[Federal Register: August 15, 2003 (Volume 68, Number 158)]
[Notices]               
[Page 48902-48908]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr15au03-59]                         

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ENVIRONMENTAL PROTECTION AGENCY

[OPPT-2003-0033; FRL-7315-3]

 
Solicitation of Applications for Lead-Based Paint Program Grants; 
Notice of Availability of Funds

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

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SUMMARY: This notice announces EPA's intent to enter into cooperative 
agreements with States, Territories, Indian Tribes, Intertribal 
Consortia, and the District of Columbia to provide financial assistance 
for purposes of developing and carrying out EPA-authorized lead-based 
paint programs. These programs and this financial assistance are 
authorized by section 404 of the Toxic Substances Control Act (TSCA). 
In order for Indian Tribes and Intertribal Consortia to be eligible for 
financial assistance under this program, the Indian Tribes must 
demonstrate that they meet the criteria for treatment as a State. The 
total amount of fiscal year (FY) 2003 funding to be awarded to States, 
Territories, Indian Tribes, Intertribal Consortia, and the District of 
Columbia for development and implementation of EPA-authorized lead-
based paint programs, and for EPA's direct implementation of such 
programs for those States, Territories, the District of Columbia, and 
Indian Tribes that do not have EPA-authorized programs is $12.5 
million. For FY2003, the Agency is allocating up to $1.0 million of 
these funds for the Indian Tribes and Intertribal Consortia.

DATES: Applications submitted by States, Territories, and the District 
of Columbia for financial assistance, identified by docket ID number 
OPPT-2003-0033, must be received by EPA Regional staff on or before 
September 15, 2003. Applications submitted by Indian Tribes and 
Intertribal Consortia for financial assistance, identified by docket ID 
number OPPT-2003-0033, must be received by EPA Regional staff on or 
before September 29, 2003.

ADDRESSES: Applications may be submitted by mail, or in some instances 
electronically. Please follow the detailed instructions provided in 
Unit I. of the SUPPLEMENTARY INFORMATION. To ensure

[[Page 48903]]

proper receipt by EPA, it is imperative that you identify docket ID 
number OPPT-2003-0033 in the subject line on the first page of your 
response.

FOR FURTHER INFORMATION CONTACT: For general information contact: 
Barbara Cunningham, Director, Environmental Assistance Division 
(7408M), Office of Pollution Prevention and Toxics, Environmental 
Protection Agency, 1200 Pennsylvania Ave., NW., Washington, DC 20460; 
telephone number: (202) 554-1404; e-mail address: TSCA-Hotline@epa.gov.    For technical information contact: The appropriate Regional Lead 
Coordinator listed in Unit I.C. of the SUPPLEMENTARY INFORMATION.

SUPPLEMENTARY INFORMATION:

I. General Information

A. Does This Action Apply to Me?

    This action is directed to States, Territories, eligible Indian 
Tribes, and Intertribal Consortia, and the District of Columbia to 
develop and carry out authorized lead-based paint programs under TSCA 
section 404. In order for Indian Tribes and Intertribal Consortia to be 
eligible for financial assistance under this program, the Tribes or 
Intertribal Consortia must demonstrate that they meet the criteria at 
40 CFR 35.693 for treatment as a State. In order for Intertribal 
Consortia to be eligible for financial assistance under TSCA section 
404(g) they must also meet the requirements at 40 CFR 35.504. If you 
have any questions regarding the applicability of this action to a 
particular entity, consult the technical person listed under FOR 
FURTHER INFORMATION CONTACT.

B. How Can I Get Additional Information, Including Copies of This 
Document or Other Related Documents?

    1. Docket. EPA has established an official public docket for this 
action under docket identification (ID) number OPPT-2003-0033. The 
official public docket consists of the documents specifically 
referenced in this action. The official public docket is the collection 
of materials that is available for public viewing at the EPA Docket 
Center, Rm. B102-Reading Room, EPA West, 1301 Constitution Ave., NW., 
Washington, DC. The EPA Docket Center is open from 8:30 a.m. to 4:30 
p.m., Monday through Friday, excluding legal holidays. The EPA Docket 
Center Reading Room telephone number is (202) 566-1744 and the 
telephone number for the OPPT Docket, which is located in EPA Docket 
Center, is (202) 566-0280.
    2. Electronic access. You may access this Federal Register document 
electronically through the EPA Internet under the ``Federal Register'' 
listings at http://www.epa.gov/fedrgstr/.
    You may also access this document on the Home Page for the Office 
of Pollution Prevention and Toxics at http://www.epa.gov/lead. Select 
``What's New.'' Hard copies of this document are available from the 
appropriate Regional Primary Lead person listed in Unit I.C.
    An electronic version of the public docket is available through 
EPA's electronic public docket and comment system, EPA Dockets. You may 
use EPA Dockets at http://www.epa.gov/edocket/ to submit or view public 
comments, access the index listing of the contents of the official 
public docket, and to access those documents in the public docket that 
are available electronically. Although not all docket materials may be 
available electronically, you may still access any of the publicly 
available docket materials through the docket facility identified in 
Unit I.B.1. Once in the system, select ``search,'' then key in the 
appropriate docket ID number.

