plan for the remainder of the calendar year.

§ 465.12 Prohibited expenditures.

(a) No financial assistance provided to a State under this part shall be used to

(1) Construct or repair a building or structure;

(2) Purchase land, a building or structure or any interest therein; or

(3) Conduct, or purchase equipment to conduct, research and development or demonstration of conservation techniques and technologies not commercially available.

(b) No more than 20 percent of the financial assistance awarded to a State under this part shall be used to purchase equipment, office supplies or library materials.

(c) No more than 10 percent of the financial assistance provided to a State under this part shall be used to conduct the independent evaluation activities authorized in § 465.8(c)(6).

§ 465.13 Recordkeeping.

Each State or other entity within a State receiving financial assistance under this part shall make and retain records required by the Secretary, including records which fully disclose the amount and disposition of financial assistance received; the cost of administration; the total cost of all activities for which assistance is given or used; the source and amount of any funds not supplied by the Secretary; and any data and information which the Secretary determies are necessary to protect the interests of the United States and to facilitate an effective financial audit and performance evaluation. The Secretary, or any of his or her duly authorized representatives, shall have access, until three years after the completion of the activities involved, to any books, documents, records or receipts which the Secretary determines are related or pertinent, either directly or indirectly, to any financial assistance provided under this part.

terly program performance report and a quarterly financial statement. The program performance report shall contain such information as the Director may prescribe in order to monitor effectively the implementation of the State plan. The reports shall be submitted to the Regional Representative within 30 days following the end of each calendar quarter.

§ 465.15 Administration of financial assistance.

Grants provided under this part shall comply with the requirements of

(a) Office of Management and Budget Circular A-102, entitled "Uniform Administrative Requirements for Grants-in-Aid to State and Local Governments;"

(b) Office of Management and Budget Circular A-95, entitled "Evaluation, Review and Coordination of Federal and Federally Assisted Programs and Projects;"

(c) Federal Management Circular 73-2 (34 CFR 255), entitled "Audit on Federal Operations and Programs by Executive Branch Agencies;"

(d) Federal Management Circular 74-4 (34 CFR 255), entitled "Cost Principles Applicable to Grants and Contracts with State and Local Governments;"

(e) Office of Management and Budget Circular A-97, entitled "Rules and Regulations Permitting Federal Agencies to Provide Specialized or Technical Services to State and Local Units of Government under Title IIII of the Intergovernmental Coordination Act of 1968;"

(f) Treasury Circular 1082 Revised, entitled "Notification to States of Grant-in-Aid Information;"

(g) Treasury Circular 1075, entitled "Treasury Fiscal Requirements Manual"; and

(h) Other procedures which DOE or the Director may from time to time prescribe for the administration of financial assistance provided under this part.

As used in this part

"Act" means the Energy Research and Development Administration Appropriation Authorization of 1977, Pub. L. 95-39, 91 Stat. 180, 42 U.S.C. 5907a.

“Affiliate” means a concern which, either directly or indirectly, controls or has the power to control another concern, is controlled by or is within the power to control of another concern or, together with another concern, is controlled by or is within the power to control of a third party, taking into consideration all appropriate factors, including common ownership, common management and contractual relationships.

"Concern" means any business entity organized for profit (even if its ownership is in the hands of a nonprofit entity) with its principal place of business located in the United States. "Concern" includes, but is not limited to, an individual, partnership, corporation, joint venture, association

or cooperative. For the purpose of making affiliation findings, any business entity, whether organized for profit or not, and any foreign business entity (i.e., any entity located outside the United States), shall be included.

"DOE" means the Department of Energy.

"DOE-AR" means the Department of Energy Assistance Regulations (10 CFR Part 600).

"DOE-PR" means the Department of Energy Procurement Regulations (41 CFR Part 9).

"Indian tribe" means any tribe band, nation, or other organized group or community of Indians (including any Alaska native village or regional or village corporation as defined in or established pursuant to the Alaska Native Claims Settlement Act, Pub. L. 92-203, 85 Stat. 688, which (1) is recognized as eligible for the special programs and services provided by the United States to Indians because of their status as Indians; or (2) is located on, or in proximity to, a Federal or State reservation or rancheria, acting through its tribal organization.

"Local agency" means an agency or instrumentality of a local government. "Local government" means a local unit of government including specifically a county, municipality, city, town, township, local public authority, special district, intrastate district, council of governments, sponsor group representative organization, and other regional or intrastate government entity.

