Sustainable Development Challenge Grant Program

ENVIRONMENTAL PROTECTION AGENCY

[FRL-6370-4]

Sustainable Development Challenge Grant Program

AGENCY: Environmental Protection Agency (EPA).

ACTION: Solicitation of proposals for FY 1999/2000.

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SUMMARY: The Environmental Protection Agency (EPA) is soliciting

proposals for the combined FY 1999/2000 Sustainable Development

Challenge Grant (SDCG) program, one of President Clinton's ``high

priority'' actions described in the March 16, 1995 report,

``Reinventing Environmental Regulation.'' EPA also is soliciting

comments on the SDCG program's overall design. The EPA anticipates that

approximately $9.4 million will be available for the SDCG program in FY

1999/2000. This includes $4.7 million already authorized by Congress

for FY 1999 and an additional $4.7 million requested for the program in

the President's FY 2000 Budget Request and subject to Congressional

authorization.

The SDCG program challenges communities to invest in a sustainable

future that links environmental protection, economic prosperity and

community well-being. It provides an opportunity to develop place-based

approaches to problem solving that can be replicated in other

communities. The SDCG program strongly encourages community members,

business and government entities to work cooperatively to develop

flexible, locally-oriented approaches that link place-based

environmental management and quality of life activities with

sustainable development and revitalization. These grants are intended

to catalyze community-based projects to promote environmentally and

economically sustainable development; build partnerships which increase

a community's capacity to take steps that will ensure the long-term

health of ecosystems and humans, economic vitality, and community well-

being; and leverage public and private investments to enhance

environmental quality by enabling community efforts to continue beyond

the period of EPA funding.

EPA will select projects on a competitive basis using the criteria

outlined in the section titled ``SDCG Program Criteria.'' Applicants

may compete for funding from EPA in two ranges for FY 1999/2000: (1)

Requesting $30,000 to $100,000 with a total project budget of $125,000

or less and (2) requesting between $100,001 and $250,000 with no limit

on the total project budget amount. Proposals will compete with other

proposals in the same range (i.e., a proposal for $30,000-$100,000 will

not compete with a proposal requesting $100,001-$250,000). Applicants

in each category are required to provide a minimum 20% match from non-

federal funding sources.

This document includes the following: Background information on the

Sustainable Development Challenge Grant program; the process for

preparing and submitting proposals; a description of the FY 1999/2000

program; the program's relationship to other related EPA activities;

the SDCG Program Criteria; and the selection and award process.

DATES: The period for submission of proposals for FY 1999/2000 will

begin upon publication of this Federal Register document. Project

proposals must be postmarked by September 29, 1999 to be considered for

funding.

Submission of Proposals

Please provide an original and four copies of your entire proposal

to the regional representative listed below for the state in which your

project will take place. Applicants applying for $100,000 or less are

only required to submit an original and one copy of the proposal.

Proposals must be postmarked no later than September 29, 1999 to be

considered for funding. Telefaxed or electronic submissions will not be

accepted. An acknowledgment of receipt for your proposal will be sent

by your respective EPA Regional Office. This should take a minimum of

two weeks from the postmark date. We expect to announce final

selections in April 2000 and to complete the full grant award process,

including grant workplan negotiations with the appropriate EPA Region,

by June 2000.

Preparing the SDCG Proposal: Proposals should not exceed eight (8)

page sides (four double-sided pages, single or double-spaced). Where

proposals exceed the eight pages in length, the additional pages will

not be considered.

Items 2 through 5 in the list below count towards the (8)

page maximum. The only items not included in the eight (8) page maximum

are the Summary Information Page (item 1) and the Mandatory Attachments

described in item 6 (these are your Proof of Non-profit Status, and

your Letters of Commitment from match partners).

The new EPA Small Grants Policy states that any grant

proposal requesting $100,000 or less is not required to submit a

proposal which exceeds five (5) page sides. These applicants may,

however, submit up to the eight page limit if they so desire.

Please do not use covers, binders or folders.

Proposals should be submitted on 8\1/2\ x 11'' recycled

paper and be double-sided.

Use no smaller than 10-point type and have one inch page

margins all around.

