Questions and Answers: SWIFR Grants for Communities

2024 Notice of Funding Opportunity

Updated on 11/07/2024

The following are formal Agency responses to questions/comments received regarding the Solid Waste Infrastructure for Recycling Grant Program for Political Subdivisions of States and Territories, funding opportunity number EPA-I-OLEM-ORCR-24-05. We will update this list of questions and answers as we receive questions about the funding opportunity.

On this page:

• Eligible Activities 
• Surveys
• Track System
• Eligible Entities
• Procurements and Subawards
• National Environmental Policy Act
• Davis-Bacon Act 
• General 
• Sign up to Receive Updates

Eligible Activities

1. My project has both an education component as well as an infrastructure component, which Notice of Funding Opportunity should I apply to?

You will need to make that decision based on the primary purpose of the project you are asking EPA to fund. Carefully review Section I.D: Program Vision and Goals, and Section I.F: Scope of Work, in both NOFOs for information on the vision of the programs and the scope of work.

On page 11 of the NOFO we indicate “Applications may also include (but are not limited to) projects that fund: Education and outreach activities as a minor element of larger eligible projects that are funded by the grant.” In other words, in order to include an education and outreach activity in a SWIFR Communities grant your project also needs to include an infrastructure improvement.

For example, an applicant for a Solid Waste Infrastructure for Recycling Grant Program for Political Subdivisions of States and Territories project that seeks to achieve the objective, “Demonstrate a significant and measurable increase in the diversion, recycling rate, and quality of materials collected for municipal solid waste,” may propose a project that has both an infrastructure construction/improvement and educational component.

We indicate in Section I.F. of the SWIFR NOFO“. . . the creation and construction of tangible infrastructure, technology, or other improvements to reduce contamination in the recycled materials stream” is one of the objectives of SWIFR and that projects for “[D]evelopment of and/or upgrades to reuse infrastructure . . .” are eligible for funding. In contrast, while we did not state that infrastructure construction projects are ineligible for funding under the Consumer Recycling Education and Outreach (REO) Grant Program the program vision and scope of work for that program are focused on information dissemination activities that promote recycling. Costs for incidental construction that is reasonably necessary to carry out a REO education and outreach project may be allowable but the primary purpose of REO is not infrastructure construction/improvement.

For additional information on general principles for cost allowability for EPA grants, please refer to Section I.A: General Principles for Cost Allowability of EPA’s Interim General Budget Development Guidance (pdf)(591 KB) for applicants and Recipients of EPA Financial Assistance.

2. Are projects related to the recycling of household hazardous (HHW) waste permitted? Such as a project that would establish a HHW collection facility.

Yes, household hazardous waste (such as batteries and electronics) is an eligible waste stream for recycling. A HHW collection facility to collect MSW considered as Hazardous Materials an eligible activity provided you can demonstrate the HHW can be recycled.

3. My project serves communities that cross more than one EPA region. May I still apply for these funding opportunities?

Yes. While the EPA anticipates making at least one award per EPA region, it will consider applications from organizations that serve multiple EPA regions.

4. Can I use grant funding to pay for projects already underway (i.e., reimbursement)?

Our anticipated announcement of SWIFR selections is in Summer of 2025 and any costs incurred prior to an applicant receiving notification of selection would not be approved by an EPA award official. It depends on the timing of when your organization incurs the pre-award costs. If costs were incurred up to 90 days prior to the award, under 2 CFR Part 1500.9, EPA may reimburse successful SWIFR applicants for eligible pre-award costs even if the applicant did not request prior approval to incur pre-award costs provided the costs are eligible and allowable. Costs incurred more than 90 days prior to award require specific approval of an EPA award official.

For example, costs for contracts (including consultants) are allowable only if the contract was entered into in a manner that complies with the competitive procurement provisions of EPA’s grant regulations (Procurement Standards in 2 CFR Part 200). Selected applicants must include the pre-award costs in their final budget and workplan submitted to EPA and provide the date the pre-award costs were incurred. For more information, please see EPA’s term and condition on pre-award costs.

Please note that applicants incur pre-award at their own risk and that EPA is not obligated to reimburse applicants for pre-award costs that are not included in the workplan, and budget EPA approves. EPA has no obligation to reimburse unsuccessful applicants for pre-award costs. Selected applicants should discuss pre-award costs with their EPA Project Officer.

5. Are feasibility studies eligible for grant funding?

Yes, feasibility studies, or other plans supporting innovative approaches, are eligible if combined with infrastructure projects. A feasibility study on its own would not be eligible. Please refer to Section I.F: Scope of Work for a list of acceptable infrastructure projects.

6. Are projects focusing on biosolids eligible for grant funding?

It depends. A project that is only focused on a publicly owned treatment works (POTW) biosolids recycling would not be eligible. However, a project at a POTW incorporating MSW in addition to biosolids, such as a food waste co-digestion project, would be eligible.

On page 7 of the NOFO we state, “The following activities are not eligible for funding under this solicitation: constructing, improving or operating landfills; incineration; burn units; waste-to-energy (except anaerobic digestion); chemical and thermal recycling; biofuels; and environmental cleanup. Food preprocessing is only eligible when paired with recycling activities.”

7. Is purchasing a tire shredder an allowable activity?

Purchasing a tire shredder is an allowable activity for tire recycling. However, using recycled tires or any other materials for landfill cover or incineration activities is prohibited. Please note, activities that focus on the landfilling or incineration pathways of tires are not included in the list of management pathways in Section I.F: Scope of Work of the NOFO and will not be considered for funding.

8. Are landfill improvement projects eligible for grant funding?

No, landfill improvement projects (including pyrolysis and gasification) are not eligible for grant funding. On page 11 of the NOFO in Section I.F: Scope of Work we state “the following activities are not eligible for funding under this solicitation: constructing, improving or operating landfills; incineration; burn units; waste-to-energy (except anaerobic digestion); chemical and thermal recycling; biofuels; and environmental cleanup. Food preprocessing is only eligible when paired with recycling activities.” Please refer to Section I.F: Scope of Work for more information on acceptable waste streams.

