(a) The primary purpose of development grants made under Section 305 of the Act is to assist a state in developing a comprehensive management program for their coastal zone that can be approved by the Secretary. The purpose of these guidelines is to define clearly the processes by which grantees apply for and administer grants under the Act. These guidelines shall be used and interpreted in conjunction with the Grants Management Manual for Grants under the Coastal Zone Management Act, hereinafter referred to as the "Manual." This Manual contains procedures and guidelines for the administration of all grants covered under the Coastal Zone Management Act of 1972, as amended. It has been designed as a tool for grantees, although it also addresses the responsibilities of the National Oceanic and Atmospheric Administration and its Office of Coastal Zone Management, which is responsible for administering programs under the Act. The Manual incorporates a wide range of Federal requirements, including those established by the Office of Management and Budget, the General Services Administration, the Department of the Treasury, the General Accounting Office and the Department of Commerce. In addition to specific policy requirements of these agencies, the Manual includes recommended policies and procedures for a grantee to use in submitting a grant application. Inclusion of recommended policies and procedures for grantees does not limit the choice of grantees in selecting those most useful and applicable to local requirements and conditions. Grants given to the State must be expended for the development of a management program that meets the requirements of the Act. The grants shall not exceed two-thirds of the total cost of the development programs. Federal funds received from other sources cannot be used to match OCZM grants. No more than three annual management program development grants can be awarded to a State.

Section 920.45 Application for the initial management program development grant, Published November 29, 1973 is hereby repealed and the following substituted therefore:

§ 920.45 Application for the initial management program development grant. (a) The Form CD-288, Preapplication for Federal Assistance, required only for the initial grant, should be submitted 120 days prior to the beginning date of the requested grant. The preapplication shall include documentation, signed by the Governor, designating the State office, agency or entity to apply for and administer the grant.

(b) All applications are subject to the provisions of OMB Circular A-95 (revised). The Form CD-288, Preapplication for Federal Assistance, will be transmitted to the appropriate clearinghouses at the time it is submitted to the Office of Coastal Zone Management (OCZM). If the application is determined to be Statewide or broader in nature, a statement to that effect shall be attached to the Preapplication form submitted to OCZM. Such a determination does not preclude the State clearinghouse from involving areawide clearinghouses in the review. In any event, whether the application is considered to be Statewide or not, the Preapplication form shall include an attachment indicating the date copies of the Preapplication form were transmitted to the State clearinghouse and if applicable, the identity of the areawide

clearinghouse(s) receiving copies of the Preapplication form and the date(s) transmitted. The Preapplication form may be used to meet the project notification and review requirements of OMB Circular A-95 with the concurrence of the appropriate clearinghouses. In the absence of such concurrence the project notification and review procedures, established by State and areawide clearinghouses, should be implemented simultaneously with the distribution of the Preapplication form.

(c) Costs claimed as charges to the grant project must be beneficial and necessary to the objectives of the grant project. As used herein the terms costs and grant project pertain to both the Federal grant and the matching share. The allowability of costs will be determined in accordance with the provisions of FMC 74-4: Cost Principles Applicable to Grants and Contracts with State and Local Governments.

Applicants are urged to be clear and brief.

(1) Summarize the State's past and current activities in its coastal zone and describe the current status of coastal management and related activities.

(2) Discuss and rank by general order of importance the major coastal zone related problems and issues facing the State.

(3) Identify the goals the State expects to achieve by development of its coastal zone management program, and the objectives it has set to meet those goals.

(4) Describe the overall program design for developing the management program. This should be an outline of the State's plan of action, identifying the work to be accomplished, for developing an approvable management program. Briefly and generally describe how the overall program design is intended to meet the requirements set forth in $8 920.11, 920.12, 920.13, 920.14, 920.15, 920.16 of Subpart B of this part. In developing the overall program design the applicant should also give early consideration to the more specific requirements for approval of a management program as set forth in 15 CFR Part 923, Subparts B, C, D and E. The applicant will also find in Subpart A, § 923.4 a general description of the factors considered in the evaluation of management programs submitted for approval. In addition the program design should specifically in

clude:

(1) An identification of existing information and sources of information;

(11) A projection as to additional information must be acquired;

(iii) A description of methods to insure public participation;

(iv) A description of the intergovernmental process by which the State intends to involve various levels of government in the development of the management program;

(v) A mechanism for coordination with agencies administering excluded Federal lands that are in the coastal

zone;

(vi) A tentative approximation of the boundaries of the State's coastal zone;

(vii) Identification of any other Fed

eral and State planning, programming or activity which may have a significant impact on the State's coastal zone. Such planning, programming or activities includes work accomplished or to be undertaken by any Federal, State, areawide, local, regional or interstate agencies, regardless of source of funding. Additionally the application shall reflect, and the coastal zone management program as it is developed will provide methods to integrate Federally assisted programs. Programs such as, but not limited to, those listed below as well as any Federally supported land use program which may be hereafter enacted should be considered. (The program numbers and titles listed on the next page are those contained in the 1974 Catalog of Federal Domestic Assistance).