C. How and to Whom Do I Submit an Application?

    You may submit an application through the mail, or in some 
instances electronically, to the Regional Lead Coordinator in the 
appropriate EPA Regional Office. The mailing addresses and contact 
telephone numbers for these offices are listed below. To ensure proper 
receipt by EPA, it is imperative that you identify docket ID number 
OPPT-2003-0033 in the subject line on the first page of your response.
    Region I: (Connecticut, Maine, Massachusetts, New Hampshire, Rhode 
Island, and Vermont), Regional Contact--James Bryson, USEPA Region I, 
One Congress St., Suite 1100 (CPT), Boston, MA 02114-0203; telephone 
number: (617) 918-1524; e-mail address: bryson.jamesm@epa.gov.    Region II: (New Jersey, New York, Puerto Rico, and the Virgin 
Islands), Regional Contact--Lou Bevilacqua, USEPA Region II, MS-225, 
2890 Woodbridge Ave., Edison, NJ 08837; telephone number: (732) 321-
6671; e-mail address: bevilacqua.lou@epa.gov.    Region III: (Delaware, Maryland, Pennsylvania, Virginia, West 
Virginia, and the District of Columbia), Regional Contact--Demian 
Ellis, USEPA Region III, (3WC33), 1650 Arch Street, Philadelphia, PA 
19103-2029; telephone number: (215) 814-3114; e-mail address: 
ellis.demian@epa.gov.    Region IV: (Alabama, Florida, Georgia, Kentucky, Mississippi, North 
Carolina, South Carolina, and Tennessee), Regional Contact--Keith 
Bates, USEPA Region IV, 61 Forsyth Street, S.W., Atlanta, GA 30303; 
telephone number: (404) 562-8992; e-mail address: bates.keith@epa.gov.    Region V: (Illinois, Indiana, Michigan, Minnesota, Ohio, and 
Wisconsin), Regional Contact--David Turpin, USEPA Region V (DT-8J), 77 
W. Jackson Blvd., Chicago, IL 60604; telephone number: (312) 886-7836; 
e-mail address: turpin.david@epa.gov.    Region VI: (Arkansas, Louisiana, New Mexico, Oklahoma, and Texas), 
Regional Contact--Eva Steele, USEPA Region VI, 1445 Ross Ave., 12th 
Floor, Dallas, TX 75202; telephone number: (214) 665-7211; e-mail 
address: steele.eva@epa.gov.    Region VII: (Iowa, Kansas, Missouri, and Nebraska), Regional 
Contact--Randall Whipple, USEPA Region VII, ARTD/RALI, 901 North 5th, 
Kansas City, KS 66101; telephone number: (913) 551-7093; e-mail 
address: whipple.randall@epa.gov.    Region VIII: (Colorado, Montana, North Dakota, South Dakota, Utah, 
and Wyoming), Regional Contact--David Combs, USEPA Region VIII, 999 
18th St., Suite 300, Denver, CO 80202; telephone number: (303) 312-
6021; e-mail address: combs.dave@epa.gov.    Region IX: (Arizona, California, Hawaii, Nevada, American Samoa, 
and Guam), Regional Contact--Mary Aycock, USEPA Region IX, (CMD-4-2), 
75 Hawthorne St., San Francisco, CA 94105; telephone number: (415) 947-
4169; e-mail address: aycock.mary@epa.gov.    Region X: (Alaska, Idaho, Oregon, and Washington), Regional 
Contact--Barbara Ross, USEPA Region X, Solid Waste and Toxics Unit 
(WCM-128), 1200 Sixth Ave., Seattle, WA 98101; telephone number: (206) 
553-1985; e-mail address: ross.barbara@epa.gov.
D. What Should I Consider as I Prepare My Application for EPA?

    1. Purpose and scope. EPA awards non-matching cooperative 
agreements under TSCA section 404(g) to States, Territories, eligible 
Indian Tribes and Intertribal Consortia, and the District of Columbia 
to develop and carry out authorized lead-based paint programs. The term 
``Territory'' includes the Commonwealth of Puerto Rico, the Virgin 
Islands, Guam, American Samoa, the Northern Mariana Islands, and any 
other Territory or possession of the United States. Also, hereinafter, 
the term ``States'' includes the ``District of Columbia.'' In the past, 
recipients of the grants have used the funds to assist in program 
development and prepare for

