Can my Tribe purchase a vehicle under this grant program, for use when driving to remote monitoring locations across our lands? If that is unallowable, could I instead include regular vehicle rentals for this purpose?

The purchase of a vehicle is technically an allowable purchase under the EN Grant Program, but with a few important considerations:

• A vehicle is defined as “general purpose equipment” under 2 CFR 200.1, specifically: “equipment that is not limited to research, medical, scientific, or other technical activities. Examples include . . . motor vehicles.” As mentioned when this question was asked on the webinar call, equipment requests must be approved by EPA prior to purchase, per 2 CFR 200.439. This means that any requested equipment within an application selected for award will be closely reviewed by our team for its applicability (to the proposed work) and its appropriateness, prior to the award being finalized.
• Please note that any equipment purchases, disposition, or retention must be “in accordance with tribal laws and procedures,” or if such laws and procedures do not exist, then Tribes are subject to 2 CFR 200.313, including:
  • The recipient or subrecipient must use equipment for the project or program for which it was acquired and for as long as needed, whether or not the project or program continues to be supported by the Federal award.
    • Please note that the applicant is not able to use the vehicle for purposes outside of its original intended use, including casual use of the vehicle outside of EN project work, unless it is for use in another Federal project as described in the bullet below.
  • During the time that equipment is used on the project or program for which it was acquired, the recipient or subrecipient must also make the equipment available for use on other programs or projects supported by the Federal Government, provided that such use will not interfere with the purpose for which it was originally acquired.
  • The recipient or subrecipient must adhere to the specific management requirements as outlined in 2 CFR 200.313, which includes requirements on property records, physical inventory, control systems against property loss and theft, and regular maintenance.
  • Following the completion of the EN Grant project, the vehicle (assuming it has a current fair market value in excess of $10,000) may be retained or sold by the recipient or subrecipient. However, the Federal agency is entitled to an amount calculated by multiplying the percentage of the Federal agency's contribution towards the original purchase by the current market value or proceeds from the sale. If the equipment is sold, the Federal agency or pass-through entity may permit the recipient or subrecipient to retain, from the Federal share, $1,000 of the proceeds to cover expenses associated with the selling and handling of the equipment.
• Please also note that, should EPA approve the purchase, the grantee must follow UGG procurement standards for purchasing equipment and separate equipment service or maintenance contracts may also be subject to competition.

Regarding whether vehicle rental would be a better option, rental costs of equipment are governed by 2 CFR 200.465, and generally, “rental costs are allowable to the extent that the rates are reasonable in light of such factors as costs of comparable rental properties; market conditions in the area; alternatives available; and the type, life expectancy, condition, and value of the property leased.”

• So, this also would potentially be allowable under our grant program; however, we would again review this cost against applicability and appropriateness considerations at the time of award.
• The EPA would also consider the frequency of renting a vehicle – if this was done regularly, a vehicle purchase may be the more cost-effective approach (but then would be subject to the requirements outlined in the bullets above). 
• Rental arrangements would also be reviewed periodically to determine if circumstances have changed and other (more cost effective) options are available.