40 CFR 35.3135 - Specific capitalization grant agreement requirements.

§ 35.3135 Specific capitalization grant agreement requirements.

(a)Agreement to accept payments. The State must agree to accept grant payments in accordance with the negotiated payment schedule.

(b)Provide a State match. The State must agree to deposit into its SRF an amount equaling at least 20 percent of the amount of each grant payment.

(1) The State match must be deposited on or before the date on which the State receives each payment from the grant award. The State may maintain its match in an LOC or other financial arrangement similar to the Federal LOC, provided that the State's proportional share is converted to cash when the Federal LOC is drawn upon.

(2) Bonds issued by the State for the match may be retired from the interest earned by the SRF (including interest on SRF loans) if the net proceeds from the State issued bonds are deposited in the fund. Loan principal must be repaid to the SRF and cannot be used to retire State issued bonds.

(3) The State must identify the source of the matching amount in the capitalization grant application and must establish to the RA's satisfaction that the source is not Federal money, unless specifically authorized to be used for such purposes under the statute making the funds available.

(4) If the State provides a match in excess of the required amount, the excess balance may be banked toward subsequent match requirements.

(5) If the State has deposited State monies in a dedicated revolving fund after March 7, 1985 and prior to receiving a capitalization grant, the State may credit these monies toward the match requirement:

(i) If the monies were deposited in an SRF that subsequently received a capitalization grant and, if the deposit was expended, it was expended in accordance with title VI;

(ii) If the monies were deposited in a separate fund that has not received a capitalization grant, they were expended in accordance with title VI and an amount equal to all re payments of principal and payments of interest from these loans will be deposited in the Federally capitalized fund; or

(iii) If the monies were deposited in a separate fund and used as a reserve consistent with title VI, and an amount equal to the reserve is transferred to the Federally capitalized fund as its function is satisfied.

(c)Binding commitments. The State must make binding commitments in an amount equal to 120 percent of each quarterly grant payment within one year after the receipt of each quarterly grant payment.

(1) Binding commitments may be for any of the types of assistance provided for in sections 40 CFR 35.3120(a), (b), (c), (e) or (f) and for Fund administration under 40 CFR 35.3120(g).

(2) If the State commits more than the required 120 percent, EPA will recognize the cumulative value of the binding commitments, and the excess balance may be banked towards the binding commitment requirements of subsequent quarters.

(3) If the State does not make binding commitments equaling 120 percent of the quarterly grant payment within one year after it receives the payment, the RA may withhold future quarterly grant payments, and require adjustments to the payment schedule before releasing further payments.

(d)Expeditious and timely expenditure. The State must agree to expend all funds in the SRF in an expenditious and timely manner.

(e)First use of funds.

(1) The State must agree to first use funds in the SRF equaling the amount of the grant, all re payments of principal and payments of interest on the initial loans from the grant, and the State match to address any major and minor publicly owned treatment works (POTW) that the Region and the State have previously identified as part of the National Municipal Policy list for the State.

(2) These funds may be used to fund the cost-effective reserve capacity of these projects.

(3) In order for a State to use these funds for other section 212 POTWs or for nonpoint source (section 319) or estuary (section 320) activities, the State must certify that the POTWs identified in § 35.3135(e)(1) are either:

(i) In compliance; or

(ii) On an enforceable schedule; or

(iii) Have an enforcement action filed; or

(iv) Have a funding commitment during or prior to the first year covered by the Intended Use Plan.

(4) Other funds in the SRF may be used at any time for the construction of any treatment works on the State's priority list or for activities under sections 319 and 320 of the Act.

(f)Compliance with title II requirements.

(1) The State must agree that equivalency projects will comply with sections 201(b), 201(g)(1), 201(g)(2), 201(g)(3), 201(g)(5), 201(g)(6), 201(n)(1), 201(o), 204(a)(1), 204(a)(2), 204(b)(1), 204(d)(2), 211, 218, 511(c)(1), and 513 of the Act.

