Land and Water Conservation Fund Program Performance Report

Land and Water Conservation Fund Program Performance Reports

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Land and Water Conservation Fund Program Performance Report

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NATIONAL PARK SERVICE
U. S. DEPARTMENT OF THE INTERIOR

LAND AND WATER CONSERVATION FUND
STATE ASSISTANCE PROGRAM

FEDERAL FINANCIAL ASSISTANCE MANUAL
Volume 69
Effective Date: October 1, 2008

TABLE OF CONTENTS

PREFACE

A. Background

B. Program Information

C. Internet Resources

CHAPTER 1 - GENERAL PROGRAM INFORMATION

A. Program Summary

B. State Apportionment Formula and Special Reapportionment

C. Program Review of State LWCF Program Administration

D. Annual Report

CHAPTER 2 - STATEWIDE COMPREHENSIVE OUTDOOR RECREATION PLAN
AND OPEN PROJECT SELECTION PROCESS

A. State Plan Preparation, Procedures, and Eligibility

B. Open Project Selection Process

C. Financial Assistance for SCORP Development

CHAPTER 3 - ACQUISITION AND DEVELOPMENT PROJECT ELIGIBILITY

A. General Project Criteria

B. Criteria for Acquisition

C. Criteria for Development

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CHAPTER 4 - PROPOSALS, ENVIRONMENTAL REVIEW AND FEDERAL
COMPLIANCE

A. Proposal Development and Screening for Environmental Impacts

B. National Environmental Policy Act

C. National Historic Preservation Act, Section 106 Process

D. Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970

E. Equal Employment Opportunity Contract Compliance

F. National Flood Insurance Program

G. Civil Rights

H. Contracting with Minority Business Enterprise/Women Business Enterprise Firms

CHAPTER 5 - COST PRINCIPLES

A. General Cost Principles

B. Sponsor Financial Obligations

Allowable Costs

CHAPTER 6 - APPLICATION AND EVALUATION PROCEDURES

A. Prerequisites for Applying

B. Application Process

C. NPS Review Process

D. Amending Existing Projects

E. Withdrawal or Changes in Project Application

F. Project Numbering System

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CHAPTER 7 - PROJECT ADMINISTRATION AND FINANCIAL MANAGEMENT

A. General Administrative Requirements

B. Procurement Standards

C. LWCF Acknowledgement Signs

D. Performance/Financial Management and Reporting.

E. Payments

F. Audits

G. Project Termination/Grant Closeout

CHAPTER 8 - POST-COMPLETION AND STEWARDSHIP

A. Purpose

B. Operation and Maintenance

C. Availability to Users

D. Leasing and Concession Operations Within Section 6(f)(3) Areas

E. Conversions of Use

F. Underground Utility Easements and Rights-of-Way

G. Commercial Signage in Section 6(f)(3) Areas

H. Proposals to Construct Public Facilities

Requests for Temporary Non-Conforming Uses Within Section 6(f)(3) Areas

Sheltering Facilities within Section 6(f)(3) Areas

K. Obsolete Facilities

L. Significant Change of Use

M. Post-Completion Inspections

N. Penalties for Failure to Comply with Federal Laws and Regulations

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DEPARTMENT OF THE INTERIOR
NATIONAL PARK SERVICE
LAND AND WATER CONSERVATION FUND
STATE ASSISTANCE PROGRAM
FEDERAL FINANCIAL ASSISTANCE MANUAL
PREFACE
This manual sets forth the administrative procedures and requirements for Land and Water
Conservation Fund (LWCF) federal assistance (Catalog of Federal Domestic Assistance
#15.916) to the States by the Department of the Interior, National Park Service (NPS). It
supersedes the program's existing LWCF GRANTS MANUAL (NPS-34). It is also intended to
serve as a basic reference for those who are engaged in the administrative, financial management
and stewardship responsibilities of the LWCF State Assistance Program.
It is the responsibility of the State, as primary grant recipient, to comply with these requirements
and all terms and conditions of the grant agreement. The State’s responsibility cannot be
delegated nor transferred.
Participation in the LWCF State Assistance Program is deemed to constitute a public trust. As
such, participants are responsible for the efficient and effective management of funds in
accordance with the approved budgets, for promptly completing grant assisted activities in a
diligent and professional manner, and for monitoring and reporting performance.
The procedures and requirements contained herein are subject to applicable federal laws and
regulations, and any changes made to these laws and regulations subsequent to the publication of
this manual. In the event that these procedures and requirements conflict with applicable federal
laws, regulations, and policies, the following order of precedence will prevail:
1.
2.
3.
4.

Federal Law
The Code of Federal Regulations
Terms and Conditions of Grant Award
Land and Water Conservation Fund State Assistance Program Manual

The State bears primary responsibility for the administration and success of each grant, including
performance by third parties under subagreements made by the State for accomplishing
nonconstruction and construction project objectives. The provisions included herein shall also
be applied by the State to subgrantees and contractors performing work under the LWCF State
Assistance Program.

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This edition of the LWCF State Assistance Program Manual supersedes all previous editions and
amendments through Manual Release No. 151. Subsequent updates shall be distinguished by the
effective date denoted within the footer appearing at the bottom of each chapter page. The
Manual in effect at the time a grant is awarded governs the project except for post-completion
requirements. A current version of the Manual can be found at the LWCF Website.
A. Background
The LWCF State Assistance Program was established by the LWCF Act of 1965 (Section 6,
Land and Water Conservation Fund Act of 1965, as amended; Public Law 88-578; 16 U.S.C.
4601-4 et seq.) to stimulate a nationwide action program to assist in preserving, developing, and
assuring to all citizens of the United States of present and future generations such quality and
quantity of outdoor recreation resources as may be available and are necessary and desirable for
individual active participation. The program provides matching grants to States and through
States to local units of government, for the acquisition and development of public outdoor
recreation sites and facilities. Grant funds are also available, to States only, for fulfilling the
statewide comprehensive outdoor recreation planning requirements of the program.
The LWCF program was administered by the Bureau of Outdoor Recreation (BOR) from its
beginning in 1965 to 1978 when the Heritage Conservation and Recreation Service (HCRS) was
created. HCRS then administered the program until 1981 when the LWCF was transferred to the
National Park Service.
Since the origin of the program in 1965, over $3.7 billion has been apportioned to the 50 states,
the District of Columbia, American Samoa, Guam, Northern Mariana Islands, Puerto Rico and
the Virgin Islands for planning, acquisition, and development of outdoor recreation resources in
the United States. More than 40,000 projects have been approved to assist state and local efforts
to acquire land and develop facilities for public outdoor recreation purposes. The federal
investment has been matched by state and local contributions for a total LWCF grant investment
of over $7.4 billion. A LWCF-assisted park is located in over 98 percent of counties in the
United States.
The income for the LWCF is provided largely from Outer Continental Shelf mineral receipts.
The amount available from the LWCF for state grants is determined by the annual Congressional
appropriation process. This amount is supplemented by a guaranteed amount set aside each year
in a special Treasury account from other qualified off-shore revenues pursuant to the Gulf of
Mexico Energy Security Act, Public Law 109-432.
B. Program Information
LWCF grants are provided to the States, and through the States to local governmental
jurisdictions, on a matching basis for up to fifty percent (50%) of the total project-related
allowable costs for the acquisition of land and the development of facilities for public outdoor
recreation and for fulfilling the program's planning requirements. Grants to eligible insular areas

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(American Samoa, Guam, the Northern Mariana Islands, Puerto Rico, and the Virgin Islands)
may be for 100% assistance. Appropriations from the LWCF may be made annually by
Congress to the Secretary of the Interior who apportions the funds to the States. Payments for all
projects are made to the state organization that is authorized to accept and administer funds paid
for approved projects. Local units of government participate in the program as subgrantees of
the State with the State retaining primary grant compliance responsibility. Each State must have
a “State Liaison Officer” (SLO) appointed by the Governor or designated by the state legislature
to administer the LWCF program at the state level.
Information about the LWCF State Assistance Program including contact information for
National Park Service Regional Offices can be found on the Web at www.nps.gov/lwcf or
contact lwcf.grants@nps.gov
C. Internet Resources
This manual contains references to many laws, regulations, forms, and other information sources
relating to the LWCF State Assistance Program that are available on the Internet. Text in this
manual with a “dotted underscore” indicates that further information is available on the Internet.
The following is a list of Web links for these resources and documents. Place your cursor over
the desired reference and use the “control + click” function to follow the link.
A
Administrative and Audit Requirements and Cost Principles for Assistance Programs, 43 CFR 12
(Title 43-Public Lands: Interior, Part 12)
Advisory Council on Historic Preservation (ACHP)
Americans with Disabilities Act (ADA) of 1990, Public Law 100-336
Americans with Disabilities Act (ADA) Accessibility Guidelines at 28 CFR 36
Americans with Disabilities (ADA) Act Title II at 28 CFR 35
Appraisal Foundation
Archeology and Historic Preservation Act as amended, Public Law 93-291
Architectural Barriers Act of 1968 (ABA) Public Law 90-480
Audit Requirements for State and Local Governments, OMB Circular A-133

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C
Catalog of Federal Domestic Assistance (CFDA) #15.916
Civil Rights Act of 1964 Title VI
28 CFR 42.104(b)(2)
Community Development Block Grants (CDBG)
Construction Contractors—Affirmative Action Requirements, 41 CFR 60-4
Cost Principles for Nonprofit Organizations, OMB Circular A-122
Cost Principles for State, Local and Indian Tribal Governments, A-87
Council on Environmental Quality (CEQ)
CEQ Regulations for Implementing NEPA, 40 CFR 1500-1508
CEQ NEPA Guidance
Crimes and Criminal Procedure, Fraud and False Statements, 18 U.S.C. Section 1001
D
Davis-Bacon Act
Debarment and Suspension, Executive Order 12549
43CFR12.100-510
List of debarred and suspended parties
Department of the Interior (DOI)
Department of the Interior (DOI) policy and procedures about audits, Departmental
Manual Part 360, Departmental Manual Part 361 DM 7.3
Department of Interior (DOI) policy and procedures for implementing NEPA
Departmental Manual Part 516 DM 1-6
Departmental Responsibilities for Indian Trust Resources, Department of the Interior
Manual (DM) Part 512 DM 2
Secretary of the Interior’s Standards for Archeology and Historic Preservation Projects
Secretary of the Interior
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Department of Transportation Act of 1966, Section 4(f)

E
Emergency Wetlands Resources Act of 1986, Section 303
National Wetlands Priority Conservation Plan
Endangered Species Act (ESA) Section 7
Environmental Justice in Minority and Low-Income Populations, Executive Order 12898
Department of the Interior Responsibilities for E.O. 12898, Environmental Compliance
Memorandum ECM95-3
Equal Employment Opportunity, Executive Order 11246
F
Federal Aid in Sport Fish Restoration Act (Wallop-Breaux Act or Dingell-Johnson Act)
Federal Energy Regulatory Commission
Federal Highway Administration
Federal Insurance Administration of the Federal Emergency Management Agency
Federal Surplus Property
Flood Disaster Protection Act of 1973, Public Law 93-234
Floodplain Management, Executive Order 11988

I
Indian Tribes
Indian Trust Resources
Intergovernmental Review of Federal Program Executive Order 12372
Single Point of Contact (SPOC) List for E.O. 12372

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L
Labor Surplus Areas, Executive Order 12073
Land and Water Conservation Fund (LWCF) State Assistance Program NPS Homepage
LWCF Website
Land and Water Conservation Fund (LWCF) Act of 1965, as amended
Public Law 88-578, 78 Stat. 897
16 U.S.C. 4601-4 et seq.
Section 6(b) of the LWCF Act
Section 6(f)(1) of the LWCF Act
Section 6(f)(3) of the LWCF Act
LWCF Publications and Forms - link to LWCF web page for the following:
Description and Notification Form
General Provisions
LWCF Logo
Project/Grant Agreement (Form NPS 10-902)
Project Amendment Form
Proposal Description and Environmental Screening Form (PD/ESF) with
NEPA Categorical Exclusions
Record of Electronic Payment Form
Standard Form (SF) 270, Request for Reimbursement for Non-construction Grants
Standard Form (SF) 424, Application for Federal Assistance
SF-424A, Budget Information Non-construction Programs
SF-424B, Statement of Assurances Non-construction Programs
SF-424C, Budget Information Construction Programs

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SF-424D, Statement of Assurances Construction Programs
LWCF Post-Completion Compliance,36 CFR Part 59
Limited English Proficiency, Executive Order 13166

M
Minority Business Development Agency of the Department of Commerce
Minority Business Enterprises (MBEs), Executive Order 11625
Minority Business Enterprise Development, Executive Order 12432

N
National Environmental Policy Act (NEPA)
NEPA’s Forty Most Asked Questions
National Historic Preservation Act (NHPA) of 1966, as amended, Public Law 89-665
Section 106 of the NHPA at 36 CFR Part 800
National Flood Insurance Act of 1968
National Flood Insurance Program, Public Law 90-448 and expanded by Public Law 93-234
National Flood Insurance Program, Federal Emergency Management Agency
National Park Service
National Park Service Director’s Order #12 and Handbook, “Conservation Planning,
Environmental Impact Analysis, and Decision Making”
National Register of Historic Places
National Trails System Act, Public Law 90-543, as amended
Section 8(a) of Public Law 90-543, as amended

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Nondiscrimination in Federally Assisted Programs of the Department of the Interior
Title 43, Part 17
Nondiscrimination on the Basis of Race, Color, National Origin, 43 CFR 17, Subpart A
Nondiscrimination on the Basis of Age at 43 CFR 17, Subpart C
National Oceanic and Atmospheric Administration, U. S. Department of Commerce,
Comparative Climatic Data
O
Office of Federal Contract Compliance Programs (OFCCP)

R
Rehabilitation Act of 1973, as amended, Section 504
43 CFR 17, Subpart B

S
Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users
(SAFETEA-LU) Act.
Single Audit Act of 1984, Public Law 98-502
Small Business Administration
State Historic Preservation Officers (SHPO),
State Liaison Offices

T
Title IX of the Education Amendments of 1972 at 43 CFR 41
Tribal Historic Preservation Officers (THPO)

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U
Uniform Administrative Requirements for Grants and Cooperative Agreements for State and
Local Governments
43 CFR 12
43 CFR 12.76 - Procurement
OMB Circular A-102
Uniform Appraisal Standards for Federal Land Acquisitions (UASFLA)
Uniform Relocation Assistance and Real Property Acquisitions Policy Act of 1970, as amended,
Public Law 91-646 (Uniform Act)
Section 210
Section 305
Title II, Section 205 of the Uniform Act
Title III of the Uniform Act.
49 CFR Part 24
49 CFR 24.102(c)(2)(ii)
49 CFR 24.102(n) (2)
Uniform Standards of Professional Appraisal Practice (USPAP)
U. S. Department of Commerce's Minority Business Development Agency (MBDA
U. S. Fish and Wildlife Service
U. S. Small Business Administration

W
Wetlands Protection, Executive Order 11990
Wild and Scenic Rivers Act
Women Business Enterprises (WBEs), Executive Order 12138
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CHAPTER 1 - GENERAL PROGRAM INFORMATION
A. Program Summary
1. Purpose. The Land and Water Conservation Fund (LWCF) Act of 1965 (Public Law 88578, 78 Stat 897) was enacted "...to assist in preserving, developing, and assuring
accessibility to all citizens of the United States of America of present and future generations
and visitors who are lawfully present within the boundaries of the United States of America
such quality and quantity of outdoor recreation resources as may be available and are
necessary and desirable for individual active participation in such recreation and to
strengthen the health and vitality of the citizens of the United States by (1) providing funds
for and authorizing federal assistance to the States in planning, acquisition, and development
of needed land and water areas and facilities and (2) providing funds for the federal
acquisition and development of certain lands and other areas."
Reflecting the goals of the LWCF Act, the goals of the LWCF State Assistance Program are
to:
a. Meet state and locally identified public outdoor recreation resource needs to `strengthen
the health and vitality of the American People.
b. Increase the number of protected state and local outdoor recreation resources and to
ensure their availability for public use in perpetuity.
c. Encourage sound planning and long-term partnerships to expand the quantity and to
ensure the quality of needed state and local outdoor recreation resources.
The LWCF State Assistance Program provides matching grants to States, and through the
States to local governments, for the acquisition and development of public outdoor
recreation areas and facilities. Planning grants are also available to the States to assist in the
development of Statewide Comprehensive Outdoor Recreation Plans (SCORP).
2. Delegation of authority. The LWCF Act authorizes the Secretary of the Department of the
Interior to provide financial assistance to States for outdoor recreation purposes. Except for
the apportionment of funds among States and the approval of selected projects by the
Secretary, this authority has been delegated to the Director of the National Park Service
(NPS).
3. Appointment of State Liaison Officer and alternate. To be eligible for assistance under the
LWCF Act, the governor of each State shall designate in writing a state official, by name or
position, to serve as its State Liaison Officer (SLO) who has authority to accept and
administer funds for purposes of the LWCF Program and to perform the other functions set
forth in this Manual. The designation of the SLO may also be accomplished by state statute.

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To facilitate the administration of the LWCF Program, a concurrent designation (either by
the Governor or state statute) of an alternate(s) to act on behalf of the SLO is strongly
encouraged.
If the SLO and alternate are gubernatorially appointed, a new Governor, upon taking office,
shall, re-designate, in writing, the sitting SLO and alternate, or appoint new officials to
represent and act for the State in dealing with the LWCF program.
If state statute designates the SLO (and alternate) by position, the appropriate NPS Regional
Director shall be notified in writing by the incumbent upon assuming the responsibilities of
the position.
4. Apportionment of funds. LWCF monies are apportioned to the States by the Secretary of
the Department of the Interior each fiscal year in accordance with the apportionment
formula contained in the LWCF Act. This formula includes a factor for equal distribution of
a portion of the fund among the States, as well as factors for distribution on the basis of
population and need. Funds are apportioned to the individual States, the District of
Columbia, American Samoa, Guam, the Northern Mariana Islands, Puerto Rico, and the
Virgin Islands which are collectively referred to as "the States" for the purposes of this
program. Funds may be made available through the States to political subdivisions of the
State and other appropriate public agencies, including recognized Indian tribes which
qualify for LWCF assistance.
5. State planning and project selection requirements. To be eligible for LWCF assistance for
acquisition and development grants, each State shall prepare a Statewide Comprehensive
Outdoor Recreation Plan (SCORP), and update it at least once every five years. A SCORP
program evaluates the demand and supply of public outdoor recreation resources throughout
a State, identifies capital investment priorities for acquiring, developing, and protecting all
types of outdoor recreation resources, assures continuing opportunity for local units of
government and private citizens to take part in planning for statewide outdoor recreation,
and coordinates all outdoor recreation programs throughout the State.
The State shall develop an Open Project Selection Process (OPSP) that provides objective
criteria and standards for grant selection that are explicitly based on each State’s priority
needs for the acquisition and development of outdoor recreation resources as identified in
the SCORP. The OPSP is the connection between the SCORP and the use of LWCF grants
to assist state efforts in meeting high priority outdoor recreation resource needs. Planning
grants and technical assistance are available through the LWCF program to help the States
develop and update their SCORP planning process.
6. Acquisition and development grants. LWCF assistance may be available 1) to acquire lands
and waters or interests in lands and water for public outdoor recreation, and 2) to develop
basic outdoor recreation facilities to serve the general public. To be eligible for assistance,
projects must be in accord with the SCORP, be sponsored by a governmental agency, and
meet other state and federal requirements.

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7. Basis for assistance. LWCF assistance is provided on a matching basis, up to 50%, to
individual projects which are submitted through the SLO to the NPS for approval. Project
costs shall be determined in accord with OMB Circulars A-102 and A-87 and this Manual.
All claims shall be subject to verification by federal audit.
LWCF grants shall be made available on a 100% basis in accord with Public Law 96-205 to
the Insular Areas participating in the LWCF program (i.e., American Samoa, Guam, the
Northern Mariana Islands, Puerto Rico, and the Virgin Islands).
8. Program administration. The SLO is responsible for administration of the LWCF Program
in his/her State. This includes: implementation of an ongoing SCORP planning process;
evaluation and selection of projects in accord with an OPSP; assuring compliance of
projects with the requirements of this Manual and published regulations; preparation and
submission of applications and amendments; financial management of apportionments and
individual grant awards; inspection of project sites to insure proper completion, operations,
maintenance, stewardship of Section 6(f) parkland; and other functions necessary for proper
program administration and management.
9. Conversion policy. The LWCF Act requires the States to operate and maintain by
acceptable standards the properties or facilities acquired or developed for public outdoor
recreation use. Further, Section 6(f)(3) of the LWCF Act requires that no property acquired
or developed with LWCF assistance shall be converted to other than public outdoor
recreation uses without the approval of the Secretary of the Department of the Interior, and
only if he/she finds it to be in accord with the then existing SCORP and only upon such
conditions as he/she deems necessary to assure the substitution of other recreation properties
of at least equal fair market value and of reasonably equivalent usefulness and location (36
CFR 59).
B. State Apportionment Formula and Special Reapportionment
1. Apportionment percentage to states. The LWCF Act creates a fund consisting of certain
earmarked revenues from which the Congress may annually appropriate money for public
outdoor recreation purposes. As provided in the annual appropriation act, funds shall be
made available for state and federal purposes with not less than 40 percent appropriated for
federal purposes.
2. The amount apportioned is essentially a reserve. Apportionment of funds to the States does
not confer absolute entitlement to such funds. The apportionment is evidence of a
commitment by the Federal Government to withhold from other uses a specified amount for
a State for a given period of time. To receive apportioned funds, the States must (a) prepare
and maintain a Statewide Comprehensive Outdoor Recreation Plan (SCORP) that has been
found by the NPS to be adequate for the purposes of the Act; (b) submit and receive
approval of projects requiring the use of apportioned funds; and (c) request the Federal
Government to obligate apportioned funds for use on approved projects.

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3. Basis for apportionment. Apportionment of the appropriation is made by the Secretary in
accord with the legislative mandate stated in Section 6(b) of the LWCF Act. The amount
apportioned to each State is the amount of new authority for obligation each State will have
in the fiscal year unless Congress or the President decides later to defer or rescind some
portion of the amount.
4. Certificate of apportionment. The Secretary will notify each State of its apportionment
following an appropriation of funds by the Congress.
5. Reports on status of state apportionment. The National Park Service will periodically notify
each State of the status of each fiscal year’s apportionment. This financial report shall
include for each fiscal year: the total amount of current apportionments (including
adjustments), the total obligations, and the total expenditures. The report will also notify the
State of the balance remaining available in each apportionment. The State is expected to
maintain its own accounting records on the status of apportionments.
6. Availability of state apportionment. The funds apportioned to a State will remain available
for obligation during the fiscal year that notification is given and for two fiscal years
thereafter. Any portion of an apportionment that remains unobligated at the expiration of
this three-year period is lost to the State and shall revert to the Secretary’s Contingency
Reserve Fund for redistribution on the basis of need as determined by the Secretary; the
exception is those supplemental funds distributed to the State pursuant to the Gulf of
Mexico Energy Security Act, Public Law 109-432, which remain available until expended.
7. Disposition of unexpended project balances into a Special Reapportionment Account.
Funds obligated for an approved project will remain available for expenditure by the project
sponsor until the project is completed, has expired, is withdrawn, or is terminated.
Should total expenditures be less than the obligated amount, the unexpended balance will
revert to a “special reapportionment account” (SRA) which may be reapportioned to the
State. This special account containing previously apportioned but unexpended funds does
not confer entitlement to such funds by the State. The Secretary, may, at his/her discretion,
reapportion such unexpended balances back to the respective State from which it came on
the basis of need. The determination of need for each State will be based on its efficient
management of LWCF obligations and expenditures, demonstrated need for additional
funding, and satisfactory compliance with all LWCF program requirements.
The National Park Service must request SRA funds from its Accounting Operations Center
(AOC) within six (6) months from the end of the fiscal year in which the reapportionment
funds become available (by March 31 of the following year). States must submit their SRA
requests to the appropriate regional office in sufficient time to allow for the request to be
reviewed and processed by this date. NPS will only process state requests for SRA funds
when:
a. a State has obligated all of its available regular apportioned LWCF funds for the year in
which monies were deobligated, or
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b. a State certifies that it has identified eligible projects/amendments for LWCF assistance
that remain unfunded and those projects/amendments will fully obligate the available
regular apportioned LWCF funds as well as the Special Reapportionment funds being
requested. Actionable projects and amendments must be submitted to NPS for review
and processing as soon as possible to ensure that NPS has sufficient time to obligate
funds by the end of the current fiscal year (September 30). Projects for funding that are
not complete and fully documented will be returned to the State. A State may request
less than the full amount in its SRA account and may add SRA funds to any remaining
available regular apportionment to fund a project or project amendment.
Any SRA funds not requested from AOC within six (6) months from the end of the fiscal
year in which the reapportionment funds become available or any funds reapportioned but
not obligated by the end of that fiscal year will revert to the Secretary’s Contingency
Reserve Fund.
A State may not make more than one SRA request every three months. Requests for SRA
amounts of less than $5,000 shall not be processed except in March for the balance carried
over from the previous fiscal year. Exceptions to the minimal request limitation may be
allowed only when the moneys will be immediately applied to an approvable grant
application in the hands of the NPS for which available funds are insufficient to cover the
costs of the project.
The procedure and timeframes for requesting SRA funds will be communicated to the States
on an annual basis and will include a review of each State's identification and justification of
need for SRA funds and state compliance with all LWCF program requirements. Upon NPS
approval, a Certificate of Reapportionment will be issued to the State.
C. Program Review of State LWCF Program Administration
1. Purpose. In accordance with the LWCF Act (Public Law 88-578, as amended), the NPS is
responsible for continually monitoring each State’s effectiveness in administering the
LWCF program.
While the review of a State’s program is an on-going process, it is measured over a threeyear period with the NPS visits during that time to the state offices. The state visit
represents not only a fact-finding mission, but an opportunity to address those problems,
concerns, and issues involving the State’s program.
In assessing the present status of a State’s LWCF program administration, it provides a basis
for improving overall coordination between the State and NPS, insures that program
administration is being carried out consistent with program laws, regulations, and policies,
and identifies areas where improvements must be made. The state program reviews provide
an opportunity to improve program accountability and lessen vulnerability to waste, fraud
and abuse.

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At a minimum, a program review must be conducted every three years at the state office.
Exceptions to this may be made during periods of low or no funding and in the territories of
American Samoa, Guam, the Northern Mariana Islands, Puerto Rico, and the Virgin Islands,
which may be reviewed every five years at the discretion of the regional office because of
their small programs and remote locations. The Region may opt to conduct mini-reviews as
needed or during periods of low or no funding.
2. State review participants. The NPS review team may be any combination of a team leader,
State’s project officer, a secondary project officer, a review appraiser and/or any other
person deemed appropriate by the review coordinator. State participants should include the
SLO, ASLO(s), SHPO, grant and planning staffs, finance staff, appraisal staff, and any other
appropriate persons with connectivity to the State’s LWCF program administration.
3. Scope of the state reviews. The visit to the state office provides the opportunity for the NPS
to:
a. Discuss the resolution of issues noted in the previous program review report
b. Discuss new issues and/or non-compliance affecting program administration
c. Gain insight into state systems and operations
d. Provide technical assistance
e. Review randomly selected LWCF project files for program compliance
f.