[[Page 48904]]

program authorization. EPA intends to continue to support the 
development and authorization of these programs as well as 
implementation of authorized programs as budget constraints allow. This 
Notice has been developed based on the knowledge that some States, 
Tribes, and Territories have received authorization and that several 
States and Indian Tribes are continuing to develop their programs. This 
Notice addresses the criteria EPA will consider when evaluating the 
grant proposals submitted to the Agency.
    Under TSCA section 404, EPA authorizes States, Territories, and 
eligible Indian Tribes and Intertribal Consortia to administer lead-
based paint programs in lieu of the corresponding Federal program. 
These lead-based paint programs are intended to reduce the incidence of 
childhood lead poisoning by ensuring that individuals conducting lead-
based paint activities are properly trained and certified and that 
renovation contractors provide lead-hazard information to building 
owners and residents. EPA issued regulations to establish these lead-
based paint programs under the authority of TSCA sections 402 and 406.
    In 40 CFR part 745, subpart L, EPA promulgated regulations pursuant 
to TSCA section 402 that cover the training and certification of 
individuals engaged in lead-based paint activities. In 40 CFR part 745, 
subpart E, EPA issued regulations pursuant to TSCA section 406. The 
regulation requires persons performing renovation in residential 
housing to provide a lead hazard information pamphlet to the owner and 
occupant of the housing prior to renovation. The procedures for 
authorizing States, Territories, and eligible Indian Tribes and 
Intertribal Consortia to implement these lead-based paint programs are 
found at 40 CFR part 745, subpart Q.
    2. Goal and objectives. Pursuant to Title IV of TSCA, EPA 
encourages States, Territories, Indian Tribes, and Intertribal 
Consortia to seek authorization of their own lead-based paint programs. 
EPA's goal is to have authorized programs in all States and a large 
number of Territories, and on a large number of Indian Tribal lands. 
EPA therefore recommends that parties seek funding through the TSCA 
Title IV section 404(g) assistance program, which is being implemented 
to assist with development and implementation of lead-based paint 
programs.
    Since 1994, EPA has been offering financial assistance under TSCA 
section 404(g) in the form of cooperative agreements without matching-
fund requirements. In the upcoming funding cycle, the Agency will 
continue to work with eligible applicants to develop cooperative 
agreements consistent with the objectives critical to the ultimate 
success of implementation of a national lead program, with the emphasis 
on State, Territorial, Indian Tribal, and Intertribal Consortium 
programs. Although EPA's goal is to have authorized programs in all 
States and a large number of Territories, and on a large number of 
Indian Tribal lands, the Agency and Congress anticipated that there 
would be a number of States, Territories, and Indian Tribes that would 
not seek program authorization. Consistent with authority granted in 
the Agency's FY 1998 Appropriation Act (Ref. 1), and the provisions 
contained within, EPA is authorized to use section 404(g) funds to 
implement a Federal lead-based paint program for non-authorized States, 
Territories, and Indian Tribes. See 40 CFR 35.116 and 40 CFR 35.516. 
[Note: Where the Agency has direct implementation responsibilities, EPA 
cannot provide financial assistance under this grant program to non-
authorized States, Indian Tribes, or Intertribal Consortia, or 
Territories to assist the Agency in implementing and enforcing a 
Federal program under TSCA section 404(h).]
    The cooperative agreements must be used to develop and implement 
