[Federal Register Volume 70, Number 33 (Friday, February 18, 2005)]
[Notices]
[Pages 8364-8372]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-3184]


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ENVIRONMENTAL PROTECTION AGENCY

[FRL-7874-4]


Targeted Watersheds Grant Program: Call for Nominations

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

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SUMMARY: EPA today is announcing the Call for Nominations of watershed 
proposals under the Targeted

[[Page 8365]]

Watersheds Grant Program. Formerly called the Watershed Initiative, the 
Targeted Watersheds Grant Program is a competitive grant program 
designed to support the protection and restoration of the country's 
water resources through a holistic watershed approach to water quality 
management. For fiscal year 2005, Congress has appropriated a total of 
$18 million for the Program of which $10 million will be directed to 
nation-wide projects for improving water quality and the remaining $8 
million will be directed toward projects in the Chesapeake Bay 
watershed. Today's notice sets forth the process that will be used for 
selecting watersheds for the nation-wide projects, and serves as the 
call for nominations from Governors and Tribal Leaders. Subsequently, 
EPA will publish a separate notice that will outline the criteria and 
selection process for Chesapeake Bay nominations.

DATES: The deadline for EPA receipt of nominations, both in hard copy 
and in electronic form, is May 19, 2005. Nominations and supporting 
materials received after this deadline will not be considered.

ADDRESSES: Two hard copies of the nomination packages must be submitted 
in their entirety by express mail or courier service. Deliver one copy 
to Carol Peterson, Office of Wetlands, Oceans, and Watersheds, USEPA, 
Room 7136E, 1301 Constitution Avenue, NW., Washington, DC 20004; 
telephone 202-566-1304. The other copy is to be delivered to the 
appropriate EPA Regional office (see section IV.E for regional names 
and addresses). Please mark all submissions ATTN: Targeted Watersheds.
    In addition to the hard copies, a portion of the nomination package 
must also be submitted electronically to the e-mail address provided; 
the subject line should read ``STATE--WATERSHED NAME.'' Please follow 
the detailed instructions provided in section IV.D of the SUPPLEMENTARY 
INFORMATION section below.

FOR FURTHER INFORMATION CONTACT: Carol Peterson, USEPA, 1200 
Pennsylvania Ave., NW., (4501T), Washington, DC, 20460; telephone: 202-
566-1304; e-mail: [email protected] or one of the Regional 
contacts listed in section VII of the SUPPLEMENTARY INFORMATION section 
below. Additional information, forms, and any updated guidance will be 
posted on EPA's Targeted Watersheds Web site at http://www.epa.gov/owow/watershed/initiative.

SUPPLEMENTARY INFORMATION:

I. Funding Opportunity Description

A. The Targeted Watersheds Grant Program

    The Targeted Watersheds Grant Program is built on the fundamental 
concept of managing water resource use and water quality on a holistic 
watershed basis. The watershed approach focuses regional and State 
efforts to integrate water and source water protection programs to 
support locally-led collaborative efforts within hydrologically defined 
boundaries that protect and restore our aquatic resources and 
ecosystems. This approach offers an efficient opportunity to tackle 
today's environmental challenges. The Targeted Watersheds Grant Program 
encourages watershed practitioners to examine water-related problems in 
the context of the larger watershed in which they exist, to develop 
solutions to those problems by creatively applying the full array of 
available tools, including Federal, State, and local programs, and to 
restore and preserve water resources through strategic planning and 
implementation that draw in public and private sector partners. Both 
the watershed approach and the Targeted Watersheds Grant Program focus 
on multi-faceted plans for protecting and restoring water resources 
that are developed using partnership efforts of diverse stakeholders. 
Projects selected for funding will go beyond implementing separate, 
detached activities and will focus on implementing and measuring the 
effectiveness of an integrated watershed-based approach to conservation 
and restoration throughout a watershed. Successful nominees will focus 
on far-reaching approaches that will improve water quality and are 
consistent with the goals of the Clean Water Act.

B. Goals for 2005

    In this third year of the program, EPA will continue to support 
coalition-based strategies for improving water resources on a watershed 
level, including activities such as attaining water quality standards, 
and protecting and restoring the natural and beneficial uses of 
floodplains. The goal of the Targeted Watersheds Grant Program is to 
advance successful partnerships and coalitions that have completed the 
necessary watershed assessments and have a technically sound watershed 
plan ready to carry out. This Program is intended to encourage the kind 
of pro-active, and incentive-based protection and restoration measures 
that will yield cleaner water and better protected ecosystems.
    EPA will select projects that are intended to improve water quality 
and are based on the fundamentals of the Clean Water Act, that is, 
projects that relate to the prevention, reduction, and elimination of 
water pollution. The Agency will continue to base its selections on 
projects that exhibit a high degree of innovation, measurable results, 
partnerships, outreach and cost-effectiveness. In addition, special 
emphasis this year will be placed on water quality trading projects. To 
encourage States, interstate agencies, and tribes to develop and 
implement water quality trading programs for nutrients, sediments, and 
other pollutants, EPA will reserve about fifteen percent of the 
Targeted Watersheds grant funds for promising trading projects that 
meet the prescribed criteria. While trading projects may take longer to 
develop and implement due to necessary front-end tasks such as 
establishing a market framework and identifying applicable trading 
ratios, EPA is interested in funding trading projects that will result 
in reduced pollutant loadings in the near to mid-term. Thus, more 
specific criteria related to trading is provided in this year's 
solicitation (see section V.A). Examples of trading proposals with 
these characteristics can be found on the Targeted Watersheds Grant 
Program Web site at http://www.epa.gov/owow/watershed/initiative/2004/04proposals.html under Passiac River, NJ and Cape Fear River, NC. EPA's 
Water Quality Trading Policy and other relevant information can be 
found at http://www.epa.gov/owow/watershed/trading/.