Review the adequacy of randomly selected LWCF associated appraisal documents

g. Discuss any new or proposed legislation affecting the LWCF program
h. Review key SCORP, OPSP, and eligibility items
i. Assess whether adequate staff exist to administer the LWCF program
j. Review obligation and expenditure rates
k. Discuss coordination between the state grant staff and the SHPO
l. Review State’s application of indirect cost rates.
m. Discuss or review SLO/ASLO designations, post completion inspection agreement,
waivers, conversions, environmental review process, administrative and financial project
close out, and any other relevant LWCF administration matters
4. Report. At a minimum, the report shall contain a discussion of the following items:

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a. Status report on previous recommendations.
b. Major problem/opportunity areas identified prior to and during the state visit.
c. Recommendations for improvements with timeframe for state resolution.
d. Follow-up actions to be undertaken by NPS.
5. Distribution of the final report. The report of findings shall be transmitted under a cover
letter to the Governor with courtesy copies provided to the SLO and ASLO(s) for use and
dissemination. A copy of the report and correspondence to the Governor shall be sent to the
NPS office in Washington, D.C.
6. State visits. NPS visits to state offices shall be conducted at least annually, when possible.
Visits may pertain to officially addressing the status of program review findings; to provide
the opportunity for face-to-face communication on program administration, training, and
current issues; and to provide direct technical assistance.
D. Annual Report
On an annual basis a report will be produced on the fiscal year performance and
accomplishments of the LWCF State Assistance Program. States assist in its production by
providing state-specific program accomplishments, testimonials and images. A supply of the
report is distributed to the States and is posted on the LWCF State Assistance Program Website.
A limited number of hard copies are available to interested parties upon request until supplies are
exhausted.

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CHAPTER 2 - STATEWIDE COMPREHENSIVE OUTDOOR RECREATION PLAN
AND OPEN PROJECT SELECTION PROCESS
A. State Plan Preparation, Procedures, and Eligibility
1. Purpose. This section explains the objectives, eligibility requirements, and guidelines for the
preparation of Statewide Comprehensive Outdoor Recreation Plans (SCORP) and the NPS
review and approval process. The SCORP is required by Section 6(d) of the LWCF Act of
1965, as amended.
The guidelines are based on provisions of the LWCF Act, related federal statutes, and
determinations of the NPS regarding planning considerations essential for effective
administration of the LWCF program.
The Governor and/or the officially designated State Liaison Officer (SLO) are the officials
authorized to act for the State, as specified under the various provisions of this Part.
2. Requirements of the LWCF Act of 1965, as amended. The LWCF Act of 1965, as amended,
requires a SCORP from each State prior to consideration by the Secretary of the Department
of the Interior for financial assistance for acquisition and development projects.
The LWCF Act explicitly requires the SCORP to include the following:
a. The name of the state agency that will have the authority to represent and act for the
State in dealing with the Secretary for purposes of the LWCF Act of 1965, as amended;
b. An evaluation of the demand for and supply of outdoor recreation resources and
facilities in the State;
c. A program for the implementation of the plan;
d. Certification by the Governor that ample opportunity for public participation has taken
place in plan development; and
e. Other necessary information, as may be determined by the Secretary.
The SCORP shall take into account relevant federal resources and programs and shall be
correlated so far as practicable with other state, regional and local plans.
3. Goals and objectives of the SCORP. The goals of the SCORP and its associated planning
process are to direct each State's use of its LWCF apportionment.
The objectives of the SCORP and its associated planning process are to:
a. Fulfill the purposes of the LWCF Act;
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b. Provide each State the maximum opportunity and flexibility to develop and implement
its plan;
c. Describe the role of the LWCF in the State's provision of outdoor recreation resources
and the State’s policies for use of its LWCF apportionment;
d. Provide a basis for determining each State's LWCF eligibility; and
e. Ensure relevant, influential and timely planning for the State's use of its LWCF
apportionment.
Each State is encouraged to conduct outdoor recreation planning beyond the minimum
required to maintain LWCF eligibility. Under Section 8(a) of Public Law 90-543, as
amended, and Section 11(a) of Public Law 90-542, as amended, respectively, the Secretary
is directed to encourage States to consider in their plans the needs and opportunities for
establishing recreation and historic trails, and wild, scenic and recreational river areas. In
addition, the plan must contain a wetlands component pursuant to Section 303 of the
Emergency Wetlands Resources Act of 1986 (see item 4.e below).
4. Plan requirements. The minimum requirements of the plan are:
a. The plan must describe the process and methodology(s) chosen by the State to meet the
guidelines as set forth in this section.
b. The planning process must include ample opportunity for public participation involving
all segments of the state's population.
c. The plan must be comprehensive. The plan will be considered comprehensive if it:
(1) Identifies outdoor recreation issues of statewide importance based upon, but not
limited to, input from the public participation program. The plan must also identify
those issues the State will address through the LWCF and those issues which may
be addressed by other means;
(2) Evaluates demand, i.e., public outdoor recreation preferences, but not necessarily
through quantitative statewide surveys or analyses; and
(3) Evaluates the supply of outdoor recreation resources and facilities, but not
necessarily through quantitative statewide inventories.
d. The plan must have an implementation program that identifies the State's strategies,
priorities, and actions for the obligation of its LWCF apportionment. The
implementation program must be of sufficient detail for use in developing project
selection criteria for the State’s Open Project Selection Process (OPSP) so projects
submitted to NPS for LWCF funding will implement the SCORP.
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e. The plan must contain or reference a wetlands priority component consistent with
Section 303 of the Emergency Wetlands Resources Act of 1986. At a minimum, the
wetlands priority component must:
(1) Be consistent with the National Wetlands Priority Conservation Plan, prepared by
the U.S. Fish and Wildlife Service;
(2) Provide evidence of consultation with the state agency responsible for fish and
wildlife resources;
(3) Contain a listing of those wetland types which should receive priority for
acquisition; and
(4) Consider outdoor recreation opportunities associated with its wetlands resources for
meeting the State’s public outdoor recreation needs.
f. The plan may consist of a single document or may be comprised of multiple documents
as long as the guidelines as set forth in this section are met.
5. Plan cooperation. An effective working partnership between each State and the NPS is
necessary to consult and coordinate on such elements as scheduling, planning
methodology(s), public participation, and the NPS assistance needed by the State. Each
State is strongly encouraged to consult and coordinate with the NPS on a regular basis,
especially at the start of its planning cycle, to ensure that the planning process and its
products are mutually acceptable.
6. Submission of plan documentation. The minimum documentation required to be submitted
by each State to NPS as evidence of conformance with this section is a new or revised plan
at least once every five years. The Plan must be approved by the State Governor and
contain a certification by the Governor that ample opportunity for public participation has
taken place in development of the Plan. A total of three (3) copies of the Plan must be
submitted to the NPS. States are encouraged to post the Plan on the agency’s Website and
use other means as appropriate to make it available to the public.
Amendments to the Plan may be submitted at any time. Amendments will follow the same
review and approval procedures as the original Plan.
7. State LWCF eligibility related to planning. Each State will be deemed eligible to participate
in the LWCF State Assistance Program when its SCORP meets the requirements of the
LWCF Act. The Act requires an adequate and approved SCORP prior to the consideration
by the Secretary of financial assistance for acquisition or development projects.
The State must produce a SCORP at least once every five (5) years and implement its
recommendations through the OPSP in order to maintain the State’s eligibility to participate
in the LWCF Program. The State must develop the SCORP in accordance with this Chapter
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and submit a draft for NPS review. NPS Regional Director approval of a formal SCORP
submission must occur prior to the expiration of the State’s current SCORP to maintain
LWCF eligibility.
Should the State fail to meet this deadline or if NPS finds that the pending SCORP currently
under review is inadequate, NPS will provide written notification to the State’s designated
State Liaison Officer that it must correct the identified deficiencies within ninety (90) days
following the last SCORP’s expiration date, during which time NPS approval of acquisition
and development projects may continue. However, if the State fails to take corrective action
within the 90 days, the NPS Regional Director will suspend the State’s eligibility.
The State may appeal to the NPS Director, along with appropriate justification, within 30
days following the Regional Director’s 90-day notice. Appeals will be considered by the
Director prior to the termination of the 90 day notice of the State’s eligibility. The decision
of the Director will be final.
8. NPS actions during periods of state ineligibility. During a period of state ineligibility, the
following apply:
a. Requests for project approval received by the NPS, but not acted upon prior to the State's
loss of eligibility, will be returned to the State as inactionable. The State may not submit
projects to the NPS during a period of ineligibility.
b. Only requests for time extensions, deobligations, reimbursements, changes in scope, and
project completions will be acted upon during a State’s period of ineligibility.
Amendments to increase funds will not be acted upon during this period.
c. Waivers of retroactivity will not be granted.
B. Open Project Selection Process
1. Purpose. The purpose of this section is to establish requirements for the States to conduct an
open project selection process (OPSP) that will better assure equal opportunity for all
eligible project sponsors and all sectors of the general public to participate in the benefits of
the LWCF State Assistance Program and to enable the States to affirmatively address and
meet priority recreation needs. OPSPs shall perform two essential functions:
a. Establishes a public notification process, LWCF application assistance, and review
systems that assure equitable opportunities for participation in grant funding by all
potentially eligible applicants.
b. Provides objective criteria and standards for project selection that are explicitly based on
each State's priority needs for parkland acquisition and outdoor recreation development
as identified in the SCORP. While it is recognized the SCORP may cover policy,
legislative, management and other matters that go beyond priorities for capital funding
and activities eligible for LWCF assistance, the OPSP supplies the most visible
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connection between a State's planning efforts and its use of LWCF grants to meet some
of the high priority needs identified through its SCORP program.
2. Goals. The OPSP developed by each State shall be designed to accomplish the following
goals:
a. Provide for public knowledge of and participation in the formulation and application of
the project selection process used by the State in allocating LWCF assistance;
b. Ensure all potential state and local applicants are aware of the availability of and process
for obtaining LWCF assistance, and provide opportunities for all eligible agencies to
submit project applications and have them considered on an equitable basis;
c. Provide a measurable link, through published selection criteria, to the specific outdoor
recreation needs and priorities identified in SCORP policies and implementation
programs; and
d. Assure the distribution of LWCF assistance is accomplished in a non-discriminatory
manner, especially with regard to minority, elderly, disabled, and other underserved
populations and ensure a fair and equitable evaluation of all applications for LWCF
assistance.
3. Requirements for an OPSP. Each State shall, as a condition of eligibility to receive
assistance under the Fund program, implement an OPSP that has the following components:
a. Priority rating system. Each State shall develop a priority rating system for selecting
projects that ensures the fair and equitable evaluation of all projects and at a minimum:
(1) Places the strongest possible emphasis on project selection criteria that conforms
directly to explicit priority needs identified by the SCORP process. Because
compatibility of projects funded with SCORP priorities is the primary measure of
responsive planning and selection processes, SCORP-related criteria should be
heavily-weighted to ensure that a) the rank ordering of projects closely reflects their
response to plan-identified needs, and b) no project without measurable links to
SCORP-identified priorities will be funded (see Section 2.c above).
(2) Encourages public participation in the formulation of grant proposals at the project
sponsor level.
(3) Recognizes the need for accessibility of proposed projects, to the greatest extent
practicable, to all segments of the public including minority populations, the
elderly, individuals with disabilities, and other underserved populations.
(4) Requires project conformance to LWCF eligibility and evaluation criteria in
Chapter 3, Sections B and C.

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b. Project selection process. Each State shall develop a project selection process that
evaluates and selects projects on the basis of quality and conformance with its priority
rating system. The practice of dividing a State's apportionment between state and local
projects may continue at the State's option. In this case, the State's project selection
process may involve a single competition among all state and local projects or distinct
processes and competitions for each of the two categories (i.e., state projects and local
projects). The distribution of a State's apportionment strictly on the basis of geography
or location of political subdivisions is prohibited.
c. Amendments to add funds to existing projects. A State may honor requests to amend
projects to increase the cost of a state or locally sponsored project, including the federal
share, without further OPSP competition only if the State has proposed, and the NPS
approved, guidelines that are incorporated in the OPSP to cover this contingency. If no
procedure is established, cost overrun projects must undergo OPSP competition to be
amended for additional funding.
d. Recurring funding cycle. Each State shall institute a recurring funding cycle to
regularize the timing for receiving, evaluating and selecting project proposals. The
funding cycle must occur at least once every two (2) years and may occur at any other
regular interval within the fiscal year as determined by the State. States shall clearly
explain the funding cycle to potential applicants, especially for a two-year call for
applications. All LWCF-funded projects submitted to NPS must have competed in such
a funding cycle, and documentation of a project's ranking in such regular competitions
must be available in state files.
e. Applicant notification. Each State shall inform all potential LWCF applicants about the
availability of LWCF funding through direct contact with all potential sponsors or
indirectly through state and local organizations. The information supplied shall include
the types of areas and facilities eligible for funding, a statement of the State's overall
objectives for use of funds under the LWCF grants program, guidance on how to apply
for LWCF assistance and an explanation of how the State's OPSP works. Each State
should also have available for review by potential applicants a list of the criteria it will
use in selecting projects for priority funding during the current funding cycle.
f. Program assistance. Each State shall, to the extent practicable, provide assistance to any
potential project sponsor who requests assistance with project formulation, proposal
preparation in obtaining the non-federal matching share, and other matters necessary for
participation with the program.
g. Underserved populations. Each State shall encourage projects which directly benefit
minority and other underserved populations in the State. This may be accomplished
through the SCORP planning process, and shall, at a minimum, reflect efforts to
encourage applications from communities with significant minority and other
underserved populations. Since social conditions vary from State to State, the design of
the approach may be determined by each State.

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h. Advisory boards. The use of advisory boards, commissions or committees to assist
States in the selection of proposals to receive the available LWCF monies is encouraged
but not required. If advisory boards, commissions or committees are utilized by a State,
they must include representation of minorities to the extent that such representation
reasonably reflects the ratio of minority to non-minority populations.
4. Public participation. Public participation programs developed by each State in accordance
with SCORP requirements shall include provisions for insuring that the preparation and
revision of project selection processes and priority rating systems are subject to public
review and comment (including minority participation in this process) prior to their
implementation. Use of public meetings and review by special interest groups, advisory
committees, and park/recreation boards, commissions, or committees to assist in
development of selection processes are encouraged.
5. NPS approval. New or revised OPSPs must be submitted to the NPS for review, evaluation,
and approval before their use in state grant competitions.
6. Process review and updating. To ensure continuing close ties between a State's SCORP
program and its OPSP, States must review project selection criteria each time that a new or
amended SCORP is approved by the NPS. States must submit to the NPS a revised set of
OPSP criteria that conform to any changes in SCORP priorities or submit an appropriate
certification that no such revisions are necessary. The NPS will evaluate such revised
submissions or certifications in the same manner as original submissions, and will ensure
accurate conformity to the SCORP and to the objectivity and public participation objectives
of this section before approving their use for LWCF project selection.
State implementation of OPSPs will also be reviewed, as part of the NPS’ periodic state
program review process, to determine each State’s effectiveness in meeting the goals and
requirements of this section. Failure by any State to keep its selection process active and
up-to-date in relation to changing needs or conditions identified through its SCORP program
may result in that State's loss of eligibility for participation in the LWCF Program.
C. Financial Assistance for SCORP Development
1. Purpose. The purpose of this section is to specify objectives and requirements governing use
of planning grants from the LWCF. Such grants are to be used for developing a SCORP.
2. Use of LWCF planning grants. Since planning grants are intended for developing a SCORP
as a decision-making and management tool, LWCF-assisted planning projects must be
aimed at either (1) solving a problem identified in the last approved SCORP effort that
addresses an outdoor recreation challenge or opportunity of statewide importance or (2)
developing new data and decision tools identified as essential to completion of an upcoming
SCORP.

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3. Pre-application consultation. All planning grants should be the result of joint consultations
between the NPS and the State on priority needs, within the context of a State's continuing
and systematic outdoor recreation planning process.
4. Eligible applicants. Only the State Liaison Officer is eligible to apply for planning
assistance from LWCF. Responsibility for executing a planning project or a portion thereof
may be subcontracted to an appropriate non-federal governmental agency (general purpose
or special purpose government unit) or to another public or private planning organization.
In all cases, however, the State is obligated to supervise and to be responsible for all work
performed, and must be directly involved in production of the final products of the grant and
in the development of any policies or action options expected to result from project work.
5. Eligible planning projects. To be eligible for Fund assistance, a planning project must have
a clearly defined end product that addresses needs, problems, or issues identified in a State's
currently approved SCORP of statewide importance, or is otherwise essential, in the
judgment of the State and the NPS, to production of an upcoming SCORP. It may be
explicitly identified as part of a future planning program contained in the current SCORP or
be logically implied, in the judgment of the NPS reviewers, by discussions of planning
needs in such current SCORP documents; or respond to a specific planning deficiency
identified by NPS as part of its periodic review of a State's planning program and state
SCORP submissions.
a. Projects may include surveys, planning studies, data collection and analysis, public
participation efforts, and other activities essential to production of a SCORP.
b. Management studies related to improved statewide financing, operation, maintenance,
stewardship, or other use of administrative resources to sustain outdoor recreation
resources, including evaluation of the overall capabilities of state and local governments
to fully protect and utilize their outdoor recreation investments, may be funded when
clearly related to a State's overall SCORP program and to meeting the requirements of
Section 6(f)3 of the LWCF Act for continued operation and maintenance of all Fundassisted areas and facilities.
c. Studies of natural, ecological, or recreational resource areas, demonstration studies and
topics of statewide significance or national concern related to public outdoor recreation
are also eligible. These studies must meet the following criteria:
(1) The proposal must address a priority problem of statewide significance identified in
approved SCORP documents or be essential for the development of decisionmaking information for an upcoming SCORP. The study must go beyond "basic
research" or simple data collection to provide information likely to be used for state
or local decision-making on outdoor recreation issues and programs, so it may
provide specific recommendations for inclusion in the State's published SCORP.
(2) The proposal must include a justification indicating how the study would contribute
to the State's overall SCORP program and future SCORP submissions. The
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proposal must also include evidence that the study will further the overall purposes
of the SCORP process and must include an assessment of whether the monetary,
personnel and other resources devoted to the study will contribute to and not detract
from the accomplishment of other high priority planning objectives identified in
SCORP submissions or in the NPS’ reviews of a State’s continuing planning
process.
(3) The study should include a public participation program through which concerned
public and private agencies or organizations and interested citizens can be kept
informed of, and allowed to comment on, study objectives and results.
(4) Responsibility for the overall project, as well as its different elements, must be
clearly identified if more than one agency is to be involved.
(5) When public land protection measures are proposed, the study must include an
examination of the feasibility of any alternatives to fee simple acquisition of the
resources to be protected.
d. Studies or other investigations that are primarily aimed at promoting tourism, other state
and local economic activities, or the promotion of private recreation expenditures
through recreation development are not eligible for planning grant assistance. However,
studies aimed at analyzing or documenting the contributions of outdoor recreation
resources to a State's economy or environment or at improving state decisions on the
appropriate public and private roles in the management of various recreation resources
may be eligible for funding when they meet other appropriate criteria for eligibility as
outlined elsewhere in this section.
e. Detailed plans for capital projects, sketch or site plans, individual area master plans,
economic feasibility studies, landscape designs, or architectural and engineering studies
are not eligible for planning grant assistance.
f. Planning proposals must take into account past studies of the same or similar resources
or programs to ensure that the proposed efforts do not duplicate earlier research. They
must consider any relevant federal resources, plans, or programs and be correlated, so
far as practicable with other state, regional and local plans.
g. Two or more planning projects may be carried out concurrently providing they do not
duplicate one another. Work items funded under an LWCF planning grant must not
overlap with work items assisted by another LWCF grant, or financially-assisted under
other federal programs, or otherwise accomplished with federal personnel or resources.
h. When a grant proposal involves funding of outdoor recreation planning elements as part
of a larger "consolidated and simplified" state planning process as authorized by
Executive Order 12372 Intergovernmental Review of Federal Programs, particular
assurance must be provided by the State that the LWCF grant will be used for direct
support of outdoor recreation planning work items and not, either directly or indirectly,
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of non-recreation planning items, such as housing, transportation, or general economic
development.
i. Planning grants may not encompass any costs for acquisition of land or interests in land
or for development of new facilities. Nor may land acquisition or development costs be
used as any part of a grantee's matching share of eligible planning costs.
6. Available funding. Up to 50% of the total cost of an eligible planning project is available to
a State, on a reimbursement basis, from its LWCF apportionment account. However, grants
to the Insular Areas may be made available on a 100% basis. While there is no dollar limit
on the amount of a State's apportionment which can be used for planning grants, the
National Park Service reserves the right to limit the size of specific projects based upon each
State's planning needs and the relationship of planning costs to overall funding resources.
For this reason, NPS regional offices should consult with the Washington program office
before approving any planning grant or amendment for which the total LWCF obligation
will exceed $100,000 or five percent of a State’s most recent apportionment, whichever is
greater.
7. Allowable costs. Project costs incurred to sustain an ongoing outdoor recreation planning
process are reimbursable as part of an approved planning project. These include the
preparation, publishing and distribution of appropriate documents, such as core SCORP and
OPSP documents, supplemental recreation policy or action plans and related studies. Costs
of data collection and processing, public participation activities, special studies, etc. are also
eligible for assistance. Contracted professional services for eligible planning activities may
be allowed, if, in the National Park Service’s judgment, overall responsibility for planning
policies and action recommendations is clearly retained by the State Liaison Officer or other
designated state agency. All contracts awarded by a grantee must be in accord with the
procurement standards and procedures of the Uniform Administrative Requirements for
Grants and Cooperative Agreements to State and Local Governments, OMB Circular A-102
requirements at 43 CFR 12 Subpart C (see Chapter 7).
8. Length of project period. Planning projects should normally cover a period of two years or
less to ensure timely completion and close-out of complex work efforts and reduce audit
problems. In no case should a single planning grant include elements from more than one
complete SCORP cycle, except where costs of publication and distribution of a SCORP
document from a previous cycle may be reasonably included as a public participation
element in the next SCORP cycle.
9. Acknowledgement of assistance. When assistance from the LWCF is provided for a project,
the resulting document shall include the following acknowledgement:
"The preparation (updating, revision) of this plan (study, analysis, etc.) was
financed in part through a planning grant from the National Park Service, United
States Department of the Interior, under the provisions of the Land and Water
Conservation Fund Act of 1965 (Public Law 88-578, as amended)."

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This statement may be expanded at the State's discretion to reflect the manner in which the
non-federal share of the total cost was financed.
10. Executive Order 12372 intergovernmental review. For those States participating in the
intergovernmental review process, a copy of the planning grant application must be
submitted to a State's Single Point of Contact (SPOC) or State Clearinghouse in accordance
with the intergovernmental review requirements of Executive Order 12372.
Submissions to the SPOC should normally consist of copies of the material to be provided
to the NPS in the application package, including a notice of intent describing the project
purpose, scope, cost, and beneficiaries to allow the SPOC to provide potentially interested
agencies with an opportunity to comment on the proposed effort. States are responsible for
considering SPOC comments prior to submitting the planning grant formal application to
NPS in order to address comments as appropriate.
LWCF planning grant applications should include assurances that the recreation planning
objectives and products of the grant are in accord with comprehensive state planning goals,
as determined by the Governor or state agency designated to coordinate overall planning.
11. Project application. The standard federal forms used for non-construction assistance
programs (SF-424, SF-424A and SF-424B) are used when applying for LWCF planning
assistance. They must be accompanied by the appropriate required forms as follows:
a. LWCF project agreement (Form NPS 10-902). A LWCF project agreement form must
be completed for all planning projects. For planning grants, the "Project Scope" section
of the agreement must also reference and incorporate a more detailed narrative
attachment which covers the following items:
(1) Identification of the objectives of the grant, with reference to planning needs
identified in existing SCORP documents or other justification in terms of the
project's compatibility with overall SCORP program priorities.
(2) The planning products that will result and how they will contribute to maintenance
of the SCORP program, and, if appropriate, the relationship of a new proposal to
other planning grants received by a State.
(3) The general approach to be used, including a schedule of key events, the breadth of
study coverage, and cost estimates for each work item indicating how funds will be
used by object class (personnel, travel, equipment, consultant contracts, etc.).
(4) A discussion of the personnel, organizations or outside consultants that may be
used to implement the project, with an explanation of any special knowledge or
expertise which they will provide.
b. Proposal Description and Environmental Screening Form (PD/ESF) Cover Page (see
Chapter 4).
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c. Description and Notification Form (DNF)
12. NPS review. Project applications will be reviewed by the NPS to determine if all planning
assistance requirements have been met. This evaluation will focus on the following specific
criteria:
a. The project must be an integral part of the SCORP process and clearly essential to
maintenance of the SCORP as a decision-making or management tool. If need for the
project is not explicitly identified in current SCORP documents, there must be mutual
agreement between the NPS and the State on the priority need for the project effort as
part of a State's overall recreation planning program.
b. Timing, scope, costs, and methodology of the project must be appropriate to the
planning benefits received and complementary to any other planning efforts needed to
address identified deficiencies in a State's overall planning program.
c. Project work elements must be clearly identified with reasonable scheduling, staffing,
and cost estimates assigned to each element.
d. Grant products such as published plans, studies, new policies or procedures to be
adopted, reports, evaluations, or other documents must be explicitly identified.
e. Both the agency requesting the assistance and the project itself must be eligible for
planning assistance from the LWCF.
f. The requirements of Executive Order 12372 relating to review and comment by a
participating state clearinghouse must have been completed if applicable.
g. There must be no duplication of federal assistance for work items funded under the
project.
13. Amendments. Changes that materially alter the scope and/or change the cost or the
completion time of a project must be approved by the NPS. When a State wishes to change
its project, it should discuss the proposed changes with NPS prior to submitting an
amendment to the project agreement. Amendments will be reviewed and processed
following the same procedures used for a complete planning project. Only those changes
considered to be major and substantive will be required to receive E.O.12372 clearinghouse
review if applicable.
14. Financial procedures. Adequate financial records must be maintained to support all the
costs involved in a project. A documentation "trail" adequate to withstand audit should be
maintained. Generally accepted accounting and auditing principles will apply to project
records, accounts and documentation. Such records must be in accord with the principles
established in OMB Circulars A-102 and A-87 for prevention of fraud, waste and abuse in
federal programs. Particular attention should be paid by the grantee to good records of inLWCF State Assistance Program Manual

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house personnel costs attributable to the planning grant. Time distribution records must be
maintained for each individual for whom LWCF grant costs are to be claimed. Careful
records of time spent on SCORP elements are especially important when personnel are
splitting their time between one or more SCORP projects and other planning or
administrative duties.
To guard against fraud, waste and abuse or possible disallowance of legitimate grant costs, it
is recommended that grantees establish a separate tracking account for each planning grant.
No grantee reimbursement requests or electronic transfer of funds can be made without NPS
review of a progress report covering expenditures and accomplishments under the grant for
the requested reimbursement. Requests for reimbursement or electronic transfer of funds
may only be made for definable products or completion of distinct planning elements.
15. Reimbursements. NPS will place a financial hold on all planning grants at the time of NPS
project approval. States using the SMARTLINK automated drawdown method (see
Chapter 7.E) must obtain NPS approval of their progress report BEFORE payments are
requested through the SMARTLINK system. Each SMARTLINK drawdown for planning
grants must be preceded by a reimbursement request (SF-270 Request for Reimbursement
for Non-construction Grants) and a progress report (see next item) for NPS review. Upon
approval, NPS will provide the State with a letter authorizing a SMARTLINK drawdown
for the approved reimbursement amount.
16. Progress reports. Reports of progress toward the completion of a planning project must
accompany each payment request (see above.) However, at a minimum, a progress report
must be submitted to NPS within one year of project approval with or without a payment
request. Progress reports shall include:
a. A list of the major work items (elements) agreed to in the project scope of the grant
contract.
b. A narrative description of the status of work for each item in the project.
c. Identification of any elements that are behind schedule and why.
d. Actual or projected completion dates for each work item.
e. If appropriate, evaluations of the success or failure to date of the planning approaches
used and of any effects of project work to date on state policies or improved
management of state programs.
f. Estimated costs incurred during the billing period for each work item.
g. Total costs incurred and total costs previously billed for all parts of the project to date.