9. Are chemical or advanced recycling projects eligible for grant funding?

No, chemical or advanced recycling projects (including pyrolysis and gasification) are not eligible for grant funding. On page 11 of the NOFO in Section I.F: Scope of Work we state “the following activities are not eligible for funding under this solicitation: constructing, improving or operating landfills; incineration; burn units; waste-to-energy (except anaerobic digestion); chemical and thermal recycling; biofuels; and environmental cleanup. Food preprocessing is only eligible when paired with recycling activities.”

Page 6 of the NOFO states “Materials and waste streams considered under this announcement include: municipal solid waste (MSW), including plastics, organics, paper, metal, glass, etc., and construction and demolition (C&D) debris. In addition, materials and waste streams considered include the management pathways of source reduction, reuse, sending materials to material recovery facilities, composting, rendering, anaerobic digestion, and feeding animals.” Please refer to Section I.F: Scope of Work for more information on acceptable waste streams.

10. Is land acquisition an eligible expense?

Land acquisition is an eligible cost under this funding opportunity. Although as provided in 2 CFR 200.311(a) title to the property upon acquisition vests with the recipient, the regulations contain detailed coverage at 2 CFR 200.311(c) on the disposition actions EPA is authorized to direct the recipient to take when the real property is no longer needed for the originally authorized purpose. Additionally, under 2 CFR 200.316 EPA’s practice is to require recipients to record a lien to provide notice that the “. . . real property has been acquired or improved with a federal award and that use and disposition conditions apply to the property.” Please refer to Section IV.E.b.vi: Budget and Expenditure of Awarded Grant Funds for more information regarding categorizing land acquisition in your budget.

11. Can funding be applied to labor as well as building cost? For example, will the grant support hiring a person to perform the labor needed to manage new infrastructure created as a part of the project?

Yes, funding can be applied to labor as well as building cost. Please refer to the following site for additional information on developing your budget:

• Interim General Budget Development Guidance for Applicants and Recipients of EPA Financial Assistance (pdf) (591 KB).

12. My project involves construction, should I use the SF-424C form instead of the SF-424A form?

No, please use the SF424A form. Please refer to page 35 of the NOFO for information on categorizing construction costs. For additional information on completing SF-424A form, please utilize this resource.

13. Are there restrictions on the use of SWIFR funds for issuing State and local government bonds?

Yes. As provided in 33 U.S.C. 4282(f), SWIFR cooperative agreement funding “ . . . may not be used (directly or indirectly) as a source of payment (in whole or in part) of, or security for, an obligation the interest on which is excluded from gross income under section 103 of Title 26” of the United States Code. This provision relates to State and local bonds.

14. My project team is specific looking to establish a curbside collection program for traditional recycling pick-up. Would that be considered an eligible project even though it is not focused on the curbside collection of organics?

A traditional recycling pick-up project would be eligible for grant funding. For more information about eligible projects, please review Page 11 Section I.F: Scope of Work.

15. Can I include in my grant application costs for operations and maintenance (O&M) for existing equipment, or eligible equipment that I wish to purchase as part of the grant? 

Yes. Reasonable costs for Operations and Maintenance (O&M) for existing equipment, or eligible equipment (including vehicles) that you will purchase as part of the grant is eligible. For instance, operations can include personnel costs for the salaries, wages, and allowable incentive compensation for those individuals who are employees of the recipient organization who will perform work directly for the project. 

Examples of maintenance can be in the form of a service contract during the performance period of the grant, or through the purchase of extended coverage that extends past the performance period of the grant.  

16. Is recycling abandoned vehicles or other vehicle-like equipment eligible for funding? Can SWIFR funding be used to purchase equipment to collect, process, and/or backhaul vehicles that are destined for recycling? 

Yes. Abandoned vehicles are considered in the scope of the SWIFR grants and SWIFR funding may be used to purchase equipment to collect, process, and/or backhaul vehicles such as cars, boats, trucks, snowmobiles, ATVs, etc., and/or to conduct the collection, processing, and/or backhauling of vehicles that are destined for recovery, recycling, reuse, repair, or refurbishment.   

As with all activities being funded by EPA grants, receiving a grant does not release an applicant from complying with relevant federal, state, Tribal, and local regulations and policies. Examples of materials for which relevant regulations exist and should be considered include, but are not limited to, used oil, tires, batteries, and mercury switches. Applicants are encouraged to consult the practices recommended in these two documents:   

• Developing an Abandoned Vehicle Cleanup Program for Tribal Governments (pdf)(1.4 MB).
• Processing End-of-Life Vehicles: A Guide for Environmental Protection, Safety and Profit in the United States-Mexico Border Area. 

17. Can SWIFR grants fund Biodiesel plant infrastructure and equipment for processing food waste? 

Yes, processing fats, oils, and grease food waste would be included in the scope of the NOFO. As stated in Section I.A: Background, "Materials and waste streams considered under this announcement include: municipal solid waste (MSW), including plastics, organics, paper, metal, glass, etc., electronic waste, batteries, and construction and demolition (C&D) debris. In addition, materials and waste streams considered include the management pathways of source reduction, reuse, sending materials to material recovery facilities, composting, industrial uses (e.g., rendering, anaerobic digestion), and feeding animals."  

Please ensure that your application clearly addresses one or more of the objectives in Section I.F: Scope of Work in the NOFO. 

18. Are waste compactors and roll-off containers used for the management of non-recyclable materials destined for a landfill eligible for funding under this funding opportunity? 

No, the purchase of waste compactors and roll-off containers used for the management of non-recyclable materials destined for a landfill are not eligible activities under this funding opportunity. 

This funding opportunity will provide funds for Tribes and intertribal consortia to develop or update plans focused on encouraging environmentally sound post-consumer materials management; establish, increase, or expand materials management infrastructure, utilize funds for equipment and construction related costs as part of their implementation plans, and identify, establish, or improve end-markets for the use of recycled materials. Materials and waste streams considered under this announcement include: municipal solid waste (MSW), including plastics, organics, paper, metal, glass, etc., electronic waste, batteries, and construction and demolition (C&D) debris. The following activities are not eligible for funding under this solicitation: constructing, improving or operating landfills; incineration; burn units; waste-to-energy (except anaerobic digestion); chemical and thermal recycling; biofuels; and environmental cleanup. Food preprocessing is only eligible when paired with recycling activities. Refer to Section I.F: Scope of Work in the NOFO for more details on eligible and ineligible activities.   