(2) The State must comply only with the statutory requirements. The State may develop its own procedures for implementing the statutory provisions. The RA will accept State procedures provided that the procedures will adequately assure compliance with the statutory requirements, considered in the context of the SRF program.

(3) Where the State funds equivalency projects for more than the capitalization grant amount, EPA will recognize the cumulative value of the eligible costs of the equivalency projects, and the excess balance may be banked toward subsequent year equivalency requirements.

(4) Only those eligible costs actually funded with loans or other authorized assistance from the SRF may be credited toward satisfaction of the equivalency requirement, and only in the amount of that assistance.

(g)State laws and procedures. The State must agree to commit or expend each quarterly capitalization grant payment in accordance with the State's own laws and procedures regarding the commitment or expenditure of revenues.

(h)State accounting and auditing procedures.

(1) The State must agree to establish fiscal controls and accounting procedures that are sufficient to assure proper accounting for payments received by the SRF, disbursements made by the SRF, and SRF balances at the beginning and end of the accounting period.

(2) The State must also agree to use accounting, audit, and fiscal procedures conforming to generally accepted government accounting standards as these are promulgated by the Governmental Accounting Standards Board. Generally accepted government auditing standards are usually defined as, but not limited to, those contained in the U.S. General Accounting Office (GAO) publication “Government Auditing Standards” (1988 revision).

(i)Recipient accounting and auditing procedures. The State must agree to require recipients of SRF assistance to maintain project accounts in accordance with generally accepted government accounting standards as these are promulgated by the Government Accounting Standards Board. These accounts must be maintained as separate accounts.

(j)Annual report. The State must agree to make an Annual Report to the RA on the actual use of the funds, in accordance with section 606(d) of the Act.

This is a list of United States Code sections, Statutes at Large, Public Laws, and Presidential Documents, which provide rulemaking authority for this CFR Part.

This list is taken from the Parallel Table of Authorities and Rules provided by GPO [Government Printing Office].

It is not guaranteed to be accurate or up-to-date, though we do refresh the database weekly. More limitations on accuracy are described at the GPO site.

United States Code
U.S. Code: Title 7 - AGRICULTURE
U.S. Code: Title 15 - COMMERCE AND TRADE

§ 1251 - Congressional declaration of goals and policy

§ 1252 - Comprehensive programs for water pollution control

§ 1252a - Reservoir projects, water storage; modification; storage for other than for water quality, opinion of Federal agency, committee resolutions of approval;...prescribed water quality benefits in relation to total project benefits

§ 1253 - Interstate cooperation and uniform laws

§ 1254 - Research, investigations, training, and information

§ 1254a - Research on effects of pollutants

§ 1255 - Grants for research and development

§ 1256 - Grants for pollution control programs

§ 1257 - Mine water pollution control demonstrations

§ 1257a - State demonstration programs for cleanup of abandoned mines for use as waste disposal sites; authorization of appropriations

