6560-50-P
ENVIRONMENTAL PROTECTION AGENCY
[FRL–12053-01-OA]
Applicability Date for the Office of Management and Budget’s Regulatory Revisions
AGENCY: Environmental Protection Agency (EPA).
ACTION: Notice of applicability date.
SUMMARY: The Environmental Protection Agency (EPA) is applying the Office of
Management and Budget’s final rule and final guidance revising the termination provisions of its
regulations to financial assistance agreements that are awarded, or amended to add funds, on or
after July 1, 2024 as specified in the terms and conditions of awards.
DATES: The revised version of 2 CFR 200.340 will apply to EPA financial assistance
agreements awarded or amended to add funds on or after [INSERT DATE OF PUBLICATION IN
THE FEDERAL REGISTER].

FOR FURTHER INFORMATION CONTACT: EPA’s Office of the Administrator
(Attention: Hieu Le) at Le.Hieu@epa.gov or (202) 564-4700.
SUPPLEMENTARY INFORMATION: As codified at 2 CFR 1500.2, EPA has adopted
OMB's Federal Financial Assistance regulations (subparts A through F of 2 CFR part 200),
including any amendments. EPA implements any amendments to OMB's regulations when such
changes become effective. On April 22, 2024, OMB finalized several revisions and updates to its
Federal Financial Assistance regulations. See Guidance for Federal Financial Assistance, 89 FR
30046 (April 22, 2024). OMB made the changes effective October 1, 2024, but authorized
Federal agencies to apply the changes to Federal awards issued prior to October 1, 2024.
Specifically, OMB stated: “Federal agencies may elect to apply the final guidance to Federal
awards issued prior to October 1, 2024, but they are not required to do so. For agencies applying
the final guidance before October 1, 2024, the effective date of the final guidance must be no
earlier than June 21, 2024.” 89 FR 30046 (April 22, 2024).

OMB’s final rule revised, among others, the termination provisions of 2 CFR 200.340.
Specifically, OMB revised 2 CFR 200.340(a)(4) to clarify that an agency may terminate a
Federal award if it no longer effectuates the program goals or agency priorities (e.g. unilateral
termination) but only when such language is clearly and unambiguously included in the terms
and conditions of the award. OMB also revised 2 CFR 200.340(b) to require agencies to “clearly
and unambiguously specify all termination provisions in the terms and conditions of the Federal
award.” 89 FR 30046, 30169 (emphasis added), April 22, 2024. As authorized under OMB’s
final rule, and in an effort to provide clarity on termination of its awards as expeditiously as
possible, EPA has decided to apply the revised version of 2 CFR 200.340 to EPA financial
assistance agreements awarded or amended to add funds on or after July 1, 2024. This will allow
EPA to implement the revised version of 2 CFR 200.340 through the terms and conditions of
awards, as determined by EPA on or after that date. Consistent with the revised termination
provision, EPA will clearly and unambiguously specify all termination provisions in the terms
and conditions of applicable awards, including an express authorization for unilateral termination
when dictated by case- or program-specific needs. Any subsequent changes to the grounds for
unilateral termination of an assistance agreement must be agreed to by both EPA and the
financial assistance agreement recipient and authorized by 2 CFR 200.340 or a successor
regulation in effect at the time of award or the amendment adding additional funding.
EPA intends to implement all other revisions to title 2 of the Code of Federal Regulations
described in the April 22, 2024 (89 FR 30046), OMB final rule and notification of final guidance
in awards made or amended to add additional funds on or after October 1, 2024.
Janet McCabe,
Deputy Administrator,
U.S. Environmental Protection Agency.
[FR Doc. 2024-14656 Filed: 7/2/2024 8:45 am; Publication Date: 7/3/2024]