The project proposal should contain the following in the given

order:

[[Page 35651]]

(1) Summary Information Page (recommended length: 1 page) that

provides:

A. Applicant Information

Project title and location;

Applicant name, address, telephone and fax numbers, and e-

mail address;

Type of applicant organization, e.g., non-profit, state,

local government, Native American (American Indians and Alaskan Native

Villages), or educational;

Name of project contact, address, telephone and fax

numbers, and e-mail address;

Indicate if the project is being done in cooperation with

or funded by another federal or EPA program; if so, please identify the

program.

Project category (see the section titled ``List of

Potential Project Categories'' and choose those that apply; feel free

to use a different category from those listed if it better describes

your project).

B. Summary Budget Information

Dollar Amount Requested from EPA

Dollar Amount of Matching Funds

Dollar Amount of Total Project Budget

Match Percentage

C. Match Partner Information

List of Organizations (including addresses) providing

match

Match Amount

The Summary Information page does not count against the eight page

limit.

(2) Project Overview (Recommended page length: (1) Briefly address

the following questions. Your responses provide an overview of the

proposed project and help reviewers understand the context of your

proposal. You have the opportunity to expand on these questions when

addressing the SDCG Program Criteria.

What is the role of your organization in the community?

Where will the activity occur and what is the geographic

scale of the proposed activity (community, city, watershed, region,

state-wide)?

What are the goals and objectives of the project?

What are the project's expected results and what vision do

you have for the ultimate impact of activity (what do you expect to see

change over time among the people involved, the physical environment,

and the environmental, economic or social conditions)?

(3) SDCG Program Criteria (Recommended page length: 3-4) Address

the program criteria question-by-question. Include criteria subheadings

(Sustainability, Community Commitment and Contribution, and Measurable

Results and Evaluation) and use the question numbers to organize your

responses. The specific criteria are found in the ``SDCG Program

Criteria'' section. Definitions of some of the key terms included in

the criteria are provided at the end of this notice.

(4) Project Schedule and Time-Frame (Recommended page length: \1/2\

page) Show when you expect to complete significant steps and milestones

in your project. Clearly depict the project's duration, and include

months and dates. Use July 1, 2000 as the project start date (the exact

date will be negotiated with EPA if your project is selected). One to

three year project duration is permitted under the SDCG program. See

the sample schedule below:

Convene project team--Jul 1, 2000

Complete Task 1 (include brief description of task)--Oct 30, 2000

Complete Task 2 (include brief description of task)--Mar 15, 2001

Complete Task 3 (include brief description of task)--Jun 1, 2001

Complete final report--Jun 30, 2001

(5) Budget Detail (Recommended page length: \1/2\ page) Be sure to

review the section titled ``Funding Ranges and Match'' before preparing

your budget. Prepare a proposed budget showing expected costs by major

categories (personnel, travel, supplies, rent, subcontracts, etc.).

This should include how the matching funds (i.e., funds provided from

non-federal sources) will be spent, what the sources of those funds

are, and whether the funds are cash, in-kind, or both. Proposals that

do not document a minimum 20% match via commitment letters will not be

considered. See the sample budget format provided below:

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Matching

EPA share funds Total

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Staff Salaries and Benefits...... $33,000 $8,000 $41,000

Travel........................... 7,000 0 7,000

Supplies......................... 3,000 1,000 4,000

Service Contract................. 5,000 3,000 8,000

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Totals....................... 48,000 12,000 60,000

Break-Down of Matching Funds:

Your Organization--$5,000 (in-

kind)

Cityville, USA--$3,000 (cash)

Cityville, USA--$3,000 (in-

kind)

LocalBusiness, Inc.--$1,000

(cash)

Total--$12,000

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(6) Mandatory Attachments (These items do not count toward the page

limit.)

A. Proof of Non-profit Status. All non-governmental applicants must

attach articles of incorporation or other documentation demonstrating

non-profit status. For more information, see the section titled

``Eligible Applicants.'' Applications without this documentation will

not be considered.