19. Can SWIFR funds be used to purchase and install a sump to collect wastewater and other undesirable liquids expunged from bailing recyclable materials? 

The purchase of equipment for purposes of improving post-consumer materials management is an eligible activity under this grant. Please be sure that your equipment purchase supports the objectives in Section I.E: Scope of Work of the NOFO. 

Note that applicants must address environmental outputs and outcomes from their projects (Section I.H. Measuring Environmental Results: Outputs and Outcomes) for any project proposed. 

20. Can SWIFR funding be used to purchase used recycling equipment, such as used balers, shredders, and excavators? 

Yes, used recycling equipment can be considered for funding. 

21. Can SWIFR funds be used for maintenance or updating older trash trucks? 

It depends. If the older trash trucks are being updated for continued use as collection and transport vehicles for waste destined for a landfill or waste-to-energy facility, this activity would not be eligible for funding. 

Updating the older trash trucks to collect and transport materials destined for recycling, and thus improving post-consumer materials management is an eligible activity under this grant. 

Proposed projects must meet one or more of the objectives in Section I.F: Scope of Work of the NOFO. 

22. Can SWIFR fund composting programs and equipment? 

Yes. SWIFR can fund composting programs and equipment. Please refer to Section I.F: Scope of Work for more information on acceptable waste streams and project objectives. 

23. Which cost categories should we put costs for operations and maintenance of equipment, including fuel costs for our recycling trucks? 

That depends on what kinds of operations and maintenance your application proposes and how you propose to do those operations and maintenance activities. Listed below are a few possible scenarios but may not be fully inclusive of all the scenarios for operations and maintenance. 

• If the applicant plans to use its own employees are doing the operations and maintenance, put those costs in the “Personnel” category.  
• If the applicant plans to contracting out the operations and maintenance, including taking the vehicles to a commercial shop for ongoing maintenance, put those costs in the “Contractual” category. 
• If the applicant plans to buy fuel for vehicles as part of ongoing operations, the fuel should be characterized in the “Supplies” category. 

24. Is paying for travel (gas mileage) associated with collection of recyclables or compost collection at Tribal residences and transporting recyclables to a recycling center off-reservation for processing or to a community garden on Tribal Lands an eligible expense? 

Yes. Gas mileage for the collection and the transportation of materials for recycling or composting is an allowable expense. Please include the anticipated amount for mileage reimbursement in the “Travel” category of your budget. Refer to 2 CFR Part 200.475 and EPA’s Interim General Budget Development Guidance for applicants and Recipients of EPA Financial Assistance (pdf)(591 KB) for additional guidance. 

Travel expenses may include costs such as gas mileage, per diem, estimated number of trips, and the number of travelers involved with the collection and/or transportation of materials for recycling or composting. These expenses will be accounted for under different budget categories depending on who is providing the services:  

If an applicant contracts for these services, the travel costs should be included in contractor’s price for procurement and would be captured in the budget in the “Contractual” category.  

If a Tribal employee is using their own vehicle, this could be reimbursement of a travel cost, and would be captured in the “Travel” category. 

25. Using grant funds, may grantees purchase small incentives for participants in project activities, such as gift cards, food, a recycling bin for contest winners, etc.? 

Yes, reasonable costs for gift cards and similar incentives for program participation are allowable under EPA’s Guidance on Participant Support Costs (pdf)(213 KB). 

Please note that where Participant Support Costs would be placed in your budget depends on the items being purchased. Generally, items like gift cards and meal vouchers would be characterized in the “Other” cost category since the incentives are provided directly to the program participant. 

If the applicant intends to provide food to participants in community meetings, the food would be characterized under the: 

• “Contractual” cost category if an applicant intends to hire a caterer to supply the food.  
• “Supplies” cost category if the applicant intends to go to a store to directly purchase the food for the meeting.  
• “Other” cost category if the meeting venue provides the food as part of the lease for the facility.  

If an applicant intends to purchase recycling bins for community members as participant support costs, the bins would be characterized under the: 

• “Contractual” cost category if the bins are being purchased by a contractor.  
• “Supplies” cost category if the applicant will directly purchase the bins (and the cost of the bins is less than $10,000 per bin). 

Surveys

1. How would direct mailing/door hanger/sticker marketing pieces that drives people to a specific website, etc. intersect “information collection”? For instance, could we direct people to a website that allows them to sign up for a newsletter?

Thank you for your question. Based on the information you provided, collecting information for a mailing list would generally not trigger the Paperwork Reduction Act, as long as the sign-up process does not involve the collection of information beyond that “necessary to ensure proper transmission” of the information. It cannot, for example, also include questions intended to collect demographic information.

Please refer to this excerpt from OMB’s 2010 Guidance on Social Media (pdf)(83.4 KB):

2. Can grantees conduct surveys with EPA grant funds?

It depends. Grantees cannot ask 10 or more individuals the same question as part of an activity funded under this NOFO. Reasonable costs for analyzing and publishing the independently collected information are allowable to the extent authorized in the EPA approved budget for this agreement. Please see Section III.E: Ineligible Costs or Activities and Other Considerations for more information.

3. Why may I not use grant funding to collect information from 10 or more individuals?

The prohibited activities language is referencing the Paperwork Reduction Act. A survey or other information collection of identical information from 10 or more parties will not be eligible under this funding opportunity because EPA funding will be in the form of a cooperative agreement. OMB’s regulations implementing the Paperwork Reduction Act, 5 CFR 1320.3(d), provide that EPA is considered a sponsor of information collections under cooperative agreement. The process for EPA to obtain OMB approval for information collections is lengthy and resource intensive. This restriction on eligibility applies to both the applicant and any contractors or subaward recipients supported with EPA funding as well. Note that as indicated in the NOFO you may use other funds for the development and administration of the survey and EPA funds may be used for analysis and publication of the results. For additional information on the Paperwork Reduction Act, refer to "A Guide to the Paperwork Reduction Act."

