[Code of Federal Regulations]
[Title 40, Volume 1]
[Revised as of July 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 40CFR35.146]

[Page 425-426]
 
                   TITLE 40--PROTECTION OF ENVIRONMENT
 
               CHAPTER I--ENVIRONMENTAL PROTECTION AGENCY
 
PART 35--STATE AND LOCAL ASSISTANCE--Table of Contents
 
                 Subpart A--Environmental Program Grants
 
Sec. 35.146  Maintenance of effort.

    (a) To receive funds under section 105, an agency must expend 
annually, for recurrent section 105 program expenditures, an amount of 
non-federal funds at least equal to such expenditures during the 
preceding fiscal year.
    (b) In order to award grants in a timely manner each fiscal year, 
the Regional Administrator shall compare an agency's proposed 
expenditure level, as detailed in the agency's grant application, to 
that agency's expenditure level in the second preceding fiscal year. 
When expenditure data for the preceding fiscal year is complete, the 
Regional Administrator shall use this information to determine the 
agency's compliance with its maintenance of effort requirement.
    (c) If the expenditure data for the preceding fiscal year shows that 
an agency did not meet the requirements of Sec. 35.146, the Regional 
Administrator will take action to recover the grant funds for the year 
in which the agency did not maintain its level of effort.
    (d) The Regional Administrator may grant an exception to 
Sec. 35.146(a) if, after notice and opportunity for a public hearing, 
the Regional Administrator determines that a reduction in expenditure is 
attributable to a non-selective reduction of the programs of all 
executive branch agencies of the applicable unit of government.

[[Page 426]]

    (e) The Regional Administrator will not award section 105 funds 
unless the applicant provides assurance that the grant will not supplant 
non-federal funds that would otherwise be available for maintaining the 
section 105 program.