B. Match Commitment Letters. Letters of commitment from ALL

partners contributing matching funds (cash and/or in-kind) to the

project must be submitted with your proposal, not sent separately or at

a later date. Commitment letters from project partners must specify the

nature of the match (cash or in-kind services), the dollar value of the

match, and the role the contributor will play in the project. Project

partners providing matching funds must certify that the funds will be

available during the project period. Letters must be submitted on

letterhead (if applicable), signed by an individual with authority to

commit funds, and include the organization's telephone number and

address. Letters can be addressed to the appropriate EPA contact for

your proposal or to the organization submitting the proposal.

Applications submitted without commitment letters confirming available

match funds will not be considered. Please do not send letters of

general support from non-match partners or

[[Page 35652]]

others; they will not be used in the evaluation and review process.

Submission of Comments

EPA also is requesting comments on the overall content and design

of the FY 1999/2000 Program. Please send comments to Dr. Lynn Desautels

at EPA Headquarters in Washington, DC via letter, fax, or e-mail (see

For Further Information for specifics). Your comments will be used to

help the agency make further improvements in the program in subsequent

funding years. Please submit your comments by December 1, 1999.

FOR FURTHER INFORMATION: Contact the regional representative for your

state or Dr. Lynn Desautels, Director, Sustainable Development

Challenge Grant Program, Office of the Administrator, U.S. EPA (MC

1306), 401 M Street SW, Washington, DC 20460, telephone (202) 260-6812,

fax (202) 260-2555, e-mail [email protected].

Regional Offices

Rosemary Monahan, US EPA Region I, 1 Congress Street, Suite 1100,

RSP, Boston, MA 02114-2023, (617) 918-1087,

[email protected]. States: ME, NH, VT, MA, CT, RI

Marcia Seidner, US EPA Region 2, 290 Broadway, 26th Floor, New York,

NY 10007-1866, (212) 637-3590, [email protected]. States &

Territories: NY, NJ, PR, VI

Theresa Martella, US EPA Region 3, 1650 Arch Street (3CB00),

Philadelphia, PA 19103, (215) 814-5423, [email protected].

States: DE, DC, MD, PA, VA, WV

Annette N. Hill, US EPA Region 4, OPM, 61 Forsyth Street, SW,

Atlant, GA 30303, (404) 562-8287, [email protected] States:

AL, FL, GA, KY, MS, NC, SC, TN

Janette Marsh, US EPA Region 5, 77 West Jackson Blvd., Chicago, IL

60604-3507, (312) 886-4856, [email protected], States: MN, WI,

MI, IL, IN, OH

Diana Hinds, US EPA Region 6, Fountain Place, Suite 1200, 1445 Ross

Avenue, Dallas, TX 75202-2733, (214) 665-7561, [email protected],

States: AR, LA, NM, OK, TX

Dick Sumpter, US EPA Region 7, 901 N. 5th Street, Kansas City, KS

66101, (913) 551-7661, [email protected], States: KS, MO, NE,

IA

David Schaller, US EPA Region 8, 999 18th Street, Suite 500, Denver,

CO 80202-2466, (303) 312-6146, [email protected], States: CO,

MT, ND, SD, UT, WY

Nova Blazej, US EPA Region 9, 75 Hawthorne Street (CMD-7), San

Francisco, CA 94105, (415) 744-2089, [email protected], States &

Territories: CA, NV, AZ, HI, AS, GU

Anne Dalrymple, US EPA Region 10, 1200 Sixth Avenue (01-085),

Seattle, WA 98101, (206) 553-0199, [email protected], States:

AK, ID, OR, WA

Headquarters Office

Dr. Lynn Desautels, Director, Sustainable Development Challenge

Grant Program, Office of the Administrator, US EPA, MC 1306, 401 M

Street SW MC 1306, Washington, D.C. 20460, (202) 260-6812 (SDCG

Line) [email protected]

SUPPLEMENTARY INFORMATION:

Overview of the Sustainable Development Challenge Grant Approach

The Sustainable Development Challenge Grant (SDCG) program is an

important opportunity for EPA to award competitive grants that leverage

private and other public sector investment in communities (ranging in

size from neighborhoods to cities to larger geographic areas such as

watersheds or metropolitan areas). These grants will build partnerships

that will increase the capacity of communities to ensure long-term

environmental protection through the application of sustainable

development strategies. EPA intends these competitive grants to be

catalysts that challenge communities to invest in a more sustainable

future.