Track System

1. My project covers an area has some, but not all, disadvantaged communities. Should I apply as Track 1 or Track 2?

Projects that serve at least one disadvantaged community are eligible to apply to Track 1. Please be specific in your project narrative as to how the project will benefit the disadvantaged community.

2. What if I put in my application that I qualify for Track 1, but then EPA determines that my application belongs in Track 2?

In Section III.C. Threshold Eligibility Threshold Criteria 5 states “Applications must indicate if it qualifies for Track 1 or Track 2 as defined under Section I.E: Program Tracks and include information demonstrating that the application qualifies.” And Section I.E. Program Tracks states that “EPA reserves the right to determine under which track the application falls under based on the justification provided in the application.” If the EPA determines that a project is not eligible under a certain Track, the EPA reserves the right to automatically reassign an application from Track 1 to Track 2, or vice versa. Reassignment from Track 1 to Track 2 does not make an application less competitive.

Eligible Entities

1. Is there any federal/state grants or monetary assistance available for an individual trying to start a recycling business?

Individuals are not eligible for this funding opportunity. Eligibility information is stated in Section III. A: Eligible Applicants of the NOFO. For funding opportunities geared towards small businesses, please consider Small Business Innovation Research (SBIR) grants.

2. Am I limited to only apply to only one of the funding opportunities?

An entity may apply to both the SWIFR for Communities and REO grant programs assuming they are eligible. Applying or receiving one grant does not make you ineligible for the other. However, please note the differences in the funding opportunities as stated in Section I.F. Scope of Work in the NOFOs. Please do not submit identical applications to both the SWIFR and REO grant programs.

3. How do I determine if my organization is considered a “political subdivision” of a state or a territory?

Please refer to Section I.C: Key Definitions and Section III. A: Eligible Applicants of the NOFO for information on “Political Subdivision” (highlights displayed for emphasis).

The EPA considers counties, cities, towns, parishes, and similar units of governments that have executive and legislative functions to be political subdivisions of states.

Local governments are generally political subdivisions of states and differ from state and federal governments in that their authority is not based directly on a constitution. Each state constitution describes in detail a procedure for establishing local governments. In most cases the state legislature must approve the creation or incorporation of a local government. The local government then receives a charter defining its organization, authority and responsibilities, including the means for electing governing officials. Local government units bear a variety of names, such as city, county, township, village, parish, district, etc. The legal significance of these terms may vary from state to state. The authority of local governments varies greatly. Generally, a local government has the authority to:

• Impose taxes.
• Try people accused of breaking local laws or ordinances.
• Administer local programs within its boundaries.

Additionally, per Section III.A: Eligible Applicants, “A documented legal opinion is required from the applicant’s legal counsel or equivalent. If no documentation of eligibility from the state Attorney General’s office, the applicant’s legal officer, or equivalent is submitted with the application, the applicant will be deemed ineligible for funding. Excerpted text from state or local statues are not sufficient to prove qualification as a political subdivision of a state.”

If you are unsure about if your organization is considered a political subdivision after discussion with your organization’s legal officer, please contact [email protected].

4. We are a special district that wants to apply for the SWIFR grants for political subdivisions NOFO (EPA-I-OLEM-ORCR-24-05). It does say in Section III. A: Eligible Applicants of the NOFO that we need to provide legal opinions from the state Attorney General or equivalent or from the Chief Legal Officer of the state college or university to prove that we are a political subdivision of the state. I think it is clear from my state’s statute that they do consider special districts a political subdivision. Do I still need the legal opinion from the state Attorney General?

Yes, you will still need to provide legal opinions even in this instance. EPA will not be interpreting state law for determining if an entity is considered a political subdivision of the state/territory. EPA will also accept the legal opinion from the Chief Legal Officer of your organization. Depending on the clarity of the specific statute, that opinion does not necessarily have to be extensively researched.

Per Section III.A Eligible Applicants “A documented legal opinion is required from the applicant’s legal counsel or equivalent. If no documentation of eligibility from the state Attorney General’s office, the applicant’s legal officer, or equivalent is submitted with the application, the applicant will be deemed ineligible for funding. Excerpted text from state or local statues are not sufficient to prove qualification as a political subdivision of a state.” Please refer to the table on page 17 of the Notice of Funding Opportunity for more guidance on when documentation is needed to provide proof of eligibility as a political subdivision.

5. Our organization is a Planning District Commission is considered a form of Local Government under the definition in 2 CFR 200.1. The term Planning District Commission is also known as a Regional Council of Governments in other states. We serve various Counties. Additionally, we have a Solid Waste Management Committee that consists of Landfill Operators and Recycling and Solid Waste Managers from our region. We submit our Solid Waste Management Plan as a region and make decisions for regional cooperation and operations. Does are organization require proof that we are a political subdivision?

As stated in Section III.A: Eligible Applicants of the NOFO, the eligible applicants for the Solid Waste Infrastructure for Recycling NOFO include political subdivisions of the state. The EPA considers counties, cities, towns, parishes, and similar units of governments that have executive and legislative functions to be political subdivisions of states. The definition of Local Government under the definition in 2 CFR 200.1 does not equate with “political subdivision.” Other entities (e.g., state or territorial institutions of higher education, special districts, housing authorities) must provide documentation that the state or territory in which they are located considers these entities to be a political subdivision of the state. Documentation must cite applicable state or territorial law. Examples of acceptable forms of proof include legal opinions from the state Attorney General or equivalent or from the Chief Legal Officer of the state college or university.

Per Section III.A Eligible Applicants, “A documented legal opinion is required from the applicant’s legal counsel or equivalent. If no documentation of eligibility from the state Attorney General’s office, the applicant’s legal officer, or equivalent is submitted with the application, the applicant will be deemed ineligible for funding. Excerpted text from state or local statues are not sufficient to prove qualification as a political subdivision of a state.” Please refer to the table on page 17 of the NOFO for more guidance on when documentation is needed to provide proof of eligibility as a political subdivision.