authorized programs. States, Territories, Indian Tribes, and 
Intertribal Consortia that do not have authorized programs may receive 
cooperative agreement funding, but only for the continued development 
of lead-based paint programs which will meet the requirements of TSCA 
Title IV. To receive continued funding, States, Territories, Indian 
Tribes, and Intertribal Consortia without an authorized program must be 
making progress toward an authorized program. Therefore, the Regional 
Offices, as part of their grant oversight responsibilities, will work 
with the grantees to determine the appropriate amount of continued 
funding based upon the amount of developmental work to be completed as 
the grantee makes progress toward authorization. Eligible parties may 
utilize this grant support in a way that complements and does not 
duplicate activities for which they already receive or could receive 
financial assistance from other Federal sources (e.g., Center for 
Disease Control (CDC) and U.S. Department of Housing and Urban 
Development (HUD)).
    This section 404(g) Notice is one of two Notices that announce the 
availability of funds for Indian Tribes and Intertribal Consortia 
conducting various lead-based paint activities. A separate Federal 
Register notice titled Educational Outreach and Baseline Assessment of 
Existing Exposure and Risks of Exposure to Lead Poisoning of Tribal 
American Children, also called Title X Tribal Lead Grant Program, will 
be published at a later date. As stated in this unit, Indian Tribes and 
Intertribal Consortium, as well as all grantees, will not be awarded 
grants to fund the same activities from more than one source. Although 
a Tribe may apply to receive grant funding from both Notices, they each 
have very distinct objectives. The grant program opportunities 
described in the other Notice may serve as precursors to, but not as 
equivalents or supplements to, the section 404(g) lead-based paint 
grant program described in this Notice. Grant funds will not be awarded 
to Tribes who apply for both grant programs during the same time. The 
section 404(g) lead-based paint grant program, for which funding is 
provided in this Notice, involves infrastructure development for the 
anticipated implementation of a lead program and does not include 
activities (testing for lead in blood, paint, dust, or soil samples, or 
general outreach and education activities) listed in the other Notice.
    Under TSCA, authorized lead-based paint training and certification 
programs are required to collect fees to cover certain costs incurred 
by the program. These fees are considered ``program income,'' which is 
defined as ``gross income received by a grantee or subgrantee directly 
generated by a grant supported activity, or earned only as a result of 
the grant agreement during the grant period.'' See 40 CFR 31.25(b). It 
includes income from fees for services performed by the recipient. 
Program income generated by activities supported under TSCA section 
404(g) grants may include fees that a State, Territory, Indian Tribe, 
or Intertribal Consortium charges for training, accreditation, 
certification, licensing or other services performed by the lead 
training and certification programs, as well as fees that are collected 
which provide for enforcement of standards and regulations. 
Consequently, States, Indian Tribes, Intertribal Consortia, and 
Territories must comply with the rules governing ``program income,'' 
found at 40 CFR 31.25, and use the funds generated by grant supported 
activities to assist with program operation costs.
    3. Eligibility. States, Territories, Indian Tribes, and Intertribal 
Consortia are eligible to apply for financial assistance under this 
program if they are either implementing an EPA-authorized lead-based 
paint program pursuant to 40 CFR part 745, subpart Q or developing