The program encourages communities to recognize and build upon the

fundamental connection between environmental protection, economic

prosperity and community well-being. Accomplishing this linkage

requires integrating environmental protection in policy and decision-

making at all levels of government and throughout the economy.

Achieving sustainability is a responsibility shared by environmental,

community and economic interests.

The SDCG program recognizes the significant role that communities

have and should play in environmental protection. The program

acknowledges that sustainable development is often best designed and

implemented at a community level and encourages projects that can be

replicated in other communities. This emphasis on strong community

involvement requires a commitment to ensuring that all residents of a

community, of varying economic and social groups, have opportunities to

participate in decision-making and benefit from successful sustainable

development activities. Only through the combined efforts and

collaboration of government, private organizations and individuals can

our communities, regions, states, and nation achieve the benefits of

sustainable development. In keeping with this philosophy, the EPA will

implement this program consistent with the principles of Executive

Order 12898, ``Federal Actions to Address Environmental Justice in

Minority Populations and Low-Income Populations'' (February 11, 1994).

We encourage submissions from Empowerment Zones and Enterprise

Communities.

The EPA initiated the SDCG program as a pilot effort in 1996 and

has funded 96 of the 2,218 proposals received in the first three years

of the program (FY96, 97, 98) for a total of approximately $10,500,000.

Project descriptions for all of the projects funded to date are

available via the Internet at http:www.epa.gov/ecocommunity (see ``List

of Potential Project Categories'' for further information).

Linkages to Other Initiatives

EPA and its state and local partners continue to refine how

environmental protection is accomplished in the United States. The

Agency recognizes that environmental progress will not be achieved

solely by regulation. Innovative attitudes of regulatory agencies

combined with individual, institutional, and corporate responsibility,

commitment and stewardship will be needed to assure adequate protection

of the earth's resources. The Sustainable Development Challenge Grant

program is consistent with other community-based efforts EPA has

introduced, such as the Brownfields Initiative, Environmental Justice

Small Grants Program, Project XL, the President's American Heritage

Rivers Initiative, the Watershed Protection Approach, the Clean Water

Action Plan, Transportation Partners, the $mart Growth Network, and the

Community-Based Environmental Protection Approach. The Sustainable

Development Challenge Grant program is also a step in implementing

``Agenda 21, the Global Plan of Action on Sustainable Development,''

signed by the United States at the Earth Summit in Rio de Janeiro in

1992. All of these programs require broad community participation to

identify and address environmental issues.

Through the Sustainable Development Challenge Grant program, EPA

also intends to further the vision and goals of the President's Council

on Sustainable Development (PCSD), created in 1993 by President

Clinton. EPA is coordinating existing urban environmental programs

within the Agency and with other federal, state and local agencies. The

President charged the Council, composed of corporate, government, and

non-profit representatives, to find ways to ``bring people together to

meet the needs of the present without jeopardizing the future.'' The

Council has declared this vision:

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``Our vision is of a life-sustaining Earth. We are committed to

the achievement of a dignified, peaceful and equitable existence. We

believe a sustainable United States will have a growing economy that

equitably provides opportunities for satisfying livelihoods and a

safe, healthy, high quality of life for current and future

generations. Our nation will protect its environment, its natural

resource base, and the functions and viability of natural systems on

which all life depends.'' (February 1996)

The Sustainable Development Challenge Grant program furthers this

vision by encouraging community-based sustainable development

initiatives.

Eligible Applicants

Eligible applicants include: (1) Incorporated non-profit (or not-

for-profit) private agencies, institutions and organizations, and (2)

public (state, county, regional or local) agencies, institutions and

organizations, including those of Native Americans (American Indians

and Alaskan Native Villages), the District of Columbia, the

Commonwealth of Puerto Rico, or any territory or possession of the U.S.

Applicants must be located in, and project activities must be conducted

within, the U.S., the Commonwealth of Puerto Rico, or a territory or

possession of the U.S. While state agencies are eligible they are

encouraged to work in partnership with community groups and other non-

profit organizations. Federal agencies are not eligible for funding,

however, they are also encouraged to work in partnership with state and

local agencies and non-governmental organizations on these projects.

