and requests for changes or supplements to approved grants must be timed to accommodate fiscal year limitations on the obligation of Federal funds. (See §301.8 of this part.)

(f) Construction projects. Project applications for all grants where a major portion of the project involves construction work must be submitted on a FEMA prescribed project application form conforming to the requirements of Attachment M of OMB Circular No. A-102 pertaining to application for Federal assistance for construction programs, and the project must be carried out in accordance with the applicable requirements of FEMA regulations for federally assisted construction. Some examples of projects where a major portion normally would be considered to involve construction work are those for incorporting an emergency operating center in the construction of a new public building, the modification of a portion of an existing public building for use as an emergency operating center, the erection of antenna towers for a civil defense communications system, the erection of towers or poles for sirens for use in a civil defense warning system, and the installation of an emergency generator for civil defense

use.

(g) Appeals. Upon rejection of a project application by the Regional Director, FEMA on a basis other than a lack of available funding, the applicant may appeal to the Director, FEMA, under procedures set forth in CPG 1-3.

[43 FR 25093, June 9, 1978. Redesignated at 44 FR 56173, Sept. 28, 1979 and amended at 48 FR 44544, Sept. 29, 1983; 50 FR 40007, Oct. 1, 1985]

§ 301.4 Conditions of contributions.

FEMA contributions for civil defense equipment costs are subject to the following conditions:

(a) Certification. The making of a request for a contribution shall constitute a certification by the State (and political subdivision, where applicable) that the State's matching share is available or will be available before Federal funds are disbursed; that the civil defense equipment, regarding which a contribution is requested, is needed by the applicant over and above its other-than-civil defense needs, in order to meet its requirements under

civil defense operational plans approved by FEMA (local plans are approved as part of the State plans); and that the State (and political subdivision, where applicable) will comply with the policies, guidelines and requirement contained in the Assurances section of the project application, including without limitation, FEMA regulations (Code of Federal Regulations, title 44, chapter I-Federal Emergency Management Agency, subchapter E) and with criteria and procedures set forth in CPG 1-3.

(b) Standards and specifications. Civil defense equipment procured by the State (or political subdivision) must meet such FEMA-prescribed minimum standards and specifications as are set forth in CPG 1-3 or other FEMA guidance material referenced therein. Application of such standards and specifications to unique installation or uses of equipment shall be as determined by FEMA following receipt of full information in accordance with procedures set forth in CPG 1-3.

(c) Financial management—(1) System. Grantees shall establish and maintain a financial management system in conformity with the standards set forth in CPG 1-3 as required by Attachment G of OMB Circular No. A-102.

(2) Reporting. Grantees shall comply with the uniform financial reporting requirements set forth in section 2 of Chapter 3 of CPG 1-3, as required by Attachment H of OMB Circular No. A

102.

(d) Property management-(1) Standards. Grantees shall comply with the standards set forth in CPG 1-3, as required by Attachment N of OMB Circular No. A-102, governing the utilization and disposition of property which has been furnished by the Federal Government, acquired in whole or in part with Federal funds, or whose cost has been charged to a project supported by a Federal grant.

(2) Release of Federal interest. As to the requirement of CPG 1-3 (Attachment N of OMB Circular No. A-102) for payment to FEMA of an amount equal to the Federal share of its fair market value prior to disposal or other than authorized use of an item of nonexpendable personal property procured

by a political subdivision at a unit acquisition cost of $1,000 or more, where guaranty by the State of such payment to FEMA is not permissible under State law, the guaranty by the State, as joint applicant with its political subdivision shall be limited to an amount not to exceed the amount of the Federal contribution paid by FEMA toward procurement of the particular item of property.

(3) Use. With regard to application of the property management standards set forth in appendix D of CPG 1-3, "purpose of the grant program," includes use for providing emergency assistance in any area of the United States which suffers a disaster other than a disaster caused by enemy attack. Detailed guidance is set forth in CPG 1-3.

