsylvania Ave., NW., Washington, DC 20460.

FOR FURTHER INFORMATION CONTACT: W. Scott McMoran at (202) 564-5376.

SUPPLEMENTARY INFORMATION: 

I. Regulated Entities

    Entities eligible to receive the environmental fellowships listed 
in 40 CFR part 46 are regulated by this rule. Regulated categories and 
entities include:

------------------------------------------------------------------------
                 Category                        Regulated entities
------------------------------------------------------------------------
Persons...................................  Individuals.
Institutions of Higher Education..........  Colleges and Universities.
------------------------------------------------------------------------

    Only individuals may apply for fellowships under this regulation. 
If you have questions regarding the applicability of this action to a 
particular entity, consult the person listed in the FOR FURTHER 
INFORMATION CONTACT section.

II. Comments and Record

    The record of this interim final rule includes a copy of the 
previous version of this rule. It is available for inspection from 9 
a.m. to 4 p.m. (eastern time), Monday through Friday, excluding legal 
holidays, by contacting the person listed in the ADDRESSES section.
    Comments on this interim final rule must be submitted by June 3, 
2003, to the person listed in the ADDRESSES section.

III. Background

    EPA last updated its fellowship regulation (40 CFR part 46) on 
October 18, 1984. Since that time, EPA's legal authorities, practices 
and policies have changed, and, as a result, the regulation is out of 
date. Also, the General Accounting Office reviewed the EPA fellowship 
program and found that, in order to award fellowships in compliance 
with the regulation, the agency was relying on approved exceptions from 
the regulation. For these reasons, EPA is revising the regulation to 
update and clarify requirements. In particular, we have:
    [sbull] Generally eliminated references to EPA's Uniform 
Administrative Requirements for Grants and Agreements with Institutions 
of Higher Education, Hospitals, and Other Non-Profit Organizations 
regulation (40 CFR part 30). Fellowships are awards made to individuals 
and that regulation applies to organizations (see 40 CFR 30.1).
    [sbull] Added new provisions based on part 30 to assure the 
regulation addresses all appropriate requirements, including: Sec.  
46.125 which authorizes EPA to approve exceptions from this regulation, 
where necessary; Sec.  46.130 which makes clear that fellows are 
subject to the government-wide suspension and debarment program; Sec.  
46.145 which requires fellows to fly on American Carriers when involved 
in foreign travel under fellowships; Sec.  46.210 and Sec.  46.215 
which provide termination and enforcement provisions; and Sec.  46.220 
which establishes a dispute process for fellowships. We also added 
Sec.  46.205 which establishes requirements for handling intangible 
property such as documents and computer software developed under a 
fellowship. It incorporates the intangible property provisions of part 
30 (40 CFR 30.36) rather than repeating them. That rule is complex and 
its form would not change if it were included in this rule, so there 
was no reason to repeat it.
    [sbull] Eliminated monetary limits on the amount EPA can award for 
benefits. The amounts that will be awarded for various purposes under 
fellowships will be determined by the EPA program offices making the 
awards.
    [sbull] Revised the list of EPA's statutes (Sec.  46.105) under 
which EPA awards fellowships to bring it up to date.
    [sbull] Deleted the definitions of full time fellow and part time 
fellow. We will rely on the policy of the institution involved to make 
that determination.
    [sbull] Added a requirement that fellows annually submit copies of 
transcripts and publications (Sec.  46.175(b)), when required by the 
fellowship agreement.
    In compliance with the Paperwork Reduction Act, EPA is also 
amending 40 CFR part 9 to add the list of currently approved 
information collection request numbers related to information collected 
under the Fellowships regulation (40 CFR part 46).