[[Page 48905]]

a lead-based paint program that may be authorized in the future. 
However, funds will be awarded based upon the progress made by the 
applicant in developing an acceptable program, including implementing 
regulations. Failure to make satisfactory progress toward program 
authorization will result in a State, Territory, Indian Tribe, or 
Intertribal Consortium not receiving funding. The EPA Regional Offices, 
as part of their grant oversight responsibilities, will have discretion 
with respect to determining whether sufficient progress is being made 
by a given State, Territory, Indian Tribe, and/or Intertribal 
Consortium toward the development and implementation of a program under 
TSCA Title IV.
    States, Territories, eligible Indian Tribes and Intertribal 
Consortia may choose to combine section 404(g) grant funds with other 
environmental program grants as part of a performance partnership grant 
(PPG) if the requirements in 40 CFR 35.130 through 35.138 (which apply 
to States) and 40 CFR 35.530 through 35.538 (which apply to Indian 
Tribes and Intertribal Consortia) are adhered to by the grantee.
    4. Authority. The TSCA Title IV lead-based paint program is a 
cooperative agreement program administered by EPA under the authority 
of section 404(g) of TSCA. Regulations governing these cooperative 
agreements are found at 40 CFR part 31 (Uniform Administrative 
Requirements for Grants and Cooperative Agreements to State and Local 
Governments). Regulations which supplement the EPA general assistance 
regulations found in 40 CFR part 31 are found at 40 CFR part 35, 
subpart A and subpart B. Contained within 40 CFR part 35 are specific 
sections which govern grants and cooperative agreements for the lead-
based paint program under section 404(g); 40 CFR 35.270 through 35.273 
(applicable to States, Territories, and the District of Columbia), and 
40 CFR 35.690 through 35.693 (applicable to Indian Tribes and 
Intertribal Consortia). The EPA Regional Offices administer the section 
404(g) cooperative agreements pursuant to a delegation of authority 
which permits the 10 EPA Regional Administrators to enter into 
cooperative agreements with eligible States, Territories, Indian 
Tribes, and Intertribal Consortia.
    5. Activities to be funded. This Notice was developed by EPA's 
Office of Pollution Prevention and Toxics (OPPT) in cooperation with 
the Agency's 10 Regional Offices, to describe in more detail the 
required elements of grant agreements funded under TSCA section 404(g), 
to describe the eligible activities that will be considered for 
funding, and to facilitate and support Regional administration of this 
program. EPA's list of eligible grant activities includes activities 
that are outlined as required elements of authorized lead-based paint 
programs, including development of enabling legislation and 
regulations, enforcement components, as well as other items associated 
with performance reporting. The elements are specified in 40 CFR 
745.325 through 745.327, and are repeated in this unit to assist with 
the development of applicant work plans.
    More recently, EPA promulgated its final TSCA section 403 lead 
hazard standards. The hazard standards were published on December 22, 
2000, and can be found at 40 CFR part 745, subpart D. The final TSCA 
section 403 standards also amended the work practice standards for 
lead-based paint activities found at 40 CFR 745.227. These amendments 
establish clearance standards for dust, limit reuse of abated soil, add 
a requirement for interpreting composite dust clearance samples, and 
change risk assessment and clearance sampling requirements to ensure 
compatibility between sampling results and the TSCA section 403 hazard 
standards and section 402 clearance standards. In order to maintain 
their authorization, authorized State, Territory, Indian Tribe, and 
Intertribal Consortium lead-based paint activities programs must 
develop lead hazard and clearance standards that are as protective of 
human health and the environment as the Federal standards (40 CFR 
745.324). TSCA section 404(g) funds can be utilized by authorized 
States, Territories, Indian Tribes, and Intertribal Consortia to 
develop and/or adopt lead hazard standards and clearance standards for 
lead in soil, dust, and paint.
    Another potential regulatory change should be considered by 
applicants. Pursuant to TSCA section 402(c)(3), EPA is developing a 
program that will integrate both regulatory and voluntary components, 
to the extent that each is feasible, to govern the conduct of 
renovation and remodeling activities that create lead-based paint 
hazards. As with existing EPA lead-based paint regulations, States, 
Territories, Indian Tribes, and Intertribal Consortia will be given the 
opportunity to seek program authorization. While it may be some time 
before this program is in place, States, Territories, Indian Tribes, 
and Intertribal Consortia are encouraged to begin considering the need 
for such a program in their jurisdiction. TSCA section 404(g) funds can 
be utilized to assist in the regulatory component of this program. In 
the interim, EPA has developed a model renovators training curriculum 
titled ``Minimizing Lead-Based Paint Hazards During Renovation, 
Remodeling, and Repainting.'' EPA has made this course available, and 
is encouraging its use voluntarily until the renovation and remodeling 
rule is effective. The course is available on the internet at http://www.epa.gov/lead/rrmodel.htm
, and a limited number of printed copies 
are available from the National Lead Information Center at 1-800-424-
LEAD.
    Although the list is not exhaustive, the following activities are 
eligible for funding under section 404(g) if they are conducted in 
support of developing and implementing lead-based paint programs 
authorized pursuant to 40 CFR part 745, subpart Q. In addition, the 
Agency will consider for funding other activities which focus on the 
development and implementation of authorized programs, such as:
    a. Develop and/or adopt lead hazard standards and clearance 
standards for lead in soil, dust, and paint.
    b. Develop and/or enact enabling legislation.
    c. Adopt implementing regulations.
    d. Develop a system to document certification of inspectors, risk 
assessors, supervisors, workers and project designers.
    e. Adjust or enhance the appropriate infrastructure to accommodate 
additional program responsibilities.
    f. Maintain, improve and/or develop the appropriate infrastructure 
to successfully administer and enforce a program to ensure that 
individuals engaged in lead-based paint activities are properly 
trained, that training programs are accredited, and that contractors 
and firms engaged in such activities are certified.
    g. Maintain, improve and/or develop the appropriate infrastructure 
to successfully administer and enforce a program to ensure that 
renovation contractors provide lead-hazard information to building 
owners and residents.
    h. Oversee the conduct of certified contractors engaged in lead-
based paint activities to ensure that they are conducting their 
activities according to all applicable regulations, including 
monitoring inspection, risk assessment, and abatement activities per 
the authorized program.
    i. Oversee accredited training programs per the authorized program.
    j. Develop and/or revise as needed, work practice standards for the 
conduct of lead-based paint activities associated with inspections, 
risk assessments, and abatement.

