Federal Assistance Manual Chapter 1-67

CHAPTER 1-67 GRANT AND COOPERATIVE AGREEMENT AWARD DOCUMENT

• 1-67-00 Purpose
  
• 1-67-10 Policy
  
• 1-67-20 Contents of an Award
  
• 1-67-30 Grant Conditions
  
• 1-67-40 Special Grant Conditions
  
• 1-67-50 Signatures

1-67-00 PURPOSE

This chapter sets forth minimum requirements and conditions for an OSM grant or cooperative agreement award document.

1-67-10 POLICY

The grant or cooperative agreement award document is the official instrument used in OSM Federal financial assistance programs that: (1) establishes a legally binding arrangement between OSM and the recipient; (2) contains or references all the terms and conditions of the grant or cooperative agreement; and (3) provides the documentary basis for the obligation of Federal funds in the OSM accounting systems.

1-67-20 CONTENTS OF AN AWARD

A grant or cooperative agreement award shall:

1. State the legal name of the recipient and the formal name of OSM.

2. State the amount being awarded. For awards with multiple subaccounts and/or multiple funding sources, include an attachment to the agreement displaying the following information for each source of funds: source of funds, subaccount number, and approved amount. See Exhibit X1-67-1 for the attachment (Attachment A) to be used with all AML grants.

3. State the dates of the grant or cooperative agreement performance period.

4. State the purpose of the grant or cooperative agreement.

5. Incorporate, by reference, the application for the grant or cooperative agreement, including amendments.

6. Incorporate, by reference, any OSM policy directives which are not incorporated into the applicable regulations. All such documents shall be provided along with the notice or shall otherwise be made readily available to the recipient.

7. Include or incorporate by reference all terms, conditions, or agreement clauses that are required by Departmental, OSM, or program policies to be incorporated in each individual grant or cooperative agreement award document for the type of grant or cooperative agreement being made.

8. If not clearly stated in a document reference, clearly state:
   1. Performance and financial reporting requirements applicable to the grant or cooperative agreement, including the frequency and contents of reports.

   2. Prior approval requirements applicable to the grant or cooperative agreement and how approval may be obtained.

1-67-30 GRANT CONDITIONS

1. The following conditions are part of every grant agreement:
   1. The scope and conditions of the tasks to be undertaken by the Grantee with the amount of money identified as the Federal Grant Amount during the time identified as the Grant Period are contained in the grant application, as amended, which is made part of the grant by reference.

   2. The funds for the grant shall only be used to cover allowable costs which are incurred during the grant period. In addition, valid obligations incurred before the end of the grant period for purchased services, equipment and supplies specifically identified in the approved application shall be considered allowable grant period costs to the extent of actual subsequent expenditures. If obligations are included in the claimed grant costs, adequate records shall be maintained to disclose fully the date and amount incurred and the date and amount of subsequent payment. Obligations claimed in one grant period shall be excluded from expenditures claimed in prior or subsequent periods. [Under the revised AML grant program, use the term "budget period" instead of grant period.]

   3. No transfer of funds to agencies other than those identified in the approved grant application shall be made without prior approval of OSM.

   4. The Grantee shall submit financial status reports, performance reports, and other such reports according to the timing, content and format as required by OSM. The Grantee shall report program outlays and program income on a cash basis. Grantees are exempt from submitting the form SF 272, Federal Cash Transactions Report.

   5. For nonconstruction grants, transfers of funds between total direct cost categories in the approved budget require the prior approval of OSM when such transfers exceed ten percent of the total budget. For grants that fund both construction and nonconstruction activities, budget transfers between subaccounts require prior written approval of OSM.

   6. The Grantee shall transfer to OSM the appropriate share, based on the Federal support percentage, of any refund, rebate, credit or other amounts arising from the performance of this agreement, along with accrued interest, if any. The Grantee shall take necessary action to effect prompt collection of all monies due or which may become due and to cooperate with OSM in any claim or suit in connection with amounts due.