Statutory and Regulatory Reviews

Regulatory Flexibility Act
    This interim final rule is not subject to the Regulatory 
Flexibility Act (RFA), which generally requires an agency to prepare a 
regulatory flexibility analysis for any rule that will have a 
significant economic impact on a substantial number of small entities. 
The RFA applies only to rules for which notice and comment rulemaking 
is required under the Administrative Procedure Act (APA) or any another 
statute. Grant award and administration matters, such as this rule, are 
explicitly exempt from the notice and comment requirements of the APA 
(5 U.S.C. 553(a)(1)). Nor is this rule required to undergo notice and 
comment rulemaking under any other statute.
Unfunded Mandates Reform Act
    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public 
Law 104-4, 2 U.S.C. 1501 et seq., 109 Stat. 48 (1995), establishes 
requirements for Federal agencies to assess the effects of their 
regulatory actions on State, local, and tribal governments and the 
private sector. Under section 202 of the UMRA, EPA generally must 
prepare a written statement, including a cost-benefit analysis, for 
proposed and final rules with ``Federal mandates'' that may result in 
expenditures by State, local, and tribal governments, in the aggregate, 
or by the private sector, of $100 million or more in any one year. This 
regulation contains no Federal mandates (under the regulatory 
provisions of title II of the UMRA) for State, local, or tribal 
governments or the private sector. The UMRA excludes from the 
definitions of ``Federal intergovernmental mandate'' and ``Federal 
private sector mandates'' duties that arise from conditions of Federal 
assistance.
National Technology Transfer and Advancement Act
    Under section 12(d) of the National Technology Transfer and 
Advancement Act (NTTAA), EPA is required to use voluntary consensus 
standards in its

[[Page 16709]]

regulatory activities unless to do so would be inconsistent with 
applicable law or otherwise impracticable. Voluntary consensus 
standards are technical standards (e.g., materials specifications, test 
methods, sampling procedures, business practices, etc.) that are 
developed or adopted by voluntary consensus standards bodies. Where 
available and potentially applicable voluntary consensus standards are 
not used, the Act requires EPA to provide Congress, through the Office 
of Management and Budget, an explanation of the reasons for not using 
such standards.
    This rule does not involve any technical standards. Therefore, EPA 
did not consider the use of any voluntary consensus standards.
Executive Order 13045--Protection of Children from Environmental Health 
Risks and Safety Risks
    Executive Order 13045 applies to any rule that is determined to be: 
(1) ``economically significant'' as defined under Executive Order 
12866, and (2) concerns an environmental health or safety risk that EPA 
has reason to believe may have a disproportionate effect on children. 
If the regulatory action meets both criteria, EPA must evaluate the 
environmental health or safety effects of the planned rule on children; 
and explain why the planned regulation is preferable to other 
potentially effective and reasonably feasible alternatives considered 
by the Agency.
    EPA interprets Executive Order 13045 as applying only to those 
regulatory actions that are based on health or safety risks, such that 
the analysis required under section 5-501 of the Order has the 
potential to influence the regulation. This rule is not subject to 
Executive Order 13045 because it does not establish an environmental 
standard intended to mitigate health or safety risks.
Executive Order 12866
    Under Executive Order 12866, (58 FR 51735 (October 4, 1993)) a 
significant regulatory action is subject to OMB review and the 
requirements of the Executive Order. The Order defines ``significant 
regulatory action'' as one that is likely to result in a rule that may:
    (1) Have an annual effect on the economy of $100 million or more or 
adversely affect in a material way the economy, a sector of the 
economy, productivity, competition, jobs, the environment, public 
health or safety, or state, local, or Tribal governments or 
communities;
    (2) Create a serious inconsistency or otherwise interfere with an 
action taken or planned by another agency;
    (3) Materially alter the budgetary impact of entitlements, grants, 
user fees, or loan programs or the rights and obligations of recipients 
thereof; or
    (4) Raise novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles set forth in 
the Executive Order.
    It has been determined that this rule is not a ``significant 
regulatory action'' under the terms of Executive Order 12866 because 
the fellowship award authority does not meet any of the criteria. As 
such, this action will not require submission to the Office of 
Management and Budget (OMB) for review.
Executive Order 13211 (Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution, or Use)
    Because this rule has been exempted from review under Executive 
Order 12866 due to its lack of significance, this rule is not subject 
to Executive Order 13211, Actions Concerning Regulations that 
Significantly Affect Energy Supply, Distribution, or Use.
Paperwork Reduction Act
    In keeping with the requirements of the Paperwork Reduction Act 
(PRA), as amended, 44 U.S.C. 3501 et seq., the information collection 
requirements contained in this rule have been approved by OMB under 
information collection request number 0938.06 (OMB Control Number 2030-
0020) and Quality Assurance Specifications and Requirements information 
request number 0866.05 (OMB Control Number 2080-0033). This rule does 
not contain any collection of information requirements beyond those 
already approved. Since this action imposes no new or additional 
information collection, reporting or recordkeeping requirements subject 
to the Paperwork Reduction Act, 44 U.S.C. 3501 et seq., no information 
request has been or will be submitted to the Office of Management and 
Budget for review. We are revising 40 CFR part 9 to reflect these 
requirements.
Executive Order 13175 (Consultation and Coordination with Indian Tribal 
Governments)
    Executive Order 13175, entitled ``Consultation and Coordination 
with Indian Tribal Governments'' (65 FR 67249, November 6, 2000), 
requires EPA to develop an accountable process to ensure ``meaningful 
and timely input by tribal officials in the development of regulatory 
policies that have tribal implications.'' ``Policies that have tribal 
implications'' is defined in the Executive Order to include regulations 
that have ``substantial direct effects on one or more Indian tribes, on 
the relationship between the Federal government and the Indian tribes, 
or on the distribution of power and responsibilities between the 
Federal government and Indian tribes.''
    This interim final rule does not have tribal implications. It will 
not have substantial direct effects on tribal governments, on the 
relationship between the Federal government and Indian tribes, or on 
the distribution of power and responsibilities between the Federal 
government and Indian tribes, as specified in Executive Order 13175. 
This rule applies to individuals and any individual may apply for an 
EPA fellowship. Thus, Executive Order 13175 does not apply to this 
rule.
Executive Order 13132--Federalism
    Executive Order 13132, entitled ``Federalism'' (64 FR 43255, August 
10, 1999), requires EPA to develop an accountable process to ensure 
``meaningful and timely input by state and local officials in the 
development of regulatory policies that have federalism implications.'' 
``Policies that have federalism implications'' is defined in the 
Executive Order to include regulations that have ``substantial direct 
effects on the states, on the relationship between the national 
government and the states, or on the distribution of power and 
responsibilities among the various levels of government.''
    Under section 6 of Executive Order 13132, EPA may not issue a 
regulation that has federalism implications, that imposes substantial 
direct compliance costs, and that is not required by statute, unless 
the Federal government provides the funds necessary to pay the direct 
compliance costs incurred by State and local governments, or EPA 
consults with State and local officials early in the process of 
developing the proposed regulation. EPA also may not issue a regulation 
that has federalism implications and that preempts State law, unless 
the Agency consults with State and local officials early in the process 
of developing the proposed regulation.
    This interim final rule does not have federalism implications. It 
will not have substantial direct effects on the States, on the 
relationship between the national government and the States, or on the 
distribution of power and responsibilities among the various levels of 
government, as specified in Executive Order 13132. Thus, the