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CHAPTER 3 - ACQUISITION AND DEVELOPMENT PROJECT ELIGIBILITY
A. General Project Criteria
1. Purpose. The LWCF Act authorizes the Secretary of Interior to provide financial assistance
to States for the acquisition and/or development of public outdoor recreation areas and
facilities found to be in accord with the Statewide Comprehensive Outdoor Recreation Plan
(SCORP). The States are encouraged to share the benefits derived from the LWCF program
among all state and local agencies responsible for providing public outdoor recreation
opportunities.
2. Project sponsors. Only States may apply directly to NPS for LWCF assistance. However,
funds may be made available through the States to political subdivisions of the state and
other appropriate public agencies. Proposed projects may be sponsored by a state agency or
a public agency of a subordinate unit of government. All eligible project sponsors,
including those that have other than public outdoor recreation purposes, must be able to
commit its resources to the perpetual stewardship of the Fund-assisted public outdoor
recreation area pursuant to Section 6(f)(3) of the LWCF Act.
All project proposals submitted to the NPS must be recommended by the State Liaison
Officer (SLO). No grant or contract may be awarded to any grantee or subgrantee or
contractor of any grantee or subgrantee which has been debarred or suspended under
Executive Order 12549.
3. Relation to SCORP. Only project proposals in accordance with the SCORP and reviewed
through a State’s Open Project Selection Process (OPSP) may be considered. Project
proposals may be submitted for approval only during the time in which the State sustains its
eligibility for participation in the LWCF program. Projects received during a period of
ineligibility will be returned to the State as inactionable. This does not mean that the
projects have been disapproved nor prevents them from being resubmitted by the State as
soon as eligibility has been regained.
4. Project proposals. The State has the initial prerogative and responsibility for determining
the scope and effort involved in a project proposal. A project can be designed as follows:
1) acquisition and/or development work at one site, or 2) acquisition and/or development
work, sponsored by a single state agency or local unit of government, at several sites.
Project sponsors must complete an LWCF-assisted project as quickly as possible, and,
except in the most unusual circumstances, within the NPS approved project period.
5. Types of projects.
a. Acquisition. These include the acquisition of land and waters or partial rights to them.
There must also be public access, however, access may be controlled, but not prohibited
(see Chapter 8.B.).
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b. Development. These include the development of certain outdoor recreation activities
and support facilities needed by the public for recreation use of an area.
c. Combination. When it is advantageous to do so, a State may submit projects which
combine acquisition and development.
6. Multiple-purpose projects. Multi-purpose projects which involve uses other than outdoor
recreation may be eligible for assistance under the Act as long as the resulting Section
6(f)(3) boundary can incorporate a viable public outdoor recreation area that includes the
Fund-assisted project and the outdoor resource it complements, such as a Fund-assisted
picnic area and a new public reservoir. The State must include a careful and complete
justification and explanation with each proposal. Two general types of multiple-purpose
projects are eligible for assistance:
a. Projects in which a specifically designated portion of the multiple-purpose area or
facility will be used primarily for outdoor recreation and/or outdoor recreation support,
such as picnicking facilities adjacent to a new public reservoir. Fund assistance is
limited to the designated outdoor recreation area and/or facility and support facility.
b. Projects that will provide identifiable outdoor recreation benefits as a whole, as opposed
to specific segments of it. For example, a water impoundment constructed primarily for
flood control might also have important recreation benefits. In such a case, at the
discretion of NPS, assistance might be made available only for the portion of the cost,
on a pro rata basis, of the facility that is clearly attributable to outdoor recreation above
and beyond the facility's cost for its non-recreation function. Section 6(f)(3) protection
will be applied to the entire viable outdoor recreation area regardless of the prorated
basis of federal assistance to include the entire multi-purpose facility unless a smaller
self-contained management unit is identified at project approval.
The proposal must fully disclose the nature and extent of other uses and the relationship of
the proposed outdoor recreation project to the total area and development.
7. Assistance from other agencies. Project proposals submitted to the NPS for LWCF
assistance may also be submitted to other public agencies for aid. The state or local
matching share of an LWCF project may consist of other federal financial assistance only
where the statutory provisions of the subsequent federal grants program explicitly allows
recipients to use such assistance to match LWCF funds (see Chapter 5.A.5). The LWCF
application to NPS must describe any financial assistance from other federal programs
associated with the project, whether serving as a financial match to LWCF funds, or
providing support outside of the LWCF project scope.
8. Project sponsor ownership and control of property. The project sponsor must possess
sufficient title and adequate legal control of the property that is to be placed under Section
6(f) protection in order to provide reasonable assurances that a conversion under Section
6(f)(3) of the LWCF Act will not occur without its knowledge, state review and NPS
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decision. Such assurances are contained in the General Provisions of the LWCF Project
Agreement.
The project sponsor is responsible for being knowledgeable about all outstanding rights and
interests held by others on lands to be included within the Section 6(f)(3) boundary of a
proposed LWCF project. Reversionary rights and outstanding interests, should they occur
or be exercised, that results in private and/or non-recreation activities on land within a
Section 6(f) boundary and/or results in activities that impact the public outdoor recreation
utility of the area, would trigger a conversion. In this case, the project sponsor would be
required to provide suitable replacement property unless such activities qualify as
exceptions as set forth in Chapter 8 (e.g., underground utilities and temporary nonconforming uses).
The State will consider proposals to place property with outstanding rights or interests held
by others under 6(f)(3) protection only when it is assured that the possibility of the
reversionary interest or outstanding rights being exercised is remote and/or the project
sponsor is fully aware of its responsibility to replace these lands in accordance with Section
6(f)(3) should the outstanding rights, if exercised, result in a conversion. Prior to submitting
the formal project application, States are encouraged to consult with NPS on complex
property ownership and control issues.
The LWCF PD/ESF application narrative must describe all easements, rights-of-way, leases,
subsurface rights (e.g. mineral), reversionary interests, and any other agreements that
convey rights to non-public and/or non-recreation interests to access or use the area
proposed for Section 6(f)(3) protection. An application should contain an opinion from
appropriate counsel stating the local sponsor has the authority to enter into a grant contract
that requires the provision of replacement land if the outstanding rights or reversionary
interests are exercised in such a manner that results in a conversion. If a local sponsor has
no such authority, and the State does not agree to replace the property at its expense, then
the project is not eligible for LWCF assistance.
When at the time of project application it is known that outstanding property rights held by
others are or will be exercised in the foreseeable future and impact only a portion of the area
to be protected under Section 6(f), the impacted area and access to it must be clearly
excluded from the Section 6(f) map and accompanied by an explanation of why it is not
intended to be under the Section 6(f) provision. The remaining project area must meet all
LWCF program criteria for eligibility and be a viable public outdoor recreation area per
Chapter 6.B.5.
Copies of the property titles, leases, easements, and other appropriate documents must be on
file at the state level and available for federal inspection.
9. Use of existing public land for matching purposes. Existing government-owned lands
cannot be used as a part of the non-federal matching share of a project unless such land is to
be acquired by the sponsoring agency from another agency and there is a statutory
requirement that the selling agency be reimbursed for the value of the property. Further,
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property cannot be "donated" between a State and its political subdivisions to serve as a
match for grant assistance.
B. Criteria for Acquisition
1. Eligible types of projects. Acquisition of lands and waters for public outdoor recreation,
including new areas or additions to existing parks, forests, wildlife areas, beaches, and other
similar areas dedicated to outdoor recreation may be eligible for assistance. Acquisition can
be by fee simple title or by whatever lesser rights will insure the desired public use without
diminishing the control and tenure of the project sponsor’s ability to enforce the Section
6(f)(3) provisions. Areas acquired may serve a wide variety of public outdoor recreation
activities including but not limited to: walking and driving for pleasure, sightseeing,
swimming and other water sports, fishing, picnicking, nature study, boating, hunting and
shooting, camping, horseback riding, bicycling, snowmobiling, skiing, and other outdoor
sports and activities.
Natural areas and preserves may be acquired but must be open to the general public for
outdoor recreation use to the extent that the natural attributes of the areas will not be
seriously impaired or lost.
2. Means of acquisition. Acquisition of lands and waters, or interests therein, may be
accomplished through purchase, eminent domain, transfer, or by gift.
3. Acquisition of existing structures and impoundments. Because of its statutory emphasis on
public outdoor recreation, LWCF funding may be used to acquire only modest structures
such as those to be used as park support facilities. Consultation with the NPS regarding the
eligibility of the structure for acquisition assistance is encouraged prior to application
submission. The proposal description as part of the PD/ESF must describe all
improvements to be acquired and their proposed use.
4. Acquisition of lesser interests. Proposed acquisitions of interests in lands and waters of less
than fee simple title, including leasehold interests, are not eligible unless such lesser rights
(e.g., permanent recreation use easements or similar devices) will insure the desired
perpetual public access and use pursuant to Section 6(f)(3).
5. Acquisition involving compatible resource management practices. Acquisition of land upon
which the project sponsor proposes natural resource management practices such as timber
management and grazing, not including agriculture, may be carried out concurrently within
the area if they are clearly described in the project proposal, are compatible with and
secondary to the proposed outdoor recreation uses, and are approved by the NPS.
6. Reservations and rights. Reservations and rights held by others are permissible only if it is
determined that public outdoor recreation purposes would not be affected. The project
sponsor shall provide a description of all outstanding rights and interests held by others and
identify them on the Section 6(f)(3) boundary map. Further, the proposal narrative and
environmental information submitted to the NPS on the project in the PD/ESF must address
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any potential impacts to the human environment including outdoor recreation by any
outstanding rights and interests, including if they are exercised. If public outdoor recreation
is impacted when any rights and interests are exercised, a conversion of parkland under
Section 6(f)(3) of the LWCF Act will occur. See Chapter 3.A.8 for further guidance.
7. Acquisition for delayed outdoor recreation development.
a. General. LWCF assistance may be available to acquire property for which development
of outdoor recreation facilities is planned at a future date. In the interim, between
acquisition and development, the property should be open for those public recreation
purposes that the land is capable of supporting or that can be achieved with minimum
public investment. Non-recreation activities such as agriculture occurring on the
property at the time of acquisition may continue for up to three (3) years. In this case
NPS will place a financial hold on the project precluding reimbursement until the nonrecreation use is terminated.
b. Procedures. If planned development for public outdoor recreation will be delayed for up
to three years from the date of acquisition, the project sponsor shall include the
following information in the project application:
(1) Why immediate acquisition of the property is necessary.
(2) What facilities will be developed and when such development will occur.
(3) What, if any, non-recreation uses will continue on the property and when such nonrecreation uses will be terminated.
(4) The type of public outdoor recreation access that will be provided during the
interim period.
(5) Assurance that any income received by the project sponsor for the non-recreation
activities will be used in accordance with the provisions of Chapter 7.A.7.
(6) Assurance that the site will be available for public outdoor recreation use and any
non-recreation activity will be terminated within 3 years from the date of
acquisition.
c. Extension of the 3-year limit. Where public access for recreation purposes will be
provided during the interim period, the continuation of a non-recreation activity beyond
the 3-year limit may be extended by NPS. The State should submit a written request and
justification for such an extension to NPS before the end of the 3-year period. This
request should include: 1) a full description of the property's current public outdoor
recreation resources and the public’s current ability to use the property; and 2) an update
of the project sponsor's plans and schedule for developing outdoor recreation facilities
on the property. In granting such an exception, NPS recognizes that certain non-

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recreation activities are compatible with limited public outdoor recreation use of the
property.
If an extension of the 3-year limit is granted, the project sponsor cannot be reimbursed
until all non-recreation activities have ceased. NPS shall not grant an extension of the 3
year limit if public access to the new outdoor recreation area is not present and NPS will
proceed to terminate the project for cause or convenience (see Chapter 7.G).
8. Uniform relocation and acquisition. All acquisitions with LWCF assistance must be
conducted in accordance with the applicable provisions of Public Law 91-646, the Uniform
Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended. See
Chapter 4 for further guidance.
9. Acquisitions that will not be assisted.
a. Acquisition of historic sites and structures will not receive LWCF assistance.
Exceptions may be made only when it is demonstrated clearly that the acquisition is
primarily for outdoor recreation purposes and the historic aspects are secondary to the
primary recreation purposes. This exclusion need not prevent the consideration by
States and the NPS of projects calling for acquisition of real property interests
contiguous to or near historic sites and structures that meet priority outdoor recreation
needs. Compliance with the National Historic Preservation Act of 1966 is required for
all acquisitions (see Chapter 4.C).
b. Acquisition of museums and sites to be used for museums or primarily for archeological
excavations will not receive LWCF assistance.
c. Acquisition of land to help meet a public school's minimum site size requirement as
established by state or local regulations will not receive LWCF assistance.
d. Acquisition of areas and facilities designed to be used primarily for semi-professional
and professional arts and athletics will not receive LWCF assistance.
e. Acquisition of areas and facilities to be used solely for game refuges or fish production
purposes will not receive LWCF assistance. However, such areas and facilities may be
eligible if they will be open to the public for compatible recreation.
f. Acquisition of areas to be used mainly for the construction of indoor facilities will not
receive LWCF assistance. Also prohibited are areas where existing indoor recreation
facilities, if left in place, will not leave sufficient area at the site for the development of
outdoor recreation facilities to justify the cost of the acquisition.
g. Acquisition of railroad "hardware," trestles, stations, yards, and the like will not receive
LWCF assistance, if such are to be used for the commercial operation of railroad trains.

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h. Acquisition of sites containing luxury lodges, hotels, motels, restaurants, and similar
elaborate facilities that are to be operated by the project sponsor or a concessionaire to
provide food and sleeping quarters will not receive LWCF assistance.
i. Acquisition of agricultural land primarily for preservation in agricultural purposes will
not receive LWCF assistance.
j.

Acquisition of federal surplus property will not receive LWCF assistance unless
legislatively authorized in a specific situation.

C. Criteria for Development
1. Eligible types of projects. LWCF financial assistance may be available for most types of
facilities needed for the use and enjoyment of outdoor recreation areas. The LWCF Act
specifies that development projects may consist of basic outdoor recreation facilities to
serve the general public provided the funding of such a project is in the public interest and
in accord with the Statewide Comprehensive Outdoor Recreation Plan (SCORP). In
addition, development projects are subject to all other conditions, policies, and regulations
of the LWCF program, provisions of this Manual, and those guidelines that may be
developed by the NPS.
a. Definition of eligible project scope. A development project may consist of one
improvement or a group of related improvements designed to provide basic facilities for
outdoor recreation, including facilities for access, safety, health, and protection of the
area, as well as those required for the outdoor recreation use of the area. Furthermore, a
project may consist of the complete or partial development of one area, such as a state
park or a city playground, or it may consist of multiple sites such as a series of
developments on a number of geographically separated areas under the same project
sponsor such as picnic facilities in a number of parks, or the construction of fishing piers
on a number of lakes in the State. In all cases, the project must be a logical unit of work
to be accomplished within a specific time frame.
Ineligible facilities to be funded through sources other than the LWCF program may be
included in the Section 6(f)(3) protected area so long as they do not constitute a
conversion and they qualify as an eligible public facility (see Chapter 8.F).
Funding of development project proposals may cover construction, renovation, site
planning, demolition, site preparation, architectural services, and similar activities
essential for the proper conduct of the project.
b. Development project design requirements. Plans for the development of land and/or
facilities should be based on the needs of the public, the expected use, and the type and
character of the project area. Facilities should be attractive for public use and generally
be consistent with the environment. Plans and specifications for improvements and/or
facilities should be in accord with established engineering and architectural practices.
Emphasis should be given to the health and safety of users, accessibility to the general
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public, and the protection of the recreation and natural values of the area. All facilities
developed with assistance from the Fund must be designed in conformance with the
appropriate current design standards for the Architectural Barriers Act of 1968 (ABA)
(P.L. 90-480), Section 504 of the Rehabilitation Act of 1973, as amended, and the
Americans with Disabilities Act.
2. Ownership and control of project lands. Facilities may be developed on land and water
owned in fee simple by the participating agency or where ownership of less-than-fee
interests such as easements provides permanent control of the property commensurate with
the proposed development. All less-than-fee interests must be described in the PD/ESF and
indicated on the Section 6(f) boundary map.
No approval will be given for the development of facilities on leased land except for
property either:
a. Leased from the Federal Government with no less than 25 years remaining on the lease
and is not revocable at will; or
b. Leased from one public agency to another for 25 years or more, provided that safeguards
are included to adequately ensure the perpetual use requirement contained in the LWCF
Act. Such safeguards may include joint sponsorship of the proposed project or other
agreement whereby the lessor land-owning agency would provide assurances that it
would assume compliance responsibility for the Section 6(f)(3) area in the event of
default by the lessee or expiration of the lease, and these assurances are explicitly
reflected in the project agreement. See Chapter 3.A.8 on project sponsor ownership and
control of property.
3. Development project selection. In selecting development projects for submission to NPS,
the States should carefully review and evaluate the project applications to filter out
ineligible proposals. A special effort should be made to eliminate questionable, elaborate or
borderline projects that raise serious questions concerning the project's cost, use, priority,
competition with the private sector, or inclusion of ineligible facility types.
a. Development project criteria. In evaluating development project proposals, the State
and the NPS should give special attention to the degree to which the project is in
keeping with the original intent of the LWCF Act. The following questions should be
used as a general guide in evaluating a questionable, elaborate or borderline proposal in
relation to the original intent of the Act. Essentially, to be eligible, one must be able to
conclude that LWCF funds are being used "in the public interest" and "in accord with
the Statewide Comprehensive Outdoor Recreation Plan" for the development of "basic
outdoor recreation facilities to serve the general public." The NPS reserves the right to
request from the State a written justification of eligibility if in its judgment one is
considered necessary.

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A development project is considered to be questionable, elaborate, or borderline with
respect to the basic intent of the LWCF Act if serious questions arise concerning the
following eligibility issues and their interrelationships:
(1) Project cost. Consideration should be given to the degree to which a significant
portion of the State's annual apportionment is requested for one project, for one
project sponsor, or for one facility that does not serve the full range of the general
public. Does the project require only a reasonable portion of the State's LWCF
monies rather than a significant portion which precludes the funding of more urgent
recreation needs? Does the cost of a facility significantly exceed the comparable
price for similar facilities? Is the project's cost comparable to other facilities of its
type and justifiable in terms of the quantity and quality of recreation the facility will
provide?
(2) Population served. Consideration should be given to the degree to which
participation is limited by a facility's single purpose, short season, cost of
equipment, fee for participation, or its limited accessibility to the general public.
Will the project serve a reasonably large number of people in its service area? Will
it provide close-to-home recreation and be accessible by public transportation?
Will the project serve a wide range of recreation interests and abilities including the
elderly and individuals with disabilities as well as the more active and highly skilled
recreationists?
(3) SCORP priority. Does the project meet priority recreation needs as defined in the
Statewide Comprehensive Outdoor Recreation Plan? Consideration should be given
to a project's priority in the State's Comprehensive Outdoor Recreation Plan,
especially when the need for a particular facility is not fully supported.
(4) Competition with the private sector. Consideration should be given to the degree to
which the private sector is already providing similar facilities of the type and
quality needed to meet identified recreation demands, and the user fee is low
enough to undercut private business, or the income is sufficient to justify private
investment, or the facility is located in a tourist market area. Can it be shown that
the project does not compete unfairly with the private sector?
(5) Eligibility of facility types. Consideration should be given to the degree to which
the project involves questionable support, spectator or exhibit facilities or does not
clearly comply with the other eligibility criteria. Does the project involve only
LWCF-eligible outdoor recreation facilities?
(6) Fees. Does the project establish a reasonable fee structure that allows for broad
public participation perhaps by including free days or reduced rate days if
necessary? Is project income to the sponsor being directed to recreational
purposes?

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(7) Applicant’s performance history. The past history of the applicant for 1)
adequately completing or carrying out previous federally-assisted projects, 2)
protecting existing recreation resources, 3) operating and maintaining areas to
acceptable standards, and 4) guiding new developments and preserving lands for
open space and outdoor recreation purposes through the use of zoning and other
rules, regulations and authorities will be considered.
Grants may not be awarded to any applicant nor shall any grantee or subgrantee
make any award or permit (subgrant or contract) to any party that is debarred or
suspended or is otherwise excluded from or ineligible for participation in federal
assistance programs under Executive Order 12549, “Debarment and Suspension.”
b. Boat and fishing access facilities. For boat and fishing access facilities and related
support facilities that are eligible for funding under both LWCF and the Dingell-Johnson
(D-J) Act (also known as the Federal Aid in Sport Fish Restoration Act and "WallopBreaux"), as amended, LWCF funding will not be provided for facilities also eligible
under Dingell-Johnson unless the State Liaison Officer has undertaken an effort to
coordinate all requests for such facilities with the State official designated to administer
D-J projects. Any application for LWCF assistance for these facilities must include a
statement from the State Liaison Officer certifying such coordination has taken place.
The result of such effort would be that the application would be directed or redirected
toward whichever program is deemed more appropriate for assisting the specific project
considering cost, availability of funds, other project components and additional factors
deemed pertinent. D-J funds may not be used in meeting the state matching share
requirement of LWCF.
4. Eligible recreation facilities. Development projects eligible for LWCF assistance may
include but are not limited to the following facility types:
a. Sports and playfields. LWCF assistance may be available for fields, courts and other
outdoor spaces used in competitive and individual sports. This includes fields for
baseball, softball, soccer and football, tennis courts, playgrounds and tot lots, golf
courses, rifle/pistol ranges, trap/skeet fields, archery ranges, rodeo arenas, inline hockey
rinks, skate parks, running tracks, and other similar facilities.
b. Picnic facilities. LWCF assistance may be available for tables, fireplaces, shelters, and
other facilities related to family or group picnic sites.
c. Trails. LWCF assistance may be available for the development and marking of
overlooks, turnouts and trails for nature walks, hiking, bicycling, horseback riding,
exercising, motorized vehicles and other trail activities.
d. Swimming facilities. LWCF assistance may be available for swimming beaches,
outdoor pools, wave-making pools, wading pools, spray pools, lifeguard towers,
bathhouses and other similar facilities.

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e. Boating facilities. LWCF assistance may be available for most facilities related to motor
boating, sailing, canoeing, kayaking, sculling and other boating activities. These
facilities include, but are not limited to, docks, berths, floating berths secured by buoys
or similar services, launching ramps, breakwaters, mechanical launching devices, boat
lifts, boat storage, sewage pump-out facilities, fuel depots, water and sewer hookups,
restrooms, showers, electricity and parking areas. Assistance will not be provided for
operational equipment such as buoys, ropes, life jackets, or boats. Marinas are also
eligible for assistance and are subject to the following provisions regardless of when
LWCF assistance was provided:
(1) An equitable method of allocating berth space shall be used in all marinas.
Allocation methods shall include: (a) annual or multi-year lotteries, or (b) posted
waiting lists where berth space is filled in the order of receipt of applications, or (c)
another method selected by the applicant that responds to local conditions and
equitably allocates space among all parties on an annual or multi-year basis. In
each instance, adequate public notice shall be provided announcing the availability
of berth space and describing application procedures. The project sponsor shall
determine the most equitable method under which leaseholders may compete for
future berth space vacancies. For new marinas the project narrative shall describe
the allocation system to be used.
(2) Commercial charter fishing or sightseeing boats are permissible marina
leaseholders due to their potential for expanding public waterfront access.
However, these users should not occupy a significant number of marina berths, so
project sponsors should establish reasonable limits on the number of berth spaces
provided for such users.
New marinas receiving LWCF assistance shall also be subject to the following
provisions:
(3) Berth lease terms shall not be transferable to any other party.
(4) Berth space for transient boaters shall be provided.
(5) Marinas located in urban areas shall include specific design provisions for nonboater public access. To expand water-based recreation opportunities such access
may be provided in the form of walkways, observation points, fishing piers and/or
related facilities. Limited access to the actual marina berths may be retained.
f. Fishing/hunting facilities. LWCF assistance may be available for trails, fishing piers and
access points, initial clearing and planting of food and cover, stream improvements,
wildlife management areas, fish hatcheries and other facilities necessary for public
fishing or hunting. In developing and evaluating fish hatchery proposals, only such
areas and facilities will be eligible if they will be open to the public for general
compatible outdoor recreation. States shall give priority to hatcheries that provide urban
fishing opportunities.
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g. Winter sports facilities. LWCF assistance may be available for facilities such: as ski
trails; jumps; lifts; slopes; and snowmaking equipment used in downhill skiing, cross
country skiing, tobogganing, sledding, snowmobiling, and other winter sports. Outdoor
ice skating and ice hockey rinks are also eligible.
h. Camping facilities. LWCF assistance may be available for tables, fireplaces, restrooms,
information stations, snack bars, utility outlets and other facilities needed for camping
by tent, trailer or camper. Cabins or group camps of simple basic design and accessible
to the general public in an equitable manner are eligible. Group camps designated for
specific groups or for which specific groups will be given priority access are not eligible
for LWCF assistance (Chapter 8.B). Lodges, motels and luxury cabins are not eligible
for LWCF assistance.
i. Exhibit facilities. LWCF assistance may be available for outdoor exhibit or interpretive
facilities that provide opportunities for the observation or interpretation of natural
resources located on the recreation site or in its immediate surrounding areas. This
includes small demonstration farms, arboretums, outdoor aquariums, outdoor nature
exhibits, nature interpretive centers and other similar facilities. However, exhibit areas
will not be assisted if they function primarily for academic, historic, economic,
entertainment or other non-recreational purposes. This restriction includes convention
facilities, livestock and produce exhibits, commemorative exhibits, fairgrounds,
archeological research sites, and other non-recreational facilities. The development of
nature and geological interpretive facilities that go beyond interpreting the project site
and its immediate surrounding area are not eligible for assistance.
j. Spectator facilities. LWCF assistance may be available for amphitheaters, bandstands
and modest seating areas related to playfields and other eligible facilities, provided the
facility is not designed primarily for professional or semiprofessional arts or athletics, or
intercollegiate or interscholastic sports. Seating provisions to accommodate persons
with disabilities should be provided. Assistance is not available solely to increase
seating capacity for a limited number of special events.
k. Community gardens. LWCF assistance may be available for land preparation, perimeter
fencing, storage bins and sheds, irrigation systems, benches, walkways, parking areas
and restrooms related to a community garden. In such a project, community gardening
must be clearly identified in the SCORP as a needed outdoor recreation activity and
must be accessible to the general public in an equitable manner. Furthermore, LWCF
assistance is not available for fertilizer, seeds, tools, water hoses, nor gardens planned as
commercial enterprises.
l. Renovated facilities. LWCF assistance may be available for extensive renovation or
redevelopment to bring a facility up to standards of quality and attractiveness suitable
for public use, if the facility or area has deteriorated to the point where its usefulness is
impaired, or outmoded, or where it needs to be upgraded to meet public health and
safety laws or requirements. However, such renovation is not eligible if the facility's
deterioration is due to inadequate maintenance during the reasonable life of the facility.
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m. Professional facilities. Areas and facilities designed primarily for semi-professional or
professional arts or athletics, such as professional type outdoor theaters, professional
rodeo arenas and other similar facilities are not eligible for LWCF assistance.
n. Accessible facilities. LWCF assistance may be available for the adaptation of new or
existing outdoor recreation facilities and support facilities for use by persons with
disabilities. However, outdoor recreation facilities to be used exclusively by disabled
persons are not eligible unless such facilities are available to the general public or are
part of an outdoor recreation area that serves the general public.
o. Mobile recreation units. Mobile recreation units including playmobiles, skatemobiles,
swimmobiles, show wagons, puppet wagons and porta-bleachers are not eligible for
LWCF assistance.
p. Zoo facilities. Outdoor display facilities at zoological parks are eligible to receive
LWCF assistance provided they portray a natural environmental setting serving the
animal's physical, social, psychological and environmental needs, and is compatible with
the activities of the recreationist. Traditional outdoor caging facilities and animal pens
are not eligible although Fund assistance can contribute to the renovation of such
facilities to achieve a more natural environmental setting as described above. Basic
winter/adverse weather housing quarters that are separate and distinct from enclosed
viewing and display areas and used in direct support of outdoor displays may also
receive assistance. Support facilities to serve the needs of the recreationist, such as
walkways, landscaping, comfort facilities, parking, etc. are also eligible. Other enclosed
or sheltered facilities such as indoor displays and permanent housing are not eligible for
Fund assistance.
5. Guidelines for eligible support facilities
a. Support facilities. LWCF assistance may be available for support facilities needed by
the public for outdoor recreation use of an area, such as roads, parking areas, utilities,
sanitation systems, restroom buildings, simple cabins or trail hostels, warming huts,
shelters, visitor information centers, kiosks, interpretive centers, bathhouses, permanent
spectator seating, walkways, pavilions, snack bar stands, and equipment rental spaces.
When appropriate, support facilities may be sheltered from the elements by providing a
simple roof or cover. Informational materials and leaflets are not eligible.
b. Operation and maintenance facilities. Facilities that support the operation and
maintenance of the recreation resource on which they are located are eligible, such as
maintenance buildings, storage areas, administrative offices, dams, erosion control
works, fences, sprinkler systems and directional signs. Regional and area wide
maintenance facilities are eligible provided the project sponsor agrees to include those
park and recreation areas served by the maintenance facility in the scope of the project
agreement and under the conversion provisions of Section 6(f)(3) of the Act. Employee
residences and furnishings are not eligible.
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c. Beautification. The beautification of an outdoor recreation area is eligible provided it is
not part of a regular maintenance program and the site's condition is not due to
inadequate maintenance. This includes: landscaping to provide a more attractive
environment; the clearing or restoration of areas that have been damaged by natural
disasters; the screening, removal, relocation or burial of overhead power lines; and the
dredging and restoration of publicly owned recreation lakes or boat basins and measures
necessary to mitigate negative environmental impacts.
d. Indoor facilities. LWCF assistance will not be provided for support facilities or portions
thereof that contribute primarily to public indoor activities such as: meeting rooms;
auditoriums; libraries; study areas; restaurants; lodges; motels; luxury cabins;
furnishings; food preparation equipment; kitchens; and equipment sales areas.
Bathhouses, public restrooms, maintenance sheds, etc., are potentially eligible for
LWCF assistance since their basic function is to provide support for outdoor recreation
facilities.
e. Pro rata basis. Support facilities that exclusively serve ineligible facilities are not
eligible. However, if support facilities will serve both eligible and ineligible facilities,
as may be the case with roads and sewers, assistance may be provided on a pro rata basis
for that portion of the support facility that will serve the eligible facilities, provided that
the eligible facilities are subject to the LWCF Act 6(f)(3) conversion provisions.
f. Roads. Roads constructed outside the boundaries of the recreation area or park are not
eligible, unless:
(1) They are, in fact, access roads to a designated park and recreation area and not part
of a state, county or local road system extending beyond or through the boundaries
of the area.
(2) The access corridor is owned or adequately controlled by the agency sponsoring or
administering the park or recreation area and included within the project's 6(f)(3)
boundary.
(3) The principal objective is to serve the park and visitors. Any use or service to
private parties must clearly be incidental to the primary use of the access road for
recreation purposes in which case assistance may be granted on a pro rata basis.
Roads designed to serve undesignated recreation areas or federal areas are not
eligible.
g. Equipment. Equipment required to make a recreation facility initially operational, and
certain supplies and materials specifically required under State Health Department
regulations may be eligible for assistance.
h. Must serve viable outdoor recreation area. Development projects in new or previously
undeveloped recreation areas may not consist solely of support facilities, unless they are
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required for proper and safe use of an existing viable outdoor recreation area that does
not require additional outdoor recreation facilities (such as construction of restrooms at a
public nature study area), or unless necessary outdoor recreation facilities are being
developed concurrently with the LWCF assisted support facilities, or unless necessary
outdoor recreation facilities will be developed within a reasonable period of time. In the
latter two cases, the project agreement must include a provision that the non-LWCF
assisted outdoor recreation facilities are to be completed within a certain time frame
agreeable to the NPS, and if they are not, the LWCF monies will be refunded.
i. Energy conservation elements. The energy conservation elements of an eligible outdoor
recreation facility and its support facilities are eligible for LWCF assistance. This
includes but is not limited to solar energy systems, earth berms, window shading
devices, energy lock doors, sodium vapor lights, insulation and other energy efficient
design methods and materials. In addition, power systems that minimize or eliminate a
facility's use of petroleum and natural gas are eligible including, but not limited to,
windmills, on-site water power systems, bioconversion systems, and facilities required
for the conversion of existing power systems to coal, wood, or other energy efficient
fuels.
6. Facility location requirements. Development projects may be located on lands and waters
owned by (or leased to in accordance with Chapter 3.C.2) the project sponsor that ensures
perpetual public use. In certain situations, however, the following conditions also apply:
a. Public school grounds. Public outdoor recreation areas and facilities for coordinated use
by the general public and by public schools, including colleges and universities, are
eligible for LWCF assistance provided such facilities are not part of the normal and
usual program and responsibility of the educational institution. Stadiums, stadium-like
seating, and portable bleachers are not eligible for LWCF assistance. Facilities needed to
solely meet the physical education and athletic program requirements of a school may
not receive LWCF assistance. This policy does not preclude exclusive school use of
certain facilities such as athletic fields, tennis courts, and swimming pools, at certain
times for instruction or competition provided the public outdoor recreation use remains
primary, and there is adequate public access at other times.
The grant application must include a schedule of the time the facility will be available to
the public. Additionally, adequate signs must be installed at the site, prior to final
payment on the project, indicating when the outdoor recreation facilities are available to
the general public. Adequate documentation must be provided in the LWCF application
that indicates awareness of an agreement to the Section 6(f) provisions of the LWCF
Program by the school entity sponsoring the project.
b. Tourist areas. Public outdoor recreation and support facilities may be located in primary
or potential tourist market areas, provided their primary purpose is for public outdoor
recreation as opposed to entertainment or economic development, and provided they do
not create unfair competition with the private sector.