(e) Monitoring and reporting program performance. Grantees shall comply with the provisions set forth in CPG 13, as required by OMB Circular No. A102, regarding the monitoring and reporting of grant-supported activities and programs.

(f) Records retention and availability. Financial records, supporting documents, and all other records pertinent to a grant shall be retained by the grantee and made available as prescribed by appendix B of CPG 1-3 in accordance with the requirements of OMB Circular No. A-102.

[43 FR 25093, June 9, 1978. Redesignated at 44 FR 56173, Sept. 28, 1979, as amended at 50 FR 40007, Oct. 1, 1985]

§301.5 [Reserved]

§301.6 Billing and payment.

When civil defense equipment procured by a State (or political subdivision) has been delivered to the State (or political subdivision), the FEMA, upon the receipt of proper billing, shall make payment, by check drawn against the Treasury of the United States, to the authorized official of the State or political subdivision designated by the State.

[43 FR 25094, June 9, 1978. Redesignated at 44 FR 56173, Sept. 28, 1979]

§ 301.7 Advances of Federal funds.

The State (and where appropriate, the political subdivision) shall submit

their requests for advance payment on the "Request for Advance or Reimbursement" form (FEMA Form No. 1406) prescribed in Attachment H of OMB Circular No. A-102. Advances by Treasury check will be made in accordance with the provisions of Treasury Circular No. 1075 and FEMA promulgated guidance material furnished the State and political subdivision; Provided, That the State (and where applicable, the political subdivision) has established or demonstrated to FEMA the willingness and ability to establish procedures that will minimize the time elapsing between the transfer of funds and their disbursement by the State or political subdivision, as the case may be; and Provided further, That the State (and where applicable, its political subdivision) has established a financial management system meeting the standards for fund control and accountability prescribed in Attachment G of OMB Circular No. A-102 "Standards for Grantee Financial Management Systems."

[40 FR 36328, Aug. 20, 1975, as amended at 43 FR 25094, June 9, 1978. Redesignated at 44 FR 56173, Sept. 28, 1979]

§ 301.8 Limitations on amount and obligation of Federal funds.

(a) Federal-grantee share. The Federal contribution shall not exceed 50 percent of the total allowable cost of the civil defense equipment. The grantee's share of such cost may be derived from any source it determines consistent with its laws; Provided, however, That except as otherwise expressly provided by Federal law, no part of the grantee's share has been or will be derived from Federal funds. No Federal contribution shall be made for the procurement of land. The value of any land contributed to the program or project shall be excluded from the computation of the grantee's share.

(b) Fiscal year control. Federal funds are available for obligation under the program in this part on a Federal fiscal year basis (October 1 to September 30, inclusive) and cannot be used to cover obligations incurred or expenditures made by a grantee prior to the date of first availability of the appropriation otherwise remaining available for obligation. With regard to services, such as

maintenance and utility services, being rendered over a continuing period of time, contributions shall be only for eligible services required to serve the civil defense needs of the grantee during the Federal fiscal year current at the time the project application is approved by FEMA.

[43 FR 25094, June 9, 1978. Redesignated at 44 FR 56173, Sept. 28, 1979]

§ 301.9 Procurement.

Grantees shall comply with the provisions of CPG 1-3, as required by OMB Circular No. A-102, regarding the procurement of supplies, equipment, construction, and other services with the assistance of Federal funds. Included, without limitation, is a provision that, with certain specified exceptions, formal advertising, with adequate purchase description, sealed bids, and public openings shall be the required method of procurement. Where such advertised bids are obtained, the awards shall be made to the responsible bidder whose bid is responsive to the invitation and is most advantageous to the grantee, price and other factors considered and FEMA's contribution will be limited to its share of the allowable costs under such lowest acceptable bid.

[43 FR 25094, June 9, 1978. Redesignated at 44 FR 56173, Sept. 28, 1979, as amended at 50 FR 40007, Oct. 1, 1985]

§301.10 [Reserved]

§301.11 Compliance.