Profit-making organizations and individuals are not eligible for

funding; however, they are encouraged to participate in sustainability

efforts in their community by becoming partners with eligible

organizations.

Non-profit Status: Applicants are not required to have a formal

Internal Revenue Service (IRS) non-profit designation, such as

501(c)(3) or 501(c)(4), however they must present their letter of

incorporation documenting their non-profit or not-for-profit status.

This requirement does not apply to public agencies. Failure to enclose

the letter of incorporation documenting an applicant's non-profit or

not-for-profit status will result in an incomplete submission and the

proposal will not be reviewed. Applicants who do have an IRS 501(c)(4)

designation are not eligible for grants if they engage in lobbying, no

matter what the source of funding for the lobbying activity. No

recipient may use grant funds for lobbying. Further, profit-makers are

not eligible to receive sub-grants from eligible recipients, although

they may receive contracts, subject to EPA's regulations on procurement

under assistance agreements, 40 Code of Federal Regulations (CFR) 30.40

(for non-governmental recipients) and 40 CFR 31.36 (for governments).

SDCG Program Criteria

The proposed project must meet the two statutory threshold

determinations described below in the Statutory Authority section.

Then, proposals will be ranked according to how well they address and

integrate the SDCG Program Criteria. Definitions of some of the key

terms used in the criteria are included at the end of this notice. A

higher ranking will be given to those proposals which clearly and

comprehensively meet and integrate the greatest number of criteria,

address serious environmental problems, and are likely to produce

successful results. Applicants should address each of the three

criteria sections question-by-question. If a proposal does not address

one or more criteria, the applicant must clearly state why these

criteria were not addressed.

(A) Sustainability: 50 Points

A1. How do the proposed project solutions integrate and sustain

environmental protection, economic prosperity and community well-being

at the community level and at the regional level?

A2. How does the proposal address the ways in which future

generations are affected by the proposed project?

A3. What are the specific environmental, economic, and community

problem(s) the proposal addresses and what are their significance?

A4. What type of sustainable behavior is desired, and what type of

non-sustainable behavior needs to be changed?

A5. How do the environmental solutions proposed illustrate an

ecosystem approach to environmental protection? An ecosystem approach

is one that looks at a specific area and addresses the air, land,

water, plants, animals, and people as an integrated and interconnected

system.

A6. How do the proposal's environmental and economic impacts

promote community well-being for all people in the community?

A7. How does the proposal assure that the project's activities do

not exhaust or degrade the environment in your community or shift the

problem to another community or another part of the environment?

A8. How do the environmental solutions proposed by the project lead

to long-term economic vitality? For example, will the project lead to

more sustainable use of natural resources, reduce consumption of non-

renewable resources, create a more skilled and flexible labor force,

and maximize local financial resources?

A9. How does the proposal represent new solutions for the

community, given their previous history and current circumstances?

A10. How does the project build upon lessons learned from similar

sustainable development projects conducted in your community or

elsewhere?

(B) Community Commitment and Contribution: 25 Points

B1. How do your partners fully represent those in the community who

have an interest in or will be affected by the project?

B2. What methods will be used for community involvement to assure

that all affected by the project are provided an opportunity to

participate?

B3. Does the community have in place the legal and regulatory

authority they need to implement the project?

B4. What evidence is there of long-term commitment to the proposal?

Describe how you plan to continue the work after the grant ends or how

this project will evolve into other efforts.

(C) Measurable Results and Evaluation: 25 Points

C1. What are the achievable short-term (within three years) and

long-term objectives that will be used to measure the proposal's

contribution to sustainability? These objectives should be both

quantitative and qualitative.

C2. For planning or visioning proposals: Once the plan or vision is

developed, what next steps will be taken to ensure the plan or vision

is implemented? How will the plan or vision's contribution be measured?

C3. How will you measure and evaluate how well the project meets

its goals and objectives? Goal and objective measures should be both

qualitative and quantitative, and should assess the project's

contribution to sustainability.

C4. In what ways will the project be transferable to other

communities and how will you transfer that information?