6. We are a regional planning commission in Virginia. Do we need to contact the Attorney General’s office before we apply for this grant?

No, you do not need to contact the Attorney General’s office. Based on a previous opinion within an annual report cited below, all regional planning commissions in Virginia qualify as political subdivisions.

“A Planning District Commission is a political subdivision of the Commonwealth, chartered under the Regional Cooperation Act by the local governments of each planning district.” 2011 Op. Va. Att’y Gen. 3, 5. Please refer to Op. No. 11-039, p. 3-8 within the Opinions of the Attorney General and Report to the Governor of Virginia 2011(pdf)(2.8 MB).

7. Can Tribes apply for this funding opportunity?

No, there are separate SWIFR grants specifically for tribes and intertribal consortia. Learn more about that funding opportunity.

Procurement and Subawards

1. If we partner with an NGO and the funds they will receive are more than $10,000, then do we still comply with the competition requirements?

Generally, no, as long as the transaction with the NGO is not to procure commercial services such as accounting. Funding the NGO to carry out a portion of the substantive work under the EPA grant on a cost reimbursement basis (no profit allowed) would meet the requirements for a subaward under Appendix A of the EPA Subaward Policy (pdf)(406 KB). Under our Subaward Policy, recipients can select subrecipients on a non-competitive basis as long as that approach complies with the state/local laws and the subaward policies of the recipient. Note that our response presumes that the “NGO” you refer to is a private nonprofit organization.

2. Can an applicant’s project budget include funding a fiscally-sponsored organization (not a 501c3 themselves), in order for that organization to execute part of the applicant’s project initiatives?

No. EPA does not recognize or accept a “fiscal sponsorship” relationship in which an eligible applicant such as a non-profit organization applies for funding on behalf of an ineligible organization such as a for profit firm that will provide services necessary to execute a project. We have made that point clearly and directly in previous webinars on compliance with competitive procurement requirements contained in 2 CFR Parts 200 and 1500. EPA does not recognize “fiscally-sponsored organization” relationships that could be used to circumvent competitive procurement requirements. Any contracts between eligible applicants and for profit service providers must comply with the competition requirements in 2 CFR 200.319 and 2 CFR 200.320 as interpreted by EPA’s Best Practice Guide for Procuring Services, Supplies, and Equipment Under EPA Assistance Agreements. Note in particular the restrictions in 2 CFR 200.319(b) on potential contractors assisting applicants or recipients in preparing Requests for Proposals.

3. Our organization has recently been donated land to open a community composting facility. We need to purchase a $X,000 dump truck and a $X,000 skid steer (front end loader). We are 501(c)3 tax exempt. Would we qualify as a subrecipient to receive this equipment from a city as a pass-through organization? We would not be “profiting” from the equipment, but it would give us the ability to render services that would generate revenue to pay employees “fair and reasonable” salaries. Is this a subrecipient scenario that the EPA would deem acceptable?”

Yes. Assuming EPA selected the city for SWIFR funding they could choose to provide your organization with a noncompetitive subaward to purchase the dump truck and front end loader. The requirements for managing equipment specified in 2 CFR 200.313 would “flow down” to your organization. Those regulations specify that title to the equipment would vest in your organization (as the subrecipient) once your organization purchased the equipment with subaward funds. However, the City would remain accountable to EPA for proper use of the funds. Note that one requirement of the regulations at 2 CFR 313(c)(3) is that recipients “ . . . not use equipment acquired with the Federal award to provide services for a fee that is less than private companies charge for equivalent services unless specifically authorized by Federal statute for as long as the Federal Government retains an interest in the equipment.”. The Federal interest in the equipment remains in effect as long as the equipment is being used to carry out the EPA funded project. For more information about subawards please review EPA’s Subaward Policy.

4. The X City MRF is jointly owned by the City of X and the County of Y. The City of X owns the land, building, and equipment. The MRF is operated by a private contractor. The contractor was selected using the city of X’s procurement bidding and awarding process. The revenue produced is shared through a contractual revenue share agreement between all entities. We’re looking to submit an application for extending the MRF’s tip floor and upgrades to sorting equipment. The tip floor extension would require construction. I believe our application would be eligible but wanted to clarify as I heard information on today’s webinar that had me worried due to the profit element. 

The project is eligible for funding and there are no competitive procurement concerns because the City of X is not using EPA funds to procure the equipment from the firm operating the MRF facility. Rather, the City of X is purchasing equipment to upgrade its own MRF facility that is operated by a for profit firm under contract to the City. MFR facilities operated by for profit firms may be improved even though the for profit firm is not eligible to receive SWIFR funding as a grant recipient. An eligible recipient such as the City of X can receive funds to improve the facility (including funding for construction) and if necessary provide a subaward to the for-profit facility operator to reimburse the firm for otherwise eligible and allowable costs. However, the subaward could not include an allowance for profit in excess of actual costs the firm incurred for the project. For more information regarding competitive procurement please review EPA’s Best Practice Guide for Procuring Services, Supplies, and Equipment Under EPA Assistance Agreements (pdf)(438.5 KB).

5. We are partnering with several small cities to help them develop plans to implement city-scale reusable foodware systems. The cities are eager to champion the work and help secure funding, but they do not necessarily want to be the ultimate owner of the reuse infrastructure. In the SWIFR grants, can they subgrant some of the funding for other parties (a third party reuse service provider that could be either for profit or not for profit) for the purchase of the assets or does the grant require that the government entity be the owner of any purchased assets or infrastructure?

Recipients of SWIFR grants for political subdivisions may provide subawards (as pass-through entities) to eligible subrecipients to enable the subrecipient to purchase infrastructure assets (e.g. equipment or real property) necessary to improve municipal recycling or local solid waste management programs. The subrecipients would be subject to the Property Standards in 2 CFR Part 200 which would “flow down” to the subawards from the pass-through entities as provided in 2 CFR 200.332(b)(2) and (3). For example, the terms of the EPA award may require that the pass-through entity ensure that the subrecipient record liens on the property to ensure that disposition requirements are complied with if real or personal property acquired with EPA funds is sold. For more information about subawards please review EPA’s Subaward Policy.