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c. Historic sites. Outdoor recreation and support facilities may be located on historic sites
or in conjunction with historic structures. This includes picnic areas, walkways and
trails on a historic property as well as visitor centers oriented to the outdoor facilities
and environment. However, the restoration or preservation of historic structures is not
eligible. In all cases, the project must be in accord with the National Historic
Preservation Act of 1966 (see Chapter 4.C).
d. Utility sites. Assuming grantees possess adequate control and tenure of land and
specific agreement from the utility company, outdoor recreation and support facilities
may be located on utility company lands such as rights-of-way, reservoir lands, etc.
unless the recreation resource management plan of the utility's license application filed
with the Federal Energy Regulatory Commission indicates the facilities are to be
provided at the sole expense of the licensee.
e. Agricultural lands. Outdoor recreation and support facilities, such as demonstration
farms and wildlife management and hunting areas, may be planned by the project
sponsor in conjunction with agricultural activities, provided that the type and extent of
the agricultural activity is limited to that necessary to support the outdoor recreation
activity.
7. Guidelines for eligible sheltered facilities. For LWCF assisted swimming pools and ice
skating rinks located in areas which meet the cold climatic criteria described below, shelters
of permanent construction may partially or completely enclose these facilities to protect
them against cold weather conditions and thereby significantly increase the recreation
opportunities provided:
a. Funding limitation. A qualified State may use up to 10 percent of its annual
apportionment for eligible sheltered facilities. The amount to be charged against this
allowance will be computed based upon the Fund assistance provided for the entire
enclosed facility, rather than the Fund assistance provided only for the shelter.
If a State does not use the entire 10 percent of its fully obligated fiscal year
apportionment for sheltered facilities, the remaining balance may be credited to
subsequent apportionment allowances. For example, where only 5 percent of a fully
obligated fiscal year apportionment has been used, the subsequent fiscal year
apportionment allowance would be 10 percent plus the 5 percent balance carried over
from the previous fiscal year. A credit may be carried for two subsequent fiscal years.
If a Fund-assisted swimming pool or ice skating rink without a shelter is developed
under a project approved after September 28, 1976, and a separate project is later
submitted to shelter the pool or rink, the combined amount of Fund assistance provided
for both the facility and its shelter will be credited against available allowances. If the
Fund-assisted pool or rink was developed under a project approved prior to September
28, 1976, and a separate project is later submitted to shelter the facility, only the Fund
assistance provided for the shelter will be credited against available allowances.

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Also, Fund assistance may be used to develop a shelter for a swimming pool or ice
skating rink that was not constructed with Fund assistance. In this case, only the cost of
the shelter will be credited against available allowances.
b. Use of non-federal funds for the shelter. State or local project sponsors may use their
own funds to shelter existing or proposed Fund-assisted swimming pools or ice skating
rinks that are consistent with the requirements described below. In such cases, Fund
assistance provided to develop the pool or rink will not be credited against available
allowances. Proposals to shelter eligible facilities with state or local funds will be
approved by the State Liaison Officer and the appropriate NPS office.
Where the state or locally funded shelter is constructed concurrently with the Fundassisted facility, the total project cost included in the grant agreement will be that cost
attributable to the pool or rink facility only. LWCF assistance will only be used to fund
outdoor recreation facilities. Fund monies will not be used to cost share in indoor
facilities such as recreation centers. Engineering cost estimates and contract
specifications must separate the shelter costs from other project development costs.
When sheltering is to occur concurrently with the construction of the funded facility, the
NPS shall review the plans and cost accounts to ensure that LWCF monies are not used
in the sheltering.
Project sponsors may, without the use of LWCF monies, construct public indoor
facilities on a Fund assisted site when such facilities are compatible with the outdoor
recreation use of the site. NPS approval of such public facilities must be obtained prior
to construction in accordance with the procedures contained in Chapter 8.G.
c. Shelter requirements. Any facility assisted from or eligible for assistance from the
LWCF and within a Section 6(f) boundary may be sheltered or enclosed at the expense
of the project sponsor. New sheltered facilities may also be constructed at the project
sponsor's expense, with NPS approval regardless of prevailing climatic conditions. To
be considered by NPS, a proposal to shelter or enclose a facility must:
(1) Be transmitted to the NPS by the SLO conveying the State’s support of the
proposal;
(2) Include a completed Proposal Description and Environmental Screening Form
(PD/ESF) (see Chapter 4) providing:
-an explanation of the recreation uses that could typically occur outdoors with
recreation use clearly being the overall primary function;
-an explanation of how the proposal will not substantially diminish the outdoor
recreation values of a site;
-an explanation of how the proposed sheltered facility will be compatible and
significantly supportive of the outdoor recreation resources present and/or planned;
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-an explanation how the proposal will benefit the total park's outdoor recreation use;
-the environmental screening form and selection of the appropriate NEPA pathway
per the PD/ESF. If the proposal is not eligible for a categorical exclusion, the
State/sponsor must produce an environmental assessment and make it available for
public comment per the LWCF NEPA process (see Chapter 4).
-assurance that the facility will be under the control of the public agency which
sponsors and administers the original park areas. However, operation of such
facilities may be carried out by a contractor or concessionaire provided that
sufficient controls are maintained by the sponsoring agency through a management
contract or concession agreement to ensure the maintenance of public recreation
values and access by the general public.
d. Cold climatic criteria. Sheltered ice skating rinks may be developed in communities
where the mean annual total snowfall is at least 24 inches or the normal daily mean
temperature for the coldest winter month is 30 degrees or less. Sheltered swimming
pools may be developed in communities where the normal daily mean temperature for
the month of June is 72 degrees or less. The official references for making these
determinations are the average temperature and the snowfall tables found in
Comparative Climatic Data for the United States published by the National Oceanic and
Atmospheric Administration, U. S. Department of Commerce. If climatic data is not
published for the community in which the project is located, the project sponsor should
contact the National Climatic Center to obtain the required data. The National Climatic
Center will be able to provide a mean annual total snowfall figure, and figures for the
normal daily mean temperature, based on data collected at the closest official weather
recording station. A copy of the cold climatic data used to make the determination of
eligibility shall be included with all project applications. A project sponsor eligible
under the original climatic criteria, based on data available as of September 26, 1976,
would not become ineligible in a subsequent year solely on the basis of a change in the
data.

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CHAPTER 4 - PROPOSALS, ENVIRONMENTAL REVIEW/FEDERAL
COMPLIANCE
A. Proposal Development and Screening for Environmental Impacts
States are responsible for ensuring, on behalf of the NPS, proposals submitted to the NPS for
federal decision, including new applications and amendments for LWCF previously-approved
projects such as conversions, temporary non-conforming uses, and public facility exceptions, are
developed in accordance with all applicable federal, state and local laws and regulations. This
chapter presents the major federal laws and executive orders that govern the way proposals must
be developed for federal review and decision. The General Provisions shall be attached to each
LWCF grant agreement and amendment. States are encouraged to consult with NPS during the
proposal development process for guidance on the compliance requirements in this chapter.
The federal legislation that coordinates the consideration of the potential for impacts to the
human environment as a result of a federal action is the National Environmental Policy Act. As
described in the next section, the NEPA process coordinates compliance with applicable related
federal, state, and local environmental requirements. To facilitate and document this
coordination, States must ensure that the LWCF Proposal Description and Environmental
Screening Form (PD/ESF) is completed and accompanies each LWCF proposal submitted for
federal review and decision.
The PD (proposal description) portion of the PD/ESF identifies and provides descriptive
information about the proposal to the federal decision-maker.
The ESF (environmental screening form) portion of the PD/ESF serves as part of the federal
administrative record required by NEPA and its implementing regulations which supports a
chosen NEPA “pathway” which must be completed before final action can be taken by the NPS.
It is intended that States/project sponsors use the PD/ESF as early as possible in the state/local
project planning process. The ESF portion of the PD/ESF will administratively document 1) a
Categorical Exclusion recommendation or 2) the necessity of further environmental review
through an Environmental Assessment (EA) or Environmental Impact Statement (EIS) as
necessary. In the latter case, the EA (or EIS) must accompany the State’s LWCF proposal
submission to the NPS. The ESF can also be used to document previously conducted yet still
valid environmental analysis.
Upon the State’s submission of the completed proposal with the PD/ESF and the completed
environmental documentation as necessary, NPS will undertake an independent review of the
final proposal and supporting documentation, and take action as appropriate.
B. National Environmental Policy Act
1. Authorities and guidance. The National Environmental Policy Act (NEPA) of 1969, as
amended, is landmark environmental protection legislation establishing as a goal for federal
decision-making a balance between use and preservation of natural and cultural resources.
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NEPA requires all federal agencies to: 1) prepare in-depth studies of the impacts of and
alternatives to proposed “major federal actions,” and 2) use the information contained in
such studies in deciding whether to proceed with the actions; and 3) diligently attempt to
involve the interested and affected public before any decision affecting the environment is
made.
Federal actions are defined as projects, activities, or programs funded in whole or in part
under the direct or indirect jurisdiction of a federal agency, including those carried out by or
on behalf of a federal agency; those carried out with federal financial assistance; those
requiring a federal permit, license, or approval; and those subject to state or local regulation
administered pursuant to a delegation or approval by a federal agency. The LWCF is a
federal assistance program and thus all NPS LWCF decisions are subject to the provisions
of NEPA and associated guidance found in the:
a. Council on Environmental Quality (CEQ) Regulations for Implementing NEPA, 40 CFR
1500-1508
b. NEPA’s Forty Most Asked Questions, CEQ
c. Department of Interior (DOI) policy and procedures for implementing NEPA
(Departmental Manual 516 DM 1-6)
d. National Park Service (NPS), LWCF Program Manual, Chapter 4 (this chapter),
including the Proposal Description and Environmental Screen Form (PD/ESF)
developed from NPS Director’s Order #12 and Handbook, “Conservation Planning,
Environmental Impact Analysis, and Decision Making.”
2. Compliance coordination. For LWCF proposals, the NEPA process coordinates compliance
with related federal, state, and local environmental requirements as applicable. At a
minimum, compliance by the State/project sponsor with the following federal laws and
executive orders shall be coordinated during the NEPA process and should be integrated
into the NEPA document:
a. National Historic Preservation Act, Section 106, as amended. Section 106 of NHPA
requires federal agencies to consider the effects of their proposals on historic properties,
and to provide State Historic Preservation Officers (SHPO), Tribal Historic Preservation
Officers (THPO), and as necessary, the Advisory Council on Historic Preservation a
reasonable opportunity to review and comment on these actions. Section 106 review
and NEPA are two separate, distinct processes. They can and should occur
simultaneously, and documents can be combined, but one is not a substitute for the
other. They should, however, be coordinated to avoid duplication of public involvement
or other requirements. The information and mitigation gathered as part of the Section
106 review must be included in the NEPA document, and the Section 106 process must
be completed by the State/project sponsor before NPS can sign a categorical exclusion, a
finding of no significant impact (FONSI) or a record of decision (ROD). See Section C
of this chapter for further guidance on the Section 106 process.
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b. Endangered Species Act, Section 7. Section 7 of the Endangered Species Act (ESA)
requires a federal agency consult with the U.S. Fish and Wildlife Service or the National
Marine Fisheries Service on any action that may affect endangered or threatened species
or candidate species, or that may result in adverse modification of critical habitat. For
LWCF purposes the State/project sponsor must carry out this consultation and document
that it has occurred. An EA or an EIS may provide sufficient information to serve as a
“biological assessment” for Section 7 purposes. If a separate “biological assessment” is
prepared, it must be part of any NEPA document.
c. Floodplain Management and Wetland Protection, Executive Orders 11988 and 11990.
Executive Orders 11988 and 11990 direct the federal agency to avoid, to the extent
possible, the long and short term adverse impacts associated with modifying or
occupying floodplains and wetlands. They also require the federal agency to avoid
direct or indirect support of floodplain or wetland development whenever there is a
practical alternative. For LWCF purposes, the State/project sponsor must comply with
this executive order. If implementing the LWCF project would result in an adverse
impact to a federal or state regulated floodplain or wetland, a statement of finding must
be included in the EA or EIS documenting the State/local sponsors coordination efforts
with responsible state and federal authorities, a description of affected floodplain and
wetland resources, alternatives considered to developing in the floodplain and/or
wetland, and actions to avoid, minimize and/or mitigate impacts.
d. Environmental Justice in Minority and Low-Income Populations, Executive Order
12898. Executive Order 12898 directs federal agencies to assess whether their actions
have disproportionately high and adverse human health or environmental effects on
minority and low-income populations. For LWCF purposes, States/project sponsors
must specifically analyze and evaluate the impact of the LWCF proposal on minority
and low-income populations and communities, as well as the equity of the distribution of
the benefits and risks of the decision in the NEPA document. If it does not apply, this
should be noted in the "issues dismissed" section of the NEPA document. See
Department of Interior Environmental Compliance Memoranda (ECM) 95-3.
e. Department of the Interior Environmental Compliance Memorandum (ECM) 95-2:
ECM95-2 requires bureaus to explicitly address environmental impacts of their proposed
actions on Indian Trust Resources in any environmental document.
f. Intergovernmental Review of Federal Programs, Executive Order 12372. For States that
have selected to review the LWCF Program under its own Intergovernmental Review
Process under Executive Order 12372, States may use this process for state and local
government coordination and review of proposed federal financial assistance. States
may make efforts to accommodate state and local elected officials concerns and
comments that are communicated through the designated single point of contact process.
Comments should be considered in a timely manner during the NEPA process and prior
to submission to NPS for federal review. The Intergovernmental Review Process does
not fulfill the State’s/project sponsor’s responsibility for providing a public comment
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period (see Section 5.b(2) below) that provides the interested and affected public
opportunity to comment on the completed environmental review documents.
3. State responsibility. Using the PD/ESF for new applications and certain amendments, the
State must submit to NPS adequate environmental documentation in order for NPS to
determine whether a proposed LWCF action is either categorically excluded from further
environmental analysis or requires an EA or an EIS. States are responsible for coordinating
the environmental review process including the production of environmental assessments,
and if necessary, environmental impact statements. States are also responsible for ensuring
the required public comment periods are offered in accordance with the guidance found in
Section 5.b(2) below.
CEQ encourages federal and state agencies to work together to combine efforts to produce
only one NEPA document, especially for those state and local agencies that have their own
requirements for impact analysis. Early coordination is critical prior to the investment of
extensive planning resources and the commitment to a specific alternative. State and local
environmental impact analysis requirements may not meet the same needs as NPS LWCF
requirements, so States are urged to consult early in the process with NPS.
When a State elects to use a state or local environmental review process to meet the NEPA
requirement, States shall provide the environmental review guidance in this chapter,
including the PD/ESF, to the agency delegated the responsibility to conduct the
environmental review to ensure that the process meets these federal requirements.
Costs associated with conducting environmental reviews may be eligible for LWCF
assistance (see Chapter 5.A.3.b).
4. NPS responsibility. NPS is responsible for determining whether a proposed LWCF action is
either categorically excluded from further environmental analysis or requires an
environmental assessment (EA) or an environmental impact statement (EIS). NPS also is
responsible for ensuring the adequacy of any required EA or EIS documents, and is solely
responsible for signing the decision documents. NPS serves as the lead agency in the
delegation, preparation and review of any EA or EIS for proposed LWCF actions. As the
lead agency, the NPS provides guidance to the States on how to develop adequate
environmental documentation according to the type of the state/local proposal for federal
assistance.
5. Scope of environmental review. Early in the conceptual development of an LWCF
proposal, the State shall encourage LWCF project sponsors to document their planning and
analysis process, including all efforts to reach out to the interested and affected public and
agencies. The public and agencies should be invited to provide input early in the planning
process and before any environmental analysis formally begins so the sponsor can clearly
communicate the purpose and need for the project and give the public and agencies an
opportunity to provide any information that could be useful for scoping out the LWCF
proposal and considering its potential impact on resources. This scoping step in the

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planning process will yield information for use in defining the scope of the LWCF proposal
and possible associated environmental impacts.
The LWCF PD/ESF shall be used by all potential LWCF project sponsors and for any
LWCF proposal requiring federal action. The PD/ESF is designed for use as a tool during
project scoping, planning, and proposal development to document environmental
information and consider the LWCF proposal’s possible environmental impacts at the time
it is discussed, presented, or discovered in the field rather than as a “compliance exercise”
after a decision is made and the application for federal assistance is being prepared.
As a result of early project scoping and planning, the State/sponsor develops a final proposal
for possible federal assistance or action, including a completed ESF. The scope of the
environmental review under NEPA, i.e., the extent of resources that may be affected by the
project, depends on the type of LWCF proposal under consideration as follows:
a. New acquisition projects. The scope of the environmental review shall include the lands
to be acquired and the proposed public outdoor recreation uses intended for the property
to be completed within three years from the date of acquisition.
b. Development projects. The scope of the environmental review shall be the proposal to
provide or improve facilities for public outdoor recreation use and associated activities
resulting from these improvements.
c. Section 6(f)(3) Conversions. Pursuant to 36 CFR 59.3, the scope of the environmental
review for Section 6(f)(3) conversions is the entire Section 6(f)(3) park proposed for
conversion, including for partial conversions, and lands proposed for replacement
including the proposed development for public outdoor recreation use and associated
activities. Resources beyond the existing Section 6(f)(3) area are not subject to review
unless required by other federal compliance programs.
d. Other LWCF proposals. To determine the scope of the environmental review for other
types of LWCF proposals, consult your NPS Regional Office LWCF Program Manager.
The scope of the environmental review determines the resources that must be screened for
possible environmental impacts resulting from the LWCF proposal.
6. NEPA pathway options. The completed PD/ESF will guide the state/project sponsor along
the appropriate NEPA pathway to produce the level of environmental analysis and
documentation required for the proposed undertaking. The PD/ESF will document and
support the NEPA analysis pathway option chosen for the proposal. States are required to
include the completed PD/ESF with its formal LWCF proposal submission to the NPS.
The NEPA analysis pathway options available to States are:
a. Categorical Exclusion for which a record is needed. These Categorical Exclusions (CE)
are for federal actions that, under normal circumstances, are not considered major
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federal actions and have the potential for minor or no measurable impacts on the human
environment. Prior to submitting a proposal to the NPS for federal review and decision,
it is the State's responsibility to review the LWCF proposal to determine if the project
meets the criteria for a CE determination. If the LWCF proposal meets the criteria for a
CE, the State provides sufficient documentation on the PD/ESF to support the CE by
indicating that all potential impacts will be minor or less, and NPS agrees with the CE
selection, NPS will sign its own CE form signifying the proposal is categorically
excluded from further NEPA analysis.
A CE is not applicable if the ESF indicates that the proposal may result in more than
minor impacts on resources.
Note in addition to the CE criteria, the State must also consult the list of exceptions to
the CE criteria listed in the PD/ESF. These exceptions describe additional circumstances
that may be relevant for the proposal and could result in adverse impacts on the human
environment and, therefore, preparation of an EA would be required.
b. Environmental Assessment. An Environmental Assessment (EA) is required when
1) the significance of impacts on any resource is unknown, or 2) the proposed action
does not meet the criteria for CE and is not included in the list of actions that normally
require an EIS, or 3) the proposed action needs several CE categories to fully describe
the action, would involve one or more CE criteria exceptions, or would involve
unresolved conflicts concerning the use of resources.
All Section 6(f)(3) conversions require an EA except for the “small conversions” that
qualify as a categorical exclusion as specifically defined in Chapter 8.
(1) EA format: The following basic format for a LWCF EA is recommended. The
content of each chapter will vary depending on the type of LWCF proposal under
analysis such as new acquisition and development projects, Section 6(f)(3)
conversions, and other LWCF proposals described in the PD/ESF. In cases where
the State/local sponsor chooses to combine environmental review efforts to meet
state and federal requirements (see Section 2 above), the following information must
be included in the document in a way that allows the LWCF proposal to be readily
discernable, such as in a separate section in the larger, more comprehensive
document. The EA must be factual and written in an objective manner and with a
neutral tone. The EA should not promote a particular alternative or make a case for
the approval of the proposal. The information must be presented without technical
jargon and so it can be understood by the interested and affected public.
Chapter 1 – Purpose, Need, Background. This chapter describes the purpose of the
EA so that the interested and affected public, including other agencies and decisionmakers, understand the type and nature of the proposal that needs a federal LWCF
decision. This chapter needs to explain the EA will provide a framework for the
NPS to evaluate the environmental consequences of the proposed action on the
human environment, and must also include any information to help the interested
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and affected public and decision-makers understand the context for the proposed
action, including a clear explanation of the role of the LWCF Act Section 6(f)(3) in
the proposal and the scope of the environmental review (see Item 5 above).
Chapter 2 - Description of Alternatives. This chapter must provide enough
information for the interested and affected public and decision-makers to understand
the proposed alternative (federal approval of the LWCF proposal) and the no action
alternative. This chapter should lead off with an evaluation of all alternatives
considered and the reasons for selecting the proposed alternative and rejecting the
other alternatives.
At a minimum, the proposed alternative should be described in detail along with the
public outdoor recreation resources and opportunities provided by the proposal
including maps clearly depicting the creation of or changes in the LWCF Section
6(f) boundary. New and/or existing Section 6(f) parkland must be described in
detail. This chapter must include an explanation and status of any other approvals,
permits or other factors needed to implement the proposal.
For Section 6(f)(3) conversions, this chapter must include:
- a description of the Section 6(f)(3) parkland proposed for whole
or partial conversion, including associated outdoor recreation
facilities and opportunities;
- any Section 6(f)(3) parkland remaining from partial conversions
and remaining outdoor recreation facilities and opportunities; and
- a description of the replacement parkland, including a description
of the planned development for public outdoor recreation use and
new outdoor recreation opportunities to be provided and timetable
for completion.
Chapter 3 - Affected Environment. The affected environment is a detailed
description of the current state of resources expected to experience environmental
impacts. Using the resource impact information documented on the environmental
screening form (ESF) and other means of collecting information about affected
resources, delineate an analysis area boundary for each resource and describe its
existing status (location, nature, condition, scope, size, etc.). The existing status of
these resources will serve as baseline information upon which impacts will be
compared in the next EA chapter.
This includes detailed description of any existing public outdoor recreation resources
and opportunities at the affected site(s) including a clear depiction any existing
Section 6(f) boundary.