II. Award Information

    Approximately $10 million will be available to support nation-wide 
projects of which fifteen percent will be reserved for trading 
projects. Funding also will be continued to existing grants that work 
toward providing services, such as, national tools, training, and 
technical assistance to all watershed organizations.
    EPA anticipates that typical grant awards for the selected 
watersheds will range from $600,000 to $900,000 depending on the amount 
requested and the overall size and need of the project. It is important 
to note that, even if selected to receive a grant, full funding of a 
proposal is not guaranteed, and EPA reserves the right to make partial 
awards. For example, the Agency may choose not to fund one particular 
aspect of the proposal or may choose to decrease a requested award by a 
certain percentage. EPA also reserves the right

[[Page 8366]]

to reject all proposals and make no awards.

III. Eligibility Information

A. Authority

    For FY 2005, EPA has been granted independent authority for the 
Targeted Watersheds Grant Program. This authority is contained in the 
Consolidated Appropriations (Omnibus Bill), Public Law 108-447. The new 
authority allows EPA to tailor the scope of the Targeted Watersheds 
Grant Program to better align with the goals of the Clean Water Act of 
fishable, swimmable waters, and the objectives of the Agency's 
strategic plan to protect the environment and safeguard human health. 
This clears the way for EPA to fund a broader range of projects and 
allows the Agency to fund projects that directly entail environmental 
protection and/or restoration activities, most specifically, on-the-
ground implementation projects.
    Regulations pertaining to EPA grants and other assistance 
agreements are in Title 40 of the Code of Federal Regulations (CFR) 
parts, 30, 31, and 40. All costs incurred under this program must be 
allowable under the applicable OMB Cost Circulars: A-87 (States and 
local governments), A-122 (nonprofit organizations), or A-21 
(universities). Copies of these circulars can be found at http://www.whitehouse.gov/omb/circulars/. In accordance with EPA policy and 
the OMB circulars, as appropriate, any recipient of funding must agree 
not to use assistance funds for lobbying, fund-raising, or political 
activities (e.g., lobbying members of Congress or lobbying for other 
Federal grants, cooperative agreements, or contracts).

B. Eligible Applicants

    Any governmental or nonprofit non-governmental entity is eligible 
to receive a grant under the Targeted Watersheds Grant Program. 
Recipients can include: States and tribes, public water pollution 
control agencies; interstate or inter-tribal agencies; public or non-
profit private agencies, institutions, or organizations; and 
individuals. All non-profit watershed organizations are eligible and 
are encouraged to submit a nomination. Watershed organizations that 
were selected for funding in 2003 or 2004 are not eligible. For-profit 
commercial entities are ineligible for funding but are strongly 
encouraged to be active partners. The term ``State'' is defined to 
include the District of Columbia, Puerto Rico, U.S. Virgin Islands, 
Guam, American Samoa, and the Northern Mariana Islands (40 CFR 31.3).
    Interjurisdictional watershed partnerships, that is, those that 
encompass abutting areas and, thus, neighboring political authorities, 
or that transcend international boundaries, are encouraged. Watershed 
nominations that encompass more than one governmental authority will be 
considered interjurisdictional, provided that the appropriate water 
agency in the adjacent jurisdiction is a partner or otherwise supports 
the project(s).

C. Eligible Activities

    EPA will consider any activity, apart from those listed below, that 
will result in the protection, preservation, and restoration of a 
watershed, that incorporates a watershed-based approach, and meets the 
prescribed criteria, e.g, is well developed and will produce measurable 
environmental outcomes. Activities proposed for funding are not 
necessarily expected to address the entire watershed, but are expected 
to have been developed based on a comprehensive assessment and plan for 
the watershed. As such, all activities must directly support the 
described watershed plan, and Targeted Watersheds Grant funds must be 
used in accordance with the plan. Examples of selected proposals and 
funded activities from 2003 and 2004 can be found on the Web site at 
http://www.epa.gov/owow/watershed/initiative/2003/ and http://www.epa.gov/owow/watershed/initiative/2004/, respectively.
    EPA has chosen to declare certain activities ineligible for 
funding. These include any proposals to directly support activities 
required under the Clean Water Act. This entails funds for the 
development of Total Maximum Daily Loads (TMDLs), and Office of Water 
regulatory programs including Phase II Stormwater projects. Proposals 
implementing the non-regulatory component of TMDLs, e.g. the elements 
of a watershed plan that address non-point pollution, however, are 
eligible. The construction of buildings or other major structures, or 
the purchase of major equipment or machinery, also will not be funded 
under this Program. Proposals containing subgrant programs (also called 
pass-through grants) are allowed, but the subgrant portion must account 
for no more than 20% of the requested funding amount.

