_GENERAL DOCUMENTS - C1981017 (228)

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REGULATORY PROGRAMS OVERVIEW PAGE 3 3-01-40 USE OF TITLE V REGULATORY GRANT FUNDS TO COVER CERTAIN BOND FORFEITURE COSTS This section provides guidance on which activities associated with bond forfeiture sites are allowable as program costs under the regulatory grant program, and which costs must be funded from either the proceeds of the forfeited bond or by other State resources. A Permanent Prooram Forfeiture Site 1. V Administrative costs not directly associated with site-specific reclamation work may be funded by a grant if such costs are part of the forfeiture process or if the activities would have been performed had there been no forfeiture. Thus, site inventories and priority ranking activities, forfeiture processing, site inspections and contract monitoring (to the extent that it does not exceed the level of effort that would have been expended had there been no forfeiture) may be allowable program costs. 2. Costs associated with site-specific activities_directly_related to completion of the reclamation plan cannot be paid from grant funds. Therefore, redesign of a reclamation plan after forfeiture and the re_ciamation work itself are not allowable costs under a regulatory program grant. since such costs are totally dependent upon the condition of the site, they must be funds rf om the proceeds of forfeited bonds_or by other State resources. Similarly, the costs of issuing design and_reclamai on contracts on forfeiture sites must be funded from the proceeds of forfeited bonds or by other State resources. B. Initial Program Forfeitures Sites 1. The Surface Mining Control and Reclamation Act of 1977 (SMCRA) did not require bonds during the initial regulatory program; hence, under section 505(b) of SMCRA, any State bonding requirements for initial program sites would be considered more stringent environmental controls. Therefore, administrative costs related to bond forfeiture on initial program sites may be allowable program costs for grant purposes. 2. Administrative costs associated with bid preparation are allowable program costs to the extent that they do not include the costs of designing or redesigning the reclamation plan. Eligible costs include those related to bid specification preparation,such as planimeter work and office calculations needed to determine areas and volumes. To the extent that they would be incurred regardless of the quality of the reclamation plan, design or other permittee-supplied data included within the permit at the time of forfeiture, the expenses of site visits and limited surveys to obtain data necessary for the preparation of bid specifications would also be allowable program costs. Such visits and surveys would include those conducted to estimate or confirm drainage control needs, backfilling and grading volumes or the size of areas in need of revegetation or soil amendments. FEDERAL ASSISTANCE MANUAL