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This chapter must also describe the park/recreation area’s population service area
and demographics, including information about minority and low income
populations pursuant to Executive Order 12898, Environmental Justice in Minority
and Low-Income Populations.
Also, this chapter must include a description of any existing easements, right-ofways, leases, and any other agreements about use of the Section 6(f)(3) area. If the
proposal includes land with a history of contamination, this chapter should describe
the contamination and current condition/remediation status.
For Section 6(f)(3) conversions, this chapter must include a description of the
existing resources associated with the Section 6(f)(3) parkland proposed for whole or
partial conversion, including associated outdoor recreation facilities and
opportunities and a description of the existing resources at the replacement site(s).
The description must include a detailed description of existing outdoor recreation
resources, facilities and opportunities for all affected areas as well as the existing
population served by the converted park and the existing population to be served by
the new replacement parks.
For conversions, resources beyond the existing and proposed Section 6(f)(3) areas
are not subject to review unless required by other federal compliance programs.
Any resources and issues to be dismissed from further analysis must be described in
this chapter.
Chapter 4 - Environmental Impacts. This chapter analyzes the degree to which the
resources described in Chapter 3 (above) will be impacted by the proposal. The
analysis should be presented for the interested and affected public, agencies, and
decision-makers to understand the potential for impacts, both beneficial and adverse,
and should include qualitative and quantitative data that considers the context,
intensity, duration, and timing of the potential impacts. The presentation of data
must be presented objectively, accurately, and factually. Resource impacts within
the proposed Section 6(f)(3) boundary must be described including any future
easements, right of ways, leases and agreements about the use of the Section 6(f)(3)
area.
This chapter must also include a detailed discussion of the proposed impacts, both
beneficial and adverse, on the provision of public outdoor recreation for the
populations served by the proposal including impacts to minority and low income
populations pursuant to Executive Order 12898, Environmental Justice in Minority
and Low-Income Populations, and a clear depiction of any Section 6(f) boundary
changes, especially for expansion of existing Section 6(f) areas and conversions,
including a description of any easements, rights-of-way, leases, and any other
agreements about the use of the Section 6(f)(3) area as a result of the proposal. If
Chapter 3 (above) includes information that any of the land resources in the proposal
has a history of contamination, this chapter must include information on the impacts
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of the proposal on this land considering its status including the land’s suitability to
support healthy and safe public outdoor recreation activities in perpetuity.
For Section 6(f)(3) conversions, an analysis of impacts to the affected resources
described in Chapter 4 must be presented in this chapter. Resources beyond the
existing and proposed Section 6(f)(3) areas are not subject to review unless required
by other federal compliance programs.
Chapter 5 - Coordination and Consultation. This chapter must list persons,
organizations and agencies contacted for information and for identifying important
issues, developing alternatives, or analyzing impacts. Any scoping or other public
involvement efforts should also be detailed. A list of preparers and their
qualifications should be included as well.
(2) Opportunity for public review and comment. At a minimum, States are required to
ensure the interested and affected public has had an opportunity to review and
provide written comments on completed environmental assessments for LWCF
proposals. This public comment period shall be no less than 30 days. The notice an
EA is available for review shall be published in the local newspapers and community
notices, posted on the sponsoring agency’s web site, and made broadly known to the
public in such a way that the interested and affected public has ample notice of the
public comment period. The State/project sponsor is responsible for reviewing the
public comments. These comments and the responses that address all substantive
comments are to be included in the proposal’s submission to NPS.
If the proposal is revised in response to substantive public comments or for any other
reason, States should consult with NPS to determine if the public needs another
opportunity to review the revised EA.
c. Environmental Impact Statement. An Environmental Impact State (EIS) is required
when the potential for significant impact to the human environment exists is indicated
by an EA or through the PD/ESF. The State should contact NPS for further guidance as
soon as there is an indication that an EIS may be required.
C. National Historic Preservation Act, Section 106 Process
1. Purpose. The purpose of this section is to provide overall guidance on the implementation of
the National Historic Preservation Act of 1966, as amended, (P.L. 89-665) for LWCF
proposals requiring NPS review and decision.
Section 106 of the National Historic Preservation Act (NHPA) requires federal agencies to
take into account the effects of their undertakings on historic properties and afford the
Advisory Council on Historic Preservation (Council) a reasonable opportunity to comment
on such undertakings. A historic property is a property listed in or eligible for listing in the
National Register of Historic Places. An undertaking is a project, activity, or program in
whole or in part under the direct or indirect jurisdiction of a federal agency, including those
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carried out by or on behalf of a federal agency; those carried out with federal financial
assistance; those requiring a federal permit, license or approval, and those subject to State or
local regulation administered pursuant to a delegation or approval by a federal agency.
Under Section 106, LWCF proposals requiring NPS review and decision are undertakings.
The Section 106 process seeks to accommodate historic preservation concerns with the
needs of federal undertakings through consultation among the agency official and other
parties with an interest in the effects of the undertaking on historic properties, commencing
at the early stages of project planning. The goal of consultation is to identify historic
properties potentially affected by the undertaking, assess its effects, and seek ways to avoid,
minimize, or mitigate any adverse effects on historic properties.
2. State responsibility. States shall conduct the Section 106 review process pursuant 36 CFR
Part 800. Prior to formal proposal submission to NPS for review and decision and pursuant
to 36 CFR 800.2(a)(3), the State Liaison Officer, or designee, is authorized by NPS to
initiate the Section 106 consultation process with the State Historic Preservation Office
(SHPO), the Tribal Historic Preservation Office (THPO), and other consulting parties to
define the Area of Potential Affect (APE) and to determine whether LWCF proposals have
the potential to affect historic properties within the APE. The APE is defined as the
geographic area or areas within which an undertaking may directly or indirectly cause
alterations in the character or use of historic properties, if any such properties exist. The
APE boundary may not be limited to the LWCF Section 6(f) boundary.
States are also responsible for performance by third parties under sub-agreements made by
States for accomplishing LWCF program objectives. This responsibility includes
compliance with all applicable federal laws, executive orders and regulations, such as
Section 106.
By submitting a LWCF proposal for NPS review and decision, the State is making the
following assurance and is also requiring this assurance be provided by subgrantees:
The State shall assist the NPS in its compliance with Section 106 of the National
Historic Preservation Act of 1966, as amended, by (a) consulting with the State Historic
Preservation Office and/or the Tribal Historic Preservation Office on the conduct of any
necessary investigations to identify properties listed in or eligible for inclusion in the
National Register of Historic Places that are within the proposed area of potential effect
of the proposed action (see 36 CFR Part 800), to conduct such investigations and to
notify the Federal grantor agency of the existence of any such properties, and by (b)
complying with all requirements established by the Federal grantor agency to avoid or
mitigate adverse effects upon such properties. The State further agrees to require this
assurance from local project sponsors.
a. SHPO and THPO role. The SHPO reflects the interests of the State and its citizens in
the preservation of their cultural heritage. In accordance with Section 101(b)(3) of the
Act, the SHPO advises and assists federal agencies in carrying out their Section 106
responsibilities and cooperates with such agencies, local governments, and organizations
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and individuals to ensure historic properties are taken into consideration at all levels of
planning and development. For LWCF proposals, the SHPO shall advise and assist the
state agency in its efforts to comply with Section 106.
When an Indian tribe has assumed the Section 106 responsibilities of the SHPO on tribal
lands pursuant to Section 101(d)(2) of the Act, consultation for undertakings occurring
on tribal land or for effects on tribal land is with the THPO for the Indian tribe in lieu of
the SHPO. See 36 CFR 800.3 for details on how to conduct the Section 106 process
with a THPO.
b. Indian tribes and Native Hawaiian organizations. States are responsible for making
reasonable and good faith efforts to identify Indian tribes and Native Hawaiian
organizations that shall be consulted in the Section 106 process. Consultation should
commence early in the planning process in order to identify and discuss relevant
preservation issues and resolve concerns about the confidentiality of information on
historic properties. States should seek assistance from the SHPO, THPOs, Native
Hawaiian organizations, tribes, other federal landholders, and any party it deems
appropriate to determine if the proposal has the potential to affect tribal and Native
Hawaiian resources. States should seek further guidance from their NPS LWCF
regional office in cases where the consultation process is complex and assistance is
needed to further define these responsibilities and roles.
3. NPS responsibility. NPS provides guidance through this manual and technical assistance to
States in complying with the Section 106 process prior to a State’s formal submission of a
LWCF proposal to NPS.
NPS receives and considers a State’s Section 106 recommendations as part of a State’s
formal LWCF proposal submission, and conducts further consultation if needed. It shall be
NPS policy to implement the Section 106 process in such a manner as best serves the public
interest and is consistent with the provisions of the Land and Water Conservation Fund Act
of 1965, as amended.
4. Timing. States are responsible for carrying out its responsibilities under these procedures as
early as possible during the formative stages of a proposal and as part of its decision making
process prior to formal submission to NPS for review and decision.
5. Coordination with NEPA. States should ensure that potential affects on historic properties
from the proposal are considered as early as possible during the environmental review
process pursuant to the NHPA Section 800.8 and the National Environmental Policy Act
(NEPA). The Section 106 process and the NEPA environmental review process are two
separate, distinct processes. They can and should occur simultaneously, and documents can
be combined, but one is not a substitute for the other. They should, however, be coordinated
to avoid duplication of public involvement or other requirements. The Section 106 process
shall be documented as part of the LWCF PD/ESF (see next item and also Chapter 4.A).
The State should ensure the information and mitigation gathered as part of the 106 review is

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included in the NEPA document to be submitted for NPS review and decision about the
proposal’s potential for significant impact on the human environment.
Use of NEPA categorical exclusions does not exempt the proposal from compliance with
this section.
6. Applying Section 106 to types of LWCF proposals. A State shall complete a LWCF
PD/ESF for each proposal to be submitted to NPS for review and decision along with its
recommendation for a determination of effect and supporting documentation appropriate for
the type of proposal being submitted to NPS:
a. New projects and amendments to acquire and/or develop parkland. Prior to a State’s
submission of a proposal for financial assistance (acquisition, development or
combination projects) and for amendments that involve 1) the acquisition of different
acreage from those identified in the original application or 2) a change in the footprint of
the development from that originally proposed within the APE, the requirements of this
chapter must be addressed.
b. New acquisition projects and amendments involving delayed development and interim
uses. In some instances LWCF grants are approved for the acquisition of land on which
non-LWCF assisted the development of outdoor recreation facilities is planned at a
future date. In the interim, between acquisition and development, the property should
be open for those public recreation purposes that the land is capable of supporting or
which can be achieved with minimum public investment. Interim uses for such lands
acquired for delayed development may also include the temporary continuation of an
existing use and non-recreation uses, such as agriculture (see Chapter 3.B.7 for delayed
development policy). Any new planned or unplanned development and uses for the
newly acquired property during the three year period after acquisition is subject to
compliance with this chapter. Failure to protect historic properties constitutes grounds
for termination of a LWCF grant.
If appropriate, a special condition shall be placed in the LWCF grant agreement/
amendment that requires further compliance prior to any ground disturbing or
demolition activities during this time period. Tracking Section 106 compliance will be
the responsibility of the State.
c. Section 6(f)(3) conversions. Section 106 process must be applied to the Section 6(f)(3)
protected area to be converted as well as the acquisition and development of the
replacement parkland. For the area to be converted States may consider recently
conducted Section 106 reviews for applicability to the new APE resulting from the
proposal that will cause the conversion.
d. Proposals for temporary non-conforming uses, significant change in use, sheltering, and
developing public facilities. These proposals require the approval of the NPS and must
be reviewed according to the Section 106 process (see Chapter 8).

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7. Cost sharing. Except as noted below, all costs incurred as a result of compliance with this
chapter, including pre-agreement costs associated with the identification and evaluation of
potential historic properties, are eligible project costs and may be reimbursable.
a. Acquisition projects. Costs for mitigation actions related to an acquisition project are
not eligible for LWCF assistance.
b. Development projects. Costs incurred for mitigation actions or mitigation for resources
discovered during LWCF project development may be reimbursable through the LWCF
on a matching basis up to 50 percent provided that such request is accompanied by
evidence that sufficient and timely federal funding for mitigation is otherwise
unavailable. Mitigation shall be conducted in a manner consistent with the Secretary of
the Interior’s Standards for Archeology and Historic Preservation Projects. Since
destruction of historic properties constitutes an irreplaceable loss, failure to provide for
necessary mitigation constitutes grounds for denial of LWCF assistance.
8. Compliance procedures
a. NPS responsibility. The NPS is ultimately responsible for determining whether a project
proposal will affect a property in or eligible for listing in the National Register.
b. State responsibility. It shall be the responsibility of the State to implement, or cause to
be implemented, the provisions of this part on behalf of and with the concurrence of
NPS. The Section 106 Process is detailed in 36 CFR PART 800 Subpart B. States shall
use 36 CFR Part 800 Subpart B for detailed guidance on the Section 106 compliance
procedure and its own SHPO/THPO requirements. The requirement for States to
consult with the SHPO/THPO is independent of the State’s Intergovernmental Review
system (E.O. 12372). In summary, the State shall:
(1) Determine scope of historic property identification including the Area of Potential
Affect (APE) for the proposed LWCF undertaking.
(2) Identify historic properties within the APE.
(3) Evaluate any historic properties for National Register eligibility.
(4) Recommend a determination of effect.
i. No historic properties affected. If the State finds either there are no historic
properties present or there are historic properties present, but the LWCF
undertaking will have no effect upon them as defined in 36 CFR 800.16(i), the
State shall provide adequate documentation of this finding to the SHPO/THPO
and shall notify all consulting parties they have 30 days to object to the finding.
If no objections are made, then the State may recommend a finding of “No
Historic Properties Affected” to NPS as part of its formal proposal submission.

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If the SHPO/THPO or any consulting party objects to the finding, then the
State shall follow procedures according to 36 CFR 800.4(d)(1)(ii).
ii. Historic properties affected. If the State finds there are historic properties that
may be affected by the LWCF undertaking, the State shall notify all consulting
parties to invite their views on the effects and assess adverse effects, if any, in
accordance with 36 CFR 800.5.
(a) No adverse effects on historic properties. If after the State applies the
criteria of adverse effects pursuant to 36 CFR 800.5(a)(1) it determines the
LWCF undertaking will have no adverse effect on historic properties
eligible for or listed on the National Register it shall notify all consulting
parties along with the documentation of the finding who have 30 days
from receipt to review the finding. If the SHPO/THPO has agreed with
the finding or has not provided a response, and no consulting party has
objected, the State may recommend a finding of “No Adverse Effect” as
part of its formal proposal submission to NPS.
Disagreement with “no adverse effects” finding. If within the 30-day
review period any consulting party notifies the State in writing it disagrees
with the “no adverse effect” finding and specifies the reasons for the
disagreement, the State shall either consult with the party to resolve the
disagreement or request NPS seek Council review of the finding pursuant
to 36 CFR 800.5. The State shall also concurrently notify all consulting
parties such a submission has been made and make the submission
documentation available to the public.
If within the 30-day review period the Council provides the NPS, and if
the Council determines the issue warrants it, the head of NPS, with a
written opinion objecting to the finding, NPS shall proceed according to
36 CFR 800.5(c)(3)(ii).
(b) Adverse effects on historic properties. When the potential for an adverse
effect is found, the consultation shall continue among the State, NPS,
SHPO/THPO and consulting parties to attempt to eliminate or mitigate the
effect. The NPS, with the assistance of the State, must follow procedures
pursuant to 36 CFR 800.6.
c. Formal submission of State’s proposal to NPS. NPS shall not accept a LWCF proposal
from the State for formal review and decision until the Section 106 process has been
completed.
d. Post review discoveries. If historic properties are discovered or unanticipated effects on
historic properties found after the NPS has signed off on the Section 106 process, the
State, or subgrantee, shall immediately halt construction activities and notify NPS. In
consultation with NPS, the State shall make reasonable efforts to avoid, minimize or
mitigate adverse effects to such properties and follow the procedures outlined under 36
CFR 800.13(b).
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e. Data recovery. When it is determined the project will have an adverse effect on a
property in or eligible for listing in the National Register, all feasible and practicable
alternatives to avoid or beneficially incorporate the historic properties into the project
should be considered. If NPS, in consultation with the Council and the SHPO/THPO,
determines there is no alternative but to recover the scientific, prehistoric, historical or
archeological data, such recovery shall be conducted in accordance with 36 CFR 800.6
and pursuant to a Memorandum of Agreement and be consistent with the Department of
Interior “Statement of Program Approach” for implementation of P.L. 93-291. In the
event that timely funding under P.L. 93-291 is unavailable, such data recovery costs may
be assisted in accordance with this section.
f. Destruction of historic properties prohibited. Destruction of any site or property on or
eligible for inclusion on the National Register prior to or in anticipation of applying for
LWCF assistance shall constitute grounds for denial of LWCF assistance.
D. Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970
1. Purpose. This section provides guidance for the application of the Uniform Relocation
Assistance and Real Property Acquisition Policies Act of 1970, as amended (Uniform Act)
and its implementing regulations found in the Code of Federal Regulations, Part 24 (49 CFR
Part 24) to federally assisted projects through the Land and Water Conservation Fund
(LWCF).
The Uniform Act provides for the uniform and equitable treatment of persons displaced
from their homes, businesses, or farms by federal and federally assisted programs and
establishes uniform and equitable land acquisition policies for federal and federally-assisted
programs, such as the LWCF
a. Displaced persons. The Uniform Act seeks to ensure that persons displaced as a direct
result of federal or federally assisted projects are treated fairly, consistently, and
equitably so such displaced persons will not suffer disproportionate injuries as a result of
projects designed for the benefit of the public as a whole. In this regard, the provisions
of the Uniform Act and its implementing regulations apply to state and local government
agencies receiving federal financial assistance for public projects that require the
acquisition of real property regardless of funding source. The acquisition itself does not
need to be federally funded for the rules to apply. If federal LWCF funds are used in
any phase of the project, such as subsequent LWCF-assisted development as described
in Section 5 below, States must comply with the rules of the Uniform Act.
b. Real property acquisition. The Uniform Act seeks to ensure that owners of real property
to be acquired for federal and federally-assisted projects are treated fairly and
consistently, to encourage and expedite acquisition by agreements with such owners, to
minimize litigation and relieve congestion in the courts, and to promote public
confidence in federal and federally-assisted land acquisition programs. See Section 4
below for further guidance on real property acquisitions.
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2. State responsibility. The States are responsible for implementing the provisions of the
Uniform Act pursuant to 49 CFR Part 24. The State Liaison Officers must keep
participating state agencies and local governments advised on, and assure compliance with,
all relocation and acquisition matters as they relate to the Uniform Act and these procedures.
For LWCF project approval, this State assurance is incorporated into the general provisions
included with every project agreement:
The State will comply with the terms of Title II and Title III, the Uniform
Relocation Assistance and Real Property Acquisition Policies Act of 1970
(P.L. 91-646), 94 Stat. 1894 (1970), and the applicable regulations and
procedures implementing such Act for all real property acquisitions and
where applicable shall assure that the Act has been complied with for
property to be developed with assistance under the project agreement.
3. State documentation requirements for displaced persons. Except for Items “e” and “g”
below, the State is required to keep the following documentation in its own LWCF project
files and make it available upon request during program reviews, for audit purposes, and in
response to NPS information requests. The State must submit copies of the “Statement of
Difference in Value and Waivers” to the NPS prior to project completion.
a. An estimate of the number of individuals, families, businesses, and farms being
displaced.
b. Appraisal documentation including review material and the State’s written approval of
the appraisal report.
c. Copy of the written offer to purchase including a statement of just compensation.
d. Relocation Plan, advisory services program, and appeals procedure where displacement
occurred.
e. Statement of difference in value if the purchase price is greater than the approved
appraisal of fair market value.
f. Documentation showing the owner or owner’s designated representative has been given
an opportunity to accompany the appraiser during his inspection of the property.
g. Evidence that occupants of property acquired were furnished at the time of initiation of
negotiations adequate information explaining their eligibility to payments under Title II
of the Uniform Act
h. Copies of waivers where applicable.
i. Appropriate claims forms and supporting documentation.

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j. Evidence of purchase price and of title.
4. State relocation assistance advisory services. States shall carry out a relocation assistance
advisory program that includes, in part, determining the relocation needs of each person to
be displaced and providing an explanation of payments and other assistance for which the
person may be eligible. All services required by Title II, Section 205 of the Uniform Act
must be provided by the state or local sponsor.
5. Relocation benefits to displaced persons. The State must make available relocation benefits
to persons displaced from any site that at the time of acquisition with or without LWCF
assistance (or at any time thereafter prior to actual displacement) was planned as the site of a
federally assisted project as follows:
a. If the acquisition or displacement occurred within the two years preceding the time the
State submits its application for federal financial assistance to the NPS, the State must
provide the assurances required by Sections 210 and 305 of P.L. 646, unless the State
can provide to the NPS documented evidence that at the time of the acquisition and last
displacement, planning activity to obtain the particular federal assistance being applied
for had not yet been initiated.
b. When the acquisition or displacement occurred more than two (2) years, but less than
five (5) years before the State submits an application for federal financial assistance, that
same assurance must be provided by the State, unless a written certification is provided
as part of the project application by the head of the State or local government agency
sponsoring the project. The certification will indicate, under penalty for willful
misstatement (18 U.S.C. Section 1001), that the state or local government had not yet
initiated planning activities for the application to obtain federal assistance at the time of
the acquisition and last known displacement. The intent of this certification is for the
State to provide an affirmative demonstration the acquisition was not the first step in a
logical or foreseen planning of a project requiring federal financial assistance.
c. If the acquisition and last displacement occurred more than five (5) years before the
State applies for federal financial assistance, the State need not provide the assurances
required by Sections 210 and 305 of the Uniform Act nor the certification discussed
above, unless the NPS has evidence to indicate that at the time of the acquisition and last
known displacement, the state or local government had initiated planning activity for the
application to obtain the particular federal assistance. In such case, Sections 210 and
305 assurances will be required. This is because it is assumed after five (5) years it is
unreasonable to assume there was intent to seek financing of a development project at
the time of acquisition or intent to deny relocation benefits.
d. The States shall keep relocation certifications and related records in its own LWCF
project files and make them available for inspection at the request of NPS.
6. Displaced applicant appeals process. Situations may occur when an applicant for payments
under the Uniform Act will be aggrieved by a displacing agency’s determination as to the
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applicant’s eligibility for payment or the amount of the payment. Each State shall establish
procedures that provide for adequate review by the involved state agency of the concerns of
the person aggrieved. The procedures should assure that aggrieved persons may have their
applications reviewed by the head of the state agency. The procedures should also provide
for an appeals process that can be followed should decisions remain disputed following
review by the head of the state agency.
7. Real property acquisition
a. Methods of acquisition. Acquisition of land and water, or interests therein, may be
accomplished through direct voluntary purchase, gift, transfer, eminent domain, or other
means. The NPS encourages public policies and procedures for the acquisition of real
property that are fair and consistent, and directed toward giving the property owner the
full measure of compensation authorized by law, promptly, with a minimum of
inconvenience, and without prolonged negotiation or costly litigation. Federallyassisted acquisitions shall be guided by the policies found in Title III of the Uniform
Act.
(1) The Federal Government will not obtain a legal right or title to any area or facility
acquired with LWCF assistance. The State must have on file satisfactory evidence
of the purchase price and a description of the character and nature of the title
received by the project sponsor before requesting reimbursement from the NPS.
(2) Evidence of title, such as a written statement by the State Attorney General, title
insurance, or other means considered reasonable and adequate, must also be
available to the SLO before requesting reimbursement from the NPS.
(3) Requests for payment certified by the SLO will be acceptable evidence of the
purchase price and that the State has on file all the required documents, including
those required by P.L. 91-646.
(4) A survey may be required by the NPS to confirm the exact location and size of the
tract being acquired.
b. State responsibility. The State will have responsibility for providing guidance to
appraisers on appraisal requirements for federally-assisted acquisitions, for ensuring
appraisals are reviewed by state-certified review appraisers pursuant to the Uniform
Appraisal Standards for Federal Land Acquisitions (UASFLA), and for approving
appraisals. The State must certify the appraisals meet the federal appraisal standards as
described in below. A certification statement is included in the LWCF Proposal
Description and Environmental Screening Form (PD/ESF) for States to certify appraisals
and waiver valuations.
NPS will conduct spot check reviews of appraisals as needed and will review the State’s
LWCF appraisal review process as part of a state program review to assure compliance
with the LWCF requirements and federal appraisal standards. The NPS may request
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appraisal review assistance from the Department of the Interior’s Appraisal Services
Directorate (ASD) as needed. When the appraisal review results in substantive concerns
as to the adequacy of an approved appraisal, the State Liaison Officer will be
responsible for providing NPS (or ASD) with supplemental appraisal documentation or
a new appraisal in accordance with the review findings. The value established by the
revised or new appraisal will be used as the basis for determining just compensation and
matching assistance.
c. Appraisal standards. The Uniform Appraisal Standards of Federal Land Acquisitions
(UASFLA), commonly referred to as the “Yellow Book,” shall be used by state and
local appraisers in the preparation of appraisals for federal LWCF-assisted acquisitions,
donations if used for a federal match, and land exchanges for conversions. Because the
appraisals for federal government acquisitions purposes, including federally-assisted
acquisitions, are bound by federal law relating to the valuation of real estate, it is
necessary to apply the UASFLA as warranted by the conditions of the federal appraisal
assignment.
The federal standards (UASFLA) are considered “Supplemental Standards” to the
Uniform Standards of Professional Appraisal Practice (USPAP) and are required to
bolster the minimum level of documentation and yield compliance with the unique and
applicable appraisal methods and procedures that have evolved from federal case law.
The UASFLA 2000 edition is available from on-line. USPAP is revised annually and
can be found on the Appraisal Foundation’s website.
(1) UASFLA and USPAP. Appraisal preparation, documentation and reporting shall
be in conformance with the UASFLA, which are generally compatible with
standards and practices of both the appraisal industry and the Uniform Standards of
Professional Appraisal Practice (USPAP). However, USPAP compliance alone will
not result in UASFLA compliance. The project sponsor must recognize the
differences between UASFLA and USPAP and ensure the appraiser meets the
higher standards of the UASFLA, except where noted below.
The UASFLA incorporates, by reference, most of the provisions found in the
USPAP, however, UASFLA is a more detailed and rigorous standard. The
UASFLA does deviate from the USPAP on certain occasions. Therefore, it may be
necessary to invoke USPAP’s “Jurisdictional Exception Rule” when preparing a
UASFLA-complying report. This allows USPAP standards to conform to
overriding federal law relating to the valuation of real estate for LWCF federallyassisted acquisition and LWCF Act Section 6(f)(3) conversion purposes. Consult
Part D-1 of the UASFLA for a discussion of the minor conflicts between the 2000
edition of the UASFLA and the USPAP in effect as of that same year.
The major difference between the USPAP and the UASFLA is the UASFLA
mandated procedure of valuing partial takings by utilizing the “before and after”
method of analysis. This method addresses the loss of market value suffered by the
large parcel as a result of the loss of the real property rights in question. “Severance
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damages” and “special benefits” affecting the remaining real property are
automatically addressed through this appraisal method. The USPAP provides no
specific guidance with respect to this issue. Lacking specific guidance, most
USPAP appraisal reports simply address the value of the real property rights
acquired by the grantee and not the overall diminution suffered (or, perhaps,
enhancement realized) by the property from which it was acquired. Thus, a
landowner, under certain circumstances, may end up “short changed” or unjustly
enriched as a result of the lack of direction given in the USPAP in an involuntary or
condemnation type acquisition. The reason for this UASFLA requirement is
fairness to all concerned parties. Except for appraisal problems associated with
Section 6(f) conversion land exchanges, the “before and after” method is required
for LWCF appraisals.
Appraisers are obligated to be familiar with the entire UASFLA standard before
bidding on an appraisal assignment and/or preparing the appraisal report.
(2) Specific UASFLA policies and guidance for LWCF appraisal problems.
i. For the purpose of the UASFLA compliance, any appraisal report, whether
identified by the appraiser as a self-contained report or a summary report, will
be considered as meeting the UASFLA requirements for a self-contained
report if it has been prepared in accordance with the UASFLA.
See Section A of the UASFLA for details on data documentation and
appraisal reporting standards. All appraisals are to include the required
certification statement found in Part A-4. UASFLA contains an Appraisal
Report Documentation Checklist located in Appendix A and a Recommended
Format for Federal Appraisal Reports in Appendix B.
ii. The appraiser's estimate of highest and best use must be an “economic” use. A
non-economic highest and best use, such as “conservation,” “natural lands,”
“preservation,” or any use which requires the property to be withheld from
economic production in perpetuity, is not a valid use upon which to estimate
market value. Therefore, any appraisal based on such a non-economic highest
and best use will not be approved for federal land acquisition purposes.
In this same regard, an appraiser's use of any definition of highest and best use
which incorporates non-economic considerations (e.g., value to the public,
value to the government, or community development goals) will render the
appraisal unacceptable for LWCF purposes. (Section A-14 of the UASFLA)
iii. For acquisitions not associated with Section 6(f) conversions and replacement
land, the “before and after” method of valuation is required if the proposed
acquisition is something less than the entire ownership. For example, if the
proposed acquisition is a 20-acre parcel and the larger property is a 100-acre
property, the required method of analysis is to value the 100-acre property in
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the “before” condition and then value the 80-acre parcel in the “after”
condition. The value of the acquisition is then determined by subtracting the
latter value estimate from the former value estimate. Improvements that are
unaffected by the partial acquisition, either positively or negatively, need not
be valued as long as the appraiser states that to be the case and the property is
not to be acquired through condemnation.
iv. The use to which the grantee will put the property after it has been acquired is,
as a general rule, an improper highest and best use. It is the value of the land
acquired that is to be estimated, not the value of the land to the government.
If it is solely the government's need that creates a market for the land, this
special need must be excluded from consideration by the appraiser.” (Section
A-14 of the UASFLA).
v. The UASFLA contains a unique definition of market value (Section A-9 of
the UASFLA).
vi. The UASFLA contains a unique certification statement (Section A-4 of the
UASFLA).
vii. Estimates of “marketing time” and “exposure time” are not appropriate and
should not be reported in UASFLA-complying reports. The exclusion of the
estimate of “exposure time” may be considered a Jurisdictional Exception to
the USPAP. (See Sections D-1 and A-9 of the UASFLA. However, the
USPAP version effective July 1, 2006 no longer specifies the reporting of
exposure time in Standard 2, “Real Property Appraisal Reporting,” but does
refer to the development of an opinion of exposure time in the “Comment”
following S.R. 1-2(c)(iv) as well as in SMT-6. “Marketing time” is no longer
mandated, to any extent, in the aforementioned edition of the USPAP.)
viii. Because Section 6(f) conversions are land exchanges, the following policies
shall apply:
(a) For partial takings, “part taken” appraisals shall be prepared for the
subject parcels rather than employing the classic “before and after”
appraisal methodology described above. This is necessary to avoid
consequential value distortions that would logically occur as a result of
appraisement of partial takings within parent parcels of greatly differing
sizes. For example, if a park (conversion) property under appraisement is
a five-acre tract within a 1,000-acre larger property and the replacement
property (non-park property) is a 5-acre tract within an otherwise similar
8-acre larger parcel, an equal value conclusion would be extremely
improbable, and such an appraisal procedure might very well result in an
“equal value” exchange of a conversion property being several times the
size, and perhaps several times the value (if viewed from the perspective
of being a stand-alone parcel), of the replacement property.
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(b) In order to determine the highest and best use of the park property, the
appraiser is to ignore the actual zoning of the property if the zoning is a
non-economic zoning established to recognize the “open space”
characteristics of the park or to foster the preservation of the park. In this
situation, the appraiser is to determine the most likely zoning that would
have come about under the hypothetical condition the park was never
created. In so doing, the appraiser will consider likely property uses
based upon all germane factors as well as the actual present zoning of
comparable, nearby, privately owned properties. Under this scenario, the
cost, risk and time associated with obtaining a zoning change would not
be appropriate. This procedure is necessary to avoid penalizing the
conversion property because it was taken out of private ownership and
dedicated to a non-economic use.
(c) The same valuation method shall be used on both the converted parcel
and the replacement parcels.
ix. The owner or the owner's designated representative must be given an
opportunity to accompany the appraiser during his or her inspection of the
property. (Section D-14 of the UASFLA)
d. Appraisal value estimate under $25,000. If the State determines an appraisal is
unnecessary because the valuation problem is uncomplicated and the estimated value of
the real property is $10,000 or less based on a review of available data, the State may
unilaterally waive the appraisal and instead prepare a waiver valuation per 49 CFR
24.102(c)(2)(ii). The State is permitted to raise the waiver valuation cap up to $25,000
provided the acquiring agency offers the owner the option to have an appraisal, and the
owner elects to have the agency prepare a waiver valuation instead. Thus, the State may
increase the $10,000 cap to $25,000 with the consent of the landowner.
The person preparing the waiver valuation must have sufficient understanding of the
local real estate market to be qualified, and shall not have any interest, direct or indirect,
in the real property being valued for compensation. Further guidance on waiver
valuations can be found on the Federal Highway Administration’s Website.
e. Conflict of interest. No person shall attempt to unduly influence or coerce an appraiser,
review appraiser, or waiver valuation preparer regarding any valuation or other aspect of
an appraisal, review or waiver valuation. Persons functioning as negotiators may not
supervise or formally evaluate the performance of any appraiser or review appraiser
performing appraisal or appraisal review work, except that, for a program or project
receiving federal financial assistance, the federal funding agency may waive this
requirement if it determines it would create a hardship for the agency. [See 49 CFR
24.102(n) (2).]

