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Grant Agreement No. 4600011889 <br />Page 2 of 32 <br />2) Environmental Documentation: <br />i) Grantee submits to the State all applicable environmental permits, <br />ii) Documents that satisfy the CEQA process are received by the State, <br />iii) State has completed its CEQA compliance review as a Responsible Agency, and <br />iv) Grantee receives written concurrence from the State of Lead Agency's CEQA <br />documents and State notice of verification of environmental permit submittal. <br />State's concurrence of Lead Agency's CEQA documents is fully discretionary and shall <br />constitute a condition precedent to any work (i.e., construction or implementation activities) <br />for which it is required. Once CEQA documentation has been completed, State will consider <br />the environmental documents and decide whether to continue to fund the project or to <br />require changes, alterations or other mitigation. Grantee must also demonstrate that it has <br />complied with all applicable requirements of the National Environmental Policy Act by <br />submitting copies of any environmental documents, including environmental impact <br />statements, Finding of No Significant Impact, and mitigation monitoring programs as may be <br />required prior to beginning construction/implementation. <br />6. DISBURSEMENT OF FUNDS. State will disburse to Grantee the amount approved, subject to the <br />availability of funds through normal State processes. Notwithstanding any other provision of this <br />Grant Agreement, no disbursement shall be required at any time or in any manner which is in <br />violation of, or in conflict with, federal or state laws, rules, or regulations, or which may require any <br />rebates to the federal government, or any loss of tax-free status on state bonds, pursuant to any <br />federal statute or regulation. <br />7. ELIGIBLE PROJECT COST. Grantee shall apply State funds only to Eligible Project Costs in <br />accordance with applicable provisions of the law. Work performed on the project after January <br />22, 2016, shall be eligible for reimbursement. <br />Costs that are not eligible for reimbursement include, but are not limited to the following items: <br />a) Operation and maintenance costs, Purchase of equipment that is not an integral part of a <br />project. <br />b) Establishing a reserve fund. <br />c) Purchase of water supply. <br />d) Replacement of existing funding sources for ongoing programs. <br />e) Support of existing agency requirements and mandates (e.g., punitive regulatory agency <br />requirement). <br />f) Purchase of land in excess of the minimum required acreage necessary to operate as an <br />integral part of a project, as set forth and detailed by engineering and feasibility studies. <br />g) Payment of principal or interest of existing indebtedness or any interest payments unless the <br />debt is incurred after execution of this Grant Agreement, the State agrees in writing to the <br />eligibility of the costs for reimbursement before the debt is incurred, and the purposes for <br />which the debt is incurred are otherwise eligible costs. However, this will only be allowed as <br />Grantee Cost Share (i.e., Funding Match). <br />h) Payment of stipends <br />i) Application preparation costs for other funding opportunities not consistent with IRWM. <br />j) Meals not directly related to travel. <br />k) Acquisition of real property (land or easements). <br />25C-13 <br />