(a) The State (or political subdivision) must be prepared to furnish the FEMA, upon its request, with proper documentation that there has been compliance with the requirements of the regulations in this part and the related procedures and criteria prescribed in CPG 1-3 in connection with its procurement of any item of civil defense equipment and its request and receipt of a Federal contribution therefor.

(b) Where, after reasonable notice to the State and opportunity for hearing in accordance with part 303 of this chapter, the FEMA finds that the State (or political subdivision) has failed or is failing to expend funds in accordance with the requirements of the Act or the

(a) The regulations in this part prescribe the requirements applicable to the Emergency Management Assistance (EMA) program for Federal financial contributions to the States, and through the States to their political subdivisions, for up to one half of the necessary and essential State and local civil defense personnel and administrative expenses, under section 205 of the Federal Civil Defense Act of 1950, as amended, and set forth the conditions under which such contributions will be made.

(b) The intent of this program is to increase civil defense operational capability at the State and local levels of government by providing Federal financial assistance so that personnel and other resources can be made available for essential planning and other administrative functions and activities required in order to accomplish this objective.

§302.2 Definitions.

Except as otherwise stated or clearly apparent by context, the definitions ascribed in this section to each of the listed terms shall constitute their meaning when used in the regulations in this part. Terms not defined in this part shall have the meaning set forth in their definition, if any, in the Federal Civil Defense Act of 1950, as amended.

(a) Act. The Federal Civil Defense Act of 1950, as amended (50 U.S.C. App. 2251 et seq.).

(b) Administrative expenses. Necessary and essential expenses, other than personnel expenses as defined in this section, of a grantee and its subgrantees incurred in the administration of their civil defense programs, as detailed in CPG 1-3, Federal Assistance Handbook, and in CPG 1-32, FEMA Financial Assistance Guidelines.

(c) Annual submission. The State's annual request for participation in the contributions program authorized by section 205 of the Act. As specified in CPG 1-3, it includes staffing patterns (including job description changes), budget requirements, and any amendments to the State administrative plan, a request for funds covering the State and its subgrantees and program statements of work for the grantee and subgrantees under the Comprehensive Cooperative Agreement.

(d) Approval. All approvals by the Federal Emergency Management Agency (FEMA) as grantor agency required under the regulations in this part mean prior approval in writing signed by an authorized FEMA official. When failure to obtain prior approval of an action has not resulted and is not expected to result in any failure of compliance with a substantive requirement, and approval after the fact is not contrary to law (or regulation having the effect of law), written approval after the fact may be granted at the discretion of the authorized official.

(e) CPG 1-3. Civil Preparedness Guide entitled "Federal Assistance Handbook," which sets forth detailed guidance on procedures that a State and, where applicable, its political subdivisions must follow in order to request financial assistance from the grantor agency. It also sets forth detailed re

quirements, terms, and conditions upon which financial assistance is granted under these regulations. Included are amendments by numbered changes. References to CPG 1-3 include provisions of any other volumes of the CPG series specifically referenced in CPG 1-3. Copies of the Civil Preparedness Guides and the Civil Preparedness Circulars may be ordered by FEMA Regional Offices using FEMA Form 60-8 transmitted to FEMA, P.O. Box 8181, Washington, DC, 20024. One or more copies of CPG 1-3 have been distributed to each State and to each local government participating in the program under the regulations in this part. Copies of revisions and amendments are distributed to participating governments (addressed to the Emergency Management Coordinator) upon issu

ance.

(f) Comprehensive Cooperative Agreement (CCA). Provides for each State a single vehicle for applying for and receiving financial assistance for several discrete FEMA programs and for organizing and reporting on emergency management objectives and accomplishments, particularly under the funded programs.