List of Potential Project Categories

EPA welcomes proposals for many types of demonstration projects

under the SDCG program. Those most likely to be chosen for funding will

innovatively link solutions for significant environmental, economic and

community issues and problems. Short descriptions of all previously

funded SDCG projects can be found on the

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Internet at our web site: ``www.epa.gov/ecocommunity.'' If you do not

have Internet access, copies of these descriptions can be obtained from

your regional representative or from our headquarters office (see

section titled ``For Further Information''). The list below illustrates

some of the categories that best describe projects previously funded

under this program. Projects often fall under more than one category.

The list is not intended to be exhaustive, and proposed projects may

fit into several categories or into new categories.

Comprehensive planning for sustainable growth.

Comprehensive resource management and restoration (e.g.

watershed restoration, habitat protection, wildlife corridors,

greenways, wetlands, local environmental features, etc.).

Educational ecology or environment-based tourism

supporting local communities.

Green business incentives.

Sustainability indicators.

Sustainable agriculture.

Sustainable forestry.

Green building design.

Community revitalization and redevelopment.

Sustainability education.

Community/local government tools for sustainability.

Sustainable energy systems.

Aquaculture.

Materials reuse.

Since the program seeks to fund innovative ideas, proposals that

are repetitious of earlier funded projects must state how the proposal

addresses new aspects of the problem or issue. Proposals focused on

planning or visioning should clearly state goals and objectives and

indicate the next steps for implementation. Projects do not have to

fall into a single project type, but can incorporate aspects of several

project types.

Funding Ranges and Match

Applicants may compete for funding from EPA in two ranges for FY

1999/2000: (1) Requesting $30,000 to $100,000 with a total project

budget of $125,000 or less, and (2) requesting between $100,001 and

$250,000 with no limit on total project budget. Proposals will compete

with other proposals in the same range. Applicants in each category are

required to demonstrate how they will meet the minimum 20% non-federal

match. Applicants may submit multiple proposals, however, each proposal

must be for a separate and distinct project. No organization may

receive funding for more than one grant each year under the SDCG

program, and projects awarded in any given year will be ineligible for

future funding from this program. Applicants who have received funding

under this program in the past are eligible to receive funds for new

projects which are unrelated to the previously funded projects.

This program is intended to provide seed money to leverage a

broader public and private investment in sustainability activities. As

a result, the program requires a minimum non-federal match of at least

20% of the total project budget. The total budget includes (1) EPA's

share, (2) funds identified as match, and (3) any other funds directly

supporting the project. EPA strongly encourages applicants to leverage

as much investment in community sustainability as possible. EPA views

this leverage as a measure of community support and an indication of

the possible longevity of the project. The match can come from a

variety of public and private sources and can include in-kind goods and

services. No Federal funds, however, can be used as matching funds

without specific statutory authority. The match must be calculated in

accordance with the following example calculation:

(1) If you want to request $100,000 from EPA, your match amount is

not $20,000. You calculate the amount of match you must provide by

dividing the amount you are requesting by 80%. For example:

$100,000 divided by .8 = $125,000 (total project costs)

(2) Amount Requested From US EPA--$100,000

Your Match--+25,000

Total Project Budget--$125,000

These equations calculate the minimum match required. Your match

must be at least 20% to be eligible for funding; fractions (e.g. 19.5%)

will not be rounded up.

Note: Consistent with the provisions of the Omnibus Territories

Act, as amended, 48 U.S.C. 1469a(d), the match requirement is waived

for applications submitted by the governments of American Samoa,

Guam, the Virgin Islands, or the Northern Mariana Islands.

In-Kind Contributions to Meet Your Match Requirement: In-kind

contributions are non-cash contributions to a project. Volunteered

services and donated supplies (use of equipment, office/meeting space,

printing, etc.) used toward your match are called ``in-kind

contributions,'' which you are allowed to count toward the required

match. Volunteered services may include a bookkeeper's maintenance of

your group's financial records and preparation of required financial

reports; an auditor's review of your group's financial records; a

lawyer's aid in drafting a contract for your technical advisor(s), etc.

You must place a reasonable monetary value on your in-kind

contributions and include them in your budget. You must be prepared to

document in-kind contributions in your records. Rates for volunteer

services must be consistent with rates in your community for similar

services and may not include fringe benefits, overhead or profit. EPA

can only provide funds for project costs that are allowable under EPA

statutory authority. The funds that match partners contribute to a

successful challenge grant can only be counted toward match if they are

for costs which EPA can fund. If selected to receive an SDCG grant,

applicants and their match partners are subject to audit to ensure that

all costs are appropriate. If costs are ineligible or the grantee

cannot properly document match dollars , the grantee would be liable

for the disallowed costs.