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f. Basis for LWCF matching assistance. The project sponsor must secure at least one
appraisal by a qualified appraiser or document the value using the waiver valuation
method for each parcel to be acquired. Generally, the fair market value (FMV) or
waiver value will be used as the basic measure of LWCF assistance on acquisitions.
LWCF assistance shall be based upon evidence of this value.
Properly documented costs of severance damage may be matched. Severance damage is
the diminution in value of the remaining land due to the particular land taken and is
considered to be an inherent part of just compensation.
The LWCF Act precludes using Fund assistance for incidental costs relating to
acquisition.
Settlement may occur after the LWCF project agreement has been signed by NPS.
g. Acquisition by donation. An appraisal prepared according to the UASFLA or a waiver
valuation is required for all projects involving the donation of real property or interests
therein for determining the federal matching share. For guidance on waiver valuations
for real property with an estimated value under $25,000, see Item “d” above.
(1) Partial donations/Acquisition at less than just compensation. Only in unusual
circumstances (e.g. bargain sales, donations, etc.) will real property be acquired at
less than established just compensation as determined by an approved appraisal.
For partial donations, documentation must include evidence the owner has been
provided with a statement of just compensation. A written statement by the owner
that he is making a partial donation is also required.
(2) To determine the amount eligible for matching a LWCF project, an approved
appraisal is still necessary.
h. When State request for LWCF assistance is different than appraised value. An appraisal
should be an acceptable estimate of property value if competently compiled by a
qualified appraiser. However, it cannot be assumed to be an absolute statement of value.
The approved appraisal value is the basis for establishing the amount of just
compensation offered to the owner (seller) at the initiation of negotiations. The
negotiation between a willing seller and a willing buyer will often set a price that is
higher than the appraisal, and this market place value must be considered with the
appraised value in establishing the reasonable limits of LWCF assistance.
When the State believes the administrative settlement is an adequate indication of
market value, yet it is higher than the approved appraised value, a detailed and well
documented statement on this difference with all pertinent appraisal documents must be
submitted before reimbursement is requested. This statement should explain why the
appraisal may not reflect the market value and what steps the project sponsor took to
establish the value, and include adequate market data to substantiate the value

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conclusion. If the NPS agrees the administrative settlement represents a reasonable
estimate of the property, that amount will be eligible for assistance.
i.

Acquisition of less-than-fee interests. In certain instances the purchase of less than fee
title may be permissible (see Chapter 3). The acquisition of easements, rights-of-way,
etc., will be viewed in the same light as full takings. Documentation of value by
appraisals will be the same. The project proposal should adequately explain why lesser
interests are to be acquired.

j. Judicial decisions. When lands are acquired through judicial proceedings, the price
determined by the court will be accepted by NPS in lieu of any previous NPS or State
approved appraised value.
k. Responsibility for quieting title or for replacement of properties acquired with defective
title. The State is responsible for quieting claims against title and for replacing property
found to have defective title with other properties if this occurs after project completion
pursuant to the LWCF conversion provisions found in 36 CFR 59. If prior to project
completion, the LWCF project may be terminated for cause (see Chapter 7).
E. Equal Employment Opportunity Contract Compliance
For all LWCF grants involving federally assisted construction contracts and subcontracts in
excess of $10,000, the recipient must comply with Executive Order 11246, as amended, and with
the regulations of the Office of Federal Contract Compliance Programs (OFCCP) of the
Department of Labor at 41 CFR 60-4. In determining whether Fund-assisted construction
contracts exceed this dollar limit, the total amount of the contract awarded rather than the amount
of federal assistance shall apply.
F. National Flood Insurance Program
1. Scope. The Flood Disaster Protection Act of 1973 (P.L. 93-234) requires the purchase of
flood insurance as a condition of receiving any federal financial assistance (including
LWCF assistance) for acquisition or construction purposes in special flood hazard areas
located in any community currently participating in the National Flood Insurance Program
authorized by the National Flood Insurance Act of 1968. These special flood hazard areas
are identified by the Federal Insurance Administration of the Federal Emergency
Management Agency.
2. Improvements eligible for flood insurance coverage
a. Definitions. For the purposes of the National Flood Insurance Program, the term
"financial assistance for acquisition or construction purposes" means any form of
financial assistance that is intended in whole or in part for the acquisition, construction,
reconstruction, repair or improvement of any publicly or privately owned building or
mobile home, and for any machinery, equipment, fixtures, and furnishings contained or
to be contained therein. The terms building and mobile home are further defined as any
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walled and roofed structure that is principally above ground and affixed to a permanent
site. Structures and their contents that meet these definitions are referred to as insurable
improvements in this section.
b. Examples of insurable improvements for which insurance is required include, but are not
limited to the following: 1) restroom facilities; 2) administrative buildings;
3) bathhouses; 4) interpretive buildings; 5) maintenance buildings and sheds for
landscaping tools or other equipment; 6) sheltered facilities consisting of two or more
walled sides and a roof.
c. Examples of improvements for which insurance is not required include, but are not
limited to the following: 1) open picnic shelters; 2) permanently affixed outdoor play
equipment such as swings and slides; 3) sun shades covering outdoor ice skating rinks;
4) outdoor swimming pools.
3. Requirement for flood insurance
a. Flood insurance will be required for insurable facilities located within special flood
hazard areas for which the Federal Insurance Administration has issued a flood hazard
boundary map or a flood insurance rate map. If the Federal Insurance Administration
withdraws the applicable map(s) for a special flood hazard area for any reason, the
insurance requirement is suspended for projects located in that special flood hazard area
that are approved during the period the map(s) is (are) withdrawn.
b. Communities identified as having special flood hazard areas must qualify within one
year of notification by the Federal Insurance Administration. If an identified community
has not qualified for the program by the prescribed date, no financial assistance can be
provided for acquisition or development of insurable improvements. Such assistance
will remain unavailable until the community has qualified. Financial assistance for noninsurable acquisition or development or for projects outside of the special flood hazard
areas is not affected by whether the community is qualified or not qualified for flood
insurance.
After a community has qualified for the flood insurance program, financial assistance
for acquisition or development of insurable improvements will be predicated upon
purchase of flood insurance for those improvements by the project sponsor.
c. Flood insurance required by P.L. 93-234 must be carried on insurable improvements
throughout their useful life.
d. Flood insurance is not required on any state-owned property that is covered under an
adequate state policy of self insurance. A revised list of States to which this exception
applies will be published periodically by the Federal Insurance Administration of the
Federal Emergency Management Agency.
4. Amount of insurance
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a. The amount of insurance required by P.L. 93-234 is the lesser of (1) the development
cost of the insurable improvement or (2) the maximum limit of coverage made available
with respect to the particular type of facility under the National Flood Insurance Act of
1968. The amount is based on the total cost of the insurable improvement, not just the
federal share.
b. Whenever flood insurance is available to cover a facility during construction, the project
sponsor will obtain such coverage as soon as the facility becomes insurable. Coverage
is usually available as soon as construction progresses beyond the excavation phase.
G. Civil Rights
The States, as primary recipients of assistance, are responsible for providing assurance that the
applicant and all sub-recipients will comply with all related federal civil rights requirements.
This shall be accomplished through:
1. Establishing an open project selection process according to the standards of NPS;
2. Notifying NPS of any inconsistencies with civil rights requirements having arisen from onsite state program reviews and valid complaints registered with the Department, NPS, or the
State where impasses have been reached in resolving the compliance issue(s);
3. Cooperating with NPS toward seeking a satisfactory resolution of any inconsistencies found,
including efforts toward seeking voluntary compliance, enforcement procedures and followup reviews; and,
4. Assuring that each sub-recipient/applicant is provided a copy of Title VI, 504/ADA Title II,
ADAAG, LEP, Title IX, and Age non-discrimination requirements.
For details on enforcement of related civil rights requirements, refer to:
a. Title VI of the Civil Rights Act of 1964 at 43 CFR 17, Subpart A
b. Section 504 of the Rehabilitation Act of 1973 at 43 CFR 17, Subpart B
c. Non-Discrimination on the Basis of Age at 43 CFR 17, Subpart C
d. ADA Title II at 28 CFR 35
e. ADA Accessibility Guidelines at 28 CFR 36
f. Title IX of the Education Amendments of 1972 at 43 CFR 41
g. Limited English Proficiency (E.O. 13166) at 28 CFR 42.104(b)(2)

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H. Contracting with Minority Business Enterprise and Women Business Enterprise Firms
It is the Federal Government’s policy to award a fair share of contracts to Minority Business
Enterprises (MBEs) and Women Business Enterprises (WBEs) pursuant to Executive Orders
11625, 12138, and 12432. An MBE is a business concern that is (1) at least 51 percent
owned by one or more minority individuals, or, in the case of a publicly owned business, at
least 51 percent of the stock is owned by one or more minority individuals; and (2) whose
daily business operations are managed and directed by one or more of the minority owners.
Executive Order 11625 designates the following: a. Black American (with origins from
Africa); b. Hispanic American (with origins from Puerto Rico, Mexico, Cuba, South or
Central America); c. Native American (American Indian, Eskimo, Aleut, or native
Hawaiian).
In accordance with 43 CFR 12.76 affirmative steps must be taken to assure that
MBEs/WBEs are utilized when possible as sources of supplies, equipment, construction,
and services.
The affirmative steps shall include the following:
1. Including qualified MBEs/WBEs on solicitation lists
2. Assuring that MBEs/WBEs are solicited once they are identified;
3. When economically feasible, dividing total requirements into smaller tasks or quantities
so as to permit maximum MBE/WBE participation;
4. Where feasible, establishing delivery schedules which will encourage MBE/WBE
participation;
5. Encouraging use of the services of the U.S. Department of Commerce's Minority
Business Development Agency (MBDA) and the U. S. Small Business Administration
to identify MBEs/WBEs, as required;
6. If any subcontracts are to be let, requiring the prime contractor to take the affirmative
steps listed above.

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CHAPTER 5 - COST PRINCIPLES
A. General Cost Principles
1. Basic concept. Office of Management and Budget (OMB) Circulars A-102 (Uniform
Administrative Requirements for State and Local Governments as implemented in DOI
Common Rulemaking at 43 CFR 12, Subpart C) and A-87 (Cost Principles for State, Local
and Indian Tribal Governments) will be followed in determining the allowability and
allocability of costs. Each project represents a separate transaction for purposes of
determining the amount of the LWCF assistance.
2. Relationship of project period to eligible costs. To be eligible for matching assistance, costs
must have been incurred within the project period except for pre-award project planning
costs. The project period is the span of time stipulated on the agreement during which all
work to be accomplished under the terms of the agreement must be completed. The LWCF
does not reimburse obligations, regardless of when they are assumed; it reimburses costs
incurred during the project period.
a. Development projects. Development costs are first incurred at the start of actual
physical work on the project site (such as the clearing of ground, the beginning of
construction of a building, or the delivery of material to the site), and continue through
the period the work is being done. Costs are not incurred at some earlier time when
contracts are signed, funds obligated, or purchase orders issued, or at a later time when
the ensuing bills are paid. Physical work on the project site shall commence within one
year of project approval. When the project start will be delayed beyond the first year,
the State shall report the reasons for the delay on the annual consolidated performance
report along with a new physical start date. Any problems, conditions, or delays which
will impair the sponsor’s ability to meet the objectives of the grant award shall be
immediately disclosed to the NPS and the project amended or withdrawn as appropriate.
b. Acquisition projects. Since the transfer of ownership in real property can be a protracted
process which differs under various state laws and procedures, the relationship of
acquisition costs to project period is separated into two elements: the date when the
acquisition cost is incurred and the date when the cost is eligible for reimbursement.
(1) Acquisition costs are incurred on the date when the earliest of any of the following
transactions take place:
i. The project sponsor accepts deed, lease or other appropriate conveyance;
ii. The project sponsor makes full payment for the property;
iii. The project sponsor makes first payment in a series of spaced or time
payments;

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iv. The project sponsor makes the first or full payment as stipulated in an option
agreement; (The cost of the option, if included as part of the purchase price, is
allowed as a retroactive cost).
v. The project sponsor makes first, partial, or full payment to an escrow agent.
(2) The transactions in (1) above will be used to determine whether an acquisition cost
is incurred within the project period. Eligible acquisition costs (and retroactive
option costs as appropriate) will be reimbursed only after the project sponsor has
made payment and received satisfactory title to the property.
3. Retroactive costs. Costs incurred prior to NPS approval of a project, with the specific
exceptions stated below, are not eligible for matching funds. LWCF assistance shall only be
awarded to assist work not yet undertaken, rather than to help pay for work already begun or
completed. This applies to entire projects.
a. Waiver of retroactivity. Retroactive costs will not be matched under ordinary
circumstances. Waivers will be made only when immediate action is necessary and the
time needed to process an application would result in a loss of a significant opportunity.
(1) Acquisition. The State will notify the NPS in writing of the necessity to
immediately acquire land prior to taking such action, including a description of the
resources to be acquired, the public outdoor recreation uses proposed for the site,
and justification for the proposed action. At the time the formal acquisition project
is submitted, the State shall include all the necessary documentation required for
new acquisitions (see Chapter 6).
(2) Development. The State will notify the NPS in writing of the necessity to
immediately develop an area prior to taking such action, including a description of
the planned development, the public outdoor recreation uses proposed for the site,
and a justification for the proposed action. Waivers for development projects will
not be approved unless accompanied by a PD/ESF and the proposal qualifies for a
categorical exclusion under NEPA (see Chapter 4).
If NPS grants a waiver, the retroactive costs will be eligible for assistance if the
agreement is later approved. Granting a waiver is only an acknowledgement of the need
for immediate action; it does not imply nor assure NPS approval of the project. The
retroactive costs are incurred at the applicant's risk.
Under no conditions will a waiver of retroactivity be granted during a period of State
ineligibility.
Project proposals should be submitted for funding as soon as possible after the granting
of a waiver of retroactivity. In all cases, however, projects for which a waiver has been
granted will be submitted within one fiscal year following the fiscal year in which the
waiver was granted.
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b. Pre-award project planning costs. It is recognized that some costs must be incurred
before a proposed project can be submitted to the NPS with the required descriptive and
cost data. Pre-award costs must be described in the project application (SF-424 budget
sheet and PD/ESF narrative).
Therefore, for development projects, the costs of site investigation and selection, site
planning, feasibility studies, preliminary design, environmental review, preparation of
cost estimates, construction drawings and specifications, and similar items necessary for
project preparation may be eligible for assistance, although incurred prior to project
approval. Similar costs may be allowable for acquisition proposals except those relating
to appraisals, surveys, and other incidental costs to the purchaser that are precluded by
the LWCF Act.
For SCORP related planning projects, the development of work programs, cost estimates
and budgets, workflow charts, and such other items needed to develop a sound planning
program project by outside consultants, university personnel, or by appropriate state
personnel may be allowable costs, although incurred prior to project approval.
All such pre-award planning costs incurred within three years prior to project
submission to the NPS are allowable. Eligible SCORP planning costs incurred beyond
three years may be allowable provided the earliest date from which they are incurred is
identified in the project agreement. The State must have on file and available for review
sufficient information to justify the amounts of such pre-award costs, to indicate the
periods during which they were incurred, and to justify their applicability to the
particular project.
c. Donation project. Waiver requests involving real property donations will, where
possible, identify the additional acquisition or development to be accomplished under
the proposed project or projects. In any event, a project agreement specifying the use of
the donated value must be entered into prior to the expiration of the waiver. Such
request must included appropriate documentation per Section 3.a above.
d. Time amendment. While the recommended initial project period for an LWCF grant is
three years, the maximum time period for an LWCF grant is five years from the date of
approval. If, however, during the conduct of a project it becomes apparent that
completion will not be possible within the project period (not to exceed five years), the
State shall submit an amendment to extend the project period. The amendment should
be submitted at least 30 days prior to the expiration date. A period of 6 months shall be
considered as the minimum time extension of a project period when amending a project.
Requests for project period extensions submitted after the expiration date will not
normally be approved, and costs incurred after the expiration date will not be eligible for
assistance.
4. Cost overruns and amendments of scope. During the execution of a project there may be
unforeseen delays, changes in specifications, or rising costs of labor and supplies which
cause the cost of the project to be greater than the approved support ceiling. Or, as work
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progresses, it may be necessary or desirable to alter the scope of the project by adding,
deleting or modifying some of its parts.
Where such changes fall outside the allowed scope flexibility as explained in Chapter 6, the
State is required to notify the NPS of such changes and to submit an amendment as soon as
possible to cover the modification. All project scope changes and cost increases must be
consistent with the State’s OPSP (see Chapter 2). It is recognized, however, that it will not
always be possible for the NPS to act in advance of the change, and any costs thus incurred
prior to their approval are done so at the project sponsor's risk.
Proposed amendments to decrease the scope or to add a cost overrun may be considered after
the project period, if an earlier submission is not possible, but only those costs incurred
within the project period will be eligible. No proposed amendments to add or substitute
scope items will be considered after the project period has expired. Amendment requests
shall be accompanied by the PD/ESF (see Chapter 4) according to the instructions on its
coversheet for the type of amendment being requested.
5. Federal matching and supplemental programs. Section 6(f) of the LWCF Act prohibits the
use of other federal financial assistance to pay the state or local matching share of a LWCF
grant. However, in those instances where the statutory provisions of a subsequent federal
grant-in-aid program explicitly allow recipients to use such assistance to match LWCF
funds as in Community Development Block Grants (CDBG) and through the Safe,
Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users
(SAFETEA-LU) Act. Section 6(f)(1) of the LWCF Act is superseded and a matching
arrangement is permissible.
B. Sponsor Financial Obligations
1. Matching share. LWCF assistance shall not exceed 50 percent of the total eligible costs
(except as provided for the Insular Areas) and is provided primarily on a reimbursement
basis. In most cases the project sponsor will initially pay in full all costs accrued during the
project period. Reimbursement for the federal share is made through the State.
Projects initially funded at less than 50 percent matching share may not be amended to
increase the federal share without an increase in project scope and increase in total project
cost.
2. Applicability of donations. The NPS encourages the donation of cash and in-kind
contributions including real property to project sponsors by private parties. The value of the
in-kind contributions may be used as all or part of the project sponsor's share of the project
cost. The method of valuation and charges for volunteer services, material, and equipment
must be documented and approved by the State prior to the donations being applied to
reimbursement requests in order for such contributions to be considered as part of the
sponsor's matching share. Specific procedures for placing the value on in-kind contributions
from private organizations and individuals in accord with OMB Circular A-102, 43 CFR 12,
are set forth below:
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a. Valuation of volunteer services. Volunteer services may be furnished by professional
and technical personnel, consultants, and other skilled and unskilled labor. Each hour of
volunteered service may be counted as matching share if the service is an integral and
necessary part of an approved project. Records of in-kind contributions of personnel
shall include time sheets containing the signatures of the person whose time is
contributed and of the supervisor verifying that the record is accurate.
(1) Rates for volunteer services. Rates for volunteers should be consistent with those
regular rates paid for similar work in other activities of the State. In cases where
the kinds of skills required for the federally-assisted activities are not found in the
other activities of the grantee, rates used should be consistent with those paid for
similar work in the labor market in which the grantee competes for the kind of
services involved. The time of a person donating services will be valued at the rate
paid as a general laborer unless the person is professionally skilled in the work
being performed on the project (i.e., plumber doing work on pipes, mason doing
work on a brick building). When this is the case, the wage rate this individual is
normally paid for performing this service may be charged to the project. A general
laborer's wages may be charged in the amount of that which the city or cities in the
immediate area pay their city employees for performing similar duties.
(2) Volunteers employed by other organizations. When an employer other than the
grantee furnishes the services of an employee, these services shall be valued at the
employee's regular rate of pay (exclusive of fringe benefits and overhead cost)
provided these services are in the same skill for which the employee is normally
paid.
b. Valuation of materials. Prices assessed to donated materials included in the matching
share should be reasonable and should not exceed current market prices at the time they
are charged to the project. Records of in-kind contributions of material shall indicate the
fair market value by listing the comparable prices and vendors.
c. Valuation of donated real property. The value of donated real property shall be
established by an independent appraiser in accord with the Uniform Appraisal Standards
for Federal Land Acquisitions. The State must review and approve donation appraisals.
NPS will spot-check (administrative review) appraisal reports for adequacy and
consistency (see Chapter 4).
d. Valuation of donated equipment. The hourly rate for donated equipment used on a
project shall not exceed its fair-rental value. Hourly rates in the annual edition of Rental
Compilation or Rental Rate Guide or similar publications that provide the national or
regional average rates for construction equipment may be used. Such publications are
usually available from contractor associations. Records of in-kind contributions of
equipment shall include schedules showing the hours and dates of use and the signature
of the operator of the equipment.