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requirements of section 6 of the Executive Order do not apply to this 
rule. Further, because this rule regulates the use of Federal financial 
assistance, it will not impose substantial direct compliance costs on 
States.
Congressional Review Act
    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the 
Small Business Regulatory Enforcement Fairness Act of 1996, 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. A major rule cannot 
take effect until 60 days after it is published in the Federal 
Register. This action is not a ``major rule'' as defined by 5 U.S.C. 
804(2). This rule will be effective May 5, 2003.

List of Subjects

40 CFR Part 9

    Reporting and recordkeeping requirements.

40 CFR Part 46

    Environmental protection, Grant programs-education, Grant programs-
environmental protection, Reporting and recordkeeping requirements, 
Scholarships and fellowships.

    Dated: March 27, 2003.
Christine Todd Whitman,
Administrator.

0
For the reasons set out in the preamble, 40 CFR part 9 is amended as 
follows:

PART 9--OMB APPROVALS UNDER THE PAPERWORK REDUCTION ACT

0
1. The authority citation for part 9 continues to read as follows:

    Authority: 7 U.S.C. 135 et seq., 136-136y; 15 U.S.C. 2001, 2003, 
2005, 2006, 2601-2671; 21 U.S.C. 331j, 346a, 348; 31 U.S.C. 9701; 33 
U.S.C. 1251 et seq., 1311, 1313d, 1314, 1318, 1321, 1326, 1330, 
1342, 1344, 1345(d) and (e), 1361; E.O. 11735, 38 FR 21243, 3 CFR, 
1971-1975 Comp. p. 973; 42 U.S.C. 241, 242b, 243, 246, 300f, 300g, 
300g-1, 300g-2, 300g-3, 300g-4, 300g-5, 300g-6, 300j-1, 300j-2, 
300j-3, 300j-4, 300j-9, 1857 et seq., 6901-6992k, 7401-7671q, 7542, 
9601-9657, 11023, 11048.


0
2. In Sec.  9.1 the table is amended by adding a new heading and new 
entries in numerical order to read as follows:


Sec.  9.1  OMB approvals under the Paperwork Reduction Act.