D. Cost Sharing/Matching Requirements

    EPA is requiring applicants to demonstrate a minimum non-Federal 
match of 25% of the total cost of the project or projects. This means 
EPA will fund a maximum of 75% of the total project cost. EPA 
encourages applicants to leverage as much investment as possible. In 
addition to cash, matching funds can come from in-kind goods and 
services, such as the use of volunteers and their donated time, 
equipment, expertise, etc., consistent with the regulations governing 
matching fund requirements (40 CFR 31.24 or 40 CFR 30.23). Federal 
funds may not be used to meet the match requirement for this grant 
program unless authorized by the statute governing their use.
    Tribes and Tribal watershed groups may be exempt from this match 
requirement if they are constrained to such an extent that fulfilling 
the match requirement would impose undue hardship. Tribes wishing to be 
exempt from the minimum 25% match requirement must submit a one-page 
written request with justification. Exemption requests should be sent 
directly to the EPA Headquarters contact listed in section VII, forty-
five (45) days prior to the nomination deadline. If approved, the 
nomination will be scored as if it meets the minimum 25% match.

IV. Application and Submission Information

    EPA will select watersheds and will award the grants through a 
national competition. Nominations will be selected based on the quality 
of the written materials received and adherence to the selection 
criteria and goals of the Targeted Watersheds Grant Program. Emphasis 
will be placed on those proposed projects with clear objectives, 
measurable environmental indicators, and an executable monitoring plan. 
Funding decisions will be made based on the evaluation criteria 
outlined in section V.A of this notice. EPA will invite only those 
nominees whose proposals are selected under this Program to submit 
formal grant applications (section VI).

A. Nomination Process

    Watersheds must be nominated by Governors or Tribal Leaders. (For 
the purposes of this notice, a tribal nomination may be submitted by an 
elected Tribal Official.) Each Governor or Tribal Leader may prepare or 
solicit watershed proposals from eligible entities in a manner most 
appropriate to their State or tribe, and nominate the most meritorious 
to EPA.
    A Governor or Tribal Leader may nominate up to two watersheds, each 
of which is wholly within its boundaries, plus an unlimited number of 
interjurisdictional watersheds, i.e., those that encompass several 
States, Tribes or countries. For

[[Page 8367]]

interjurisdictional watersheds, any of the engaged Governors/Tribal 
Leaders may submit the nomination. Such watershed nominations must 
include an official endorsement of all partnering States or Tribes in 
their nomination package. Governors and Tribal Leaders are to submit 
their watershed nominations to EPA.

B. Content and Form of Nomination Package

    In preparing nomination materials, nominees should focus on the 
overarching goal by which their overall nomination will be judged, i.e, 
how the proposed projects are interrelated to benefit the whole 
watershed. Within the required components outlined below, nominees 
should address completely and to the best of their ability, the 
criteria the Agency will be using in its evaluation as outlined in 
section V.A below.
    Each nomination package must contain the components listed in this 
section. Failure to submit any of this information ultimately will 
result in disqualification and removal from the selection process. 
Conversely, additional, unsolicited material is strongly discouraged 
and any such material submitted will not be reviewed.
    1. Nomination Letter. A letter signed by the Governor or Tribal 
Leader formally nominating the watershed for consideration for funding 
must accompany each nomination package.
    2. Title Page. The title page must indicate: (1) The name of the 
watershed along with the designated 8-digit Hydrological Unit Code(s) 
(HUCs); (2) if applicable, the impaired waters, such as any degraded 
stream segments within the project area that are on the State's 303(d) 
list; (3) nominee contact information, i.e., name, affiliation, 
address, telephone, and e-mail of the person with whom the Agency 
should correspond; and (4) Internet Web site (i.e., URL) of the 
organization if available. HUCs (also known as USGS Cataloging Units) 
and State 303(d) listings can be found on EPA's Surf Your Watershed Web 
site at http://www.epa.gov/surf/locate/index.cfm.
    3. Abstract. A 150-word or less summary of the nomination.
    4. Project Description. The narrative description of the proposed 
activities is limited to a total of ten, double-spaced pages in which 
the following components are addressed. The page numbers shown in 
parentheses for each component listed below are suggested lengths only, 
and nominees may adjust their project description within the 10-page 
limit in a manner that best fits their needs.
    (a) Introduction (2 pages).
    Characterize the watershed, including any wetlands, and overall 
watershed planning efforts. Describe what efforts have been undertaken 
to improve watershed health, next steps, and future plans. An 
assessment of the natural resource and environmental conditions, and an 
identification of problem sources and areas for treatment are required. 
These include:
    (1) A description of the watershed's biological, physical, and, if 
relevant, socio-economic and/or cultural characteristics.
    (2) An identification and prioritization of the threats and 
impairments facing the watershed, focusing on those that will be 
addressed by the proposal.
    (3) An overall description of the watershed plan including short- 
and long-term watershed goals.
    (4) An identification of the assessments and plans that have been 
completed to date.
    (b) Description of the Proposed Projects (7 pages).
    Describe the projects to be funded under the Targeted Watersheds 
Grant Program. These should be described in terms of activities that 
will meet the stated objectives and yield positive environmental 
outcomes. The following information must be included:
    (1) Describe how the project(s) will improve the identified 
impairments or stream conditions. Explain how the projects fit together 
and are interrelated to benefit and affect watershed health.
    (2) Describe in detail each project (if more than one) including: 
(i) A description of the components and goals of the project(s), (ii) a 
schedule for implementing the project(s); (iii) a summary of the costs 
of the project(s) with reference to the appended itemized budget for 
details; and (iv) milestones and dates for determining whether or not 
the intended goals of the watershed project(s) are being realized.
    (3) Describe the monitoring and evaluation component along with 
identified environmental indicators. Attention should be given to 
additional pre-project baseline data requirements. This component must 
include performance measures and progress goals, as well as a 
description of how the ultimate success of the projects will be 
measured. Performance measures must be environmental (e.g., chemical or 
microbial levels attained). Other measures to be monitored should be 
infrastructural (e.g., additional partnerships formed) and 
implementational (e.g., on-the-ground work performed). The progress and 
performance of the projects must be measurable by technically sound 
practices.
    (4) Include a description of expected environmental outcomes. 
Describe the method to measure the environmental improvement that is 
expected to result from the project(s) and describe how the project(s) 
will be evaluated. Criteria by which the project(s) will be judged and 
by which the project will be considered successful should be 
incorporated into the description.
    (5) Describe how the projects complement or are consistent with 
other EPA, Federal, and/or State programs or mandates. Other Federal 
contributors or supporting partners should also be identified.
    (c) Description of Outreach Activities (1 page).
    Describe the information and outreach plan that will be used to 
enhance public understanding of the watershed and encourage 
participation in the local project or projects, and future activities 
regarding implementing the goals of the watershed plan. Because the 
selected watersheds are intended to serve as models for other 
communities, describe the outreach plan and how it will transfer the 
knowledge gained from this effort to other areas and organizations.
    5. Budget. Provide a detailed breakdown of cost by category for 
each project.
    (a) Standard Budget Form. To facilitate the compilation and review 
of financial information, the Agency is providing a standard form for 
potential applicants to use when submitting project budgets. This form 
(Table 1) may be reconstructed or downloaded from the Targeted 
Watersheds Web site at http://www.epa.gov/owow/watershed/initiative/budget.form. All budget information, including grant administration 
costs, matching funds and other leveraged services, and travel cost to 
the annual conference, must be provided on this form. (Information on 
matching funds and the annual conference is described in subsections 
(b) and (c) below). Nominees should include cost estimates for each of 
the proposed project activities to be conducted under the grant. Due to 
the increase in grant management requirements, EPA suggests that 
nominees budget up to 15% of the total project costs for administrative 
purposes.
    Explanations of the costs associated with each entry should be 
included in the narrative portion of the nomination package.