"Local nonprofit organization or institution" means any corporation trust, foundation, trade association, or other institution (1) which is entitled to exemption under section 501(c)(3) of the Internal Revenue Code or (2) which is not organized for profit and no part of the net earnings of which insure to the benefit of any private shareholder or individual.

"Program" means the appropriate technology small grants program.

"Small business" means a concern, including its affiliates, which is orga. nized for profit, is independently owned and operated, is not dominant in the field of operation in which it is submitting a proposal to DOE, and has 100 employees or less.

"Standard Federal regions" means the 10 standard Federal regions established by Office of Management and Budget Circular A-105, entitled "Standard Federal Regions."

"State" means any of the several States of the United States, the District of Columbia, the Commonwealth of Puerto Rico, and any territory or possession of the United States.

"State agency" means an agency or instrumentality of a State govern

ment.

"State government” means the government of a State, or an interstate organization.

"Support" means financial support or award under the program by grants, cooperative agreements or contracts.

"Tribal organization" means the recognized governing body of an Indian tribe, or any legally established organization of Native Americans which is controlled, sanctioned, or chartered by such governing body.

§ 470.10 Establishment of program.

There is established, under direction of the Assistant Secretary for Conservation and Solar Energy of DOE, an appropriate technology small grants program for the purpose of encouraging development and demonstration of, and the dissemination of information with respect to, energy-related systems and supporting technologies appropriate to

(a) The needs of local communities and the enhancement of community self-reliance through the use of available resources;

(b) The use of renewable resources and the conservation of non-renewable resources;

(c) The use of existing technologies applied to novel situations and uses; (d) Applications which are energy conserving, environmentally

small scale and low cost; and

sound,

(e) Applications which demonstrate simplicity of installation, operation and maintenance.

§ 470.11 Eligibility requirements.

(a) Support under this part may be made to individuals, local non-profit organizations and institutions. State and local agencies, Indian tribes and small businesses.

(b) The aggregate amount of support made available to any participant in the program, including affiliates, shall not exceed $50,000 during any 2year period. This limitation applies only to support for projects and not to funds received by participants from DOE for other purposes, such as performance of services.

(c) Projects which shall be considered for support are those which carry out the purposes of the program as expressed in § 470.10 and which are within the following categories

(1) Idea development, i.e., the development of an idea or concept or an investigative finding in areas ranging from development of new concepts of energy sources to the utilization of old procedures or systems for a new application;

(2) Device development, i.e., the systematic use and practical application of investigative findings and theories of a scientific or technical nature toward the production of, or improvements in, useful products to meet specific performance requirements but exclusive of manufacturing and production engineering. The dominant characteristic is that the effort be pointed toward specific energy problem areas to develop and evaluate the feasibility and practicability of proposed solutions and determine their parameters. Device development includes studies, investigations, initial hardware development and ultimately development of hardware, systems, or other means for experimental or operational test; or

(3) Demonstration, i.e., the testing of a system or technique under operation conditions to show that commercial application is technically, economically and environmentally feasible.

(d) Support for each category in paragraph (c) shall not, for a single participant in the program, including affiliates, exceed the following limits for any project—

(1) For idea development, $10,000; (2) For device development, $50,000; and

(3) For demonstration, $50,000. (4) A participant may receive under a subsequent program solicitation

(i) Additional support for a funded project or;

80-181 O-81--33

(ii) Initial support for a new project, subject to the support limits set forth in paragraphs (b) and (d) of this section.

§ 470.12 Management.

(a) The program shall be managed by a National Program Director within the Office of the Assistant Secretary for Conservation and Solar Energy of DOE.

(b) The program shall be implemented regionally, based on the 10 standard Federal regions or combinations thereof, to insure substntial consideration of the needs, resources, and special circumstances of local communities. Regions may be combined provided the requirements of OIffice of Management and Budget Circular A106 entitled "Standard Federal Regulations" are met. Regional Program Managers shall design and manage the regional programs as directed by the National Program Director and shall consult, as appropriate, with State and local officials, the appropriate technology community and other interested parties.

§ 470.13 Program solicitation.

(a) The Regional Program Managers shall be responsible for the preparation of program solicitations which solicit proposals for support under the program pursuant to simplified application procedures. Projects may be supported under the program only if they have successfully competed under a program solictation.