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e. Valuation of other charges. Other necessary charges such as equipment use charges
incurred specifically for an indirect benefit to the project on behalf of the sponsor may
be accepted as matching share provided they are adequately supported and permissible
under the law. Such charges must be reasonable and properly justifiable.
f. Documentation. The basis for determining the charges for donated personal services,
material, equipment and land must be documented and must be approved by the State
prior to the request for payment that includes the value of the donation.
g. Limits of the valuation. In-kind contributions of real property donations are eligible in a
project only to the extent there are additional acquisition and/or development costs to be
met by the federal assistance requested for that project that must be fully described and
explained in the proposal.
Example: Land valued at $10,000 is donated to the project sponsor who proceeds to
develop the property for recreational use. Development costs total $6,000.
The actual total project cost is $16,000. But because only $6,000 was
actually spent, and since a grant in excess of that would constitute a profit to
the sponsor, the federal share is reduced accordingly.
Sponsor's share (amount of the $10,000
donation applied to the project):
LWCF Assistance:

$ 6,000
$ 6,000

Total:

$12,000

The amount of donation that is matchable is the value of the donation or the amount of
cash spent by the sponsor for additional acquisition or development, whichever is less.
Any portion of the value of a donation not utilized by the project sponsor for matching
in the project ($4,000 in the above example) may be made available to subsequent
projects if approved by NPS and only for the fiscal year in which the donation is made
plus one additional fiscal year.
h. Multi-site land donations. To be eligible for matching assistance, in-kind contributions
shall be applicable to a single project site. However, a multi-site project involving land
donations may be considered to the extent that such is logical, reasonable, and more
advantageous than the application of the donation to a single site.
C. Allowable Costs
1. Determining amount of costs.
a. General. Subject to the guidelines given in this section and in OMB Circular A-87, the
rates, practices, rules, and policies of the project sponsor, as consistently applied, shall
generally determine the amount of costs of each item charged to a project. In instances
where the sponsor has no such basis, that of the State shall apply.
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b. Ceiling on amount of cost items. The amount of each item of cost that may be matched
from the LWCF shall not exceed the sponsor's actual cash outlay for that item, or the fair
market value of the item, whichever is less. An exception could be land acquired at a
price in excess of appraised value and supported by an adequate statement on difference
of value.
c. Ceiling on total matching share from the fund. The total matching amount made
available for an approved project shall not exceed the approved support ceiling.
2. Guidelines for determining allowable costs. The basic statement regarding the principles
and standards for determining costs applicable to this grants program is found in OMB
Circular A-87, "Cost Principles for State, Local and Indian Tribal Governments."
3. Costs of purchase of real property and of interests in real property. Federal assistance may
be used to pay a share of the fair market value of real properties and of interests in real
property purchased by the project sponsor when determined by the NPS to be capital costs.
Incidental costs of acquisition may not be matched. However, interest expenses awarded by
the court as part of just compensation for acquisition in eminent domain situations may be
matched. Also, costs allowed under Section 211, P.L. 91-646, of the Uniform Relocation
Assistance and Real Property Acquisition Policies Act, may be matched.
The value of such properties or interests should be proposed by the State. Steps shall be
taken to assure actions in identifying property for acquisition do not cause inflation of
property values, and thereby increase the cost of the project.
Although a project sponsor may pay a greater amount, LWCF assistance will generally be
computed on the fair market value as determined by an acceptable appraisal. However,
when a State feels the amount paid in excess of the fair market value is justifiable, it should
prepare, and submit to the NPS, a detailed and well documented statement, including
comparable sales and other market data as necessary justifying the difference. If the
statement is found adequate, LWCF assistance may be computed on the full purchase price.
Where a court award in condemnation cases exceeds the support ceiling approved by the
NPS, the NPS will not be obligated to pay on the higher amount. The State may, however,
submit an amendment for Service consideration to increase the support ceiling to the
amount of the court award.
Capital expenditures for acquisition of eligible leases, easements, and other rights and
interests in real property are eligible for LWCF assistance.
4. Cost of real property purchased from other public agencies. The actual cost to the project
sponsor of land purchased from another public agency may be eligible for matching
assistance, subject to the following conditions:
a. The land was not originally acquired by the other agency for recreation.
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b. The land has not been managed for recreational purposes while in public ownership.
c. No federal assistance was provided in the original acquisition by the other agency to
facilitate the basic project being funded by LWCF assistance, unless the federal
assistance was provided by an eligible supplemental program, such as HUD’s CDBG.
d. The selling agency is required by law to receive payment for land transferred to another
public agency. Examples would be public school land that can be used for non-school
purposes only through payment to the school agency, or excess state prison lands that
can be transferred to local government use only on a purchase basis. The support ceiling
will be based on the price paid by the project sponsor for the property or the fair market
value, whichever is less. In some instances the selling agency may be permitted a
choice between various state laws would set the selling price at different levels
depending upon which law is chosen by the agency. For example, various laws may be
in force that would allow the agency to transfer the real property to another public
agency for fair market value, for reimbursement of unpaid taxes, as a donation, or for
other consideration. LWCF assistance will be limited to the minimum amount for which
the property could be transferred legally and only in those instances for which there is an
attorney general's opinion or established case law.
e. The requirement of appraisal, history of conveyances, and evidence of title are the same
as normal purchases.
f. If the selling agency is federal, fair market value is paid.
5. Real property acquired by donation. The value of real property donated to the project
sponsor by private organizations or individuals will be eligible for matching as determined
by an appraisal. Donations required by law or regulation are ineligible as the project
sponsor's matching share. The land acquired cannot be subject to any restrictions that might
limit its intended public recreation use.
6. Master planning. Master planning of a recreation area in whole or in part will be matchable
as part of a development project if the project includes actual development of at least equal
cost to that of the master plan.
7. Miscellaneous allowable costs
a. Payment of premiums on hazard and liability insurance to cover personnel and property
directly connected with the project is allowable.
b. Costs to the project sponsor for work performed by another public department or agency
are allowable. This includes the costs of services provided by central service type
agencies to the sponsor's departments and need not be supported by a transfer of funds
between the departments involved.

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c. Costs of printing and distributing the Statewide Comprehensive Outdoor Recreation
Plan, including a popular summary version and other project related printing or
reproduction costs are allowable.
d. The costs of space in privately owned buildings used for the benefit of the project is
allowable subject to the conditions stated in OMB Circular A-87 (see also the
requirements of OMB Circular A-122, Cost Principles for Nonprofit Organizations).
Also, project sponsors may be compensated for the use of buildings, capital
improvements, and equipment through use allowances or depreciation.
8. Non-allowable expenditures. These expenditures shall not be included in the base for
determining financial assistance:
a. Ceremonial or entertainment expenses.
b. Expenses for publicity.
c. Bonus payments of any kind.
d. Charges for contingency reserves or other similar reserves.
e. Charges in excess of the lowest responsive bid, when competitive bidding is required by
the NPS or the sponsor, unless the NPS agrees in advance to the higher cost.
f. Charges for deficits or overdrafts.
g. Taxes for which the organization involved would not have been liable to pay.
h. Interest expenses, except those awarded by the court as part of just compensation for
acquisition in eminent domain situations.
i. Charges incurred contrary to the policies and practices of the organization involved.
j. Consequential damage judgments arising out of acquisition, construction, or equipping of
a facility, whether determined by judicial decision, arbitration, or otherwise.
Consequential damages are damages, to adjoining property owned by other persons,
which are caused by noise, lights, vibration etc.
k. Incidental costs relating to acquisition of real property and of interests in real property,
unless allowable under the Uniform Relocation Assistance and Real Property
Acquisition Policies Act, P.L. 91-646.
l. Operation and maintenance costs of outdoor recreation areas and facilities.
m. The value of, or expenditures for, lands acquired from the United States at less than fair
market value.
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n. Cost of discounts not taken.
o. Equipment to be used for the maintenance of outdoor recreation areas and facilities,
including, but not limited to, automotive equipment, tractors, mowers, other machinery,
and tools.
p. Employee facilities, including residences, appliances, office equipment, furniture, and
utensils.
q. Donations or contributions made by the sponsor, such as to a charitable organization.
r. Salaries and expenses of the Office of the Governor, or of the chief executive of a
political subdivision, or of the State legislature, or of other similar local governmental
bodies.
s. Fines and penalties.
t. Any excess of cost over the federal contribution under one grant agreement is
unallowable under other grant agreements.
u. Any losses arising from uncollectible accounts and other claims, and related costs.
v. Legal and professional fees paid in connection with raising funds.
w. Payments for lobbying in connection with the awarding, extension, continuation,
renewal, amendment, or modification of an individual LWCF grant or the program.

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CHAPTER 6 - APPLICATION AND EVALUATION PROCEDURES
A. Prerequisites for Applying
Prior to submitting an application to NPS for LWCF acquisition and/or development assistance,
the following conditions must be met:
1.

The State's Statewide Comprehensive Outdoor Recreation Plan (SCORP) and the State’s
Open Project Selection Process (OPSP) must meet the eligibility requirements of the Land
and Water Conservation Fund Act and this manual. Project applications must be received by
NPS while there is a sufficient period of eligibility remaining to permit thorough processing
of the applications. Applications that cannot be processed prior to the revocation of
eligibility will not be acted upon until the State's eligibility has been reinstated.

The State's apportionment and reapportionment balances from NPS must be adequate to
cover the proposed project to be activated.

The sponsoring agency must have developed the plans for its proposed project to the point
where the project scope can be described and reasonable estimates of cost can be made.

B. Application Process
The State prioritizes and selects eligible projects for LWCF assistance through its Open Project
Selection Process (OPSP, see Chapter 2) and is responsible for ensuring the development of the
project proposal and completion of the federal grant application according to federal
requirements. States shall provide guidance to subgrantees to ensure all application requirements
are met.
Project applications should be submitted to the NPS at least 60 days in advance of the proposed
acquisition or the beginning of construction except in accordance with the retroactivity
provisions (see Chapter 5.A.3) to allow sufficient time for federal review of the proposal to
determine its eligibility and compliance with federal requirements.
Using the LWCF Proposal Description and Environmental Screening Form (PD/ESF, see
Chapter 4), the State develops the proposal for the LWCF grant application. The State may
delegate the completion of the PD/ESF to the subgrantee. The PD/ESF guides the proposal
development and upon project approval, becomes a part of the federal administrative record.
The State shall be responsible for ensuring the proposal is developed in accordance with
applicable federal laws, executive orders and circulars, including conducting required
environmental reviews in accordance with the National Environmental Policy Act (NEPA) as
set forth in Chapter 4. The environmental review process may involve producing documents for
public review and comment, coordinating compliance with applicable local, state and federal
laws and regulations, and acquiring other federal state and local approvals.

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For project proposals and grant applications that are complex in nature and/or have eligibility
concerns, States are encouraged to consult with NPS prior to formal project submission.
At the completion of proposal development, the State prepares the required federal application
documentation as described in Item 2 below and submits the application package to the
appropriate NPS regional office requesting federal LWCF approval for the subject project.
All significant information must be disclosed in the application and its supporting documents.
Failure by the State to consider information that might have a significant bearing on the
eligibility of a proposal might be cause for refusal, cancellation, or recovery of federal
assistance.
The project proposal, including all information required by the NPS to be on file at the state
level, is considered to be a public record. Copies of proposals may be distributed by NPS to
other public agencies for information or comment.
The following documents comprise the federal application for LWCF grant assistance and shall
be coordinated by the State and submitted to the NPS:
1. Proposal Description and Environmental Screening Form. One hand-signed copy. The
PD/ESF (see Chapter 4) provides step-by-step guidance for applicants to follow and
complete while developing the grant proposal for federal LWCF assistance. The PD/ESF
includes specific guidance for:
- developing the project narrative;
- explaining how the proposal is in accord with the SCORP;
- screening the proposal for potential environmental impacts in order to determine the
appropriate NEPA process to conduct: 1) recommendation for a categorical
exclusion, 2) production of an environmental assessment, or 3) production of an
environmental impact statement. The environmental screening step requires a State
to follow the Section 106 of the National Historic Preservation Act, as amended, in
conjunction with the NEPA process (see Chapter 4.C);
- seeking agency comments through the Intergovernmental Review of Federal
Programs process, Executive Order 12372, if applicable; and
- certifying that any appraisals conducted for the federal grant application meet the
Uniform Appraisal Standards for Federal Land Acquisitions (see Chapter 4.D).
2. Federal Standard Form 424, Application for Federal Assistance. One hand-signed copy,
including supplemental SF-424 forms as required by type of proposal:
- SF-424A Budget Information Non-construction Programs and SF-424B Statement
of Assurances Non-construction Programs; or
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- SF-424C Budget Information Construction Programs and SF-424D Statement of
Assurances Construction Programs
3. Project Agreement and General Provisions. Two hand-signed copies plus one copy. This
agreement establishes the framework for accomplishing the project to be negotiated between
the NPS and the State. The General Provisions are included by reference, but one copy
should be attached to a hand-signed copy of the agreement. Execution of the agreement by
the NPS constitutes its approval of the project. The project agreement:
a. Binds the Federal Government and the State to certain obligations through its acceptance
of federal assistance, including the rules and regulations applicable to the conduct of a
project under the Act and any special terms and conditions to the project established by
the NPS and agreed to by the State. When the project sponsor is a local unit of
government or an Indian Tribe, the State Liaison Officer will make such arrangements
with the sponsor as necessary for the successful completion of the project and the
enforcement of federal laws and regulations.
b. Obligates the United States to provide grants up to a designated amount for eligible costs
incurred on the project on the basis of information and cost estimates contained in the
proposal. This amount is the "support ceiling" and may vary as a percentage of total
eligible costs, but in no event will it exceed 50 percent of the total cost indicated on the
agreement forms.
c. Sets forth methods of costing, accounting, incurrence of costs, and similar matters.
d. Sets a timeframe for completing the project. Project periods should approximate three
years and shall not exceed five years. The date of NPS approval is the beginning of the
project period, unless the NPS has granted a waiver of retroactivity and as such, the date
of project approval is the date NPS approved the waiver. The termination date is the
date by which the project must be completed.
e. Describes the scope of the project including what is to be done and how it will be
accomplished. For acquisition projects the number of acres to be acquired and the type
of conveyance will be specified. For development projects, the project scope will be
defined by each primary facility group shown in the DNF (see below). Facilities listed
under each primary facility group are included in the project scope by definition
4. Description and Notification Form. One copy. The DNF will be used to provide data input
for the NPS LWCF database system. The State shall submit a DNF for each project.
5. Section 6(f) boundary map. One copy, hand-signed and dated. The Section 6(f) map shall
clearly delineate the area to be included under the conversion provisions of Section 6(f)(3) of
the LWCF Act. An acceptable Section 6(f) map is required for all development and
combination projects prior to NPS approval, and for acquisition projects, prior to
reimbursement. NPS will contact the State about any needed changes to the map.
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Prior to the date of final reimbursement for development and combination projects, the State
and NPS may mutually agree to alter the Section 6(f) boundary to provide for the most
satisfactory unit intended to be administered under the provisions of Section 6(f)(3). For
acquisition projects, Section 6(f) protection is afforded at the time LWCF reimbursement is
provided.
No changes may be made to the 6(f) boundary after final reimbursement unless the project is
amended as a result of an NPS approved conversion.
At a minimum, the Section 6(f) boundary must encompass a viable public outdoor recreation
area that is capable of being self-sustaining without reliance upon adjoining or additional
areas not identified in the scope of the project. Except in unusual cases where it can be
shown a lesser unit is clearly a self-sustaining outdoor recreation resource, the area subject to
Section 6(f) protection will be the park, open space, or recreation area being developed or
expanded. Exceptions will be made only in the case of larger parks where logical
management units exist therein resulting in smaller viable public outdoor recreation areas. In
no case will the areas covered by Section 6(f)(3) of the Act be less than that acquired with
LWCF assistance.
The Section 6(f)(3) boundary map and/or attachments as appropriate shall depict the
following:
a. Official park/site name, location, and LWCF project number
b. Sufficient detail so as to legally identify the lands to be afforded protection under Section
6(f)(3) of the LWCF Act. The following methods of identification are acceptable: deed
references; adjoining ownerships; adjoining easements and rights-of-way; public streets;
adjoining water bodies or other natural landmarks; metes and bounds; and surveys.
Where one or more of the above methods are not readily suited for identifying the area,
measurements from permanent locators may be used. A formal survey is not required.
c. All known outstanding rights and interests in the area held by others. Known easements,
deed/lease restrictions, reversionary interests, etc. are to be documented, including any
area(s) under lease, name(s) of lessor and lessee, and term remaining on the lease(s).
When at the time of project application it is known that outstanding property rights held
by others are or will be exercised in the foreseeable future and impact only a portion of
the area to be protected under Section 6(f), the impacted area must be clearly excluded
from the Section 6(f) map and accompanied by an explanation of why it is not intended to
be under the Section 6(f) provision. The remaining project area must meet all LWCF
program criteria for eligibility and be a viable public outdoor recreation area. See
Chapter 3 regarding outstanding rights and interests.
d. Approximate total acreage of the 6(f) area.

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e. North arrow.
f. Signature of the SLO or alternate unless otherwise delegated to a member of his/her staff.
A delegation of signature authority for Section (f) maps must be on file with NPS. Also,
date of signature.
g. Up to 11 inch x 17 inch format highly preferred for future administrative use such as
copying and scanning. Avoid use of color as the only means to delineate areas.
6. Location map. One copy. This map shall clearly depict the location of and entrance to the
site/outdoor recreation/park area.
7. Pre-award on-site inspection report. One copy. The inspection shall be conducted in accord
with the on-site inspection agreement between the State and NPS. State may opt to use the
inspection report required for the PD/ESF.
8. Other information that has a significant bearing on the project.
C. NPS Review Process
Upon receipt of the new grant application package, the NPS will assign an official LWCF project
number to the project (see Section F below) and conduct an initial cursory review to determine if
all required items are included in the grant application package.
If items are missing or incomplete, NPS will return the application package to the State for
completion. If the new grant application package is complete, the NPS will log in the formal
receipt of the application and conduct a detailed independent review of the proposal and required
documentation to determine if the proposal is eligible for LWCF assistance, if the proposal has
been developed in accordance with the National Environmental Policy Act, the National Historic
Preservation Act, and other applicable laws and Executive Orders as outlined in Chapter 4, and
meets the administrative requirements contained in this manual. If needed, NPS will consult
with the State for additional information to better understand the proposal and to fulfill
compliance with all requirements.
The NPS will conduct an independent review of the proposed project for federal assistance to
determine how well it accomplishes the purpose of the LWCF Act and meets program
requirements. This evaluation includes a consideration of the project's eligibility for assistance,
its technical adequacy, and its financial soundness. All projects submitted to the NPS are
evaluated to the extent information is made available in the application. The extent of the NPS
review will depend on the type of application submitted and any certifications made by the State
Liaison Officer. As part of this review, the NPS will determine whether:
1. the proposal is in accord with the Statewide Comprehensive Outdoor Recreation Plan and the
Open Project Selection Process (see Chapter 2);

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2. the proposal has been adequately reviewed according to the Section 106 process of the
National Historic Preservation Act and the National Environmental Policy Act so the NPS
can make a decision about the potential for significant impacts to the human environment as
a result of providing federal assistance for the project (see Chapter 4); and
3. the project area is adequately described in the signed and dated Section 6(f) boundary map
and represents an acceptable area to be covered by the provisions of Section 6(f)(3) of the
LWCF Act.
Upon NPS approval of the project, an NPS-signed copy of the approved project agreement will
be sent to the State Liaison Officer as notification of project approval.
D. Amending Existing Projects
An amendment form is required to alter the signed agreement. When the amendment is signed
by the NPS, it becomes part of the agreement and supersedes it in the specified matters.
Amendments are required in the following situations:
1. Situations requiring amendment
a. To increase the total LWCF assistance for a project.
b. To add a co-sponsor or change project sponsors.
c. To add or delete a Primary Facility Group of the project scope. Changes solely involving
facilities within a Primary Facility Group may be made without an amendment.
However, changes involving facilities in different Primary Facilities Groups will require
an amendment. Facilities not listed in a Primary Facility Group but named in the scope
narrative of the project agreement and/or DNF will be treated as individual Primary
Facilities Groups for amendment purposes.
d. To increase or decrease the acreage to be acquired by more than 10 acres or 20 percent,
whichever is greater. Any change in the location of the project site to be acquired or
developed shall require an amendment or submission of a new project.
e. To extend the project period. Projects may not be extended for less than six months.
f. To amend the project area due to a Section 6(f)(3) conversion.
2. Amendment documentation. The following items must be submitted by the State to the NPS
when requesting an amendment:
a. Amendment to the Project Agreement Form. Two hand-signed copies and 1 copy.
b. Standard Form 424. One hand-signed copy, including supplemental SF-424 forms as
required by type of project amendment:
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- SF-424A Budget Information Non-construction Programs
- SF-424C Budget Information Construction Programs
Describe only the changes. For example, on the SF-424, Item 1, describe only the purpose
of the amendment and not the scope of the original project.
c. SLO transmittal letter. The letter must explain the changed conditions and how they affect
the project.
d. Proposal Description and Environmental Screening Form. One hand-signed copy. The
PD/ESF must be tailored to type of amendment.
e. Revised Section 6(f)(3) boundary maps for conversion amendments and where the amended
project scope provides Fund assistance to areas not previously covered under Section 6(f).
f. Description and Notification Form.
E. Withdrawal or Changes in Project Application
Prior to approval, an application or amendment may be changed or withdrawn by a letter from
the SLO to the NPS. A new project agreement may be required if the change is significant.
An approved project can be withdrawn unilaterally by the State at any time before the first
payment on the project is made.
F. Project Numbering System
NPS will assign a separate official project number to each new project whether or not it is
ultimately approved. A project number shall be used only once and shall be the official method
of identifying each project and related project documentation.
1. Assigning numbers to new projects: Each new project will be assigned the 7-digit project
identification number consisting of the 2-digit state number, followed by and separated by a
dash, the 5-digit project number. NPS shall permanently affix these numbers to the case file
to serve as a permanent reference number. Agreements, amendments, and all other
documentation relating to a given project, including letters and memorandum, shall contain
this number. A seven digit system shall be applied as follows:

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First two digits: State Identification Number as follows:
01 Alabama
02 Alaska
04 Arizona
05 Arkansas
06 California
08 Colorado
09 Connecticut
10 Delaware
11 Dist. of Columbia
12 Florida
13 Georgia
15 Hawaii
16 Idaho
17 Illinois

18 Indiana
19 Iowa
20 Kansas
21 Kentucky
22 Louisiana
23 Maine
24 Maryland
25 Massachusetts
26 Michigan
27 Minnesota
28 Mississippi
29 Missouri
30 Montana
31 Nebraska

32 Nevada
33 New Hampshire
34 New Jersey
35 New Mexico
36 New York
37 North Carolina
38 North Dakota
39 Ohio
40 Oklahoma
41 Oregon
42 Pennsylvania
44 Rhode Island
45 South Carolina
46 South Dakota

47 Tennessee
48 Texas
49 Utah
50 Vermont
51 Virginia
53 Washington
54 West Virginia
55 Wisconsin
56 Wyoming
60 American Samoa
66 Guam
69 Northern Mariana Islands
72 Puerto Rico
78 U.S. Virgin Islands

Next five digits. The Project Number is serially assigned in chronological order as follows:
08-00004

(fourth project proposal received from the State of Colorado)

2. Assigning numbers to project amendments. Amendment numbers shall be added
immediately following the project number by using a decimal point and appropriate number
(beginning with 1) in serial order. Whenever the original project agreement is altered, the
amendment number assigned to the executed amendatory document shall be serially
increased as follows:
08-00004.1 (first amendment for project 08-00004)
.

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CHAPTER 7 - PROJECT ADMINISTRATION AND FINANCIAL MANAGEMENT
A. General Administrative Requirements
1. General responsibility. It is the prerogative and responsibility of the State, and the project
sponsor to which the state delegates responsibilities, to execute a project under the general
guidelines and rules established by the State, governed in general by the concepts, rules, and
guidelines set forth herein. The primary role of the NPS in project administration is to be
concerned with results, leaving to the States the determination of means to achieve these
results. Thus, the rules established in this Part are minimal, being limited to those
considered necessary for the NPS to fulfill its obligations.
2. Arrangements with sponsors. It is the responsibility of the State to make suitable and
adequate arrangements with other public agencies to insure the successful performance of
projects and the continued operation and maintenance of aided facilities and properties for
public outdoor recreational use. The State shall be held responsible for all the actions of
project sponsors relating to the execution of projects and associated post-completion
responsibilities pursuant to Section 6(f)(3) of the LWCF Act (see Chapter 8).
3. Consideration of Federal Acts. During preparation of an application and conduct of a
project, the sponsor shall comply with applicable federal laws, executive orders, regulations,
and circulars relating to the acquisition and development of public properties (see LWCF
Project Agreement General Provisions).
4. Duration of project. A project will continue in force until all work under a grant is
completed or until the project period of the approved project agreement and all amendments
thereto have expired, whichever comes first.
5. Execution of project work. The State shall be responsible for insuring all projects receiving
financial assistance pursuant to the Act are carried through to stages of completion
acceptable to the NPS with reasonable promptness. Failure to maintain satisfactory progress
or failure to complete the project to the satisfaction of the NPS may be cause for the NPS to
withhold further payments on any or all projects of a State or qualification of new projects
until the project provisions are satisfactorily met. LWCF assistance may be terminated upon
determination by the NPS that satisfactory progress has not been maintained.
In the event that LWCF assistance should be terminated, the State shall be required to bring
the project to a state of usefulness so funds invested shall not be lost. If the State cannot
complete the project with its own funds, it should submit a plan to the NPS for bringing the
incomplete project to a point where it is useful. The NPS will not require all parts of a
project be completed in such a case if a stage of reasonable usefulness can be achieved short
of completion.

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6. On-site inspections by the State
a. Responsibilities. It is the responsibility of the State to administer a regular and
continuing program of on-site inspections of projects. The scope, timing and selectivity
of these inspections will be covered in an agreement to be negotiated by the NPS and the
State. This agreement will provide the basis for the conduct of pre-award, progress and
final on-site inspections as well as the associated reporting formats.
Properties and facilities acquired or developed with LWCF assistance shall be available
for inspection by the NPS at such intervals as the Director shall require. Generally, the
NPS inspections will be conducted on a spot check basis in conjunction with the State
Program Review.
b. Reports. On-site inspection reports will be prepared for all inspections conducted and
will be included in the official project files maintained by the State. The State is
responsible for the preparation of these reports except when joint inspections are
conducted with the NPS in which case the NPS will prepare the report and provide a
copy to the State.
Submission of inspection reports to the NPS will be made on the following basis:
(1) Pre-award on-site inspection reports may be submitted as part of the LWCF
PD/ESF (see Chapter 4). States are encouraged to use the pre-award on-site
inspection to generate information for use in preparing the LWCF PD/ESF. The
pre-award site inspection shall be conducted by individuals knowledgeable about
the resources of the site.
(2) Progress inspection reports may be combined with the annual performance report or
submitted to the NPS at the same time as the electronic fund transfer.
(3) Final inspection reports must be submitted to NPS within 90 days after the date of
completing a project and prior to final reimbursement and administrative closeout.
(4) Post-completion site inspections must be conducted within five years after the final
project reimbursement and every five years thereafter. Post-completion reports
should be retained in the state file, except for those inspections that discover postcompletion compliance problems such as park closures and non-recreation or
private uses occurring within the Section 6(f) boundary. The State shall report to
the NPS the project numbers of all sites inspected soon after the inspection is
conducted and forward to NPS only the inspection reports for LWCF sites with
problems as described above.
7. Income from properties acquired or developed with LWCF assistance.
a. During project period. In accord with OMB Circular A-102, as implemented at 43 CFR
12, Subpart C, income earned by the project sponsor during the project period from
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sources other than the intended recreational use of the project shall be dispersed in one
of the following ways:
(1) Added to the funds committed to the project and used to further eligible LWCF
program objectives at the project site. In this case a plan for the use of such monies
shall be forwarded to NPS for concurrence prior to grant approval. This plan shall
detail the sources(s) of the income and include the timeframe in which any nonrecreational use(s) shall cease. In no instance shall any non-recreational use
continue beyond three years (see Chapter 3).
(2) Deducted from the total project cost for the purpose of determining the net cost on
which the federal share of the cost will be based. In this instance, requests for
payments must include identification of accrued amounts as credits to the project.
Examples of income that shall be dispersed in the above manners include the rental
of structures, the sale of timber and the lease or rental of land
Income earned by the project sponsor during the project period from the intended
recreational use of the project, such as entrance or user fees and concessionaire
operations may be disposed of at the sponsor's discretion. The sponsor, however, is
encouraged to use such income to further recreation objectives related to the sponsor's
public outdoor recreation program.
b. After the project period. Income earned by the project sponsors after the project period,
including from recreational use and land management practices, may be disposed of at
the sponsor's discretion. However, the sponsor is encouraged to use such income to
further recreation objectives related to the facility when state and local laws allow.
Exceptions include those identified under paragraphs [d] and [e] below.
c. Land management practices. Land management practices such as the rental of
structures, the sale of timber and the lease or rental of land occurring during or after the
project period must be compatible with the outdoor recreational use of the areas as
described to the NPS. Any practice that alters the use or purpose of the area is
prohibited. Income from such land management practices must be dispersed in accord
with paragraphs [a] and [b] above.
d. Sale of improvements or structures. Income derived from the sale of improvements or
structures acquired with LWCF assistance shall be used to reduce the cost of other
LWCF-assisted projects of the project sponsor regardless of whether the sale occurs
during or after the project period. If the sponsor has no plans for further LWCF-assisted
facilities, then the income must be used to further outdoor recreation development or
acquisition at the site, at another LWCF-assisted site, or at another outdoor recreation
site operated by the project sponsor. In this case, a letter indicating the intended use of
the funds shall be sent to the NPS for approval.
e. Non-destructive mineral extraction. Extraction of oil and gas from LWCF-assisted
projects involving the purchase of subsurface rights is allowable and will not constitute a
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conversion under Section 6(f)(3) of the LWCF Act provided the following conditions
are met:
(1) The extraction process does not reduce the recreation opportunities at the site, nor
detract from the recreation experiences.
(2) All income derived from the mineral extraction by the project sponsor is used as
follows:
i. to further outdoor recreation development or acquisition at the project site or to
reduce the total cost of other active LWCF-assisted projects at the site (to be
given priority); or,
ii. to reduce the total cost of other active LWCF-assisted projects; or,
iii. for outdoor recreation acquisition, development, or planning at other state
facilities or granted to local communities for such purposes; or,
iv. for any use that is consistent with an outdoor recreation program, including
operation and maintenance costs and any related service or support facilities.
(3) Such income may not be used strictly for the development of facilities that do not
meet the eligibility guidelines for LWCF assistance.
(4) The method of allocating income and the uses to which it will be put shall be
approved by the NPS through a formal agreement with the State prior to the onset
of extraction activities.
8. Title to properties acquired or developed with LWCF assistance. Pursuant to 43 CFR Part
12, the Federal Government will not obtain a legal right or title to any area or facility
acquired or developed with financial assistance received under the provisions of the Act.
9. Safety and accident prevention. In the performance of each project the State and other
participating organizations shall comply with all applicable federal, state, and local laws
governing safety, health, and sanitation. The State and other participating organizations
shall be responsible for assuring all reasonable safeguards, safety devices, and protective
equipment are provided, and will take other needed actions reasonably necessary to protect
the life and health of employees on the job and the safety of the public, and to protect
property in connection with the performance of work on the project.
10. Issuance of rules and instructions. NPS may issue additional or modified rules, instructions,
interpretations, and guidelines from time to time as is necessary for the effective conduct of
assistance activities. Such changes will apply to all projects for which agreements and
amendments are signed after the effective date of the changes. Whenever possible,
sufficient lead time will be given between the announcement and the effective date to avoid
application to projects already in process at the time of the announcement.
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11. Failure to comply with federal laws and regulations. Pursuant to 43 CFR Part 12.83, when
the NPS determines a State has violated or failed to comply with applicable federal law, or
the regulations governing this program with respect to a project, NPS may withhold
payment of federal funds to the State on account of such project, withhold funds for other
projects of the State, withhold approval of further projects of the State, and take such other
action deemed appropriate under the circumstances until compliance or remedial action has
been accomplished by the State to the satisfaction of NPS.
In addition, no grant or contract may be awarded by a grantee, subgrantee, or contractor of
any grantee or subgrantee to any party which has been debarred or suspended under
Executive Order 1254 pursuant to 43 CFR Part 12.100-.510.
12. Appeals. Disagreements with any decision or action concerning comprehensive plans,
project proposals, valuations of properties and personal services, and audit exceptions,
which have not been resolved to the satisfaction of the project sponsor, may be appealed in
the following sequence:
a. Local project sponsors. Disagreements between local project sponsors and the State
Liaison Officer or state agreements not represented by the State Liaison Officer may be
appealed to the State’s NPS Region and if not resolved to the satisfaction of the sponsor,
may be appealed to the Director and ultimately to the Secretary, if necessary.
b. State Liaison Officer. Disagreements between the State Liaison Officer and the State’s
NPS Region may be appealed to the Director of NPS and, if not resolved satisfactorily at
that level, may be appealed to the Secretary of the Department of the Interior.
B. Procurement Standards
Projects or portions thereof may be undertaken through contracts in accord with the procurement
standards and guidelines set forth in Uniform Administrative Requirements for Grants and
Cooperative Agreements to State and Local Governments, 43 CFR Part 12 except the provisions
concerning the Davis-Bacon Act. This includes the procurement of supplies, equipment,
construction and services.
Grantees and subgrantees will use their own procedures that reflect applicable state and local
laws, provided the procurements conform to the requirements of 43 CFR Part 12.1 - .52.
1. Contracting with small and minority firms, Women's Business Enterprise, and Labor Surplus
Area Firms. Affirmative steps must be taken by the project sponsor to assure small and
minority businesses and women's business enterprises are utilized when possible.
Affirmative steps shall include:
a. including qualified small and minority businesses on solicitation lists;
b. assuring small and minority businesses are solicited whenever they are potential sources;