[[Page 8368]]



                     Table 1.--Budget Information--EPA Targeted Watersheds Grant Program \1\
----------------------------------------------------------------------------------------------------------------
 Watershed Project, Activity or Work
            Plan Element                       Federal                Non-Federal                 Total
----------------------------------------------------------------------------------------------------------------
                                            SECTION A--BUDGET SUMMARY
----------------------------------------------------------------------------------------------------------------
1.                                    $                         $                        $
2.                                    ........................  .......................  .......................
3.                                    ........................  .......................  .......................
4.                                    ........................  .......................  .......................
                                     ---------------------------
    Totals..........................  $                         $                        $
\1\ Excerpted from Standard Form 424A, OMB Circular A-102.


 
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                           Watershed Project, Activity or Work Plan Element
----------------------------------------------------------------------------------------------------------------------------------         Total
         Budget Categories                    (1)                     (2)                     (3)                    (4)
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                              SECTION B--BUDGET CATEGORIES
--------------------------------------------------------------------------------------------------------------------------------------------------------
a. Personnel                        $                       $                       $                       $                      $
b. Fringe Benefits                  ......................  ......................  ......................  .....................  .....................
c. Travel                           ......................  ......................  ......................  .....................  .....................
d. Equipment                        ......................  ......................  ......................  .....................  .....................
e. Supplies                         ......................  ......................  ......................  .....................  .....................
f. Contractual                      ......................  ......................  ......................  .....................  .....................
g. Construction                     ......................  ......................  ......................  .....................  .....................
h. Other                            ......................  ......................  ......................  .....................  .....................
i. Total Direct Charges (sum line   ......................  ......................  ......................  .....................  .....................
 a-h)
j. Indirect Charges                 ......................  ......................  ......................  .....................  .....................
                                   -------------------------
    Totals (sum line i-j).........  $                       $                       $                       $                      $
--------------------------------------------------------------------------------------------------------------------------------------------------------

    (b) Matching Requirement. Applicants must demonstrate a minimum 
non-Federal match of 25% of the total cost of the project or projects. 
This means EPA will fund a maximum of 75% of the total project cost. To 
determine if the minimum match is met, the following formulas may be 
helpful:

amount ($) requested from EPA x 100 <= 75 or

    cost ($) of entire project

amount ($) requested from EPA = minimum match ($)