(b) Each program solicitation shall include

(1) A description of the program; (2) The eligibility requirements; (3) A time schedule for submission of, and action on, proposals;

(4) A simple application from for submitting a proposal for support under the program, together with instructions for completing the application form;

(5) Evaluation criteria, along with a narrative description of their relative importance;

(6) An explanation of the evaluation and selection procedures, including a notice to proposers that if the proposer expressly indicates that only Government evaluation is authorized,

DOE may be unable to give full consideration to the proposal.

(7) Other applicable information, terms and conditions, including the desired budget format;

(8) Place for, and manner of, submission;

(9) A unique number for identification purposes;

(10) A statement notifying potential proposers that an announcement does not commit DOE to pay any proposal perparation costs and that DOE reserves the right to select for support any, all, or none of the proposasl received inresponse to a solicitation;

(11) A late proposal provision;

(12) A statement notifying proposers how to identify information in the proposal which the proposer does not want disclsoed for purposes other than the evaluation of the proposal.

(13) A statment notifying proposers that all information contained in the proposal will be handled in accordance with the policies and procedures set forth in DOE-AR and DOE-PR, as applicable, and disclosed, if appropriate, in accordance with 10 CFR Part 1004 entitled "Freedom of Information."

(14) A statement notifying proposers of their right to request a debriefing pursuant to the procedures set forth in § 470.18; and

(15) A statment notifying proposers of their right to request a waiver of DOE's title to inventions made under the program.

(c) Each program solicitation shall be synopsized in the Commerce Business Daily prior to or concurrent with release. The program solicitation also shall be announced to appropriate newspapers, trade and technical publications, and State and local governments, and shall be circulated directly to interested individuals, entities, and associations thereof, to the maximum extent feasible.

meet these requirements, a prompt reply shall be sent to the proposer, indicating the reason(s) for the proposal not being selected for support under the program solicitation. A proposer may correct any minor informality or irregularity or apparent clerical mistake prior to the entering into of grants, contracts, or cooperative agreements. A minor informality or irregularity is one which is merely a matter of form and not of substance or pertains to some immaterial or inconsequential defect or variation from the exact requirements of the program announcement.

(b)(1) The Regional Program Manager shall select a number of technical evaluation reviewers representing several disciplines to ensure adequate technical review of proposals.

(2) After receiving nominations from each State or combinations of States within the Region, the Program Manager shall select a number of State reviewers for each State or combinations of States, respectively. The nominations and selections of State reviewers shall take into consideration representation by persons from a variety of backgrounds, in order that the reviewers are able to evaluate proposals of potential merit in various fields and from various types of proposers.

(3) The Regional Program Manager or designee shall provide proposals to the technical evaluation and State reviewers and shall provide their findings and comments to the selection panel established pursuant to paragraph (3) of this section.

(4) In carrying out the responsbilities set forth in paragraphs (1), (2) and (3) of this paragraph, the Regional Program Manager (i) shall determine the number of technical evaluation and State reviewers who shall review each proposal; (ii) shall determine the sequence of the technical and State review; (iii) may designate a person to serve as both a technical and State reviewer, if appropriate to the needs of the program in the Region. A decription of the Program Manager's determinations under this paragraph shall be included in the Program Solication pursuant to § 470.13(b)(6).

(c) Each technical evaluation reviewer shall evaluate those proposals

which he or she receives from the Regional Program Manager or designee and shall provide his or her findings to the Regional Program Manager or designee. In addition to the general criteria underlying the establishment of the program as set forth in § 470.10, the major criteria to be considered by each technical evaluation reviewer shall include

(1) Whether the proposal is technically feasible, including a determination as to whether the proposed energy savings or energy production can be technically achieved;

(2) Whether the results being proposed are capable of being measured; (3) Whether the proposal has any potential environmental, health and safety impacts; and

(4) From a technical standpoint, whether the proposal can be carried out within the funds being requested.

(d) Each State reviewer shall evaluate those proposals which he or she receives from the Program Manager or designee and shall provide his or her findings and comments to the Program Manager or designee. In addition to the general criteria underlying establishment of the program as set forth in § 470.10, the criteria to be considered by each State reviewer shall include

(1) The potential impact of the proposal on the energy needs and requirements of the community or region;

(2) The energy resource involved and its importance or availability to the community or region;

(3) The expected energy savings or production that will result from the proposal and the significance of those savings or production to the energy requirements of the community or region;

(4) The institutional barriers that may substantially affect the proposal and the potential of the proposal to deal with those barriers;

(5) The likelihood of commercialization or utilization of the technology, process, or items within the proposal and extent of such commercialization/ utilization;

(6) The innovative nature of the proposal;