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Section 920.45 Application for the initial management program development grant, Published November 29, 1973 is hereby repealed and the following substituted therefore: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

In order to qualify for a grant under this section, the State must demonstrate to the satisfaction of the Secretary that such a grant will be used to develop a management program consistent with the requirements set forth in section 306 of the Act. After making the initial grant to a coastal State, no subsequent grant shall be made under this section unless the Secretary finds that the State is satisfactorily developing such a management program.

days prior to the desired grant beginning date. The application must be accompanied by evidence of compliance with A-95 requirements including the resolution of any problems raised by the proposed project. The OCZM will not accept applications substantially deficient in adherence to A-95 requirements.

(e) In Part IV, Program Narrative, of the Form CD-292, the applicant should respond to the following requirements.

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 §§ 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 manage

ment 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, area wide, 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).