FOIA, CBI, and Enforcement Screening: Applicants should be aware

that proposals submitted under this or any other EPA grant program are

subject to the Freedom of Information Act (FOIA). This means that

anyone can request and receive copies of all the information submitted

in your grant proposal. If your application contains any Confidential

Business Information (CBI), be sure to highlight it so the

confidentiality can be protected in the event of a FOIA request.

Finalists for challenge grant awards may be screened to ensure that

the applicants and their match partners are in compliance with

applicable EPA statutes.

Duration: Funded projects are expected to be structured for a

period of one to three years.

What Costs Can Be Paid?

Even though a proposal may involve an eligible applicant, eligible

activity, and eligible purpose, grant funds cannot necessarily pay for

all of the costs which the recipient might incur in the course of

carrying out the project. Allowable costs, including those paid for by

matching funds, are determined by reference to EPA regulations cited

below and to OMB Circulars A-122, ``Cost Principles for Non-profit

Organizations,'' A-21 ``Cost Principles for Education Institutions,''

and A-87, ``Cost Principles for State, Local, and Indian Tribal

Governments.'' Generally, costs which are allowable include salaries,

equipment, supplies, training, rental of office space, etc., as long as

these are ``necessary and reasonable.''

[[Page 35655]]

Entertainment costs are an example of unallowable costs.

Statutory Authority

EPA expects to award Sustainable Development Challenge Grants

program under the following eight grant authorities: Clean Air Act

section 103(b)(3); Clean Water Act section 104 (b)(3); Resource

Conservation and Recovery Act section 8001; Toxics Substances Control

Act section 10; Federal Insecticide, Fungicide, and Rodenticide Act

section 20; Safe Drinking Water Act sections 1442(a) and (c); National

Environmental Education Act, section 6; and Pollution Prevention Act,

section 6605.

In addition to the program criteria listed in the SDCG Program

Criteria section above, a proposal must meet the following two

important threshold criteria to be considered for funding:

Threshold Criterion #1. A project must consist of activities

authorized under one or more of the eight EPA grant authorities cited

above. Most of the statutes authorize grants for the following

activities: ``research, investigations, experiments, training,

demonstrations, surveys and studies.'' These activities relate

generally to the gathering or transferring of information or advancing

the state of knowledge. Grant proposals should emphasize this

``learning'' concept, as opposed to ``fixing'' an environmental problem

via a well-established method. For example, a proposal to plant some

trees in an economically depressed area in order to prevent erosion

would probably not in itself fall within the statutory terms

``research, studies, demonstrations,'' etc., nor would a proposal to

start a routine recycling program. The project's activities must

advance the state of knowledge or transfer information. The statutory

term ``demonstration'' can encompass the first instance of the

application of pollution control and prevention techniques, or an

innovative application of a previously used method. The term

``research'' may include the application of established practices when

they contribute to ``learning'' about an environmental concept or

problem.

Threshold Criterion #2. In order to be funded, a project's focus

generally must be one that is specified in the statutes listed above.

For most of the statutes, a project must address the causes, effects,

extent, prevention, reduction, and elimination of air, water, or solid/

hazardous waste pollution, or, in the case of grants under the Toxic

Substances Control Act or the Federal Insecticide, Fungicide and

Rodenticide Act, to ``carrying out the purposes of the Act.'' While the

purpose of the SDCG program will include the other two aspects of

sustainable development (economic prosperity and community well-being),

the overarching concern or principal focus must be on the statutory

purpose of the applicable grant authority, in most cases ``to prevent

or control pollution.'' In light of this, proposals relating to other

topics which are sometimes included within the term ``environment''

such as recreation, conservation, restoration, protection of wildlife

habitats, etc., should describe the relationship of these topics to the

statutorily required purpose of pollution prevention and/or control.

For assistance in understanding statutory authorities under which EPA

is providing these grants, please contact your EPA representative

listed earlier in this notice.

