40 CFR 35.3550 - Specific capitalization grant agreement requirements.

§ 35.3550 Specific capitalization grant agreement requirements.

(a)General. A State must agree to comply with this subpart, 2 CFR part 200, the EPA general assistance regulations in 2 CFR part 1500 and the specific conditions of the grant. A State must also agree to the following requirements and, in some cases, provide documentation as part of the capitalization grant application.

(b)Comply with State statutes and regulations. A State must agree to comply with all State statutes and regulations that are applicable to DWSRF program funds including capitalization grant funds, State match, interest earnings, net bond proceeds, repayments, and funds used for set-aside activities.

(c)Demonstrate technical capability. A State must agree to provide documentation demonstrating that it has adequate personnel and resources to establish and manage the DWSRF program.

(d)Accept payments. A State must agree to accept capitalization grant payments in accordance with a payment schedule negotiated between EPA and the State.

(e)Make binding commitments. A State must agree to enter into binding commitments with assistance recipients to provide assistance from the Fund.

(1) Binding commitments must be made in an amount equal to the amount of each capitalization grant payment and accompanying State match that is deposited into the Fund and must be made within one year after the receipt of each grant payment.

(2) A State may make binding commitments for more than the required amount and credit the excess towards the binding commitment requirements of subsequent grant payments.

(3) If a State is concerned about its ability to comply with the binding commitment requirement, it must notify the RA and propose a revised payment schedule for future grant payments.

(f)Deposit of funds. A State must agree to promptly deposit DWSRF program funds into appropriate accounts.

(1) A State must agree to deposit the portion of the capitalization grant to be used for projects into the Fund.

(2) A State must agree to maintain separate and identifiable accounts for the portion of the capitalization grant to be used for set-aside activities.

(3) A State must agree to deposit net bond proceeds, interest earnings, and repayments into the Fund.

(4) A State must agree to deposit any fees, which include interest earned on fees, into the Fund or into separate and identifiable accounts.

(g)Provide State match. A State must agree to deposit into the Fund an amount from State monies that equals at least 20 percent of each capitalization grant payment.

(1) A State must identify the source of State match in the capitalization grant application.

(2) A State must deposit the match into the Fund on or before the date that a State receives each payment for the capitalization grant, except when a State chooses to use a letter of credit (LOC) mechanism or similar financial arrangement for the State match. Under this mechanism, payments to this LOC account must be made proportionally on the same schedule as the payments for the capitalization grant. Cash from this State match LOC account must be drawn into the Fund as cash is drawn into the Fund through the Automated Clearing House (ACH).

(3) A State may issue general obligation or revenue bonds to derive the State match. The net proceeds from the bonds issued by a State to derive the match must be deposited into the Fund and the bonds may only be retired using the interest portion of loan repayments and interest earnings of the Fund. Loan principal must not be used to retire State match bonds.

(4) If the State deposited State monies in a dedicated revolving fund after July 1, 1993, and prior to receiving a capitalization grant, the State may credit these monies toward the match requirement if:

(i) The monies were deposited in a separate revolving fund that subsequently became the Fund after receiving a capitalization grant and they were expended in accordance with section 1452 of the Act;

(ii) The monies were deposited in a separate revolving fund that has not received a capitalization grant, they were expended in accordance with section 1452 of the Act, and an amount equal to all re payments of principal and payments of interest from loans will be deposited into the Fund; or

(iii) The monies were deposited in a separate revolving fund and used as a reserve for a leveraged program consistent with section 1452 of the Act and an amount equal to the reserve is transferred to the Fund as the reserve's function is satisfied.

(5) If a State provides a match in excess of the required amount, the excess balance may be credited towards match requirements associated with subsequent capitalization grants.

(h)Provide match for State program management set-aside. A State must agree to provide a dollar for dollar match for expenditures made under the State program management set-aside in accordance with § 35.3535(d)(2). This match is separate from the 20 percent State match requirement for the capitalization grant in paragraph (g) of this section and must be identified as an eligible credit, deposited into set-aside accounts, or documented as in-kind services.

(i)Use generally accepted accounting principles. A State must agree to ensure that the State and public water systems receiving assistance will use accounting, audit, and fiscal procedures conforming to Generally Accepted Accounting Principles (GAAP) as promulgated by the Governmental Accounting Standards Board or, in the case of privately-owned systems, the Financial Accounting Standards Board. The accounting system used for the DWSRF program must allow for proper measurement of:

(1) Revenues earned and other receipts, including but not limited to, loan repayments, capitalization grants, interest earnings, State match deposits, and net bond proceeds;

(2) Expenses incurred and other disbursements, including but not limited to, loan disbursements, repayment of bonds, and other expenditures allowed under section 1452 of the Act; and

(3) Assets, liabilities, capital contributions, and retained earnings.

(j)Conduct audits. In accordance with § 35.3570(b), a State must agree to comply with the provisions of the Single Audit Act Amendments of 1996. A State may voluntarily agree to conduct annual independent audits.

(k)Dedicated repayment source. A State must agree to adopt policies and procedures to assure that assistance recipients have a dedicated source of revenue for repayment of loans, or in the case of privately-owned systems, assure that recipients demonstrate that there is adequate security to assure repayment of loans.

(l)Efficient expenditure. A State must agree to commit and expend all funds as efficiently as possible and in an expeditious and timely manner.

(m)Use funds in accordance with IUP. A State must agree to use all funds in accordance with an IUP that was prepared after providing for public review and comment.

(n)Biennial report. A State must agree to complete and submit a Biennial Report that describes how it has met the goals and objectives of the previous two fiscal years as stated in the IUPs and capitalization grant agreements. The State must submit this report to the RA according to the schedule established in the capitalization grant agreement.

(o)Comply with cross-cutters. A State must agree to comply with all applicable Federal cross-cutting authorities.

(p)Comply with provisions to avoid withholdings. A State must agree to demonstrate how it is complying with the requirements of capacity development authority, capacity development strategy, and operator certification program provisions in order to avoid withholdings of funds under § 35.3515(b)(1)(i) through (b)(1)(iii).

[ 65 FR 48299, Aug. 7, 2000, as amended at 79 FR 76057, Dec. 19, 2014]

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