40 CFR § 35.111 - Criteria for approving an application.
(a) The Regional Administrator may approve an application upon determining that:
(1) The application meets the requirements of this subpart and 2 CFR part 200, subpart C.
(2) The application meets the requirements of all applicable federal statutes; regulations; circulars; executive orders; and delegations, approvals, or authorizations;
(3) The proposed work plan complies with the requirements of § 35.107; and
(4) The achievement of the proposed work plan is feasible, considering such factors as the applicant's existing circumstances, past performance, program authority, organization, resources, and procedures.
(b) If the Regional Administrator finds the application does not satisfy the criteria in paragraph (a) of this section, the Regional Administrator may either:
(1) Conditionally approve the application if only minor changes are required, with grant conditions necessary to ensure compliance with the criteria, or
(2) Disapprove the application in writing.