    3

    For example, a $1.2M grant could be used to support a $1.6M project 
proposal. Another way of looking at this is if the nominee requests 
$1M, it must be able to provide $333,334.00 in matching funds or 
services. In this example, the total cost of the proposal would be just 
under $1.34M. Please contact your Regional contact person listed in 
section VII if you have any questions about calculating the match 
requirement.
    (c) Annual Conference. Watershed organizations selected for grant 
funding will be required to attend the annual three-day National 
Targeted Watersheds Conference during each year of the grant. The 
purpose of this conference is to provide these watershed organizations 
with training and support to better restore, protect, and manage their 
watersheds, provide help and assistance in Agency grants management 
requirements and, most importantly, provide grant recipients with 
opportunities to share successful approaches with each other and other 
peer-to-peer learning opportunities.
    Attendance at the conference will be mandatory and will be one of 
the Terms and Conditions of the grant. The grantee will be allowed to 
use the grant funds to pay for travel and lodging. The cost of hosting 
the conference will be paid for by EPA. If the recipient wishes to use 
the award money for travel expenses, these costs must be included in 
the submitted proposed budget. The Agency will make every effort to 
hold the three-day conference in a central location to minimize travel 
costs.
    (d) Information Technology. Also as a Term and Condition of the 
grant, recipients will be required to institute standardized reporting 
requirements into their workplans and include such costs in their 
budgets. All environmental data will be required to be entered into the 
Agency's Storage and Retrieval (STORET) data system and recipients may 
need to purchase appropriate ORACLE software. STORET is a repository 
for water quality, biological, and other physical data used by State 
environmental agencies, EPA and other Federal agencies, universities, 
private citizens, and many other organizations. An introduction to the 
STORET system will be provided at the annual conference, as well as 
information regarding training sessions sponsored by EPA. Watershed 
organizations may also want to contact their State agency responsible 
for entering data into the system. More information about STORET can be 
found at http://www.epa.gov/STORET.
    6. Appendices.
    (a) Experience in Grant Management (1 page maximum).
    To ensure that nominees possess the management and technical skills 
required to administer the grant, a description of management 
experience is needed. In a 1-page appendix to the project description, 
provide information on the past experience of the project leader(s) 
and/or partners in designing, implementing, coordinating activities, 
and effectively managing a Federal grant. Identify the entity that will 
be the grantee and thus responsible for the administration of the grant 
workplan and for being the fiscal agent receiving the funds. Include 
academic experience only if relevant to the proposal. Do not send 
resumes.
    (b) Letter(s) of Support.
    To substantiate the information contained in the narrative portion 
of the submission, documentation to verify partnerships and matching 
funds is required. Items that must accompany the narrative description 
and submitted

[[Page 8369]]

as appendices include the following items.
    (i) Signed letter(s) from active partners indicating their 
commitment to implementing the workplan or for specific proposed 
projects.
    (ii) A minimum of one signed letter from an entity committing to 
provide matching funds, either in cash or in-kind goods and services, 
including the total value of its commitment toward the projects.
    (iii) For interjurisdictional nominations, a signed letter(s) from 
the appropriate organization in the adjacent State, tribe, or country 
expressing their support and participation in the proposed project(s). 
For example, a letter from another Governor, Tribal leader, State water 
commissioner, State water quality director, environmental director, or 
similar position in Canada or Mexico is acceptable.
    (c) Map. A map of the watershed and the proposal work areas is 
required.

C. Format

    Each nomination package must contain: (1) A one-page cover letter 
signed by the Governor or Tribal Leader, (2) a title page with 
appropriate information, (3) a 150-word or less abstract, (4) project 
description, (5) the budget form, (6) a one-page description of grant 
management experience, (7) letter(s) and certification(s) of support, 
and (8) maps. The project description of the nomination must be no more 
than ten double-spaced pages long, using a 12-point conventional font 
and one inch margins. This section must include all of the required 
components listed in section IV.B. To ensure a fair and equitable 
evaluation of the nominations, please do not exceed the above limits. A 
nomination that contains a project description narrative that exceeds 
ten double-spaced pages will not be considered. The title page, 
abstract, and required appendices will not count toward the 10-page 
limit. The entire nomination package should be printed on 8\1/
2\x11 paper.

D. Submission Process

    EPA invites each Governor and Tribal Leader to submit nominations 
for grants under the 2005 Targeted Watershed Grants Program.
    Nominations must be received by EPA by May 19, 2005.
    1. Electronic. EPA is requiring that a portion of the nomination be 
submitted electronically. Please send an electronic copy of only the 
title page, abstract, project description, and budget form to the 
electronic mailbox at [email protected]. Electronic 
submissions are limited to 120 KB in size and one submission per 
nomination. Please do not send maps, letters of support, match 
certifications, or pictures of any kind via the electronic mailbox. The 
subject line should be in the format ``STATE--Watershed Name'' (e.g., 
MD--Rock Creek). No confidential business information should be sent 
via e-mail. If unusual or extraordinary circumstances prevent 
electronic submission of the nomination, please contact the appropriate 
Regional contact person to discuss alternate arrangements.
    2. Paper. Two hard copies of the complete nomination package 
(including all nominating and support letters) are required to be sent 
by express mail or courier service. One package is to be sent to EPA 
Headquarters and the other is to go to the appropriate Regional Office. 
All names and addresses are listed below. Mark all submissions: ATTN: 
Targeted Watersheds.

E. Submission Addresses

    Submissions must be delivered to the following:
    Headquarters:
    Carol Peterson, Office of Wetlands, Oceans, and Watersheds; U.S. 
EPA; Rm. 7136; 1301 Constitution Avenue; NW., Washington, DC 20004.
    EPA Regional Offices:

