40 CFR 35.3550 - Specific capitalization grant agreement requirements.

Status message

There is 1 rule appearing in the Federal Register for 40 CFR 35. View below or at eCFR (GPOAccess)
§ 35.3550 Specific capitalization grant agreement requirements.
(a) General. A State must agree to comply with this subpart, the general grant regulations at 40 CFR part 31, and 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 repayments 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).

Title 40 published on 2014-07-01

The following are only the Rules published in the Federal Register after the published date of Title 40.

For a complete list of all Rules, Proposed Rules, and Notices view the Rulemaking tab.

  • 2014-12-19; vol. 79 # 244 - Friday, December 19, 2014
    1. 79 FR 75872 - Federal Awarding Agency Regulatory Implementation of Office of Management and Budget's Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards
      GPO FDSys XML | Text
      DEPARTMENT OF JUSTICE, SMALL BUSINESS ADMINISTRATION, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT, AGENCY FOR INTERNATIONAL DEVELOPMENT, NATIONAL SCIENCE FOUNDATION, CORPORATION FOR NATIONAL AND COMMUNITY SERVICE, NATIONAL ARCHIVES AND RECORDS ADMINISTRATION, DEPARTMENT OF TREASURY, NATIONAL ENDOWMENT FOR THE ARTS, GULF COAST ECOSYSTEM RESTORATION COUNCIL, DEPARTMENT OF TRANSPORTATION, EXECUTIVE OFFICE OF THE PRESIDENT, DEPARTMENT OF HEALTH AND HUMAN SERVICES, DEPARTMENT OF LABOR, INSTITUTE OF MUSEUM AND LIBRARY SERVICES, ENVIRONMENTAL PROTECTION AGENCY, NATIONAL ENDOWMENT FOR THE HUMANITIES, DEPARTMENT OF DEFENSE, NATIONAL AERONAUTICS AND SPACE ADMINISTRATION, DEPARTMENT OF THE INTERIOR, DEPARTMENT OF COMMERCE, DEPARTMENT OF AGRICULTURE, DEPARTMENT OF ENERGY, DEPARTMENT OF HOMELAND SECURITY, SOCIAL SECURITY ADMINISTRATION, DEPARTMENT OF STATE, DEPARTMENT OF VETERANS AFFAIRS, DEPARTMENT OF EDUCATION, National Institute of Food and Agriculture, Rural Utilities Service, Rural Housing Service, Office of the Chief Financial Officer, Farm Service Agency, Office of National Drug Control Policy, Office of Management and Budget, Commodity Credit Corporation, Rural Business-Cooperative Service, Federal Emergency Management Agency
      Interim final rule.
      Effective date: This interim final rule is effective on December 26, 2014. The incorporation by reference of certain publications listed in the rule is approved by the Director of the Federal Register as of December 26, 2014. Implementation dates: For grants authorized under the Robert T. Stafford Disaster Relief and Emergency Assistance Act, this rule is applicable for emergency or major disaster declarations issued on or after December 26, 2014. For non-Federal entities that are nonprofit organizations or institutions of higher education (IHEs), there is a one-year grace period for implementation of the procurement standards in 2 CFR 200.317 through 200.326. As will be detailed in the 2015 OMB Compliance Supplement, non-Federal entities choosing to delay implementation for the procurement standards will need to specify in their documented policies and procedures that they continue to comply with OMB circular A-110 for one additional fiscal year which begins after December 26, 2014. Comment date: To be assured of consideration, comments must be received by OMB electronically through www.regulations.gov no later than midnight Eastern Standard Time (E.S.T.) on February 17, 2015.
      2 CFR Parts 1, 25, 170, 180, and 200

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
U.S. Code: Title 33 - NAVIGATION AND NAVIGABLE WATERS

§ 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...certain 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

U.S. Code: Title 42 - THE PUBLIC HEALTH AND WELFARE

§ 300f - Definitions

42 U.S. Code § 300e–2, 300e–3 - Repealed.

§ 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 -

§ 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

Title 40 published on 2014-07-01

The following are ALL rules, proposed rules, and notices (chronologically) published in the Federal Register relating to 40 CFR 35 after this date.

  • 2014-12-19; vol. 79 # 244 - Friday, December 19, 2014
    1. 79 FR 75872 - Federal Awarding Agency Regulatory Implementation of Office of Management and Budget's Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards
      GPO FDSys XML | Text
      DEPARTMENT OF JUSTICE, SMALL BUSINESS ADMINISTRATION, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT, AGENCY FOR INTERNATIONAL DEVELOPMENT, NATIONAL SCIENCE FOUNDATION, CORPORATION FOR NATIONAL AND COMMUNITY SERVICE, NATIONAL ARCHIVES AND RECORDS ADMINISTRATION, DEPARTMENT OF TREASURY, NATIONAL ENDOWMENT FOR THE ARTS, GULF COAST ECOSYSTEM RESTORATION COUNCIL, DEPARTMENT OF TRANSPORTATION, EXECUTIVE OFFICE OF THE PRESIDENT, DEPARTMENT OF HEALTH AND HUMAN SERVICES, DEPARTMENT OF LABOR, INSTITUTE OF MUSEUM AND LIBRARY SERVICES, ENVIRONMENTAL PROTECTION AGENCY, NATIONAL ENDOWMENT FOR THE HUMANITIES, DEPARTMENT OF DEFENSE, NATIONAL AERONAUTICS AND SPACE ADMINISTRATION, DEPARTMENT OF THE INTERIOR, DEPARTMENT OF COMMERCE, DEPARTMENT OF AGRICULTURE, DEPARTMENT OF ENERGY, DEPARTMENT OF HOMELAND SECURITY, SOCIAL SECURITY ADMINISTRATION, DEPARTMENT OF STATE, DEPARTMENT OF VETERANS AFFAIRS, DEPARTMENT OF EDUCATION, National Institute of Food and Agriculture, Rural Utilities Service, Rural Housing Service, Office of the Chief Financial Officer, Farm Service Agency, Office of National Drug Control Policy, Office of Management and Budget, Commodity Credit Corporation, Rural Business-Cooperative Service, Federal Emergency Management Agency
      Interim final rule.
      Effective date: This interim final rule is effective on December 26, 2014. The incorporation by reference of certain publications listed in the rule is approved by the Director of the Federal Register as of December 26, 2014. Implementation dates: For grants authorized under the Robert T. Stafford Disaster Relief and Emergency Assistance Act, this rule is applicable for emergency or major disaster declarations issued on or after December 26, 2014. For non-Federal entities that are nonprofit organizations or institutions of higher education (IHEs), there is a one-year grace period for implementation of the procurement standards in 2 CFR 200.317 through 200.326. As will be detailed in the 2015 OMB Compliance Supplement, non-Federal entities choosing to delay implementation for the procurement standards will need to specify in their documented policies and procedures that they continue to comply with OMB circular A-110 for one additional fiscal year which begins after December 26, 2014. Comment date: To be assured of consideration, comments must be received by OMB electronically through www.regulations.gov no later than midnight Eastern Standard Time (E.S.T.) on February 17, 2015.
      2 CFR Parts 1, 25, 170, 180, and 200