[Federal Register Volume 89, Number 128 (Wednesday, July 3, 2024)]
[Notices]
[Pages 55262-55263]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-14656]


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ENVIRONMENTAL PROTECTION AGENCY

[FRL-12053-01-OA]


Applicability Date for the Office of Management and Budget's 
Regulatory Revisions

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice of applicability date.

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SUMMARY: The Environmental Protection Agency (EPA) is applying the 
Office of Management and Budget's final rule and final guidance 
revising the termination provisions of its regulations to financial 
assistance agreements that are awarded, or amended to add funds, on or 
after July 1, 2024 as specified in the terms and conditions of awards.

DATES: The revised version of 2 CFR 200.340 will apply to EPA financial 
assistance agreements awarded or amended to add funds on or after July 
3, 2024.

FOR FURTHER INFORMATION CONTACT: EPA's Office of the Administrator

[[Page 55263]]

(Attention: Hieu Le) at [email protected] or (202) 564-4700.

SUPPLEMENTARY INFORMATION: As codified at 2 CFR 1500.2, EPA has adopted 
OMB's Federal Financial Assistance regulations (subparts A through F of 
2 CFR part 200), including any amendments. EPA implements any 
amendments to OMB's regulations when such changes become effective. On 
April 22, 2024, OMB finalized several revisions and updates to its 
Federal Financial Assistance regulations. See Guidance for Federal 
Financial Assistance, 89 FR 30046 (April 22, 2024). OMB made the 
changes effective October 1, 2024, but authorized Federal agencies to 
apply the changes to Federal awards issued prior to October 1, 2024. 
Specifically, OMB stated: ``Federal agencies may elect to apply the 
final guidance to Federal awards issued prior to October 1, 2024, but 
they are not required to do so. For agencies applying the final 
guidance before October 1, 2024, the effective date of the final 
guidance must be no earlier than June 21, 2024.'' 89 FR 30046 (April 
22, 2024).
    OMB's final rule revised, among others, the termination provisions 
of 2 CFR 200.340. Specifically, OMB revised 2 CFR 200.340(a)(4) to 
clarify that an agency may terminate a Federal award if it no longer 
effectuates the program goals or agency priorities (e.g. unilateral 
termination) but only when such language is clearly and unambiguously 
included in the terms and conditions of the award. OMB also revised 2 
CFR 200.340(b) to require agencies to ``clearly and unambiguously 
specify all termination provisions in the terms and conditions of the 
Federal award.'' 89 FR 30046, 30169 (emphasis added), April 22, 2024. 
As authorized under OMB's final rule, and in an effort to provide 
clarity on termination of its awards as expeditiously as possible, EPA 
has decided to apply the revised version of 2 CFR 200.340 to EPA 
financial assistance agreements awarded or amended to add funds on or 
after July 1, 2024. This will allow EPA to implement the revised 
version of 2 CFR 200.340 through the terms and conditions of awards, as 
determined by EPA on or after that date. Consistent with the revised 
termination provision, EPA will clearly and unambiguously specify all 
termination provisions in the terms and conditions of applicable 
awards, including an express authorization for unilateral termination 
when dictated by case- or program-specific needs. Any subsequent 
changes to the grounds for unilateral termination of an assistance 
agreement must be agreed to by both EPA and the financial assistance 
agreement recipient and authorized by 2 CFR 200.340 or a successor 
regulation in effect at the time of award or the amendment adding 
additional funding.
    EPA intends to implement all other revisions to title 2 of the Code 
of Federal Regulations described in the April 22, 2024 (89 FR 30046), 
OMB final rule and notification of final guidance in awards made or 
amended to add additional funds on or after October 1, 2024.

Janet McCabe,
Deputy Administrator, U.S. Environmental Protection Agency.
[FR Doc. 2024-14656 Filed 7-2-24; 8:45 am]
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