* * * * *

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                                                            OMB control
                     40 CFR citation                            no.
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                                * * * * *
Fellowships
46.155..................................................       2030-0004
46.170(a)...............................................       2030-0020
46.185(a)...............................................       2030-0020
46.190(a) and (b).......................................       2030-0020
46.200(a)...............................................       2030-0020
46.230(a)...............................................       2030-0020
 
                                * * * * *
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0
3. For the reasons set forth in the preamble, 40 CFR part 46 is revised 
to read as follows:

PART 46--FELLOWSHIPS

Sec.
Subpart A--General
46.100 Purpose.
46.105 Authority.
46.110 Objectives.
46.115 Types of fellowships.
46.120 Definition.
46.125 Exceptions.
46.130 Debarment and suspension.
Subpart B--Applying for Fellowships
46.135 Eligibility.
46.140 Benefits.
46.145 International travel and work.
46.150 Request for applications.
46.155 Submission of applications.
46.160 Evaluation of applications.
46.165 Notification.
Subpart C--Award
46.170 Fellowship agreement.
46.175 Terms and conditions.
46.180 Acceptance of fellowship award.
Subpart D--During the Fellowship
46.185 Activation notice.
46.190 Fellowship agreement amendments.
46.195 Project period.
46.200 Payment.
46.205 Intangible property.
46.210 Termination.
46.215 Enforcement.
46.220 Disputes.
Subpart E--After the Fellowship
46.225 Equipment.
46.230 Closeout procedures.

    Authority: Section 103(b)(5) of the Clean Air Act, as amended 
(42 U.S.C. 7403(b)(5)); sections 104(b)(5) and (g)(3)(B) of the 
Clean Water Act, as amended (33 U.S.C. 1254(b)(5) and (g)(3)(B)); 
section 1442 of the Safe Drinking Water Act, as amended (42 U.S.C. 
300j-1); section 8001 of the Solid Waste Disposal Act, as amended 
(42 U.S.C. 6981); section 10 of the Toxic Substances Control Act, as 
amended (15 U.S.C. 2609); section 20 of the Federal Insecticide, 
Fungicide, and Rodenticide Act, as amended (7 U.S.C. 136r); sections 
104(k)(6)and 311 of the Comprehensive Environmental Response, 
Compensation, and Liability Act (42 U.S.C. 9604(k)(6) and 42 U.S.C. 
9660).

PART 46--FELLOWSHIPS

Subpart A--General


Sec.  46.100  Purpose.

    This part establishes the requirements for all Environmental 
Protection Agency (EPA) fellowship awards.


Sec.  46.105  Authority.

    EPA is authorized to award fellowships under the statutes listed in 
this section. EPA is not required to award fellowships under all of the 
listed authorities, but does so at its discretion.
    (a) Section 103(b)(5) of the Clean Air Act, as amended (42 U.S.C. 
7403(b)(5));
    (b) Section 104(b)(5) and (g)(3)(B) of the Clean Water Act, as 
amended (33 U.S.C. 1254(b)(5) and (g)(3)(B));
    (c) Section 1442 of the Safe Drinking Water Act, as amended (42 
U.S.C. 300j-1);
    (d) Section 8001 of the Solid Waste Disposal Act, as amended (42 
U.S.C. 6981);
    (e) Section 10 of the Toxic Substances Control Act, as amended (15 
U.S.C. 2609);
    (f) Section 20 of the Federal Insecticide, Fungicide, and 
Rodenticide Act, as amended (7 U.S.C. 136r); and
    (g) Sections 104(k)(6) and 311 of the Comprehensive Environmental 
Response, Compensation, and Liability Act (42 U.S.C. 9604(k)(6) and 42 
U.S.C. 9660).


Sec.  46.110  Objectives.

    EPA awards fellowships to help individuals participate in academic 
and professional educational opportunities in fields related to 
pollution control and environmental protection. Fellowships provide 
support for undergraduate and graduate students, including staff of 
state, local or Tribal agencies responsible for environmental pollution 
control and environmental protection.


Sec.  46.115  Types of fellowships.

    In general, EPA may award you one of two kinds of fellowships.
    (a) The first are fellowships to students who are selected on the 
basis of EPA requests for applications and program announcements. These 
fellowships may assist you with the costs of academic and professional 
career studies in pollution control and environmental protection in 
fields such as science, engineering, technology, social science, and 
specialty areas supporting environmental protection efforts.

