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1. SCIP Implementation Reports The 9/11 Act requires States and territories to submit annual reports to OEC on progress in implementing that State's SCIP and achieving interoperability at the interstate, State, county, regional, and city levels as a condition of receiving funding. OEC developed a SCIP Implementation Report for all 56 States and territories based on a comprehensive review of each respective SCIP. Through the SCIP Implementation Report, States will be expected to identify their methodology for demonstrating and reporting on NECP Goal 2. Each State and territory will be required to update its SCIP Implementation Report within 30 days after the end of the IECGP reporting period (July 30 for the reporting period of January 1 through June 30). Beginning in FY 2009, States and territories were encouraged to begin aligning SCIPs to the NECP. 2. Grant funds The SAA must obligate 80 percent of the funds awarded under IECGP to local and tribal governments within 45 days of receipt of the funds. No pass-through requirements will be applied to the District of Columbia, Guam, American Samoa, the U.S. Virgin Islands, and the Commonwealth of the Northern Mariana Islands. Each State (as well as Puerto Rico) may retain a portion of the 80 percent pass-through for expenditures made by the State on behalf of local or tribal governments. This may occur only with the written consent of the local or tribal unit of government, with the written consent specifying the amount of funds to be retained and the intended use of funds. 3. Priority Guidance As stated in the Program Funding Goals Section, funding retained by the State or territory must be used to achieve the objectives in Priority Group One and in Priority Group Two before using funds for interoperable emergency communications equipment acquisition. Pass-through recipients at the local and tribal levels of government, though encouraged to establish and enhance governance structures and establish common planning and operational protocols, have the flexibility to select projects in Priority Group One or Priority Group Two. Pass-through recipients must also fulfill both Priority Group One and Priority Group Two objectives prior to using IECGP funds for interoperable emergency communications equipment acquisition. Note: For all proposed FY 2010 IECGP projects that relate to personnel, applicants must identify sustainable sources of funding (or a plan for obtaining sustainable sources) and work to integrate new staff into the State budget in future years to maintain this capability. 10 55A-16