1. Spring Air Directors Meeting Grants and Guidance May 24, 2012 Miya Smith, EPA Region 4

2. Topics Streamlining State Grants and Expediting Grant Outlays NPM Guidance and APA FY 13 Air Planning Agreement /Consolidated Reporting Requirements Schedule of Section 105 Activities Status of Air Grants (S. 105, PM 2.5, Near Roadway NO2, NATTS) 2

3. Streamlining State Grants and Expediting Outlays Background: ▫Congressional scrutiny of EPA’s unobligated balances and unliquidated obligations of grant funds. ▫Workgroup convened in Feb 2012:  Consists of EPA HQ, EPA Regions, and State representatives  Charged with streamlining grant processes and improving grant outlay rates 3

4. Streamlining State Grants and Expediting Outlays Develop policy to improve timely obligation, award and expenditure of EPA grant funds. Projected Effective Date: ▫October 1, 2012 Applicability: ▫Continuing Environmental Program Grants 4

5. Streamlining State Grants and Expediting Outlays Streamlining Grant Process: ▫Workplan Negotiation Phase  Range of Funding  Primary Focus: New Priorities ▫Application Phase  Electronic Submission of Grant Applications  Concurrent Review of Applications  Pen/Ink Changes  Conditional Approval of Workplan 5

6. Streamlining Grant Process/Expediting Outlays ▫Proposed Changes during Award Phase:  Standard Funding Recommendation  Grants Guide  Electronic Award Notification  Elimination of Affirmation of Award  White House and Congressional Review: ▫Increase $1 mil threshold for WH notif. ▫Number of Congr. review days reduced  Pre-Award Costs: ▫Pre-award costs > 90 days okay when costs/delivery schedules/performance period negotiated upfront 6

7. Streamlining Grant Process/Expediting Outlays ▫Proposed Changes during Award Phase (cont.):  Grant Terms and Conditions ▫EPA to review regularly to eliminate/reduce reporting burden  Continuing Resolution Guidance ▫Promotes flexibility in moving funds between Cont. Environmental Programs to allow States to address priority needs 7

8. Streamlining Grant Process/Expediting Outlays Post-Award Requirements: ▫Project Period Lengths  Maximum project period 7 years ▫Target Outlay Strategy/Timely Drawdowns  Region 4 and State/Local Agencies to negotiate reasonable outlay rates (424A form)  Agreed-upon outlay rate to be specified in sufficient progress term and condition 8

9. OAR NPM Guidance and APA NPM Guidance: ▫ Covers priorities and highlights the expected work of Headquarters, Regions, state/local agencies, and tribes and provides information on the State and Tribal Grant program (STAG) for the fiscal year. ▫Acknowledges that specific expectations, activities and deliverables are negotiated between the Regions and states/locals/tribes. 9

10. OAR NPM Guidance and APA Air Planning Agreement: ▫APA commitments reflect the priorities listed in “Quick Look at EPA’s Major Expectations for State/Local agencies” of the NPM Guidance (Appendix B, see handout). 10

11. FY 13 Air Planning Agreement /Consolidated Reporting Requirements Protecting and Improving Air Quality : 14 commitments deleted, 3 added Reduce Air Toxics: 2 commitments deleted Cross Cutting: 1 commitment deleted Agency Expectations Consolidated 1 Reporting Requirement deleted. 11

12. Section 105 Grant Activities Schedule Jun 15, 2012/ Jul 1, 2012 Agencies requesting forward funding or supplemental funding and 2-year ext., submit grant app. by 06/15/12. All others, submit apps. by 07/01/12 requesting 2-year extension of budget/project period. Jun 25, 2012FY 13 Air Planning Agreement (APA) negotiations begin. Aug 1, 2012SLAs’ responses to draft FY 13 APA commitments are due. Sep 4, 2012SLAs identify FY 13 holdbacks. (EPA to send instructions in Aug 2012) Sep 30, 2012EPA and SLAs resolve any outstanding issues with FY 13 APA commitments. Oct 12, 2012EPA sends letters to SLAs approving FY 13 APA. Dec 31, 2012EPA awards FY 13 funds to S. 105 grantees by the end of 1 st quarter of FY 2013. 12

13. Status of Air Grants Section 105 PM 2.5 NO2 (Near Roadway Projects) Air Toxics/Community Scale NATTS **See grant balance handouts in folder. 13

14. Questions? 14