National Environmental Policy Act (NEPA)

1. What kind of construction activities would trigger NEPA?

The SWIFR grants are subject to compliance with NEPA. Before the EPA can award the grant, the EPA will need to complete an environmental review and determine if the proposed action is eligible for coverage under a categorical exclusion or requires the preparation of an environmental assessment. It is anticipated that construction activities (i.e., ground disturbance) will require an environmental assessment to be prepared. Please refer to page 46, Section VI.H National Environmental Protection Act (NEPA) Compliance, for more information.

2. What happens if I have not done the NEPA review yet for my project? Does that mean my grant will be delayed?

The EPA will need to complete the environmental review under NEPA before it can award the grant. The EPA will review the proposed action to determine if it is eligible for coverage under a categorical exclusion or if it requires the preparation of an environmental assessment. The timing for completing the environmental review will vary under each proposed action, such as whether consultation may be required under the National Historic Preservation Act or Endangered Species Act, etc.

Per Section VI.H National Environmental Protection Act (NEPA) Compliance, “NEPA requirements must be met before any construction, fixed equipment, or ground disturbance activities can occur, per 40 CFR Part 6. NEPA requirements may take 3-6 months to complete, and applicants should account for this when developing their project timeline. Depending on the project, EPA may award grants with incremental funding using a phased approach for projects that involve both construction and non-construction activities”. For more information, please review page 46 of the NOFO.

Davis-Bacon Act

1. Do Davis-Bacon Related Act prevailing wage requirements apply to SWIFR cooperative agreements?

Yes. As provided in 33 U.S.C. 4282(e) EPA must ensure that “. . . all laborers and mechanics employed on projects funded directly, or assisted in whole or in part, by a [SWIFR grant] be paid wages at rates not less than those prevailing on projects of a character similar in the locality as determined by the Secretary of Labor in accordance with [the Davis-Bacon Act]”. The Davis-Bacon Act applies to contractors and subcontractors performing work on federally-funded or assisted construction contracts in excess of $2,000. Please refer to Section VI.G Project Labor Agreements and Prevailing Wage Requirements for more information.

2. How can we determine if Davis-Bacon prevailing wage requirements apply to a construction project that is partially funded with SWIFR grant funds?

As provided in 33 U.S.C. 4282(e) EPA must ensure that “. . . all laborers and mechanics employed on projects funded directly, or assisted in whole or in part, by a [SWIFR grant] be paid wages at rates not less than those prevailing on projects of a character similar in the locality as determined by the Secretary of Labor in accordance with [the Davis-Bacon Act]”. Emphasis added. EPA will follow the Department of Labor’s “purpose, time and place” test for determining whether Davis-Bacon compliance is required for construction projects that are funded “in part” by a SWIFR grant. Below is an excerpt from DOL guidance for the American Recovery and Reinvestment Act of 2009 (ARRA) which contained prevailing wage language virtually identical to 33 U.S.C. 4282(e).

Please refer to Section VI.G Project Labor Agreements and Prevailing Wage Requirements for more information.

3. Does this mean that if the Davis-Bacon Act applies to my construction project, and I’m using the SWIFR grants for part of that project, that the prevailing wage requirements would now apply to the entire project? 

That depends on the outcome of the Department of Labor’s “purpose, time and place” test as mentioned in the question above. It could mean that the prevailing wage requirements do apply to the entire project. However, as noted above, the federal agency [EPA] must examine every situation independently. 

General

1. Does my project need to report on all or just some of the outputs and outcomes listed in I.J Measuring and Reporting Environmental Results: Outputs and Outcomes?

EPA encourages applicants to discuss all of the following environmental outputs and outcomes in the Project Narrative Attachment (pdf)(41.85 KB). Successful applicants that receive grants must report on all of the measures described on pages 13-14 of the NOFO, even if the anticipated result is “0” or “not applicable.”

2. What should I consider as the maximum period of performance of these grants?

As stated in Section II.G: What is the project period for awards resulting from this solicitation? in the NOFOs, The estimated start date for projects resulting from this solicitation is December 2025. All project activities must be completed within the negotiated project performance period of three years. Please refer to the previous question on pre-award costs for more information on incurring project costs before the performance period begins.

3. How will grant funds be disbursed?

Grant funds will be paid up front once awards are made. Recipients must draw funds from the Automated Standard Application for Payments (ASAP) system for the minimum amounts needed for actual and immediate cash requirements to pay employees, contractors, subrecipients or to satisfy other obligations for allowable costs under this assistance agreement. The timing and amounts of the drawdowns must be as close as administratively feasible to actual disbursements of EPA funds. For additional information, please refer to EPA's General Terms and Conditions (pdf)(613 KB).

4. Will these NOFOs be offered in the future?

The SWIFR Grant Program for Political Subdivisions of States and Territories, the Infrastructure Investment and Jobs Act (IIJA), also known as the Bipartisan Infrastructure Law (BIL), provides $275,000,000 for grants authorized under Section 302(a) “Post-Consumer Materials Management Infrastructure Grant Program” of the Save Our Seas 2.0 Act (Public Law 116–224) as codified at 33 U.S.C. 4282(a). The BIL funds will be available to EPA at $55,000,000 per year from Fiscal Year 2022 to Fiscal Year 2026. EPA has not yet announced plans on future rounds of funding beyond the Notice of Funding Opportunity announced in September 2024.

5. Does my demonstration for the program tracks from Section I.E: Program Tracks in the NOFO count as part of the Narrative Proposal's 10-page limit or the "Summary Information Cover Letter” 1-page limit?

No, that demonstration will not count towards the page limit indicated in the NOFO. Applicants can put this demonstration as part of the “Optional Documents: Other Attachments.”

6. Where can I learn more about SAM.gov registration, UEI numbers, and/or Grants.gov registration?

Please review Section IV.B: Submission Information of the NOFOs. Also, visit Grants.gov Support Center or Sam.gov Contact webpage. You will be able to live chat or call an expert who will be able to help you with your issue.