§ 1258 - Pollution control in the Great Lakes

§ 1259 - Training grants and contracts

§ 1260 - Applications; allocation

§ 1261 - Scholarships

§ 1262 - Definitions and authorizations

§ 1263 - Alaska village demonstration projects

§ 1263a - Grants to Alaska to improve sanitation in rural and Native villages

§ 1264 - Omitted

§ 1265 - In-place toxic pollutants

§ 1266 - Hudson River reclamation demonstration proj­ect

§ 1267 - Chesapeake Bay

§ 1268 - Great Lakes

§ 1269 - Long Island Sound

§ 1270 - Lake Champlain Basin Program

§ 1271 - Sediment survey and monitoring

§ 1271a - Research and development program

§ 1272 - Environmental dredging

§ 1273 - Lake Pontchartrain Basin

§ 1274 - Watershed pilot projects

§ 1285 - Allotment of grant funds

§ 1330 - National estuary program

§ 1361 - Administration

§ 1381 - Grants to States for establishment of revolving funds

§ 1382 - Capitalization grant agreements

§ 1383 - Water pollution control revolving loan funds

§ 1384 - Allotment of funds

§ 1385 - Corrective action

§ 1386 - Audits, reports, and fiscal controls; intended use plan

§ 1387 - Authorization of appropriations


§ 300f - Definitions

§ 300j-12

§ 6901 - Congressional findings

§ 6901a - Congressional findings: used oil recycling

§ 6902 - Objectives and national policy

§ 6903 - Definitions

§ 6904 - Governmental cooperation

§ 6905 - Application of chapter and integration with other Acts

§ 6906 - Financial disclosure

§ 6907 - Solid waste management information and guidelines

§ 6908 - Small town environmental planning

§ 6908a - Agreements with Indian tribes

§ 7401 - Congressional findings and declaration of purpose

§ 7402 - Cooperative activities

§ 7403 - Research, investigation, training, and other activities

§ 7404 - Research relating to fuels and vehicles

§ 7405 - Grants for support of air pollution planning and control programs

§ 7406 - Interstate air quality agencies; program cost limitations

§ 7407 - Air quality control regions

§ 7408 - Air quality criteria and control techniques

§ 7409 - National primary and secondary ambient air quality standards

§ 7410 - State implementation plans for national primary and secondary ambient air quality standards

§ 7411 - Standards of performance for new stationary sources

§ 7412 - Hazardous air pollutants

§ 7413 - Federal enforcement

§ 7414 - Recordkeeping, inspections, monitoring, and entry

§ 7415 - International air pollution

§ 7416 - Retention of State authority

§ 7417 - Advisory committees

§ 7418 - Control of pollution from Federal facilities

§ 7419 - Primary nonferrous smelter orders

§ 7420 - Noncompliance penalty

§ 7421 - Consultation

§ 7422 - Listing of certain unregulated pollutants

§ 7423 - Stack heights

§ 7424 - Assurance of adequacy of State plans

§ 7425 - Measures to prevent economic disruption or unemployment

§ 7426 - Interstate pollution abatement

§ 7427 - Public notification

§ 7428 - State boards

§ 7429 - Solid waste combustion

§ 7430 - Emission factors

§ 7431 - Land use authority

§ 9601 - Definitions

§ 9602 - Designation of additional hazardous substances and establishment of reportable released quantities; regulations

§ 9603 - Notification requirements respecting released substances

§ 9604 - Response authorities

§ 9605 - National contingency plan

§ 9606 - Abatement actions

§ 9607 - Liability

§ 9608 - Financial responsibility

§ 9609 - Civil penalties and awards

§ 9610 - Employee protection

§ 9611 - Uses of Fund

§ 9612 - Claims procedure

§ 9613 - Civil proceedings

§ 9614 - Relationship to other law

§ 9615 - Presidential delegation and assignment of duties or powers and promulgation of regulations

§ 9616 - Schedules

§ 9617 - Public participation

§ 9618 - High priority for drinking water supplies

§ 9619 - Response action contractors

§ 9620 - Federal facilities

§ 9621 - Cleanup standards

§ 9622 - Settlements

§ 9623 - Reimbursement to local governments

§ 9624 - Methane recovery

§ 9625 - Section 6921(b)(3)(A)(i) waste

§ 9626 - Indian tribes

§ 9627 - Recycling transactions

§ 9628 - State response programs

§ 13101 - Findings and policy

§ 13102 - Definitions

§ 13103 - EPA activities

§ 13104 - Grants to States for State technical assistance programs

§ 13105 - Source Reduction Clearinghouse

§ 13106 - Source reduction and recycling data collection

§ 13107 - EPA report

§ 13108 - Savings provisions

§ 13109 - Authorization of appropriations

Statutes at Large
Presidential Documents

Executive Order ... 12580