(g) Emergency management. Refers to the activities and measures undertaken by a State, or one of its political subdivisions, to manage a "civil defense program" as defined and provided for by the Federal Civil Defense Act of 1950, as amended, including without limitation Title V, added by Public Law 96-342, and section 207, added by Public Law 97-86. Title V calls for an improved civil defense program that includes:

(1) A program structure for the resources to be used for attack-related civil defense; (2) a program structure for the resources to be used for disaster-related civil defense; and (3) criteria and procedures under which those resources planned for attack-related civil defense and those planned for disaster-related civil defense can be used interchangeably. Thus, emergency management includes "civil defense" for and operations in either attack-related or disaster-related emergencies. Section 207 allows Federal Civil Defense Act funds to be used for disaster preparedness and response if such use

"is consistent with, contributes to, and does not detract from attack-related civil defense preparedness." Also 44 CFR part 312, Use of Civil Defense Personnel, Materials, and Facilities for Natural Disaster Purposes, provides terms and conditions for such use.

(h) Director. The head of the grantor agency or another official of the Agency authorized in writing by the Director to act officially on behalf of the Director.

(i) Forms prescribed by the grantor agency. Forms prescribed by the grantor agency are identified in CPG 1-3 and may be ordered by FEMA Regional Offices using FEMA Form 60-8 transmitted to FEMA, P.O. Box 8181, Washington, DC, 20024.

(j) Grantee. A State that has received EMA funds as a result of having a State administrative plan, a statement of work, and an annual submission, all approved by the grantor agency as meeting the requirements prescribed in this part and in CPG 1-3 for necessary and essential State and local civil defense personnel and administrative expenses for a current Federal fiscal year.

(k) Grantor agency. The Federal Emergency Management Agency (FEMA).

(1) Interstate civil defense authority. Any civil defense authority established by interstate compact pursuant to section 201(g) of the Act.

(m) Necessary and essential civil defense expenses. Necessary and essential civil defense expenses are those required for the proper and efficient administration of the civil defense program of a grantee or a subgrantee as described in a State administrative plan and statement of work approved by the Regional Director as being consistent with the national plan (i.e., program) for civil defense and as meeting other requirements for civil defense prescribed by or under provisions of the Act.

(n) OMB Circular A-87. "Cost Principles Applicable to Grants and Contracts with State and Local Governments," promulgated by the Office of Management and Budget, Executive Office of the President, as published in the FEDERAL REGISTER (46 FR 9548) and subsequent amendments or revisions.

(See CPG 1-32, Financial Assistance Guidelines).

(0) OMB Circular A-102. "Uniform Administrative Requirements for Grantsin-aid to State and Local Governments," promulgated by the Office of Management and Budget, Executive Office of the President (42 FR 45828) including amendments or revisions as published in the FEDERAL REGISTER. (See CPG 1-32, Financial Assistance Guidelines).

(p) Emergency Operations Plan (EOP). State or local government Emergency Operations Plans identify the available personnel, equipment, facilities, supplies, and other resources in the jurisdiction and states the method or scheme for coordinated actions to be taken by individuals and government services in the event of natural, manmade and attack-related disasters.

(q) Personnel expenses. Necessary and essential civil defense expenses for personnel on the approved staffing pattern of a grantee or subgrantee (including but not necessarily limited to salaries, wages, and supplementary compensation and fringe benefits) for such employees appointed in accordance with State and local government laws and regulations under a system which meets Federal merit system and other applicable Federal requirements. Such expenses must be supported by job descriptions, payrolls, time distribution records, and other documentation as detailed in CPG 1-3. Personnel compensation and other costs incurred with regard to employees who are not on the civil defense staff but whose work serves the civil defense agency (e.g., State's budget and accounting office) may be charged as civil defense expense to the extent covered therefore in a federally approved indirect cost allocation plan.

(r) Political subdivisions. Local governments, including but not limited to cities, towns, incorporated communities, counties or parishes, and townships.

(s) Regional Director. A FEMA official delegated authority to exercise specified functions as they apply to grantees and subgrantees, within the geographical area of a particular region as identified (including address) in 44 CFR part 2.