Region I--Connecticut, Maine, Massachusetts, Rhode Island, Vermont, New 
Hampshire
    Marilyn Smith-Church; U.S. EPA Region 1; 1 Congress Street, Suite 
1100; Mail Code CWN; Boston, MA 02114-2023.
Region II--New Jersey, New York, Puerto Rico, U.S. Virgin Islands
    Cyndy Kopitsky, U.S. EPA Region 2; 290 Broadway; 24th Floor; New 
York, NY 10007-1866;
Region III--Delaware, Maryland, Pennsylvania, Virginia, West Virginia, 
Washington, DC
    Ralph Spagnolo; U.S. EPA Region 3; Mail Code 3WP12; 1650 Arch 
Street; Philadelphia, PA 19103-2029.
Region IV--Alabama, Florida, Georgia, Mississippi, North Carolina, 
South Carolina, Kentucky, Tennessee
    William L. Cox; U.S. EPA Region 4; Sam Nunn Atlanta Federal Center; 
15th Floor; 61 Forsyth Street, SW.; Atlanta, GA 30303-3104.
Region V--Illinois, Indiana, Michigan, Minnesota, Ohio, Wisconsin
    Paul Thomas; U.S. EPA Region 5; Mail Code WW-16J; 77 W. Jackson 
Blvd; Chicago, IL 60604.
Region VI--Louisiana, Texas, Oklahoma, Arkansas, New Mexico
    Brad Lamb; U.S. EPA Region 6; Mail Code 6WQ-EW; 1445 Ross Avenue; 
Dallas, TX 75202.
Region VII--Iowa, Kansas, Missouri, Nebraska
    Margaret Stockdale; U.S. EPA Region 7; Mail Code WWPD/GPCB; 901 
North 5th Street; Kansas City, KS 66101.
Region VIII--Colorado, Montana, North Dakota, South Dakota, Utah, 
Wyoming
    Peter Ismert; U.S. EPA Region 8; Mail Code 8EPR-EP; 999 18th 
Street, Suite 300; Denver, CO 80202-2466.
Region IX--Arizona, California, Hawaii, Nevada, American Samoa, Mariana 
Islands, Guam
    Sam Ziegler; U.S. EPA Region 9; Mail Code WTR-3; 75 Hawthorne 
Street; San Francisco, CA 94105.
Region X--Alaska, Idaho, Oregon, Washington
    Bevin Reid; U.S. EPA Region 10; Mail Code OWW-137; 1200 Sixth 
Avenue; Seattle, WA 98101

F. Checklist

    To assist nominees in collecting and formatting their package 
materials, the following checklist is provided (Table 2). These factors 
will be used by the Agency in screening the nominations for 
eligibility. The absence of any of these factors could result in 
disqualification from the onset without notice.

                Table 2.--Checklist of Required Elements
------------------------------------------------------------------------
 
------------------------------------------------------------------------
1. Package Components:
    Nominating letter signed by the Governor or Tribal Leader   [ballot]
     or Tribal Official......................................
    Title page...............................................   [ballot]
    150-word Abstract........................................   [ballot]
    10-page Project Description..............................   [ballot]
    Budget form..............................................   [ballot]
    1-page description of Grant Management Experience........   [ballot]
    Letter(s) signed by active partners......................   [ballot]

[[Page 8370]]

 
    Letter(s) committing matching funds......................   [ballot]
    Letters(s) supporting inter-jurisdictional nominations      [ballot]
     (if applicable).........................................
    Map(s)...................................................   [ballot]
2. Project Description Format:
    12-point font size.......................................   [ballot]
    Double-spaced............................................   [ballot]
    1'' Margins..............................................   [ballot]
    8\1/2\ x 11'' paper......................................   [ballot]
3. Match Requirement:
    25% Minimum match........................................   [ballot]
    Match includes Federal funds and applicant has cited        [ballot]
     authority...............................................
    Waiver of match requested due to undue hardship (Tribal     [ballot]
     only)...................................................
4. Submission:
    1 hard copy of all materials sent to EPA Headquarters....   [ballot]
    1 hard copy of all materials sent to appropriate EPA        [ballot]
     Regional Office.........................................
    Electronic copy of narrative text only sent to              [ballot]
     [email protected] (subject line: STATE-
     Watershed Name).........................................
------------------------------------------------------------------------

