[Code of Federal Regulations]
[Title 7, Volume 6]
[Revised as of January 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR634.17]

[Page 487-488]
 
                          TITLE 7--AGRICULTURE
 
   CHAPTER VI--NATURAL RESOURCES CONSERVATION SERVICE, DEPARTMENT OF 
                               AGRICULTURE
 
PART 634_RURAL CLEAN WATER PROGRAM--Table of Contents
 
               Subpart B_Project Authorization and Funding
 
Sec. 634.17  Termination of grant agreement.

    (a) Termination agreement or notice. (1) The State Conservationist, 
NRCS, may, based on evidence of failure to comply with the terms of the 
grant agreement, issue a notice of intent to terminate the grant 
agreement. The notice of intent to terminate has the force and effect of 
extending or modifying the conditions of the suspend order. Any 
modification of the conditions of the suspend order shall be shown in 
the notice and discussed with the administering agency. The State 
Conservationist shall give not less than ten (10) days written notice to 
the administering agency (certified mail, return receipt requested) of 
intent to terminate the grant in whole or in part.
    (2) After the administering agency has been afforded an opportunity 
for consultation, the State Conservationist, NRCS, may request 
authorization from the Administrator, NRCS, to terminate the grant in 
whole or in part. If the Administrator, NRCS, concurs in the termination 
action, the proposed termination notice will be forwarded to the 
Administrator, EPA, for concurrence.
    (3) After the Administrators, NRCS and EPA, have been informed of 
any expressed views of the administering agency and concurred in the 
proposed termination, the State Conservationist, NRCS, may, in writing 
(certified mail, return receipt requested), terminate the grant in whole 
or in part.
    (4) Termination of all or part of the grant agreement may be carried 
out by either execution of a termination agreement by the State 
Conservationist, NRCS, or issuance of a grant termination notice by the 
State Conservationist, NRCS. The agreement or notice shall establish the 
effective date of termination of the grant, the basis for settlement of 
grant termination

[[Page 488]]

costs, and the amount and date of payment of any sums due either party.
    (b) Basis for termination. A grant may be terminated by NRCS for 
good cause subject to negotiation and payment of appropriate termination 
settlement costs. Cause for termination by NRCS includes:
    (1) Failure by the administering agency to make satisfactory 
progress toward achieving an adequate level of participation; or other 
evidence satisfactory to the NRCWCC, Administrator, EPA, and the 
Administrator, NRCS, that the administering agency has failed or is 
unable to perform in accordance with the provisions of the grant 
agreement; or
    (2) Failure through no fault of the administering agency to achieve 
an adequate level of participation; or other evidence satisfactory to 
the NRCWCC, Administrator, EPA, and the Administrator, NRCS, that the 
planned actions approved in the project application cannot be achieved.
    (c) Effect of grant termination. (1)(i) In those cases where cause 
for grant termination is based on the administering agency's failure or 
inability to perform (Sec. 634.17(b)(1)), upon termination, the 
administering agency must refund or credit to the United States that 
portion of the grant funds paid or owed to the administering agency and 
allocable to the terminated project work. Funds needed to meet 
unavoidable commitments may be retained. All other funds, including 
unexpended cost-sharing monies for existing RCWP contracts executed 
prior to the termination date, shall be refunded to the United States. 
The administering agency shall not make any new commitments or enter 
into any new RCWP contracts. The administering agency shall reduce the 
amount of other outstanding commitments insofar as possible and report 
to the State Conservationist, NRCS, the uncommitted balance of funds 
awarded under the grant. The allowability of termination costs will be 
determined in conformance with applicable Federal cost principles.
    (ii) Upon termination of a grant agreement, existing RCWP contracts 
and their related obligations will immediately, and in no case later 
than 5 calendar days be transferred to the ASCS county office to assure 
continuity in payments to participants. The State Conservationist, NRCS, 
will immediately initiate action under Sec. 634.15 to establish a new 
administering agency for completion of the project.
    (2) In those cases where cause for grant termination is based on 
failure to achieve the planned actions through no fault of the 
administering agency, the termination agreement and amended grant 
agreement are to permit the administering agency to fulfill the 
obligations of its existing RCWP contracts. The administering agency 
shall not make any new commitments or enter into any new RCWP contracts 
without NRCS approval.