7. Am I required to submit a notice of intent to apply?

The Letter of Intent to apply is not mandatory; it is a process management tool that will allow the EPA to better anticipate the total staff time required for efficient review, evaluation, and selection of submitted applications. There is no template or format needing to be followed. You can send the following information: approximate funding amount, the track under which you are applying (refer to Section I.E: Program Tracks for more information), and one to two sentences about the scope of your project to this inbox. The deadline to submit an informal notice of intent to [email protected] is November 15, 2024.

8. Can the grant money be used to cover a salary for up to three years of the project period?

Yes, as stated in the NOFO (Section IV.E.b.vi. Budget and Expenditure of Awarded Grant Funds) grants can be used for personnel costs for the grant period, which is up to three years.

9. Is a commitment of match required?

No, As referenced in Section I.E: Program Tracks of the NOFO, “There is no cost sharing or match requirement associated with this grant program. Voluntary cost share will not be accepted under this competition. Applicants’ project budgets, including on the Standard Form 424A, should only include costs that will be borne by SWIFR funding.”

10. Is a political subdivision required to submit a formal Municipal Certification to Request Funding (legislative council resolution) with its application for a SWIFR grant?

No, a formal Municipal Certification to Request Funding is not required to apply for a SWIFR grant for political subdivisions. Please refer to Section I.C: Key Definitions and Section III. A: Eligible Applicants of the NOFO for information on “Political Subdivision” (highlights displayed for emphasis). The EPA considers counties, cities, towns, parishes, and similar units of governments that have executive and legislative functions to be political subdivisions of states.

Local governments are generally political subdivisions of states and differ from state and federal governments in that their authority is not based directly on a constitution. Each state constitution describes in detail a procedure for establishing local governments. In most cases the state legislature must approve the creation or incorporation of a local government. The local government then receives a charter defining its organization, authority, and responsibilities, including the means for electing governing officials. Local government units bear a variety of names, such as city, county, township, village, parish, district, etc. The legal significance of these terms may vary from state to state. The authority of local governments varies greatly. Generally, a local government has the authority to:

• Impose taxes.
• Try people accused of breaking local laws or ordinances.
• Administer local programs within its boundaries.

11. Are local governments allowed to use grant funding to purchase grant equipment for privately owned MRFs?

As long as the political subdivision owns the equipment, it can be used and operated by a private company. Per Section III. A: Eligible Applicants, individuals, for-profit, and non-profit organizations are not eligible entities under this announcement but may participate in projects as contractors and subrecipients provided the transactions apply with applicable regulatory policy requirements. More information can be found in the EPA’s Subaward Policy (pdf)(406 KB).

12. Are there past examples I can look at?

Yes, examples of projects for current grant recipients can be found on our Selectees and Recipients webpage.

13. Can applicants apply for just the design phase of a project?

No, applicants may not apply just for the design phase of a project if only the design phase will be completed by December 2028.

14. Can SWIFR applicants form public-private partnerships with nonprofits?

No, SWIFR Grant applicants may not form public-private partnerships with non-profits. They may however list a non-profit as a subrecipient.

Subrecipients. All applicants must demonstrate that the named subrecipient is eligible for a subaward in compliance with Appendix A of EPA’s Subaward Policy (pdf)(406 KB). This policy provides, among other things, that transactions between recipients and for-profit firms and individual consultants are procurement contracts rather than subawards when the transaction involves the acquisition of services from the firm or individual. Refer to the EPA’s Contracts and Subawards Solicitation Clause for additional guidance on these requirements which must be met for all contractors (except for micro-purchases) and/or subrecipients specifically named in the application. Describe how the named subrecipient is eligible for subaward (e.g., is a nonprofit org).

All subrecipients are required to have a SAM.Gov registration, but do not need a the application. For more information please see 2 CFR 25.300a.

The different entities would need to be set up as subrecipients. Please refer to Section III.D Named Contractors and Subrecipients of the NOFO for more information.

15. Can I request to apply late to the funding opportunity because of SAM.gov difficulties?

No, as stated in Section IV. Application and Submission Information: “Failure of an applicant to submit prior to the application submission deadline date because they did not properly or timely register in SAM.gov or Grants.gov is not an acceptable reason to justify acceptance of an application outside of Grants.gov.”

16. Can projects be less than $500,000 or more than $5M? Is there any flexibility there?

Yes, for individual applicants the SWIFR Political Subdivision grant awards the absolute minimum is $500,000 and absolute maximum is $5M. Grant applications with rewards requests below $500,000 will not meet threshold eligibility criterion 4 in Section III.C: Threshold Eligibility Criteria, and thus will not be considered.

However, this absolute minimum and maximum does not apply to coalitions. Per Section III.A: Eligible Applicants, “EPA recognizes that awards of $500,000 to $5,000,000 may be too large for small or rural applicants to effectively manage. As a result, coalitions of small or rural applicants are eligible entities for funding. Groups of two or more eligible applicants (political subdivisions of states) may choose to form a coalition and submit a single application under this NOFO; however, one entity must be named as the applicant and will be the recipient responsible for the grant. Reference Section I.C: Key Definitions for more information on coalitions.”

17. May grantees use these funding opportunities as matching funds for other grant funding opportunities?

The EPA puts no prohibitions on using these funds to match other funding opportunities. Grantees should check with the federal agency requiring matching funds to determine whether this funding opportunity can be used under that funding opportunity. The answer is dependent on the grant requiring matching funds (as per 2 CFR 200.306(b)(5)).

18. Is the EPA making only one award per region?

No, the EPA anticipates making a minimum of one award per region, assuming an acceptable application is received from each region. Multiple awards per region may be made.

Per Section II.B: Funding Structure and Program Tracks, “The EPA anticipates awarding at least one award per EPA Region, depending on the availability of funds, quantity and quality of the applications received, and other applicable considerations. The minimum individual award is $500,000 and the maximum individual award is $5,000,000 for the grant period, which is up to three years. Refer to Section II: Award Information, of this announcement for more information.”

19. We would be applying for recycling equipment. Our equipment would be manufactured in the United States but the raw steel to build the equipment may be originally purchased from another country. Is this acceptable with Build America, Buy America?