[[Page 16711]]

    (b) The second are fellowships awarded to current or prospective 
employees of state, local and Tribal environmental pollution control or 
regulatory agencies who are nominated to receive fellowships by their 
agency. These fellowships may assist you with the costs of academic and 
professional career studies in pollution control and environmental 
protection in fields such as science, engineering, technology, social 
science, and specialty areas supporting environmental protection 
efforts.


Sec.  46.120  Definition.

    Fellow: You are a fellow if you receive an EPA fellowship award.


Sec.  46.125  Exceptions.

    The Director, Grants Administration Division, may approve 
exceptions from this part on a case-by-case or class basis.


Sec.  46.130  Debarment and suspension.

    EPA will not award you a fellowship if you are debarred, suspended 
or otherwise excluded from participation in federal programs. Names of 
individuals who are excluded are included on the List of Parties 
Excluded from Federal Procurement and Nonprocurement Programs 
maintained and distributed by the General Services Administration.

Subpart B--Applying for Fellowships


Sec.  46.135  Eligibility.

    If you wish to apply for an EPA fellowship, you must be:
    (a) A citizen of the United States, its territories, or 
possessions, or lawfully admitted to the United States for permanent 
residence;
    (b) Accepted by or an applicant to an accredited educational 
institution for academic credit in an educational program directly 
related to pollution control or environmental protection; and
    (c) If you are applying for a fellowship offered specifically to 
employees or prospective employees of state, local and Tribal 
organizations, you must be nominated by the head of the state, local or 
Tribal agency, or designee, based on the need for academic and 
professional career study to enhance your skills related to the needs 
of the organization.


Sec.  46.140  Benefits.

    EPA fellowships may include funds to help you pay such things as:
    (a) A part, or all, of your tuition and fees, as determined 
appropriate by EPA.
    (b) An expense allowance for books, supplies, and equipment 
(equipment is an item with a unit acquisition cost of more than $5,000) 
as determined appropriate by EPA. You may use this allowance for 
expenses that are necessary for your education, such as the cost of 
health insurance, supplies, and travel to conduct research and attend 
technical meetings relating to the fellowship. You may acquire 
equipment only with EPA's written approval and there will be very few 
instances where the purchase of equipment is authorized (see Sec.  
46.225.)
    (c) A stipend determined by the EPA program office based on EPA's 
resources and your course load.


Sec.  46.145  International travel and work.

    (a) You may use fellowship funds for travel to or work in a foreign 
country only if the travel or work is approved by the EPA Office of 
International Activities (OIA). You will be notified of OIA approval in 
the fellowship award or in a letter from the EPA project officer or the 
award official.
    (b) If you travel to or from a foreign country and the travel cost 
is paid under the fellowship agreement, you must comply with the Fly 
America Act. In accordance with that Act, you must travel on U.S. air 
carriers certificated under 49 U.S.C. 1371, to the extent that such 
carriers provide service, even if the foreign air carrier costs less 
than the American air carrier.


Sec.  46.150  Request for applications.

    EPA generally requests fellowship applications through electronic 
and printed announcements or other means designed to inform potential 
applicants.


Sec.  46.155  Submission of applications.

    The request for applications or program announcement will advise 
you how to file an application and what information you must include. 
You must submit applications for fellowships on EPA's ``Fellowship 
Application'' (EPA Form 5770-2) or in any other form EPA designates. 
EPA will provide instructions for completing the application. You must 
submit the original and two copies of the application unless the 
instructions require otherwise. Alternatively, EPA may allow you to 
submit applications electronically. It is also likely that EPA will 
require you to submit undergraduate and graduate transcripts to the 
office identified in the request for applications or program 
announcement.


Sec.  46.160  Evaluation of applications.

    EPA will evaluate your application based on criteria identified in 
the request for applications or program announcement. Evaluation 
criteria may include:
    (a) The relevance of your proposed studies to EPA's mission.
    (b) Your potential for success, as reflected by your academic 
record, letters of reference, and any other available information.
    (c) The availability of EPA funds.


Sec.  46.165  Notification.

    If EPA does not select you to receive a fellowship, we generally 
will notify you within 60 days after final selections are made. If you 
are a successful applicant, EPA will send you a fellowship agreement in 
accordance with Sec.  46.170.

Subpart C--Award


Sec.  46.170  Fellowship agreement.

