Is the benefit to EPA incidental (i.e., do funded activities compliment EPAs mission)?
The distinguishing factor between a grant and a cooperative agreement is the degree of Federal participation or involvement during the performance of the work activities. If EPA, usually the Project Officer, participates in project activities, then a cooperative agreement is the proper funding mechanism. If the funded activities meet the definition of assistance and no substantial involvement by EPA is anticipated, a grant must be used to fund the project. It should be noted that the FGCAA is not the legal authority by which EPA funds assistance agreements. EPA’s legal authorities are obtained from the environmental statutes (Clean Air Act, Clean Water Act, etc.).
