(a) Allowable grant costs are limited to those costs that are necessary and
reasonable for accomplishment of approved grant objectives and meet the
applicable Federal cost principles in 43 CFR 12.60(b). Purchase of informational
signs, program signs, and symbols designating pumpout and dump stations, are
allowable costs.

(b) Grants or facilities designed to include purposes other than those eligible
under the Act shall have the costs prorated equitably among the various
purposes. Grant funds shall only be used for the part of the activity related to
the Clean Vessel Act.

(c) Costs incurred prior to the effective date of the grant agreement are not
allowable with the exception that preliminary costs are allowed only with the
approval of the appropriate Regional Director. Preliminary costs may include
such items as feasibility surveys, engineering design, biological
reconnaissance, appraisals, or preparation of grant documents such as
environmental assessments for compliance with the National Environmental Policy
Act.

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