    (a) The ``Fellowship Agreement'' (EPA Form 5770-8) is the written 
agreement, including amendments, between EPA and you. The fellowship 
agreement will state the amount of Federal funds awarded and the terms 
and conditions governing the fellowship.
    (b) The EPA award official may approve any pre-award costs you 
incurred, if determined appropriate by the award official. You incur 
pre-award costs at your own risk (see also Sec.  46.195).


Sec.  46.175  Terms and conditions.

    (a) If EPA awards you a fellowship on the basis of a nomination by 
your current or prospective state, local or Tribal government employer, 
by accepting the fellowship agreement you agree to remain in the 
employment of the state, local, or Tribal employer for twice the period 
of the fellowship. If you fail to meet this obligation, EPA may, after 
consultation with your employer or prospective employer, require you to 
repay the amount of the fellowship.
    (b) You must submit a copy of your transcript to the EPA project 
officer after the completion of each year of the fellowship, if 
required by the fellowship agreement. You must also submit copies of 
any publications and other products from the research, if required.
    (c) EPA may require you to provide various performance reports 
under your fellowship, but we will not require reports more frequently 
than quarterly. At the end of the fellowship, you must submit a final 
report and other documentation, if required in the fellowship 
agreement.


Sec.  46.180  Acceptance of fellowship award.

    You must accept your fellowship by signing and returning the EPA 
award form (EPA Form 5770-8) to the EPA award official within three 
weeks after receipt, or within an extension of time approved by the 
award official. If you do not sign and return the Fellowship

[[Page 16712]]

agreement to the award official or request an extension of the 
acceptance time within three calendar weeks after receiving the 
agreement, the award official may void the agreement. EPA will not pay 
for costs incurred under voided agreements.

Subpart D--During the Fellowship


Sec.  46.185  Activation notice.

    (a) Each fellowship includes a ``Fellowship Activation Notice'' 
(EPA Form 5770-7). You must complete, sign, and obtain other 
appropriate signatures on the Activation Notice when the program 
supported by the fellowship agreement begins. In certain instances, 
e.g., if your program of study is at an EPA facility, the EPA project 
officer may sign as sponsor on the Activation Notice. You must submit 
the Activation Notice to the award official.
    (b) If you do not submit the Activation Notice (EPA Form 5770-7) 
within 90 days after the date of the award, the award official may 
initiate action to terminate the fellowship agreement in accordance 
with Sec.  46.210.


Sec.  46.190  Fellowship agreement amendments.

    (a) If you need to make any of the changes listed in paragraphs 
(a)(1) thorough (3) of this section, you must notify the project 
officer and receive a formal amendment (EPA Form 5770-8) approving the 
changes. You must sign and return one copy of each amendment to the 
award official. If you make the change before you receive the 
amendment, you do so at your own risk. Changes that require formal 
amendments are:
    (1) A change in the amount of the fellowship;
    (2) A change in the academic institution you attend; or
    (3) A change in the duration of your fellowship.
    (b) You must obtain the EPA project officer's written approval of 
changes in the field of study or approved research project.
    (c) You do not need EPA approval of minor changes that are 
consistent with the objective of the fellowship agreement. Minor 
changes do not, however, obligate EPA to provide additional funds for 
any costs you incur in excess of the fellowship agreement amount.


Sec.  46.195  Project period.

    Based on the ``Date Fellow Will Enter on Duty'' which you enter on 
the Activation Notice (see Sec.  46.185(a)), EPA will establish the 
project period for the fellowship. If you incur costs before the date 
of the fellowship award, the date on the Activation Notice must reflect 
that fact (see also Sec.  46.170(b)).


Sec.  46.200  Payment.

    EPA will not make payments under a fellowship agreement until the 
award official receives the signed ``Fellowship Activation Notice'' 
(EPA Form 5770-7) as required by Sec.  46.185. Unless the fellowship 
provides another payment process, EPA makes payments as follows:
    (a) EPA pays tuition and fees directly to the educational 
institution.
    (b) EPA pays any stipend directly to you on a monthly or other 
basis approved by the project officer and included in the fellowship 
agreement.
    (c) EPA pays any book or other expense allowance to you or to the 
educational institution, as specified in the fellowship agreement. If 
EPA pays your expense allowance to the educational institution, the 
institution may deduct not more than two percent of the expense 
allowance as a handling fee.


Sec.  46.205  Intangible property.

