1. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration - 1 - PHMSA HMEP Grant Program ~ PHMSA Overview PHMSA Grant Program Info Webinar November 16, 2011

2. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration US DOT – Pipeline and Hazardous Materials Safety Administration (PHMSA) Every day PHMSA strives to meet the needs of our ultimate customers, the American public, to ensure your communities remain safe, livable, and free from transportation incidents involving hazardous products. We rely on our external partners to work with us in promoting and supporting safe practices through resource utilization, training and awareness, new technology investments and other ways to help pipeline operators and hazardous materials transporters assure safety. - 2 -

3. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration PHMSA Mission To protect people and the environment from the risks inherent in transportation of hazardous materials – by pipeline and other modes of transportation. Preparedness and Response: To reduce the consequences (harm to people, environment, and economy) after a pipeline or hazmat failure has occurred. - 3 -

4. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration PHMSA Organization - 4 -

5. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration - 5 - Vasco Espinoza, Director ~ OUTREACH, TRAINING, GRANTS and REGISTRATION Tom Kiddy, Chief ~ OUTREACH and TRAINING BRANCH Kyra Stewart, Chief (Acting) ~ GRANTS and REGISTRATION BRANCH HAZMAT GRANT PROGRAMS (HMEP, HMIT, SPSTG) REGISTRATION PROGRAM Office of Hazmat Safety Grant Specialists: Windy Hamilton, Suezett Edwards, Andre White, Lisa Reichenabacher, and Crystal Catlett Admin Support: Jasmin Clarke Business Analyst: Rose Achieng

6. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration The Hazmat Grant Programs SPSTG $1 million The IAFF Train instructors on Hazmat response HMEP $21.8 million States, Territories & Tribes Assist local communities in Planning and Training on Hazmat incidents in transportation HMIT $4 million Employee Organizations - 6 -

7. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration HMEP Grant Program Overview - 7 -

8. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Hazmat Grant Program Purpose The purpose of this grant program is to increase State, Territorial, Tribal, and local effectiveness in safely and efficiently handling hazardous materials transportation incidents. The program aims to encourage a comprehensive approach to emergency training and planning by incorporating the unique, localized challenges of responses to transportation situations, resulting in better prepared communities. - 8 -

9. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Grant Program Action Plan - 9 - Item/ActivityStatus Eligible/Ineligible ListCOMPLETE Regulation Quick Reference GuideCOMPLETE Internal Training PlanCOMPLETE Outreach PlanCOMPLETE Guidance DocumentCOMPLETE Quarterly Reporting Requirement (in ’11 Award T&Cs)COMPLETE Proposed Activity TemplateCOMPLETE Perform Site VisitsCOMPLETE Standard Operating Procedures (full grant cycle)COMPLETE Performance MeasuresIN-PROCESS Quarterly/Final Report TemplateIN-PROCESS Compliance ProtocolIN-PROCESS RegulationsIN-PROCESS

10. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Rebranding of the HMEP Grants Program - 10 - PHMSA is committed to ensuring that the HMEP Grant Program is making strides in the area of process improvement. This requires that the Grant Program monitor efficacy, increase outreach efforts with our grantees, and furthers its reach to the Nation’s first responders. Grantees will be encouraged to administer high performing HMEP Grant programs within their States, Territories and Tribes. To facilitate this process, the Grant Program will provide improved IT resources, increased contact with Grant Specialists, and better guidance.

11. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration - 11 - Performance Based Grants EfficacyComplianceNeed Exploring the future of HMEP Grants

12. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration More HMEP to Come… Application/ Proposal Trends Administrative Requirements HMEP Grant Management Training (Program Terms & Conditions) - 12 -

13. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration - 13 - PHMSA HMEP Grant Program ~ HMEP Grant Application Trends PHMSA Grant Program Info Webinar November 16, 2011

14. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration - 14 - PHMSA HMEP Grant Program ~ HMEP Grant Application Trends PHMSA Grant Program Info Webinar November 16, 2011

15. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Hazmat Grant Application - 15 - Forms Application for Federal Assistance (SF-424) Budget for Non-Construction Programs (SF-424A) Assurances for Non-Construction Programs (SF-424B) Combined Assurances (ED-80-0013) Narrative 1.Agency Identification 2.Transportation Fees 3.Contact Information 4.Report of Progress 5.Program Goals and Objectives 6.Statement of Work for Upcoming Budget Period 7.SERC/LEPC Involvement 8.Supplies and Equipment

16. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration 2011 – 2012 Application Summary - 16 - This year, we are recommending that grantees place additional emphasis on the following sections: -Program Goals and Objectives  List goals/objectives of training and planning activities and how they tie into program goals/objectives -Statement of Work  Statement of proposed activities or deliverables  Number of proposed activities or deliverables  Schedule of implementation -Budget Narrative We are also clarifying that the Report of Progress information may be provided through Quarterly and Final Reports, rather than as a narrative within the application.

17. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Hazmat Grant Application Preparation Requirements & Expectations Budget Narrative a. Personnel - Staff positions by title - Annual salary - Job title - Role in HMEP grant - Total cost for budget period a. Personnel - Staff positions by title - Annual salary - Job title - Role in HMEP grant - Total cost for budget period c. Travel - Local Travel: -Estimate of aggregate costs - Mileage reimbursement rate - Reasons for travel - Non-Local Travel: - Estimated # of trips - Purpose and programmatic need - Location and estimated costs c. Travel - Local Travel: -Estimate of aggregate costs - Mileage reimbursement rate - Reasons for travel - Non-Local Travel: - Estimated # of trips - Purpose and programmatic need - Location and estimated costs b. Fringe Benefits - If included as Direct Cost: - Percentage used (fringe benefit rate) - Basis for computation of rate - If addressed as Indirect Cost: - Do not include amounts for fringe benefits b. Fringe Benefits - If included as Direct Cost: - Percentage used (fringe benefit rate) - Basis for computation of rate - If addressed as Indirect Cost: - Do not include amounts for fringe benefits d. Equipment - Identify equipment that: -is tangible - is non-expendable personal property - has an estimated cost of $5,000+/unit - has a useful life of more than 1 year - will be used during proposed planning or training activities d. Equipment - Identify equipment that: -is tangible - is non-expendable personal property - has an estimated cost of $5,000+/unit - has a useful life of more than 1 year - will be used during proposed planning or training activities e. Supplies (tangible property other than “Equipment”) - Identify categories of supplies to be procured which will be used during proposed planning or training activities - Identify “sensitive” items (laptops, GPSs, etc.) and associated cost/unit e. Supplies (tangible property other than “Equipment”) - Identify categories of supplies to be procured which will be used during proposed planning or training activities - Identify “sensitive” items (laptops, GPSs, etc.) and associated cost/unit h. Other - Provide detailed information on other subgrants, Insurance, space rental, printing, publication, Postage, utilities, telephone, rental of equipment and supplies, and activities not covered under other budget categories. h. Other - Provide detailed information on other subgrants, Insurance, space rental, printing, publication, Postage, utilities, telephone, rental of equipment and supplies, and activities not covered under other budget categories. f. Contractual - Anticipated expenditures for services/analyses or consultants - Specify purpose and estimated cost f. Contractual - Anticipated expenditures for services/analyses or consultants - Specify purpose and estimated cost j. Indirect Charges - Identify cognizant federal agency for negotiation of indirect cost rate - State approved indirect rate - Provide copy of most recent negotiated agreement j. Indirect Charges - Identify cognizant federal agency for negotiation of indirect cost rate - State approved indirect rate - Provide copy of most recent negotiated agreement

18. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration 2011-2012 HMEP Application Evaluation Criteria Agency/State goals and objectives identified? SF-424A budget substantiated in the narrative? Matching detailed? Object Class Category correctly used? Personnel costs charged to the program? Indirect costs passed through to the program? Planning/Training SOWs included? –Project costs allowable, reasonable, feasible? Subgrant schedules Provided? - 18 -

19. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Program Vulnerabilities Agency/State goals and objectives identified?  Misaligned objectives enable unallowable expenses SF-424A budget substantiated in the narrative?  Undisclosed activities enable unallowable activities Matching details?  Lack of clarification on how match will be met may result in rushed and incorrect accounting. - 19 -

20. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Program Vulnerabilities Object Class Category correctly used?  Incorrect categorization enables mishandling of expenses or may cause post-award audit triggers Personnel costs charged to the program?  Undisclosed activities enable unallowable activities Indirect costs passed through to the program?  Lack of supporting documentation/clarity on inclusions can result in duplicate expenses for HMEP - 20 -

21. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Program Vulnerabilities Planning SOWs included?  Lack of planned program activities enable unfocused and ineffective spending Training SOWs included?  Lack of planned program activities enable unfocused and ineffective spending Subgrant schedules Provided? - 21 -

22. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration More HMEP to Come… Administrative Requirements HMEP Grant Management Training (Program Terms & Conditions) - 22 -

23. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration - 23 - PHMSA HMEP Grant Program ~ Administrative Requirements PHMSA Grant Program Info Webinar November 16, 2011

24. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Executing the 2011-2012 HMEP Award - 24 - NGAs provided on 9/30/11 Grantee must sign NGA & return to PHMSA OHMS Associate Administrator to counter-sign for award execution

25. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Data Entry Tool – Home Page - 25 - https://hazmatgrants.phmsa.dot.gov The Grant Portal was developed in an effort to improve administrative efficiency in the Grant program. This tool allows grantees to request post- award changes to their award via the Activity Request screen. Grantees can also submit SF-270s and changes to contact information through the Portal.

26. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration - 26 - Oct Nov Dec Q1 of 2011-2012 2011 – 2012 HMEP Award 2010 – 2011 HMEP Award Sept 30 th HMEP Grants Awarded* Sept 30 th HMEP Grants Awarded* Oct 1 st HMEP Grants Open for Use Oct 1 st HMEP Grants Open for Use Dec 31st Deadline for Return of Signed Awards Dec 31st Deadline for Return of Signed Awards Oct 31st 4 th Qtr SF-425 Due Oct 31st 4 th Qtr SF-425 Due Dec 31 st Close-Out Reports Due Dec 31 st Close-Out Reports Due

27. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Data Entry Tool – Submission Form - 27 -

28. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration - 28 - USA.govUSA.gov | WhiteHouse.gov | DOT.gov | Regulations.gov | E-Gov.govWhiteHouse.govDOT.govRegulations.govE-Gov.gov Privacy PolicyPrivacy Policy | Accessibility | Web Policies | No Fear | FOIAAccessibilityWeb PoliciesNo FearFOIA Post-Award Activity: –SF-270s o Consider Regular Submissions –Activity Requests o Changes in Scopes –Contact Information Changes o Communicate Personnel Changes Data Entry Tool – Uses

29. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Program Requirements Forms –SF-270s (Reimbursements) –Quarterly SF-425s (Federal Financial Reports) –Quarterly Performance Reports –Final Report (Narrative, SF-425 & Questionnaire) www.whitehouse.gov/omb/grants_forms - 29 -

30. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration HMEP Grant Management Grantees are expected to: Institute a structured review and evaluation process for subgrants Document and support use of federal funds and matching through record keeping to ensure sub-grants meet PHMSA grant requirements Ensure that federal funds for sub-grants are used for actual expenses versus generic operational expenses Ensure that matching amounts should be based on documented volunteer hours and/or expenses - 30 -

31. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Desk Reviews & Site Visits ApplicationAdministrationCloseout Desk reviews will involve in-depth evaluations of grantee files and supporting documentation. Site Visits include on-site discussions and process reviews resulting in presentation of findings and possible requirement for corrective actions. - 31 - 1 1 3 3 2 2

32. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Grant Schedule - 32 - Apr May June July Aug Sept Oct Nov Dec Jan Feb Mar April 1 st Application Process Begins April 1 st Application Process Begins June 1 st Deadline for Applications June 1 st Deadline for Applications Sept 30 th HMEP Grants Awarded* Sept 30 th HMEP Grants Awarded* Oct 1 st HMEP Grants Open for Use Oct 1 st HMEP Grants Open for Use Dec 31st Deadline for Return of Signed Awards Dec 31st Deadline for Return of Signed Awards April 30 th 2 nd Qtr SF-425 Due April 30 th 2 nd Qtr SF-425 Due June 30 th 3 rd Qtr SF-425 Due June 30 th 3 rd Qtr SF-425 Due Sept 30 th 4 th Qtr SF-425 Due Sept 30 th 4 th Qtr SF-425 Due Dec 31 st Close-Out Reports Due Dec 31 st Close-Out Reports Due Jan 1 st 1 st Qtr SF-425 Due Jan 1 st 1 st Qtr SF-425 Due Grant Activity Schedule Application Schedule * Grant award must be signed and returned before funds are available for disbursement.

33. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Questions - 33 - Email : HMEP.Grants@dot.govHMEP.Grants@dot.gov Website : www.phmsa.dot.gov/hazmat/grantswww.phmsa.dot.gov/hazmat/grants Phone : (202)366-1109

34. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration - 34 - PHMSA - Hazardous Materials Emergency Preparedness (HMEP) Grants PHMSA Grant Program Info Webinar November 16, 2011

35. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration - 35 - HMEP Grants Management Requirements Understanding the Terms and Conditions of Your HMEP Award

36. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration - 36 - Agenda Overview of terms and conditions Recipient responsibilities Section-by-section analysis - Principle(s) involved - Source of requirement - HMEP-specific implementation (where applicable)

37. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration - 37 - Overview of Terms and Conditions Terms and conditions are the means by which the awarding agency communicates the rights and obligations of the parties to the grant agreement They are legally binding on the recipient once the award is accepted -Acceptance can occur in a variety of ways; PHMSA grantee requires signature first Relevant regs and other legal authorities can be included in full text or incorporated by reference

38. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration - 38 - Recipient Responsibilities Responsibility begins in pre-award phase -Awareness, signature on grant application Upon award, read award terms and conditions - If necessary, have counsel review -Raise any questions with PHMSA before award acceptance Note specific compliance requirements, including reporting due dates For requirements incorporated by reference, obtain current language Ensure that all personnel with grant-related responsibilities are familiar with the terms and conditions

39. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration - 39 - Recipient Responsibilities (continued) Understand what must be flowed down to sub recipients Section 4, Governing Statutes and Regulations, explains the relationship between the federal terms and conditions and state or territorial law, and includes requirements for recipients to notify PHMSA if federal requirements are challenged COMPLY AND SEEK GUIDANCE AS NECESSARY

40. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Section 1: Effect of Award The Recipient, which is the organization named in block 1 of the Notice of Grant Award (NGA), is legally responsible for and accountable to PHMSA for the funds provided. By acceptance of this award, which is accomplished by the signature of the authorized Recipient official shown in blocks 17 and 18 of the NGA, the Recipient agrees to comply with the terms and conditions detailed or referenced below. The award may be modified only by the PHMSA Agreement Officer, either at PHMSA’s initiation, with Recipient acceptance, as appropriate, or upon the request of, and subsequent approval by, the Agreement Officer. This includes any request by a Request to deviate from non-statutory provisions of 49 CFR 110. If the Recipient materially fails to comply with the terms and conditions of this award, whether stated in full text herein or incorporated by reference, the Agreement Officer may suspend, terminate, or take other remedies as may be legally available and appropriate in the circumstances as provided in 49 CFR 18.43. Addresses three key principles: –Legal responsibility and accountability –Authority to obligate federal government to expenditure of funds –Potential remedies for non-compliance 40

41. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Section 2: Award Information Includes several key elements –Matching requirement –Federal obligation only for amount awarded—as a ceiling –Need for separate accounting for planning and training –Establishment of performance period –Pre-award costs not permitted under HMEP Principles –Federal award amount equals a ceiling; total, actual allowable costs determine final funding amount (i.e., amount reduced if project costs less than projected; however remains 80/20 shares) –Planning and training handled together for administrative purposes, but two separate budgets and awards for accountability purposes 41

42. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Section 2: Award Information (continued) Principles (continued) –Recipients cannot incur costs before or after the stated period of performance without federal approval –PHMSA is not obligated to provide any funding in addition to what is shown in the grant award HMEP-specific implementation –On a class basis, PHMSA/HMEP does not allow pre-award costs –Extensions, although technically permitted, would be problematic given the annual funding cycle, e.g., awards would overlap Source: 49 USC 5116; 49 CFR 110; 49 CFR 18 42

43. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Section 3: Incorporation of Approved Application by Reference The Recipient's application, including the narrative and budget as approved by PHMSA prior to award, is incorporated by reference in this award. Changes to the approved application are governed by 49 CFR 18.30 and paragraph 15 of these terms and conditions. Principles –Activities and costs provided with sufficient specificity in the application are considered “approved” unless PHMSA takes exception; if not specifically included and prior approval is required, post-award request must be made (e.g., equipment) –Approved budget is baseline against which rebudgeting is judged Source: 49 CFR 18 43

44. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Section 4: Governing Statutes and Regulations Includes a variety of requirements—authorizing statute (49 USC 5116); implementing program regulations (49 CFR 110); socio-economic regulatory requirements, and administrative regulatory requirements –Socioeconomic requirements Examples: 49 CFR 21, "Nondiscrimination in Federally-Assisted Programs of the Department of Transportation-Effectuation of Title VI of the Civil Rights 49 CFR 32, "Government wide Requirements for Drug Free Workplace (Financial Assistance)," –Administrative requirements have a direct bearing on the allowability of costs and activities under an award Examples: 49 CFR 18, Uniform Administrative Requirements for Grants and Cooperative Agreements to State, and Local, and Tribal Governments. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations (implemented in 49 CFR 18) 44

45. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Section 5: Order of Precedence A variety of different types of requirements are included in the award –Some are fairly general because designed to be applied across agencies and programs –Some are specific to DOT –Some are specific to the HMEP program Authorizing Official/Agreement Officer (AO) –Specific name that relates to the authority addressed in Section 1 Agreement Administrator/Grants Management Specialist –Point of contact for day-to-day matters; questions; interpretations 45 Section 6: General PHMSA Responsibilities

46. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Section 7: General Recipient Responsibilities Principles –The Recipient is responsible for the day-to-day management of the award and is given the award based on the capability to carry out the award and the adequacy of its systems to account for grant funds –PHMSA advice can be sought but, unless formal PHMSA approval is required, decision- making authority resides in the Recipient –PHMSA has no direct relationship with a Recipient’s subrecipients or contractors The Recipient is responsible for all aspects of that relationship, including ensuring compliance with applicable federal requirements Failure of Recipients to have legally sufficient subawards or contracts or to actively monitor performance and expenditures may result in a federal enforcement action If subrecipient costs are disallowed, PHMSA will look to the Recipient for repayment Source: 49 CFR 18 46

47. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Section 8: Central Contractor Registration and Universal Identifier Requirements Formalizes and broadens several requirements previously in place for applicants –DUNS number required prior to award –CCR registration (includes DUNS number) required to submit through Grants.gov 47 Section 9: Government-wide Non-Procurement Suspension and Debarment

48. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Section 10: Allowable Costs Principles –Allowability of costs under the grant is determined by general cost principles and program-specific requirements –Some costs may be allowable only with PHMSA approval (whether provided at time of award or post-award) –Cost principles/program requirements apply to both federal funds and matching –See Section 11 for requirements to be flowed down to lower tiers Source: 49 CFR 18; 49 CFR 110 48

49. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Section 11: Flowdown of Requirements under Subawards In general, the requirements of this award that apply to the Recipient also apply to subrecipients, i.e., entities that are carrying out part of the substantive programmatic activity, unless an exception is specified. In making subawards under the award, the Recipient shall apply the federal cost principles applicable to the particular type of organization concerned. Therefore, if a subaward is to a governmental unit (other than a college, university or hospital), 2 CFR 225 shall apply; if a subaward is to a college or university, 2 CFR 220 (OMB Circular A–21) shall apply; if a subaward is to another type of non-profit organization, 2 CFR 230, Cost Principles for Non-Profit Organizations (OMB Circular A–122), shall apply. The administrative requirements that must be flowed down to subrecipients are those that apply to the type of organization concerned. Therefore, if a subaward is made to a university, the requirements of 49 CFR 19 rather than 49 CFR 18 apply. 49

50. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Section 11: Flowdown of Requirements under Subawards (continued) Principles –Entities (LEPCs, others) that carry out a part of the programmatic activity (whether the award is called a subgrant or a contract) are subject to the same or similar requirements as those that apply to the Recipient –Recipients are responsible for ensuring that agreements include terms and conditions that allow for compliance with the PHMSA award Source: 49 CFR 18 50

51. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Section 12: Matching The recipient must provide 20 percent of the allowable direct and indirect costs of all activities covered under this award from non-federal sources. Recipients may either use cash (hard match), in-kind (soft-match) contributions, or a combination of both to meet this requirement. The types of contributions allowed are listed in 49 CFR 110.60. Matching costs and contributions also must meet the requirements of 49 CFR 18.24, including that the costs must meet the same requirements of allowability as apply to HMEP funds. Federal funds may be expended before non-federal matching funds, provided that total program costs at completion of the program year reflect the 80 percent federal/20 percent non-federal allocation of costs. The matching requirement is in addition to the maintenance of effort required of Recipients of HMEP awards under 49 U.S.C. 5116(a)(2)(A) and (b)(2)(A) and 49 CFR 110.30(b)(2) and (c)(2). 51

52. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Section 12: Matching (continued) Principles –Matching must be in the form of allowable costs/third-party in-kind contributions –Matching costs/contributions must be fully documented –Third-party-in-kind contributions (e.g. time of trainees) supported by a methodology showing how value was derived –Matching amount is based on actual, allowable costs Source: 49 USC 5116; 49 CFR 18 52

53. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Section 13: Performance and Financial Reporting Requirements (continued) Federal Financial Reports (SF 425) & Progress/Performance Reports –Interim reports required QUARTERLY –Due 30 days after end of the quarter—January 31, April 30, July 31 –SF 425 is cumulative –Final report required 90 days after end of funding period (December 31) –Only the “Expenditures” portion required unless advance payments are made—lines 10d through 10k and 11 (if indirect costs claimed) –Requests to extend the due date for a report must be in writing, be submitted before the report is due, and include an appropriate justification 53

54. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Section 14: Reporting Subawards and Executive Compensation Recipients required to report first-tier each subaward action that obligates $25,000 or more in federal funds –For subaward information, report no later than the end of the month following the month in which the obligation was made. (For example, if the obligation was made on November 7, 2010, the obligation must be reported by no later than December 31, 2010.) Requirements for reporting executive compensation generally inapplicable to HMEP Recipients/subrecipients as would not meet threshold criteria 54

55. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Section 15: Changes to the Approved Application and Budget Some prior-approval requirements to note –Cumulative transfers among direct cost categories, or, if applicable, among separately budgeted programs, projects, functions, or activities which exceed or are expected to exceed ten percent of the current total approved budget, whenever the awarding agency's share exceeds $100,000. –Changes in the scope or objectives in the approved application –Rebudgeting of HMEP funds from training to planning 55

56. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Section 15: Changes to the Approved Application and Budget Principles –A “change” is a change from the approved application and application budget –Prior-approval requirements may originate in 49 CFR, the cost principles, or other terms and conditions of award –When PHMSA approval is required for a change, the request must be submitted in advance of the proposed expenditure/activity Source: 49 CFR 18, 2 CFR 225 (incorporated by reference in 2 CFR 18), other applicable cost principles HMEP-specific implementation: PHMSA will be working with you to define what is meant by a “change in scope” for the HMEP program 56

57. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Section 16: Title to Equipment Principles –Equipment and supplies are distinguished by acquisition cost/useful life –Federal definition of equipment applies budgeting, approval, and accountability requirements, i.e. acquisition cost of $5,000 or greater and useful life of more than 1 year (which may be more liberal than Recipient’s own requirements) Source: 49 CFR 18; 2 CFR 225 Principles –Author/developer may wish to assert rights to copyright, e.g., for a computer program that could assist States in hazmat response –If federal funding used to develop or purchase the copyrightable material, federal government has a right to use the materials or authorize others to use them, which does not amount to infringement Source: 49 CFR 18 57 Section 17: Copyrights

58. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Section 18: Payment Subject to the requirements in 49 CFR 18.21, payments will be made after receipt of a "Request for Advance or Reimbursement" (SF 270). Each request must be submitted electronically via the HMEP Grant Portal: https://hazmatgrants.phmsa.dot.gov/sf270.asp. PHMSA will promptly review the request and, upon approval, forward it to the Payment Office for disbursement. PHMSA reserves the right to request supporting documentation upon receipt of payment requests. Failure to comply can result in a denial of payment. Principles –Reimbursement means that costs can be claimed only after a payment is made (e.g., payment of a hotel bill versus making hotel reservations) –Requests for reimbursement must be supported by paid invoices or other documentation, which must be available upon request –Requests can be made as frequently as every 2 weeks and should be made consistent with expenditure patterns Source: 49 CFR 110; 49 CFR 18 58

59. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Section 19: Audit Requirements Principles –Applies to federal awards non-profit domestic organizations –Single audit tests the adequacy of systems that support the expenditure of federal funds –Assumed that the same system is used to administer grants from FEMA, EPA, DOT, or other federal agency –DOT can consider designating a program as high-risk –Payment for goods or services is not considered a “federal award” for audit purpose (§___.210 Subrecipient and vendor determinations) Can use as guidance in making this distinction for other purposes as well Source: OMB Circular A-133 59

60. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Section 20: Record Retention and Access to Records Grant-related financial and programmatic records, supporting documents, statistical records, and other records of Recipients or subrecipients shall be maintained as provided in 49 CFR 18.42(a) through (d) (or 49 CFR 19.53, if applicable) PHMSA, through its staff or authorized representatives, may make site visits, at reasonable times; to review project accomplishments, management control systems and provide guidance as may be requested or required. If a site visit is made on the premises of the Recipient, the Recipient must provide reasonable facilities and assistance to PHMSA representatives in the performance of their duties. PHMSA, through its authorized representatives, may request a desk audit, at reasonable times; to review project accomplishments, management control systems and provide guidance as may be requested or required. If a desk audit is conducted, the Recipient is required to provide; electronically or via postal service all records requested by PHMSA representatives. All desk audits and reviews will be performed in a manner to not unduly delay work activity under the award. If PHMSA requires access to the records of a subrecipient or contractor under the grant, whether as part of a site visit or for another type of review, PHMSA will coordinate the request with the Recipient.. All site visits and evaluations will be performed in a manner to not unduly delay work activity under the award or other activities of the Recipient, subrecipient, or contractor. 60

61. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Section 20: Record Retention and Access to Records (continued) Principles –Recipients are required to maintain documentation supporting their reported grant activities and expenditures make such information available upon request (whether at the Recipient’s site or by providing information directly to PHMSA) –Lack of documentation or inadequate documentation can result in questioning/disallowance of costs or delays in payment Source: 49 CFR 18 HMEP-specific implementation: PHMSA has requested/will be requesting certain information in support of site visits, desk reviews, and payment requests 61

62. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Section 21: Contracting with Small and Minority Firms, Women's Business Enterprises, Veteran Owned, and HubZone Area Firms Section 22: Seat Belt Use Policies and Programs Section 23: Texting While Driving Section 24: Information Collection Section 25: Fraud, Waste, and Abuse (continued) 62 Other Sections