Proposal Guidelines for Brownfields Job Training Grants
Appendix 2. Prohibitions on Use of Funds

The Brownfields Law prohibits the use of any "part of a grant or loan" awarded under §104(k) of CERCLA for:

1. A penalty or fine.
2. A federal cost-share requirement (for example, a cost share required by other federal funds).
3. A response cost at a brownfield site for which the recipient of the grant or loan is potentially liable under CERCLA §107.
4. A cost of compliance with any federal law, excluding the cost of compliance with laws applicable to the cleanup.
5. The payment of an administrative cost.

In implementing the administrative cost prohibition, EPA has made a distinction between prohibited administrative costs and eligible programmatic costs.

A. Administrative Costs. Prohibited administrative costs are direct costs including those in the form of salaries, benefits, contractual costs, supplies, and data processing charges incurred to comply with most provisions of the "Uniform Administrative Requirements for Grants" contained in 40 C.F.R. Part 30 or 40 C.F.R. Part 31. Direct costs for grant administration are ineligible even if the grantee or subgrantee is required to carry out the activity under the grant agreement. Prohibited administrative costs are also all indirect costs under OMB Circulars A-21 (Educational Institutions), A-87 (Governments), and A-122 (Nonprofit Organizations), and Subpart 31.2 (Commercial Organizations) of the Federal Acquisition Regulation.

B. Programmatic Costs. EPA has determined that the administrative cost prohibition does not apply to "programmatic" costs, i.e., costs for activities that are integral to achieving the purpose of the grant, even if the Agency considered the costs to be "administrative" under the prior Brownfields Program.

1. The prohibition does not apply to direct costs of training. For example, costs for instructors' salaries, program management salaries (to the extent that such costs are included in the scope of work for the brownfields job training grant), training materials (e.g. textbooks, equipment, and classroom supplies), necessary travel and transportation expenses and, medical tests required to qualify for hazardous substances related work are programmatic, not administrative.

2. Direct costs, as defined in the applicable OMB Cost Principle Circular, for the following programmatic activities are not subject to the administrative cost prohibition. These costs, however, must be allowable under the scope of work for the grant. Costs incurred for complying with procurement provisions of 40 CFR Part 30 and Part 31 are considered eligible programmatic costs only if the procurement contract is for services or products that are direct costs for training as described above. Costs for performance and financial reporting required under 40 CFR 30.51 and 30.52, and 40 CFR 31.40 and 31.41 are eligible programmatic costs. Performance and financial reporting are essential programmatic tools for both the recipient and EPA to ensure that grants are carried out in accordance with statutory and regulatory requirements.

For further information on these prohibitions, call your Regional Brownfields Contact listed in Appendix 1.

Table of Contents

1. EPA's Brownfields Job Training Grants
1.1. Background
1.2. EPA's Brownfields Demonstration Grants

2. Summary of Brownfields Job Training Grants Program
2.1. Deadlines
2.2. Applicant Eligibility
2.3. Authority for Job Training Grant Program
2.4 Eligible uses of EPA Funds
2.5 Prohibited uses of EPA Brownfields Training Grant Funds

3. Proposal Submission and Selection Process Overview
3.1. Evaluation of the Proposals
3.2. Proposal Submission Schedule

4. Job Training Proposal Guidelines
4.1. Cover Page
4.2. Threshold Criteria
4.3. Ranking Criteria

Appendix 1. EPA Regional and Headquarters Contacts

Appendix 2. Prohibition on Use of Funds