Assistance.

(5) Set forth a work program describing the work to be accomplished during the grant period. The work program should be consistent with the phasing of the overall program design and should include:

(i) A precise description of each major task to be undertaken, how it will be accomplished and who will do it.

(ii) For each task identify any "Other Entities" as defined in the "Manual," that will be allocated responsibility for carrying out all or portions of the task, and indicate the estimated cost of the subcontract/grant for each allocation. Identify, if any, that portion of the task that will be carried out under contract with consultants and indicate the estimated cost of such contract(s).

(iii) For each task indicate the estimated total cost. Also indicate the estimated total man-months, if any, allocated to the task from the applicant's

staff.

Section 920.46 Approval of applications, published November 29, 1973 is hereby repealed and the following substituted therefore:

§ 920.46 Approval of applications.

(a) The application for a management program development grant of any coastal State which complies with the policies and requirements of the Act and these guidelines, shall be approved by OCZM, assuming available funding.

(b) Should an application be found deficient, OCZM will notify the applicant in writing, setting forth in detail the manner in which the application fails to conform to the requirements of the Act or this subpart. Conferences may be held on these matters. Corrections or adjustments to the application will provide the basis for resubmittal of the application for further consideration and review.

(c) OCZM may, upon finding of extenuating circumstances relating to applications for assistance, waive appropriate administrative requirements contained herein.

Section 920.47 Amendments, Published November 29, 1973 is hereby repealed and the following substituted therefore:

§ 920.47 Amendments.

Amendments to an approved application must be submitted to, and approved by, the OCZM prior to initiation of the change contémplated. Requests for substantial changes should be discussed with OCZM well in advance. It is recognized that, while all amendments must be approved by OCZM, most such requests will be relatively minor in scope; therefore, approval may be presumed for minor amendments if the State has not been notified of objections within 30 working days of date of postmark of the request.

Section 920.48 Application for second year grants, published November 29, 1973 is hereby repealed and the following substituted therefor:

§ 920.48 Application for second year

grants.

(a) Second year development grant applications will follow the procedures set forth in § 920.45 (c), (d), (e) (5), (6), cation form may be used at the option (7) with the exception that the preappliof the applicant. If used, the procedures

set forth in § 920.45 (b) will be followed.

In any event the A-95 project notification and review procedures established by State and areawide clearinghouses should be followed. Additionally, the program design (§ 920.45 (e) (4)) shall be updated to:

(1) Describe how the past year's work and products contributed to the accomplishment of the overall program design and to meeting the requirements set forth in § 920.45 (e). At this point clearly establish and identify the relationship between the tasks set out in the overall program design and the criteria established for approval of a coastal zone management program as set forth in 15 CFR Part 923, Subparts B, C, D and E.

(2) Examine and assess the need, if any, to modify the overall program design or the management program development goals and objectives or both in view of the above or of any emerging opportunities or problems.

(b) In evaluating whether a State is making satisfactory progress in the development of a management program to determine eligibility for the second year grant, the Secretary will consider among other things:

(1) The progress made toward meeting management program goals and objectives;

(2) The progress demonstrated in completing the first year work program;

(3) The relationship identified between the program design and meeting the criteria required for Final approval of a coastal zone management program.

(4) The effectiveness of mechanisms for insuring public participation and consultation with affected Federal, State, regional and local agencies.

(c) If the overall program design provides for developing a management program in two years, the application for a second year grant should be prepared in accordance with 920.49.

Section 920.49 Application for third year grants, published November 29, 1973 is hereby repealed and the following substituted therefore:

§ 920.49 Application for third year grants.

(a) Third year development grant applications will follow the procedures set forth in § 920.45 (c), (d), (e) (5), (6), (7) with the exception that the preapplication form may be used at the option of the applicant. If used, the procedures set forth in § 920.45 (b) will be followed. In any event the A-95 project notification and review procedures established by State and areawide clearinghouses should be followed. Additionally the program design (§ 920.45 (e) (4)) shall be updated to:

(1) Describe how the second year's work and products contributed to the accomplishment of the overall program design and specifically to meeting the criteria established for approval of a coastal zone management program as B, C, D and E. set forth in 15 CFR Part 923, Subparts

(2) Examine and assess the need, if any, to modify the overall program design or the management program development goals and objectives or both in view of the above or of any emerging opportunities or problems.

(3) A projection as to when the State will submit a management program to the Secretary for review and Final approval or when a management program