   7. The Grantee shall comply with the requirements, as applicable, of the Grants Management Common Rule, adopted by the Department of the Interior at 43 CFR Part 12, regarding administrative procedures; Cash Management Improvement Act and 31 CFR 205.6 on financial procedures; OMB Circulars A-87, A-21 and A-122 on cost principles; and OMB Circular A-133 on audit requirements.

   8. No employee of the State, Indian Tribal Government or Federal Government performing any function or duty under the State regulatory or reclamation program plan shall have a direct or indirect financial interest in any coal mining operation. The Grantee shall comply with all requirements and regulations established by OSM to carry out this requirement, including 30 CFR Part 705, and those requirements which it has adopted in its regulatory program or reclamation plan.

   9. Prior to the start of any construction activity, the Grantee shall ensure that all applicable Federal, State and local permits and clearances are obtained.

   10. Recipients shall not use any part of the appropriated funds for any activity or the publication or distribution of literature that in any way tends to promote public support or opposition to any legislative proposal on which Congressional action is not complete.

   11. The Grantee shall comply with the following Federal procurement requirements:
       1. Requirements of Executive Orders 11625, 12138 and 12432, and the Grants Management Common Rule as they relate to Minority Business Enterprises utilization;

       2. Requirements of 43 CFR Part 12, Subpart E, relating to implementation of the Buy American Act; and

       3. For any procurement action having an aggregate value of $500,000 or more:
          1. Specify, in any announcement of the awarding of a contract for the procurement of goods or services (including construction services), the amount of Federal funds that will be used to finance the acquisition; and

          2. Express the amount announced pursuant to subparagraph 1. as a percentage of the total costs of the planning acquisition.

       4. Recipients shall give preference to the purchase of recycled products pursuant to guidelines outlined by the Environmental Protection Agency.

       5. For announcement of contract awards with an aggregate value of $500,000 of more, recipients shall specify the amount of Federal funds that will be used to finance the acquisitions.

   12. The Grantee is free to copyright any original work developed in the course of or under the agreement. OSM reserves a royalty-free, nonexclusive and irrevocable right to reproduce, publish or otherwise use, and to authorize others to use, the work for Government purposes. Any publication resulting from work performed under the agreement shall include an acknowledgment of OSM financial support and a statement that the publication does not necessarily reflect OSM's views.

   13. No subsequent [reclamation/regulatory] grants, monetary increase amendments or time extension amendments shall be approved unless all overdue final financial or performance reports have been submitted by the recipient to the appropriate OSM office. Exceptions to this policy can be approved only by the Deputy Director, OSM, or his designate.

   14. OSM reserves the right to transfer equipment acquired with grant funds to the Federal Government or a third party. [Note: In order to invoke this provision, OSM also must notify the grantee in writing of the specific item of equipment to be transferred.]

   15. This grant takes effect at the time of signing by the Director of OSM or his authorized delegate. However, the Grantee shall have a period of 20 calendar days from the date of signing to execute this grant in order to indicate its agreement of the terms and conditions. Unless an extension of time is formally approved by OSM, failure to execute the agreement within the stated period shall result in a deobligation of the total Federal Grant Amount.

2. The following condition is added to all Administrative and Enforcement grant agreements:

   This grant is for the administration and enforcement of an approved State program for the regulation and control of surface coal mining and reclamation operations in accordance with 30 CFR 735. Grant funds shall not be used for other purposes. As a condition of the grant, the State shall implement the State regulatory program as approved by the Secretary of the Interior, including all findings and conditions set forth in the Secretary's approval decision or as may be modified by the Secretary. Grant funds shall not be used for implementation of any changes to the State regulatory program which have not been approved by the Secretary of the Interior.

3. The following conditions are added to AML grant agreements, as appropriate, to address specific program or funding requirements:
   1. These conditions are added to all AML grant agreements:
      • This grant is for the administration of the approved Grantee reclamation plan and for carrying out the specific reclamation activities included in the plan in accordance with 30 CFR Part 886. Grant funds shall not be used for any other purposes.