    In general, if you develop intangible property under a fellowship 
agreement (e.g., copyrighted software), EPA reserves a royalty-free, 
nonexclusive and irrevocable right to reproduce, publish, or otherwise 
use the work for Federal purposes, and to authorize others to do so. 
EPA's requirements for dealing with such intangible property are found 
at 40 CFR 30.36 of EPA's Uniform Administrative Requirements for Grants 
and Agreements with Institutions of Higher Education, Hospitals, and 
Other Non-Profit Organizations.


Sec.  46.210  Termination.

    (a) EPA may terminate your fellowship agreement in whole or in part 
in accordance with the following:
    (1) If you fail to submit the ``Fellowship Activation Notice'' as 
required by Sec.  46.185.
    (2) If you fail to comply with the terms and conditions of the 
fellowship agreement.
    (b) You may voluntarily terminate your fellowship by sending the 
award official written notification setting forth the reasons for 
termination and the effective date. In that case, the EPA project 
officer may discuss the terms of the termination with you, and EPA may 
send you a letter or other document which states any termination 
conditions.
    (c) Costs resulting from obligations you incur after termination of 
an award are not allowable unless EPA expressly authorizes them in the 
notice of termination or subsequently approves them. Costs after 
termination which are necessary and not reasonably avoidable are 
allowable if:
    (1) The cost results from obligations which you properly incurred 
before the effective date of termination, were not in anticipation of 
the termination, and are noncancellable; and
    (2) The cost would be allowable if the award expired normally.


Sec.  46.215  Enforcement.

    (a) You must use fellowship funds for the purposes stated in the 
fellowship agreement. If you fail to comply with the terms and 
conditions of an award, EPA may take one or more of the following 
actions, as appropriate:
    (1) Temporarily withhold or suspend payments pending your 
correction of the deficiency or pending other enforcement by EPA;
    (2) Disallow all or part of the cost of the activity or action not 
in compliance;
    (3) Wholly or partly terminate the fellowship agreement in 
accordance with Sec.  46.210(a);
    (4) Withhold the award of additional funds under the fellowship; or
    (5) Take other remedies that may be legally available.
    (b) In taking an enforcement action, EPA will provide you an 
opportunity for hearing, appeal, or other administrative proceeding to 
which you are entitled under any statute or regulation applicable to 
the action involved, including Sec.  46.220.
    (c) The enforcement remedies identified in this section, including 
withholding of payment and termination, do not preclude debarment and 
suspension action under Executive Orders 12549 and 12689 and EPA's 
implementing regulations (40 CFR part 32).


Sec.  46.220  Disputes.

    (a) If you and the EPA award official or project officer have a 
disagreement, you should make reasonable efforts to resolve it at that 
level.
    (b) If you cannot reach agreement, an EPA disputes decision 
official will provide a written final decision. The EPA disputes 
decision official is the individual designated by the award official to 
resolve disputes concerning assistance agreements. The dispute 
procedures outlined at 40 CFR part 31, subpart F, will apply.

Subpart E--After the Fellowship


Sec.  46.225  Equipment.

    (a) If EPA authorizes you to purchase equipment (see Sec.  
46.140(b)) and the equipment retains a fair market value of

[[Page 16713]]

more than $5,000, you must request disposition instructions from the 
EPA project officer when you no longer need it for the work under the 
fellowship.
    (b) If you purchase an item with an acquisition cost of $5,000 or 
less, the item belongs to you.


Sec.  46.230  Closeout procedures.

    (a) You must submit the ``EPA Fellowship Completion of Studies 
Notice'' (EPA Form 5770-9) signed by your sponsor or department head of 
the educational institution when the project period ends. In certain 
instances, e.g., your program of study is at an EPA facility, the EPA 
project officer may sign as sponsor on the Completion of Studies 
Notice. You may request an extension to submit the form if you need it.
    (b) You must retain all records related to your fellowship 
agreement for three years after the completion date you insert on the 
``Completion of Studies Notice'' (EPA Form 5770-9).
    (c) EPA, the Inspector General, Comptroller General of the United 
States, or any of their duly authorized representatives, has the right 
of timely and unrestricted access to your documents, papers, or other 
records related to your fellowship, in order to make audits, 
examinations, excerpts, transcripts and copies of such documents. The 
rights of access in this paragraph are not limited to the required 
retention period, but shall last as long as records are retained.
[FR Doc. 03-8153 Filed 4-3-03; 8:45 am]
BILLING CODE 6560-50-P