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Page 4 of 7 Renewals None. Formula and Matching Requirements The regulation that implements the formula can be found at CFR 35.162, As stated in the Clean Water Act, appropriated funds are allotted among the State and Interstate Water Pollution Control Agencies on the basis of the extent of the pollution problems in the respective States. The six components in the revised Section 106 State allotment formula selected to reflect the extent of the water pollution control problems in the United States are: (1) surface water area; (2) ground water use; (3) water quality impairment; (4) point sources; (5) non -point sources; and (6) population of urbanized areas. The set -aside for Interstate Water Pollution Control Agencies is 2.6 percent of the total State monies appropriated under Section 106. The interstate allotment formula consists of two parts: (1) a funding floor, and (2) a variable portion. To receive a Section 106 Water Pollution Control grant, a State or interstate agency must expend annually for recurrent Section 106 program expenditures an amount of non-federal funds at least equal to expenditures during the fiscal year ending June 30, 1971. A portion of the annual Section 106 appropriation is set -aside for eligible Indian Tribes qualified under CWA Section 518(e), and an allocation formula is used to distribute these funds to the EPA Regions. The Tribal allocation formula consists of both a base portion (which is currently equal to $65,000 times the total number of Tribes with Treatment as a State (TAS) approval for Section 106 grants in each EPA Region), plus a weighted variable portion. The variable portion is based upon the total tribal water area (50 percent), land area (25 percent), and reservation population (25 percent) in each EPA Region. Tribal work plan costs include the costs of planning, developing, establishing, improving, and maintaining a water pollution control program. The Regional Administrator may provide up to 95 percent of the approved work plan costs for Tribes or intertribal consortia establishing a Section 106 water pollution control program. The Regional Administrator may increase the maximum Federal share if the tribe or intertribal consortium can demonstrate in writing to the satisfaction of the Regional Administrator that fiscal circumstances within the Tribe or within each Tribe that is a member of an intertribal consortium are constrained to such an extent that fulfilling the 5 percent match requirement would impose undue hardship. Since 2005, additional funds have been allocated for the purposes of strengthening State and Territorial water quality monitoring programs. Length and Time Phasing of Assistance One year; payments are approved quarterly and disbursed monthly. Reports Annual expenditure reports; semiannual program evaluations; revised budget following reallocation of funds; and other reports as Grant Agreement requires. Aud its Grants and cooperative agreements are subject to inspections and audits by the Comptroller General of the United States, the EPA Office of Inspector General, other EPA staff, or any authorized representative of the Federal government. Reviews by the EPA Project Officer and the Grants Specialist may occur each year. In accordance with the provisions of OMB Circular No. A-133 (Revised, June 27, 2003), "Audits of States, Local Governments, and Nonprofit Organizations," nonfederal entities that expend $500,000 or more in a year in Federal awards http:/Iwww.cfda.govipls/portal30/CATALOG .PROGRAM_TEXT_RPT.SHOW?parg_ na... 9/16/2008