[[Page 48906]]

    k. Monitor compliance with work practice standards or regulations 
for the conduct of abatement per the authorized program.
    l. Implement the timely training of enforcement inspectors.
    m. Implement lead-based paint compliance assistance programs.
    n. Implement compliance and enforcement inspection sampling 
techniques.
    o. Adopt or develop specific lead-based paint hazard values or 
standards.
    p. Maintain, improve, and/or develop specific procedures and 
supporting documentation to carry out the enforcement program as 
described in an authorized program. Typical activities could include 
development of administrative or civil action procedures and the 
associated warning letters, notices of noncompliance, or the 
equivalent.
    q. Maintain, improve, and/or develop specific procedures and 
supporting documentation to carry out the tracking of tips and 
complaints as described in the authorized program. Typical activities 
could include development of methods of recording the receipt of 
complaints, referring lead-based paint complaints to appropriate State 
or local agencies, tracking the follow-up investigation, tracking any 
enforcement action associated with the complaint, and notifying 
citizens of the disposition of their complaints.
    r. Prepare a report per 40 CFR 745.327(d) and/or 40 CFR part 31 
grant reporting requirements on the applicant's program progress and 
performance.
    s. Develop and/or revise as needed, the lead-based paint programs, 
including regulations or procedures for decertification, suspension, 
revocation or modification of approvals and certificates.
    t. Develop and/or revise as needed, requirements for the 
administration of a third-party certification exam.
    u. Develop and/or revise as needed, lead-based paint programs' 
authority to enter, for purposes of inspection, and other relevant 
enforcement authorities.
    v. Develop and/or revise as needed, enforcement remedies, 
procedures, etc.
    w. Maintain, improve and/or develop techniques for targeting lead-
based paint activities' inspections.
    x. Improve the timeliness of the processing and follow-up of 
inspection reports and other information generated through enforcement-
related activities associated with a lead-based paint program.
    y. Enhance the capacity to improve compliance with Lead Program 
laws, and effectively develop and issue enforcement remedies/responses 
to violations.
    z. Foster activities that would increase the efficiency of an 
applicant's program to ensure that individuals engaged in lead-based 
paint activities are properly trained; that training programs are 
accredited; and that contractors engaged in such activities are 
certified. These activities could include initiatives to develop local 
capacity in low-income and rural areas, to promote increased 
competition in the regulated community through agreements which permit 
entities recognized by an outside jurisdiction to operate in the 
grantees jurisdiction (referred to as ``reciprocity''), and similar 
efforts.
    6. Award and distribution of funds. EPA currently expects that up 
to $12.5 million of FY2003 appropriated funds will be available during 
the FY2003 funding cycle for financial assistance under TSCA section 
404(g) for awards to States, Territories, Indian Tribes, and 
Intertribal Consortia for development and implementation of EPA-
authorized lead-based paint programs, and for EPA's direct 
implementation of programs in States, Territories, and Indian Tribes 
that do not have EPA authorized programs. Additional TSCA section 
404(g) carry-over funds from previous years may also be available from 
some Regions. For FY2003 funding, the Agency is setting-aside $1 
million of the $12.5 million for eligible Indian Tribes and Intertribal 
Consortia. The remaining $11.5 million plus any available carry-over 
dollars will be used to fund State, Territorial, and Federal lead-based 
paint programs.
    a. Financial assistance to Indian Tribes and Intertribal Consortia. 
Each Indian Tribe and Intertribal Consortium that submits a qualifying 
proposal and is making sufficient progress toward the development and/
or implementation of an acceptable lead-based paint program, as 
determined by the EPA Regional Offices, may receive base funding of 
$50,000. Though Indian Tribes and Intertribal Consortia may submit 
qualifying proposals, the award of funds will be based upon the 
applicant's progress in developing an acceptable program, including 
implementing regulations and seeking program authorization from EPA. 
Failure to make satisfactory progress toward program authorization may 
result in the Indian Tribe or Intertribal Consortium receiving reduced 
or no funding. The Regional Offices will have the discretion, as part 
of their grant oversight responsibilities, to determine if the progress 
being made toward program authorization is sufficient to warrant 
funding. Further distribution of the Indian Tribal and Intertribal 
Consortia set-aside funds will be dependent upon the number of 
applicants, the progress that the grantee is making in developing a 
program, the status of expenditures of previously awarded funds, 
population, and the relative strength of the proposal. After the 
closing date for submittal of Indian Tribe and Intertribal Consortium 
applications specified in this Notice, EPA Headquarters and Regional 
Offices will consider each of the proposals, and make decisions about 
the level of funding to be awarded to each of the applicants. Following 
those decisions, EPA Headquarters will transfer the funds to the 
Regional Offices for award to the Tribes and Intertribal Consortia. 
Indian Tribal and Intertribal Consortia set-aside funds are not 
included in the formula funds pool for States and Territories discussed 
in Unit I.D.6.b.
    b. Financial assistance to States and Territories. The process used 
by EPA for determining award funding levels for States and Territories 
involves two steps. EPA Headquarters first determines, based on various 
factors discussed below, the funding level that will be made available 
to each of the EPA Regional Offices for grantee awards in the 
respective regions. Following distribution of the funds to the EPA 
Regional Offices, the Regional Offices then make decisions on the 
actual funding level to be received by each of the grantees.
    The Agency currently uses a three-tiered system to implement step 
one: The process for deciding the amount of FY2003 cooperative 
agreement funds that will be distributed to the EPA Regional Offices. 
This system is designed to provide a base funding level for each 
qualified applicant and to provide funding for EPA Headquarters and 
Regional Offices to address direct program implementation 
responsibilities, while providing funds targeted to areas with the 
greatest potential lead burden. The system accomplishes this first by 
providing a discretionary funding set-aside that is used to fund 
special needs among the grantees; second by providing a base funding 
set-aside for every State and Territorial applicant; and third by 
providing funding based on a formula that considers the relative lead 
burden estimated to exist within a State or Territory.
    The discretionary funding set-aside involves setting aside $200,000 
of funds for each of the 10 EPA Regional Offices (total $2.0 million) 
for discretionary funding of grantee activities as well as the Regional 
direct implementation activities. These funds are primarily

[[Page 48907]]