Selection and Award Process

EPA will select Sustainable Development Challenge Grant recipients

for FY 1999/2000 through a national competition. EPA Regional Offices

will assess how well the proposals meet the program criteria and

forward their top proposals to EPA Headquarters for review by a

national panel consisting of EPA Headquarters and Regional

representatives. Proposals will be evaluated and final selections will

be recommended by the national panel. The panel's recommendations will

be presented to EPA Senior Management for final selection. In making

these final selections such factors as geographic diversity, project

diversity, costs, matching funds, and project transferability or

replicability may be considered. We expect to announce final selections

in April 2000 and to complete the full grant award process, including

workplan negotiations with the appropriate EPA Region, by June 2000.

Although the selections will be made nationally, SDCG grants will

be awarded and managed by the appropriate EPA Regional Offices.

Applicants selected to receive SDCG grants will be contacted by the

appropriate EPA Regional Office, and will be requested to submit a full

grant application (i.e. Application for Domestic Federal Assistance).

Your EPA Regional Contact will provide you with the information you

need, and will be available to answer any questions.

Definitions

Sustainable Development: Sustainable development means integrating

environmental protection and community and economic goals. Sustainable

development meets the needs of the present generation without

compromising the ability of future generations to meet their own needs.

The sustainable development approach seeks to encourage broad-based

community participation and public and private investment in decisions

and activities that define a community's environmental and economic

future and community well-being.

Community Well-being: In the sustainable development context,

community well-being means understanding and considering the impacts of

activity on the diversity of cultures, values, and traditions in a

community and on the overall quality of life. It acknowledges both

current and future generations. Community well-being means ensuring

that all members of the community, regardless of ethnic or cultural

group, age or income, have access to services provided through the

sustainable development project, and that the benefits/burdens of the

project are fairly distributed.

Community: The scale used to define ``community'' under this

challenge grant program will vary with the issues, problems, or

opportunities that an applicant intends to address. The SDCG program

recognizes the significant role that communities have and should play

in environmental protection. ``Community'' means a geographic area

within which different groups and individuals share common interests

related to their homes and businesses, their personal and professional

lives, the surrounding natural landscape and environment, and the local

or regional economy. A community can be one or more local governments,

a neighborhood within a small or large city, a large metropolitan area,

a small or large watershed, an airshed, tribal lands, ecosystems of

various scales, or some other specific geographic area with which

people identify.

Non-sustainable Behavior: Development, or land and water

activities, management or uses, which limit the ability of humans and

ecosystems to live sustainably by destroying or degrading ecological

values and functions, diminishing the material quality of life,

diverting economic benefits away from long-term community prosperity,

and decreasing the long-term capacity for sustainability.

Pollution Prevention: Any practice that (1) reduces the amount of

any hazardous substance, pollutant or contaminant entering any waste

stream or released into the environment (including fugitive emissions)

prior to recycling, treatment or disposal, and (2) reduces the hazards

associated with such substances, pollutants or contaminants; and (3)

other practices

[[Page 35656]]

that reduce or eliminate the creation of pollutants through increased

efficiency in the use of raw materials, energy, water or other

resources; or (4) protection of natural resources by conservation.

Applicable Grant Regulations

40 CFR part 30 for other than state/local governments, for example,

non-profit organizations (see 61 FR 6065 (Feb. 15, 1996)), and part 31

for state and local governments and Indian tribes.

Paperwork Reduction Act

The information collection provisions in this document for

solicitation of proposals are approved by the Office of Management and

Budget (OMB) under the Paperwork Reduction Act, 44 U.S.C. 3501 et seq.

in a generic Information Collection Request titled Generic

Administrative Requirements for Assistance Programs (ICR No. 938.06 and

OMB Approval No. 2030-0020). A copy of the Information Collection

Request (ICR No. 938.06) may be obtained from Sandy Farmer in the

Regulatory Information Division, EPA, 401 M Street, SW (Mail Code

2137), Washington, DC 20460 or by calling (202) 260-2740.

Dated: June 25, 1999.

Peter D. Robertson,

Acting Deputy Administrator.

[FR Doc. 99-16773 Filed 6-30-99; 8:45 am]

BILLING CODE 6560-50-P