This would not be acceptable. Per Section VI.F: Build America, Buy America Requirements, “Projects under this competition are subject to the Buy America Sourcing requirements under the Build America, Buy America (BABA) provisions of the Infrastructure Investment and Jobs Act (IIJA) (P.L. 117-58, Sections 70911-70917) when using funds for the purchase of goods, products, and materials on any form of construction, alteration, maintenance, or repair of infrastructure in the United States. The Buy America preference requirement applies to all of the iron and steel, manufactured products, and construction materials used for the infrastructure project under an award for identified the EPA’s financial assistance funding programs. These sourcing requirements require that all iron, steel, manufactured products, and construction materials used in Federally funded infrastructure projects must be produced in the United States. The recipient must implement these requirements in its procurements, and this article must flow down to all subawards and contracts at any tier. For legal definitions and sourcing requirements, the recipient must consult the EPA’s Build America, Buy America website.”

However, “when supported by rationale provided in IIJA Section 70914, the recipient may submit a waiver to the EPA. The recipient should request guidance on the submission instructions of an EPA waiver request from the EPA Project Officer. A list of approved EPA waivers is available on the EPA’s Build America, Buy America website.”

Please refer to Section VI.F Build America, Buy America Requirements for more information.

20. Can you provide additional information or instructions on filling out the EPA Form 4700-4 Preaward Compliance Review Report?

Information for completing EPA Form 4700-4 can be found on our website.

21. Can I use GAP grant funding to prepare my application for this NOFO? 

It depends on the nature of the project. Please refer to Section 6. Proposal Costs, of the Office of Grants and Debarment (OGD) Guidance on Selected Items of Cost for Recipients (pdf)(235 KB). 

As provided in 2 CFR Part 200.460, proposal preparation costs are normally covered by recipients’ indirect cost rates. However, directly charging proposal preparation costs is allowable for Tribes applying for GAP grants subject to limitations and requirements in the EPA Guidance on Selected Items of Cost and approval by an EPA Grants Official (i.e., a Regional Grants Management Officer or Award Official). To qualify for direct charging of proposal costs, the recipient must provide EPA with assurance that its indirect cost rate calculations do not include the same costs that will be charged directly. Proposal preparation costs must not exceed 5% of the total budget. 

22. Our current indirect cost rate is expired; however, we have submitted a newly requested rate to BIA and are awaiting approval. Can we submit a budget with our expired negotiated indirect cost rate? 

No. You should submit the rate you requested BIA to approve in your budget. However, if your application is successful and BIA has not approved your requested rate by the time EPA plans to award the funding you will not be able to drawdown indirect costs until the new rate is approved or you obtain a regulatory exception. Note that if BIA approves a lower rate than you requested you will have to adjust the budget to reflect the lower indirect cost rate. Please refer to the “Use of Expired Rate” guidance (pdf)(261 KB). in the document available at this link. You may submit your application with the proposed rate. Providing supporting documentation will support the rate included in your budget. We also recommend that you request that BIA approve your proposed indirect cost rate on an expedited basis. 

23. Where in the budget and budget description would I place the costs for registration to attend a training or a conference? 

We assume that this question relates to attendance at training or a conference by employees of a recipient of EPA funds. EPA’s Interim General Budget Development Guidance for Applicants and Recipients of EPA Financial Assistance (pdf)(591 KB) provides information on training costs. 

On pages 26-27; #3 of this guide states that “Costs for training courses for recipient employees (e.g., instructional services) provided by third parties would be classified as contractual although any travel costs for the employees would be categorized as travel.” Costs for training recipient employees in skills necessary to carry out the EPA funded projects, including training conferences, are allowable as provided in 2 CFR Part 200.473. 

The cost of registration fees for attending a conference that does not involve training, unless attending that conference was necessary and reasonable for performance of the EPA funded project, would not be allowable. EPA would need more information on the purpose of the conference to advise further. 

24. Are progress reports required? 

Yes. In the Notice of Funding Opportunity, Section VI.K: Reporting Requirements, Quarterly progress reports and a final technical report will be required. The quarterly progress reports will be submitted to the EPA Project Officer within thirty days after each reporting period. Quarterly reports shall cover: work status, work progress, difficulties encountered, preliminary data results, a statement of activity anticipated during the subsequent reporting period; a discussion of expenditures along with a comparison of the percentage of the project completed to the project schedule and an explanation of significant discrepancies; how program income is being used, if applicable; and any changes of key personnel concerned with the project. 

At the close of the grant, the successful applicant will submit a final technical report to the EPA Project Officer within 120 calendar days of completion of the period of performance. The final technical report shall include a summary of the project or activity, advances or goals achieved, and costs of the project or activity. In addition, the final technical report should discuss the problems, successes, and lessons learned during the project period. 

25. Can you explain the difference between threshold criteria and evaluation criteria? 

Threshold eligibility criteria (NOFO Section III.C: Threshold Eligibility Criteria) are the minimum criteria that applicants must satisfy for their application to be considered eligible. For this funding opportunity there are seven Threshold Criteria. Evaluation criteria (NOFO Section V.A: Evaluation Criteria) are the criteria used to rate and score the application. For this funding opportunity there are five Evaluation Criteria. 

26. Can you say a little more about Threshold Criterion 4 on duplicate activities? 

Funds awarded under this RFA may not be used to carry out the same activities that are already funded or in the process of being funded under other EPA financial assistance programs such as the Indian General Assistance Program, Tribal Hazardous Waste Management Grant Program, and the Tribal Response Program Grants or financial assistance applicants receive from other Federal agencies. For example, if a Tribe or intertribal consortium already has a grant covering compost equipment, they cannot also receive a grant from SWIFR for the same composting equipment. Duplicate activities will not be considered for funding under this opportunity. Our main concern would be to ensure that your Tribe or intertribal consortia does not charge two EPA assistance agreement for the same costs and that there is no duplication of effort using federal funds. 

27. Which EPA Solicitation Clauses apply to this funding opportunity? 

This NOFO was released on September 16, 2024, and will close after June 14, 2024. Therefore, the solicitation clauses applicable to this funding opportunity are the clauses published on June 14, 2024. 

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