intended to provide each Region with the means of awarding funds to 
States and Territories based upon the progress that the grantee is 
making in developing a program, the overall quality of the program, 
and/or identified needs. The EPA Regional Offices will also have the 
discretion to use these dollars to help support the Federal lead-based 
paint programs in non-authorized States, Territories, and Tribal lands 
within the Region.
    The base funding set-aside provides a base level of funds for every 
State and Territorial applicant. Each State that submits a qualifying 
proposal and is making sufficient progress toward development and 
implementation of an authorized lead-based paint program may receive a 
base funding allotment of $100,000. Each Territory that submits a 
qualifying proposal and is making sufficient progress toward 
implementation of an acceptable program may receive a $50,000 base. 
However, base level funding for non-authorized States and Territories 
may be reduced by the Regional Offices depending on progress made 
toward the development and/or implementation of acceptable programs. 
Funds are also set aside and are apportioned to EPA Regional and EPA 
Headquarters Offices based upon direct implementation funding needs. 
These funds are intended to ensure that EPA has adequate funds to 
directly implement the lead-based paint program in non-authorized 
States, Territories, and Indian Tribes.
    Once base and discretionary funding set-asides are accounted for, 
the remaining State and Territorial funds are allocated through the 
third tier of the process, which involves allocating funds for every 
State and Territorial applicant based on a formula that considers the 
relative lead burden estimated to exist within States and Territories. 
States and Territories whose funding requests exceed their base 
allotments can be given additional funds (``formula funds'') based upon 
their relative lead burden, and for this exercise, all 50 States, the 
District of Columbia, and the Territories are used to calculate the 
formula distribution.
    In calculating the lead burden for the formula rankings, EPA uses 
readily available data derived from the 2000 Census and the 2001 
National Survey of Lead and Allergens in Housing prepared by the U.S. 
Department of Housing and Urban Development. The formula uses four 
factors to generate an estimate of the potential lead problem, or 
``lead burden,'' in each State and Territory. Two of these factors, the 
number of housing units with lead-based paint and the number of 
children under age 6, express the potential magnitude of the lead 
problem. The remaining two factors, the percentage of young children in 
poverty and the number of low-income housing units with lead-based 
paint, express the potential severity of the problem.
    In determining formula rankings, each State and Territory is scored 
independently for each factor, and the four individual factor scores 
for each of the States and Territories are then summed to obtain an 
overall score for that applicant (a combined factor score). The 
combined factor scores of all States and Territories applying for 
formula funds are then summed, and the percentage of the total sum 
represented by the individual State's or Territory's score is then 
identified. The applicant's formula allotment is determined by 
multiplying the total formula funding by the percentage scores of the 
individual State or Territory.
    After funding levels (base, discretionary, and formula set-asides) 
are determined for each State and Territory, the funds will be pooled 
for each Region and transferred in bulk to the respective Regional 
accounts.
    Following distribution of the funds to the Regional Office 
accounts, then the second step in the distribution process occurs; 
Regional Offices determining the actual funding level to be received by 
each of the grantees. Funding levels per grantee will be determined by 
the Regional Offices based on the application submitted and may be 
decreased or increased based on performance and/or by fiscal need, 
which may include an evaluation of the progress that the grantee is 
making in developing a program, an evaluation of the performance of the 
grantee in implementing a program, an evaluation of expenditures of 
previously awarded funds, and/or an evaluation of future funding needs.
    7. Submission requirements. Applicants are directed to 40 CFR part 
35, subpart A and subpart B for details on the submission requirements 
for grant applications. To be considered for funding, each application 
must include the following components listed in 40 CFR part 35.104 
(applicable to States and Territories) or 40 CFR part 35.505 
(applicable to Indian Tribes and Intertribal Consortia):
    i. Meet the requirements in 40 CFR part 31, subpart B.
    ii. Include a proposed work plan that meets the requirements in 40 
CFR 35.107 (for States and Territories) or 40 CFR 35.507 (for Indian 
Tribes or Intertribal Consortia).
    iii. Specify the environmental program and the amount of funds 
requested.
    For TSCA Title IV section 404(g) funding for Indian Tribes, EPA is 
soliciting pre-application grant proposals prior to the submittal of 
the forms and certifications listed in this unit. This pre-application 
procedure entails the applicants initially submitting only a work plan 
and a budget. The Agency will use the applicants' work plans and 
budgets to select programs to be funded under this grant program. After 
EPA conducts a review of all submitted pre-applications, successful 
applicants will be contacted and requested to submit the other required 
documents listed in this unit, such as the ``Application for Federal 
Assistance'' form (Standard Form 424 or SF424), and the ``Budget 
Information: Non-Construction Programs'' form (SF424A). In addition, as 
part of the pre-application, Indian Tribes and/or Intertribal Consortia 
must include all appropriate information to demonstrate that they meet 
the criteria at 40 CFR 35.693 for treatment as a State. In order for 
Intertribal Consortia to be eligible for financial assistance under 
section 404(g), they must include all appropriate information to 
demonstrate that they meet the requirements at 40 CFR 35.504 concerning 
eligibility.
    The following forms and certifications, which are contained in 
EPA's ``Application Kit for Assistance,'' must be included in all 
applications:
    a. Standard Form 424 (Application for Federal Assistance).
    b. Standard Form 424A (Budget Information: Non-Construction 
Programs).
    c. Standard Form 424B (Assurances: Non-Construction Programs).
    d. Standard Form LLL (Disclosure of Lobbying Activities).
    e. Certification Regarding Debarment and Suspension.
    f. EPA Form 4700-4 (Compliance Review Report Form).
    g. Quality Assurance Statement.
Application Kits for Assistance are available from any of EPA's 10 
Regional Offices.
    The following regulations may also be helpful to the applicants as 
they prepare their financial assistance applications: 40 CFR part 7 
(Nondiscrimination in Programs Receiving Federal Assistance from the 
EPA); 40 CFR part 12 (Nondiscrimination on the Basis of Handicap in 
Programs or Activities Conducted by the EPA); 40 CFR part 32 
(Government Wide Debarment and Suspension and Government Wide 
Requirements for Drug-Free Workplace); and 40 CFR part 29 
(Intergovernmental

[[Page 48908]]