V. Application Review Information

A. Evaluation Criteria

    Watershed nominations will be reviewed, evaluated, and scored based 
on the following criteria with a possible total score of 60 points.
    1. Innovation (10 points). Emphasis will be placed on progressive 
and forward-thinking projects and watershed nominations that undertake 
unique, innovative, or novel approaches to environmental problem-
solving. The Agency recognizes that there can be innovative approaches 
that do not involve trading. However, for proposals that incorporate 
trading approaches to water quality, EPA will view more favorably 
projects that have the following characteristics: a TMDL or other 
``cap'' for the pollutant is either in place or is imminent; a 
pollutant that comes from numerous (point and nonpoint) sources within 
the watershed and several sources have a pollutant control obligation; 
and some sources that are likely to have significantly different 
control costs to achieve the desired pollutant reductions.
    2. Tangible Solutions (total of 30 points). Nominees will be 
evaluated based on the extent they demonstrate an in-depth knowledge of 
the watershed ecology, present a sound approach for combating threats 
and impairments, and include a description of how environmental results 
can be achieved and measured. Under this criteria, reviewers will focus 
on the following components:
    (a) Feasibility (10 points). Reviewers will look at how well 
developed the project is, i.e., the readiness of the project, technical 
merit, and expected environmental improvements. The focus will be on 
nominations that describe projects that are part of larger watershed 
assessments and plans, and reflect a watershed-based approach to 
conservation and restoration. The evaluation will focus on the overall 
soundness of the nomination from both an ecological and design 
perspective with an emphasis on those projects that can be implemented 
quickly. In summary, the evaluation will focus on whether nominees have 
demonstrated an understanding of priority water resource problems 
within the watershed, have substantially completed the assessment and 
planning phase, and are prepared to begin work.
    (b) Environmental Measures (15 points). Under this criterion, a 
nomination will be evaluated based on how well it is supported by a 
clearly articulated set of performance and progress measures, and 
identified and measurable environmental indicators. A more detailed 
monitoring and data collection strategy is preferred. Reviewers will 
evaluate the proposal in relation to its likelihood to achieve 
predicted measurable, defensible environmental results in a relatively 
short time period, including potentially attaining expected outcomes, 
reaching project goals, and producing on-the-ground, quantifiable 
environmental change using sound science.
    (c) Integration (5 points). Reviewers will evaluate the extent to 
which the proposed project plan provides an approach that integrates 
various tools including, but not limited to, those provided by local, 
State, Tribal and Federal programs, to solve the environmental 
problems. Emphasis will be placed on how well the proposal demonstrates 
a thoughtful and a strategic approach to problem-solving.
    3. Broad Support (total of 10 points). Acknowledging and responding 
to representative interests from a broad and varied perspective is 
crucial to any successful watershed enterprise. This criteria will be 
based on the nominees ability to demonstrate and substantiate a strong 
collaborative effort.
    (a) Partnerships (5 points). The reviewers will examine whether the 
watershed nomination incorporates a wide variety of public, private, 
and non-profit participation. The evaluation will be based on the level 
to which a nominee can demonstrate strong and diverse stakeholder 
stewardship and support. Reviewers will look for documented, effective 
working relationships among State, Tribal, and local entities, along 
with evidence of broad-based community involvement.
    (b) Interjurisdictionality (5 points). Reviewers will evaluate 
whether the nomination actively involves more than one governmental 
entity, be it municipal, county, State, Tribal, Federal or country. 
Reviewers will look at the depth and breadth of jurisdictional 
participation and will also take into consideration any significant 
parties that are noticeably absent in lending their support of the 
nomination.
    4. Outreach (5 points). Proposals will be evaluated on the design 
and breadth of their outreach program with an emphasis on those 
proposals that demonstrate a clear strategy for transferring the 
knowledge and experience garnered over the next few years to other 
watersheds with similar environmental conditions. Reviewers will also 
assess how the proposal addresses training and educational approaches 
to disseminating information about successful approaches and results.
    5. Financial Integrity (5 points). The evaluation will examine the 
adequacy of the budget information provided, and whether the budget is 
reasonable and clearly presented. Reviewers will also consider the 
extent that the proposal exceeds the minimum match requirement or can 
certify a broad range of leveraging capacity.

[[Page 8371]]

B. Review and Selection Process

    Governors and Tribal Leaders are to submit their watershed 
nominations to EPA. Once received by EPA, the nominations will undergo 
four phases of review. In phase one, all nominations will be pre-
reviewed, or screened, by EPA Regional staff to determine if they are 
eligible, complete, and prepared in accordance with the instructions 
provided in this notice. If any of the required elements of the 
nomination package are inadvertently omitted, EPA may choose to contact 
the nominee. In phase two, each of the Agency's Regional Offices will 
convene a Review and Evaluation Panel to initially assess how well the 
nominations meet the evaluation criteria described above. Based on the 
panel review and recommendations, each Regional Administrator will then 
forward the Region's top three candidates to EPA Headquarters Office of 
Water in Washington, DC.
    Phases three and four of the review process will occur at the 
national level. Upon receipt of the Regional recommendations, the 
Office of Water will convene a Technical Advisory Panel consisting of 
representatives from the Agency's Program and Regional Offices to 
review and rank the watershed nominations. In addition to the 
evaluation criteria listed above, factors such as geographic diversity, 
project diversity, watershed size, urban/rural mix, and cost will be 
considered in ranking nominations. During phase four, the National 
Panel will present its findings and recommendations to the Assistant 
Administrator of Water for approval and transmittal to the 
Administrator. The Administrator will make the final decision on the 
watersheds to be funded. Finalists will be contacted by telephone. All 
nominees, including those who are not selected for funding, will be 
notified by mail.
    EPA expects to announce the selected watershed nominations in the 
summer of 2005. Selected watershed grantees will complete the grant 
award process, including final grant workplan negotiations through the 
appropriate EPA Regional Office in the fall of 2005. In general, grants 
awarded will be one-time awards and grant recipients should use the 
funds within 2-3 years (slightly longer for trading projects). Any 
subsequent Targeted Watersheds Grant funding would involve a new call 
for watershed nominations and is predicated on continued 
appropriations. Therefore, any proposal for work beyond the initial 
funding period would need to be submitted through the competitive 
process and will not receive preferential consideration based on the 
applicant's previous award.