      • The funding for this grant is from available State-share and/or Federal share funds. Federal Expense (SMCRA section 402(g)(3)) share funding (i.e., minimum program funding and emergency program funding) may only be used for coal-related work.

   2. To assure that abandoned coal mine-related problems which do not currently meet the criteria for emergency declaration but which may deteriorate into emergencies will be given the highest priority consideration for reclamation, as appropriate, the following condition is added to AML grant agreements to States that do not administer the AML Emergency Programs. [Grants to States administering the AML Emergency Program do not require this condition because they manage both emergency and high priority projects.]
      • The Grantee shall assure that high priority abandoned coal mine-related problems which do not currently meet criteria for emergency declaration but which may deteriorate into emergencies will be considered and given the highest priority for reclamation in the recipient's project selection process. This condition is applicable to the following types of sites:
        1. Those high priority abandoned coal mine-related problems which are referred to the Office of Surface Mining Reclamation and Enforcement (OSM) for emergency consideration but are not declared an emergency.

        2. Those high priority abandoned coal mine-related problems which remain after the emergency situation has been abated.

        3. Those high priority abandoned coal mine-related problems which come to the attention of OSM or the State/Tribe outside of the emergency program that could deteriorate into an emergency.

   3. This condition is added to AML grant agreements that include funding for the acid mine drainage set aside fund:
      • The Grantee shall establish under State law an acid mine drainage abatement and treatment fund. Amounts (together with all interest earned on such amounts) expended from the fund shall be used by the State to implement, in consultation with the Soil Conservation Service, acid mine drainage abatement and treatment plans approved by the Secretary. Such plans shall provide for the comprehensive abatement of the causes and treatment of the effects of acid mine drainage within qualified hydrologic units affected by coal mining practices.

4. This condition is added to all Small Operator Assistance Program grant agreements:
   • This grant is for reimbursing costs incurred by qualified laboratories for performance of technical work as provided in 30 CFR 795.9(b) and for reimbursing costs incurred by qualified laboratories or State regulatory authorities for performance of planning activities and training/outreach provided in section 507(c) of SMCRA. Planning activities must be directly related to individual assistance sites and are limited to compiling and evaluating available hydrologic and geologic information and developing specifications, work statements or monitoring plans for the work to be performed at each site. Indirect costs are allowable only to the extent they relate to planning activities, training/outreach or other authorized services provided directly by the regulatory authority. Grant funds shall not be used for any other purpose including expenses incurred by the regulatory authority to administer the SOAP, such as the purchase of equipment or funding of any other indirect costs.

1-67-40 SPECIAL GRANT CONDITIONS

1. In addition to the above conditions, other conditions may be added to the agreement award to address a specific situation in a State/Indian Tribe that has been deemed a problem or needs special attention. However, the addition of Grantee specific conditions is not the preferred method for achieving compliance. Action plans developed jointly by the Grantee and OSM have a greater probability of success than unilaterally imposed conditions which often disrupt Grantee processes and plans. Therefore, the addition of Grantee-specific conditions is reserved for serious situations. When utilized, such a condition shall be situation-specific and shall identify exactly what and how the Grantee shall perform and shall be monitored very closely to ensure strict adherence.

2. Before a Grantee specific condition can be included in a grant or cooperative agreement, approval must be obtained from the Regional Director after coordination with the Assistant Director, Program Support.

1-67-50 SIGNATURES

1. Each grant or cooperative agreement award must be signed by the Director of OSM, or his/her delegate.

2. The signature on the grant or cooperative agreement award shall constitute the signer's certification that, in his/her opinion, the grant or cooperative agreement is in accordance with all applicable laws and regulations and Departmental, OSM grant and program policies. No person shall be required to sign a grant or cooperative agreement award unless he/she is fully satisfied with the award.

FEDERAL ASSISTANCE MANUAL
January 2, 1998