Review of EPA Programs and Activities).
    Where a single State or Territorial agency has been designated as 
responsible for coordinating lead activities, EPA encourages that 
agency to apply for funding under TSCA section 404(g). Coordination of 
Federally funded lead activities by a single agency is viewed as 
conducive to achieving integration of lead activities. Early 
consultations are recommended between prospective applicants and their 
EPA Regional Offices. Because TSCA grants will be administered at the 
Regional level, these consultations can be critical to the success of a 
project or program, and can also contribute substantially to efficient 
program operations. As part of the work plan, EPA Regional Offices may 
ask for additional information that will be useful in evaluating the 
program such as the status of enabling legislation, a detailed line-
item budget with sufficient information to clearly justify costs, a 
list of work products or deliverables, a schedule for their completion 
and application for program authorization under TSCA, and a description 
of any financial assistance received from other Federal sources 
concerning the lead program. Applicants must also include all 
appropriate information on program income in accordance with 40 CFR 
31.25.
    Work plans are to be negotiated between applicants and their 
Regional Offices to ensure that both EPA and State, Territorial, or 
Tribal priorities are addressed. Any application from a State, 
Territory, Indian Tribe, or Intertribal Consortium that is not making 
sufficient progress toward implementation of an acceptable program will 
not be funded. Also, any applicant proposing the collection of 
environmental or health related measurements or data generation must 
adequately address the requirements of 40 CFR 31.45 relating to quality 
assurance/quality control. EPA issued final guidance that provides 
details about EPA's requirements for the preparation of ``quality 
management plans.'' The finalized document is titled ``EPA Requirements 
for Quality Management Plans'' (EPA QA/R-2, March 2001), and is 
available from each Regional Office.
    8. Application procedures. Applications must be submitted to the 
appropriate EPA Regional Office in duplicate; one copy to the Regional 
lead program branch and the other to the Regional grants management 
branch. In the case of electronic applications, if allowed by a 
particular EPA Regional Office, the applicant should follow the 
procedures required by the Regional Office for submission of electronic 
applications. After the formula funding calculations are determined and 
the funds are transferred to the appropriate EPA Regional account, the 
Regional Office lead contact person will contact the applicant and 
discuss the final award allotment. EPA Regional Offices may request the 
applicant to modify its proposed work plan and cooperative agreement 
based upon the final cooperative agreement allotment. For Tribal 
applicants, final negotiations for the award of the grants, including 
the completion of a final work plan and budget, will be completed after 
the determination of successful applicants.
    9. Reporting. Pursuant to 40 CFR 31.40, grantees shall, at a 
minimum, submit annual performance reports to the appropriate EPA 
Regional Office. These requirements were approved by the Office of 
Management and Budget (OMB) under OMB Control Number 2030-0020 (General 
Administrative Requirement for Assistance Programs). The individual 
Regional Offices may require that these reports be submitted on a 
quarterly or semiannual basis, but not more frequently than quarterly. 
The specific information contained within the report will include, at a 
minimum, a comparison of actual accomplishments to the objectives 
established for the period. Regional Offices may ask for the inclusion 
of specific data (e.g., providing to EPA specific address information 
associated with the abatement notifications that are received by the 
grantee) as part of the annual performance report from the grantees 
which may be useful for Agency reporting under the Government 
Performance and Results Act. It is assumed that any data that is 
requested to be submitted by the grantee will already have been 
collected pursuant to the grantee's work plan.

II. What Action is the Agency Taking?

    EPA is soliciting applications from States, Territories, Indian 
Tribes, Intertribal Consortia, and the District of Columbia for 
financial assistance for purposes of developing and carrying out EPA-
authorized lead-based paint programs. Approximately $12.5 million is 
available to fund cooperative agreements with States, Indian Tribes, 
Intertribal Consortia, Territories, and the District of Columbia for 
development and implementation of EPA-authorized lead-based paint 
programs.

III. Statutory Authority and Regulations

    EPA is authorized under TSCA section 404(g) to make grants to 
develop and carry out authorized lead-based paint programs. Regulations 
governing these cooperative agreements are found at 40 CFR part 31 and 
part 35.

IV. Submission to Congress and the Comptroller General

    Grant solicitations such as this are considered rules for the 
purpose of the Congressional Review Act (CRA). The CRA, 5 U.S.C. 801 et 
seq., as added by the Small Business Regulatory Enforcement Fairness 
Act of 1996 (SBREFA), generally provides that, before a rule may take 
effect, the agency promulgating the rule must submit a rule report, 
which includes a copy of the rule, to each House of the Congress and to 
the Comptroller General of the United States. EPA will submit a report 
containing this rule and other required information to the U.S. Senate, 
the U.S. House of Representatives, and the Comptroller General of the 
United States prior to publication of the rule in the Federal Register. 
This rule is not a ``major rule'' as defined by 5 U.S.C. 804(2).

V. Reference

    1. Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, Public Law 
105-65, 111 Stat. 1374.

List of Subjects

    Environmental protection, Grants, Lead, Training and accreditation.


    Dated: August 8, 2003.
Susan B. Hazen,
Acting Assistant Administrator, Office of Prevention, Pesticides and 
Toxic Substances.

[FR Doc. 03-20898 Filed 8-14-03; 8:45 am]

BILLING CODE 6560-50-S