VI. Post-Selection Award Administration Information

A. Applying for a Grant

    EPA will invite only nominees whose proposals are selected to 
submit grant applications. Once notified that their proposal has been 
selected for funding, the nominee will have 60 days to complete the 
formal grant application process (i.e., Application for Federal 
Assistance, Standard Form 424 et al). The standard EPA grants 
application package must be filed according to Agency guidelines. 
Detailed information and assistance, including an application kit, 
required forms, and a check list, can be found at http://www.epa.gov/ogd/AppKit/. In anticipation of this process, all potential nominees 
may want to explore the above Web site for useful and pertinent 
information prior to preparing and submitting their nomination 
materials.
    A new policy directive from the Office of Management and Budget 
effective October 1, 2004 requires grant applicants to provide a number 
from the Dun and Bradstreet (D&B) Data Universal Numbering System 
(DUNS) when applying for Federal assistance agreements. Organizations 
can receive a DUNS number at no cost by calling the toll free DUNS 
number request line at 1-866-705-5711. Additional information on 
obtaining a DUNS number can also be found at: http://www.dnb.com.
    The Catalog of Federal Domestic Assistance number for this program 
is 66.439 Targeted Watershed Initiative. Any disputes regarding 
proposals or applications submitted in response to these guidelines 
will be resolved in accordance with 40 CFR 30.63 and part 31, subpart 
F. Applicants will be notified if dispute provisions change. Applicants 
should clearly mark information they consider confidential. EPA will 
make final confidentiality determinations in accordance with 
regulations in 40 CFR part 2, subpart B.
    Although the selections will be announced at the national level, 
Targeted Watershed grants will be awarded and managed by the respective 
EPA Regional Offices. Selected nominees may be asked to modify 
objectives, workplans, or budgets prior to final approval of the grant 
award. The exact amount of funds to be awarded, the final scope of 
activities, the duration of the projects, and specific role of the EPA 
Regional Project Officer will be determined in the pre-award 
negotiations between the selected nominee and EPA. The designated EPA 
Regional Contact listed in section VII will be available to provide 
additional guidance in completing the grant application, and other 
necessary forms, and answering any questions. EPA will also work with 
the applicant to comply with the Intergovernmental review requirements 
of Executive Order 12372 and 40 CFR part 29. Grant applicants will 
receive a notice of award through postal mail. The notice of award 
signed by the Award Official (or equivalent) in the Grants 
Administration Division is the authorizing document, and will be mailed 
to the individual signing the original application.

B. Administrative and National Policy Requirements

    Certain quality assurance and/or quality control (QA/QC) and peer 
review requirements are applicable to the collection of environmental 
data. Applicants should allow sufficient time and resources for this 
process in their proposed projects. Environmental data are any 
measurements or information that describe environmental processes, 
location, or condition; ecological or health effects and consequences; 
or the performance of environmental technology. Environmental data also 
include information collected directly from measurements, produced from 
models, and obtained from other sources such as data bases or published 
literature. Regulations pertaining to QA/QC requirements can be found 
in 40 CFR 30.54 and 31.45. Additional guidance can be found at http://www.epa.gov/quality/qa_docs.html#noeparqt.

C. Reporting

    Project monitoring and reporting requirements can be found in 40 
CFR 30.50-30.52, 40 CFR 31.40-31.41 and 40 CFR 40.160.1-40.160.5. In 
general, grantees are responsible for managing the day-to-day 
operations and activities supported by the grant to assure compliance 
with applicable Federal requirements, and for ensuring that established 
milestones and performance goals are being achieved. Performance 
reports and financial reports must be submitted quarterly and are due 
30 days after the reporting period. The format of these reports will be 
identified during the grant application time frame, and will include 
reporting on established performance measures indicated in the project 
description (i.e., environmental, infrastructure, and implementation 
measures). The final report is due 90 days after the grant has expired. 
Grant managers should consult, and work

[[Page 8372]]

closely with, their Regional contact person throughout the award 
period.

VII. Agency Contacts

    Headquarters:
    Carol Peterson, telephone 202-566-1034; e-mail 
[email protected].
    EPA Regional Offices:

Region I--Connecticut, Maine, Massachusetts, Rhode Island, Vermont, New 
Hampshire
    Marilyn Smith-Church or Jerry Potamis, telephones 617-918-1133 and 
617-918-1651; e-mails [email protected] and 
[email protected], respectively.
Region II--New Jersey, New York, Puerto Rico, U.S. Virgin Islands
    Cyndy Kopitsky; telephone 212-637-3832; e-mail 
[email protected].
Region III--Delaware, Maryland, Pennsylvania, Virginia, West Virginia, 
Washington, DC
    Ralph Spagnolo, telephone 215-814-2718; e-mail 
[email protected].
Region IV--Alabama, Florida, Georgia, Mississippi, North Carolina, 
South Carolina, Kentucky, Tennessee
    William L. Cox, telephone 404-562-9351; e-mail 
[email protected].
Region V--Illinois, Indiana, Michigan, Minnesota, Ohio, Wisconsin
    Paul Thomas, telephone 312-886-7742; e-mail [email protected].
Region VI--Louisiana, Texas, Oklahoma, Arkansas, New Mexico
    Brad Lamb, telephone 214-665-6683; e-mail [email protected].
Region VII--Iowa, Kansas, Missouri, Nebraska
    Margaret Stockdale, telephone 913-551-7936; e-mail 
[email protected].
Region VIII--Colorado, Montana, North Dakota, South Dakota, Utah, 
Wyoming
    Peter Ismert; telephone 303-312-6215; e-mail [email protected].
Region IX--Arizona, California, Hawaii, Nevada, American Samoa, Mariana 
Islands, Guam
    Sam Ziegler, telephone 415-972-3399; e-mail [email protected].
Region X--Alaska, Idaho, Oregon, Washington
    Bevin Reid, telephone 206-553-1566; e-mail [email protected].

    Dated: February 14, 2005.
Benjamin H. Grumbles,
Assistant Administrator for Water.
[FR Doc. 05-3184 Filed 2-17-05; 8:45 am]
BILLING CODE 6560-50-P