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c. when economically feasible, dividing total requirements into smaller tasks or quantities
so as to permit maximum small and minority business participation;
d. where the requirement permits, establishing delivery schedules that will encourage
participation by small and minority business;
e. using the services of the Small Business Administration, the Minority Business
Development Agency of the Department of Commerce, and the Community Services
Administration, as required; and
f. if any subcontracts are to be let, requiring the prime contractor to take the affirmative
steps in paragraph [i] through [v] above;
2.

Labor surplus areas. Project sponsors are encouraged to procure goods and services from
labor surplus areas.

C. LWCF Acknowledgement Signs
1. Permanent signs. Permanent signs shall be installed to acknowledge the federal-state-local
partnership role in providing new high quality outdoor recreation areas and facilities. States
may determine the type, size and placement of the sign as long as the LWCF logo is used
(see #3 below).
2. Temporary signs. When significant acquisition, development, and/or combination projects
totaling $500,000 or more are initiated, States are required by law to place appropriate
temporary signage on or near the affected site, to the extent feasible, so as to indicate the
action taken is a product of funding made available through the federal LWCF. Such
signage shall indicate the percentage and dollar amounts financed by federal and non-federal
funds.
Publicizing an acquisition project by the installation of signs prior to the completion of the
acquisition, particularly those involving the acquisition of several parcels, could seriously
affect the negotiations for the properties to be acquired. Therefore, signing of acquisitions
projects should be delayed until the acquisition of all parcels is completed and all
relocations have occurred. Also, the display of dollar amounts for acquisition projects is
optional where such display may be detrimental to the project or future acquisitions.
For development and combination projects, such temporary signage shall be placed at the
initiation of construction and remain until project is completed.
Unless precluded by local sign ordinances, temporary signs shall be no less than 2 feet by 3
feet. The size of lettering should be based on the amount of information placed on the sign.
The selection of colors will be at the discretion of the State; however, there should be
sufficient contrast between the background and the lettering to make the sign readily visible
without being intrusive. The sign should include the source, percent, and dollar amount of
all federal, state and/or local funds. The second line on the temporary sign will indicate
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whether the project is acquisition, development, or both. In addition to the NPS, the
administrative acknowledgement may include the state agency responsible for the LWCF
program. Here is a suggested format:
THE CITY OF XXXXX
Public Outdoor Recreation Site Development
Aided by the Federal
THE LAND AND WATER CONSERVATION FUND
Administered by the
National Park Service
U.S. Department of Interior

LWCF
State of XXX
City of XXX
Total Project

Funding
50%
25%
25%

$250,000
$125,000
$125,000
$500,000

Source of funding includes monies derived
from Outer Continental Shelf Federal Receipts

3. Use of LWCF logo. Use of the LWCF Logo on temporary and permanent project signs is
required. NPS encourages its use as a part of the acknowledgement of LWCF assistance at
entrances to outdoor recreation sites, at other appropriate on-site locations, and in folders
and park literature. The acknowledgement of LWCF assistance will be checked during
compliance inspections.
4. Allowable costs. Costs related to project acknowledgement are allowable costs as part of
initial capital investment and may be shared by LWCF assistance. Replacement costs as a
part of project operation and maintenance are not allowable.
D. Performance/Financial Management and Reporting.
1. Purpose. This section generally covers accounting, records, and reporting requirements.
The State shall require all project sponsors to adopt the standards herein.
2. Financial responsibility. The State shall be responsible for the financial management of
approved projects. Appropriate internal controls must, therefore, be adopted and installed to
insure that the project is accomplished in the most efficient and economical manner.
3. Standards for grantee financial management systems. State and local government systems
for the financial management of LWCF assisted activities shall be in accordance with 43
CFR 12 (OMB Circular A-102), and provide for:
a. accurate, current, and complete disclosure of the financial results of each grant project;
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b. records which identify adequately the source and application of funds for grantsupported activities. These records shall contain information pertaining to grant awards
and authorizations, obligations, unobligated balances, assets, liabilities, outlays, and
income;
c. effective control over and accountability for all funds, property, and other assets. The
grantee shall adequately safe-guard all such assets and shall assure they are used solely
for authorized purposes;
d. procedures for determining allowable and allocable costs in accordance with the
provisions of OMB Circular A-87 and these regulations;
e. accounting records that are supported by source documentation. Separate project
accounts shall be established and identified by the number assigned to the project by the
NPS;
f. Audits to be made by the State in accordance with OMB Circular A-133 to determine, at
a minimum, the fiscal integrity of financial transactions and reports, and compliance with
laws, regulations, and administrative requirements. The State will schedule such audits
with the required frequency, usually annually, but not less frequently than once every two
years, considering the nature, size, and complexity of the activity; and
g. a systematic method to assure timely and appropriate resolution of audit findings and
recommendations.
The State shall require all project sponsors to adopt all of the above standards.
4. Monitoring and reporting of financial and program performance. In accordance with 43
CFR Part 12 (Uniform Administrative Requirements for Grants and Cooperative
Agreements to State and Local Governments), the following sets forth the procedures for
monitoring and reporting financial and program performance.
a. States shall constantly monitor the financial and program performance of approved
projects to assure time schedules are being met, projected work units by time periods are
being accomplished, and financial targets and other performance goals are being
achieved.
b. For LWCF reporting purposes, performance and financial reporting for all active grants
shall be accomplished by States in response to the NPS annual call for performance/
financial information. NPS will incorporate the state performance/financial information
into one consolidated report for the entire LWCF State Assistance Program. Sufficient
space will be provided on the listing of projects for the State to briefly report financial
and performance status for each active grant. The NPS shall notify States of the
information needed, reporting format and due dates. At a minimum, the report shall
include:
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(1) the status of the work required under the project scope including the percent of
work completed and percentage of costs billed and whether the project will meet
established target dates for completion;
(2) other pertinent information including, when appropriate, an analysis and
explanation of cost overruns, time schedule delays and other similar problems
encountered and their expected impact on the project; and
(3) a certification by the SLO noting the information is correct and complete, and all
expenditures are for the purposes set forth in the grant agreement/amendment
c. If any performance review conducted by the State discloses the need for change in the
Project Agreement, the State shall submit a request for an amendment at least 30 days
prior to the project expiration date.
d. The NPS shall make site visits as frequently as practicable on a spot check basis to:
(1) review project accomplishments and management control systems, and
(2) to provide technical assistance as may be required.
5. Financial reporting. All recipients must comply with the reporting requirements as set forth
in this section and in 43 CFR 12 as appropriate.
6. Retention and custodial requirements for records. In accordance with 43 CFR Part 12, the
following policies will apply to records maintenance:
a. Financial records, supporting documents, statistical records, and all other records
pertinent to a grant program shall be retained for a period of three years after final
payment on a project. The records shall be retained beyond the 3 year period if audit
findings have not been resolved.
b. State and local governments are authorized to substitute electronic copies in lieu of
original records.
c. The Secretary of the Interior and the Comptroller General of the United States, or any of
their duly authorized representatives, shall have access to any books, documents, papers,
and records of the state and local governments and their subgrantee that are pertinent to
a specific project for the purpose of making audits, examinations, excerpts and
transcripts.
d. The NPS shall submit, after project closeout and scanning, all copies of significant maps
and records to the Federal Archives Record Center for retention into perpetuity and for
compliance with Section 6(f)(3) of the LWCF Act

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E. Payments
1. General. Grant payments will be made to States in a manner that minimizes the time
elapsing between the disbursement by the State and the transfer of funds from the U.S.
Treasury, whether such disbursement occurs prior to or subsequent to the transfer of funds.
Grant payments are made through electronic fund transfer (EFT).
2. Monitoring electronic payments. Electronic Fund Transfer (currently SMARTLINK) is the
required method of payment for States. Upon completion of an electronic payment on a
given date, the State must concurrently (within 24 hours) submit a completed “LWCF
Record of Electronic Payment” form to NPS Accounting Operations Division and copy the
applicable NPS Office at the same time. Failure to adhere to this requirement will result in
removing the State from SMARTLINK and placement on a “request for reimbursement”
process through the NPS.
F. Audits
1. Purpose. Recipients must comply with the audit provisions of the Single Audit Act of 1984
(P.L. 98-502), and OMB Circular A-133, "Audit Requirements for State and Local
Governments". These requirements have been incorporated into Department of Interior
regulations at 43 CFR Part 12, Subpart F. In accordance with Circular A-133, required
audits shall be submitted to the federal audit clearinghouse within the earlier of 30 days after
receipt of the auditor’s report or no later than nine months following the end of the State’s
fiscal year.
2. Exceptions. An audit exception is a determination by an appropriate authority that an item
questioned by the auditor is not properly chargeable to the project agreement and should be
disallowed. The NPS determines the allowance or disallowance of items questioned by the
auditor. The NPS will be responsible for the review of audit reports received from
cognizant federal agencies and/or the Office of the Inspector General (OIG), Department of
the Interior pertaining to LWCF grants. Each Regional Director will be responsible for
advising the States of the audit findings, together with recommendations and suggestions for
overcoming the deficiencies disclosed by the audit, and also advise the State of the
disallowance of any items.
The Departmental Manual [360 and 361 DM 7.3] requires the State must formally respond
to the OIG, through the Director of NPS, concerning audit exceptions within 90 days of the
issuance of the audit report. This initial response should include:
a. whether there is agreement with the audit findings and recommendations. If there is nonconcurrence, the specific reasons must be stated, and
b. recommendations or support documentation for corrective action (resolution) of the
audit exceptions.

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All audit exceptions must be fully resolved within six (6) months of the issuance of the audit
report. If resolution of an audit exception indicates the need for reimbursement of the
federal share, then such reimbursement must be made within 60 days after such resolution.
After the six (6) month period from the date of issuance of the audit report, unresolved audit
exceptions will be disallowed and reimbursement of the federal share must be made within
sixty (60) days. Reimbursement of the federal share may be accomplished by electronic
fund transfer.
G. Project Termination/Grant Closeout
This section prescribes project closeout procedures in accordance with 43 CFR Part 12.
1. Termination. The termination of a project means the cancellation of federal assistance, in
whole or in part, under a project at any time prior to the date of completion.
a. Termination by the State. The State may unilaterally terminate the project at any time
prior to the first payment on the project. After the initial payment, the project may be
terminated, modified, or amended by the State only by mutual agreement of the State
and the NPS.
b. Termination for cause. The NPS may terminate any project in whole, or in part, at any
time before the date of completion, whenever it is determined the grantee has failed to
comply with the conditions of the grant. The NPS will promptly notify the State in
writing of the determination and the reasons for termination, together with the effective
date. Payments made to States or recoveries by the NPS under projects terminated for
cause shall be in accord with the legal rights and liabilities of the parties.
c. Termination for convenience. The NPS or State may terminate grants in whole, or in
part, when both parties agree that the continuation of the project would not produce
beneficial results commensurate with the further expenditure of funds. The two parties
shall agree upon the termination conditions, including the effective date and, in the case
of partial termination, the portion to be terminated. The project sponsor shall not incur
new obligations for the terminated portion after the effective date, and shall cancel as
many outstanding obligations as possible. The NPS may allow full credit to the State for
the federal share of the non-cancelable obligations, properly incurred by the project
sponsor prior to termination. An amendment to the project agreement is required for all
terminations for convenience.
2. Suspension. The suspension of a grant is an action by the NPS that temporarily suspends
federal assistance under the project pending corrective action by the project sponsor or
pending a decision to terminate the grant by the NPS.
3. Grant closeout. The State must ensure all agreed-upon work as described in the project
agreement is completed by the expiration date in the grant award document. The closeout of
a grant is the process by which the NPS determines that all required work of a project and
all applicable administrative actions, including financial, have been accomplished.
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The following are minimum requirements of the closeout procedures:
a. During the active phase of the project, the NPS will make prompt payments to the State
for allowable reimbursable costs until the project is administratively closed out.
b. Final payment will not occur until all required final reports and documents have been
approved by the NPS to assure all aspects of the grant contract have been met.
c. Within 90 days after the date of completing the project or the grant expiration date,
whichever comes first, both administrative and financial closeout of the grant must
occur. During this 90 day period, the following documents are due to NPS before it can
approve and process final payment:
(1) a final letter or report attesting to the completion of the project in accordance with
the approved project agreement/amendment;
(2) a final on-site inspection report for development projects in accordance with the
State’s Inspection Agreement with NPS;
(3) a completed Description and Notification Form (DNF). This is only needed for
projects where a change has occurred since the submission of the original DNF. If
there was a change in scope not included in the grant agreement, then an
amendment and revised DNF are required;
(4) a completed site plan (up to 14 inches x 17 inches in size) indicating the type and
location of Fund-assisted facilities and/or acquired properties along with the official
park or site name unless previously submitted or evident on the signed and dated
Section 6(f) map;
(5) a signed and dated Section 6(f)(3) project boundary map if more accurate than the
current one in the NPS file including the delineation of any newly added parcels as
a result of the project;
(6) if applicable, a completed certification (PD/ESF page 12) by the SLO that the State
has reviewed each appraisal associated with this project per federal requirements;
(7) in consultation with NPS, other required documentation not previously submitted;
and
(8) Digital images of completed project (optional). Best images are those of people
enjoying the new outdoor recreation resource.
b. The NPS shall make a settlement for any upward or downward adjustments to the
federal share of costs after these reports are received. The project agreement, as signed
by the State and the NPS, establishes a total cost and support ceiling for the project that
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is based upon the project sponsor's best estimate of acquisition and development costs as
foreseen at the outset of the project. As the project proceeds, adjustments are sometimes
required in accord with changing processes, unforeseen problems or other conditions.
When an upward adjustment is required, an amendment must be executed. When actual
project costs are less than originally estimated, no amendment is necessary.
c. The NPS retains the right to recover an appropriate amount after fully considering the
recommendations on disallowed costs resulting from the subsequent final audit.

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CHAPTER 8 - POST-COMPLETION AND STEWARDSHIP
A. Purpose
Pursuant to Section 6(f)(3) of the LWCF Act and 36 CFR 59.3, this chapter contains the
requirements for maintaining LWCF assisted sites and facilities in public outdoor recreation use
following project completion and to assure that LWCF-assisted areas remain accessible to the
general public including non-residents of assisted jurisdictions. These post-completion
responsibilities apply to each area or facility for which LWCF assistance is obtained, regardless
of the extent of participation of the program in the assisted area or facility and consistent with the
contractual agreement between NPS and the State. Responsibility for compliance and
enforcement of these requirements rests with the State for both state and locally sponsored
projects. The responsibilities cited herein are applicable to the area depicted or otherwise
described on the 6(f)(3) boundary map and/or as described in other project documentation
approved by the NPS.
B. Operation and Maintenance
Property acquired or developed with LWCF assistance shall be operated and maintained as
follows:
1. The property shall be maintained so as to appear attractive and inviting to the public.
2. Sanitation and sanitary facilities shall be maintained in accordance with applicable health
standards.
3. Properties shall be kept reasonably open, accessible, and safe for public use. Fire prevention,
lifeguard, and similar activities shall be maintained for proper public safety.
4. Buildings, roads, trails, and other structures and improvements shall be kept in reasonable
repair throughout their estimated lifetime to prevent undue deterioration and to encourage
public use.
5. The facility shall be kept open for public use at reasonable hours and times of the year,
according to the type of area or facility.
6. A posted LWCF acknowledgement sign shall remain displayed at the project site pursuant to
Chapter 7.
C. Availability to Users
1. Discrimination on the basis of race, color, national origin, religion, or sex. Under Title VI of
the 1964 Civil Rights Act property acquired or developed with LWCF assistance shall be
open to entry and use by all persons regardless of race, color, or national origin, who are

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otherwise eligible. Title 43, Part 17 (43 CFR 17), effectuates the provisions of Title VI. The
prohibitions imposed by Title VI apply to park or recreation areas benefiting from federal
assistance and to any other recreation areas administered by the state agency or local agency
receiving the assistance. Discrimination is also prohibited on the basis of religion or sex.
2. Discrimination on the basis of residence. Section 6(f)(8) of the LWCF Act provides, with
respect to property acquired and/or developed with LWCF assistance, discrimination on the
basis of residence, including preferential reservation, membership or annual permit systems
is prohibited except to the extent reasonable differences in admission and other fees may be
maintained on the basis of residence.
Fees charged to nonresidents cannot exceed twice the amount charged to residents. Where
there is no charge for residents, but a fee is charged to nonresidents, nonresident fees cannot
exceed fees charged for residents at comparable state or local public facilities. Reservation,
membership or annual permit systems available to residents must also be available to
nonresidents and the period of availability must be the same for both residents and
nonresidents.
These provisions apply only to the recreation areas described in the project agreement.
Nonresident fishing and hunting license fees are excluded from these requirements.
3. Discrimination on the basis of disability. Section 504 of the Rehabilitation Act of 1973
requires no qualified person shall, on the basis of disability, be excluded from participation
in, be denied benefits of, or otherwise be subjected to discrimination under any program or
activity that receives or benefits from federal financial assistance. The Americans with
Disabilities Act of 1990 (P.L. 100-336) simply references and reinforces these requirements
for federally-assisted programs.
4. Reasonable use limitations. Project sponsors may impose reasonable limits on the type and
extent of use of areas and facilities acquired and/or developed with Fund assistance when
such a limitation is necessary for maintenance or preservation. Thus, limitations may be
imposed on the numbers of person using an area or facility or the type of users, such as
"hunters only" or "hikers only." All limitations shall be in accord with the applicable grant
agreement and amendments.
D. Leasing and Concession Operations Within a Section 6(f)(3) Area
A project sponsor may provide for the operation of a Section 6(f)(3) area by leasing the
area/facility to a private organization or individual or by entering into a concession agreement
with an operator to provide a public outdoor recreation opportunity at the Fund-assisted site.
As the principal grantee, the State is ultimately accountable for assuring compliance with the
applicable federal requirements, and, therefore, the delegation or transfer of certain
responsibilities to subgrantees or lessees does not relieve the State of its compliance burden. As
the grant recipient, the State has agreed to provide suitable replacement property should the

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public use of the leased or concessioned area/facility be restricted or the outdoor recreation
resource be compromised.
All lease documents and concession agreements for the operation of LWCF-assisted sites by
private organizations or individuals must address the following:
1. In order to protect the public interest, the project sponsor must have a clear ability to
periodically review the performance of the lessee/concessioner and terminate the
lease/agreement if its terms and the provisions of the grant agreement, including standards of
maintenance, public use, and accessibility, are not met.
2. The lease/agreement document should clearly indicate that the leased/concessioned area is to
be operated by the lessee/concessioner for public outdoor recreation purposes in compliance
with provisions of the Land and Water Conservation Fund Act and implementing guidelines
(36 CFR 59). As such, the document should require the area be identified as publicly owned
and operated as a public outdoor recreation facility in all signs, literature and advertising, and
is operated by a lessee/concessioner as identified in the public information to eliminate the
perception the area is private.
3. The lease/agreement document should require all fees charged by the lessee/concessioner to
the public must be competitive with similar private facilities.
4. The lease/agreement document should make clear compliance with all Civil Rights and
accessibility legislation (e.g., Title VI of Civil Rights Act, Section 504 of Rehabilitation Act,
and Americans with Disabilities Act) is required, and compliance will be indicated by signs
posted in visible public areas, statements in public information brochures, etc.
E. Conversions of Use
Property acquired or developed with LWCF assistance shall be retained and used for public
outdoor recreation. Any property so acquired and/or developed shall not be wholly or partly
converted to other than public outdoor recreation uses without the approval of NPS pursuant to
Section 6(f)(3) of the LWCF Act and these regulations. The conversion provisions of Section
6(f)(3), 36 CFR Part 59, and these guidelines apply to each area or facility for which LWCF
assistance is obtained, regardless of the extent of participation of the program in the assisted area
or facility and consistent with the contractual agreement between NPS and the State.
Responsibility for compliance and enforcement of these provisions rests with the State for both
state and locally sponsored projects. The responsibilities cited herein are applicable to the area
depicted or otherwise described on the 6(f)(3) boundary map and/or as described in other project
documentation approved by the Department of the Interior. This mutually agreed to area
normally exceeds that actually receiving LWCF assistance so as to assure the protection of a
viable recreation entity.

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Local sponsors must consult early with the State LWCF manager when a conversion is under
consideration or has been discovered. States must consult with their NPS-LWCF manager as
early as possible in the conversion process for guidance and to sort out and discuss details of the
conversion proposal to avoid mid-course corrections and unnecessary delays. A critical first
step is for the State and NPS to agree on the size of the Section 6(f) park land impacted by
any non-recreation, non-public use, especially prior to any appraisal activity. Any previous
LWCF project agreements and actions must be identified and understood to determine the actual
Section 6(f) boundary.
If the NPS is alerted or otherwise becomes aware of an ongoing conversion activity that has not
been approved, NPS shall request the State Liaison Officer (SLO) to advise the project sponsor
of the necessary prerequisites for approval of a conversion and to discontinue the unauthorized
conversion activities. If the conversion activity continues, NPS shall formally notify the State it
must take appropriate action to preclude the project sponsor from proceeding further with the
conversion, use, and occupancy of the area pending NPS independent review and decision of a
formal conversion proposal (see Section 10 below).
The NPS Regional Director has the authority to disapprove conversion requests and/or to reject
proposed property substitutions. This approval is a discretionary action and should not be
considered a right of the project sponsor.
1. Situations that trigger a conversion include:
a. Property interests are conveyed for private use or non-public outdoor recreation uses.
b. Non-outdoor recreation uses (public or private) are made of the project area, or a portion
thereof, including those occurring on pre-existing rights-of-way and easements, or by a
lessor.
c. Unallowable indoor facilities are developed within the project area without NPS
approval, such as unauthorized public facilities and sheltering of an outdoor facility.
d. Public outdoor recreation use of property acquired or developed with LWCF assistance
is terminated.
2. Situations that may not trigger a conversion if NPS determines that certain criteria are met
include:
a. Underground utility easements that do not impact the recreational use of the park and is
restored to its original surface condition (see Section F below).
b. Proposals to construct public facilities, such as recreation centers and indoor pool
buildings, within a Section 6(f)(3) protected area where it can be shown there is a gain
or increased benefit to the public outdoor recreational opportunity. These proposals
must be reviewed by the NPS as a “public facility request” (see Section H below). The

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State should consult with the NPS early in the formative stages of developing proposals
to construct indoor facilities on Section 6(f)(3) protected land (see Section H below).
c. Proposals for "temporary non-conforming uses," that is temporary non-recreation
activities of less than a six-month duration within a Section 6(f)(3) protected area, must
be reviewed by the NPS (see Section I below).
d. Proposals to build sheltered facilities or to shelter existing facilities within a Section
6(f)(3) protected area provided they do not change the overall public outdoor recreation
characteristics and otherwise meet the sheltering criteria in Chapter 3. The NPS review
and approval of such proposals will not trigger a conversion (see Section J below).
e. Proposals for changing the overall outdoor recreation use of a Section 6(f)(3) area from
that intended in the original LWCF project agreement. These proposals must be
reviewed by the NPS (see Section L below).
3. Prerequisites to the NPS consideration of conversions. Formal requests from the project
sponsor for permission to convert LWCF assisted properties in whole or in part to other than
public outdoor recreation uses must be submitted by the State Liaison Officer to NPS in
writing and conform to the prerequisites set forth in 36 CFR 59.
States shall consult with NPS when conversions are proposed or discovered and prior to
making the formal request to NPS. States shall use the Proposal Description and
Environmental Screening Form (PD/ESF) to prepare its conversion proposal (see Chapter
4). The PD/ESF guides the development of the conversion proposal, including the
incorporation of the following prerequisites that must be met before NPS will consider the
formal conversion request:
a. All practical alternatives to the conversion have been evaluated and rejected on a sound
basis.
b. The fair market value of the property to be converted has been established and the
property proposed for substitution is of at least equal fair market value as established by
a state approved appraisal (see Chapter 4 for appraisal guidance) excluding the value of
structures or facilities that will not directly enhance its outdoor recreation utility.
c. The property proposed for replacement is of reasonably equivalent usefulness and
location as that being converted. Depending on the situation, and at the discretion of the
NPS, the replacement property need not provide identical recreation experiences or be
located at the same site, provided it is in a reasonably equivalent location. Generally,
the replacement property should be administered by the same political jurisdiction as the
converted property. NPS will consider state requests to change the project sponsor for
any replacement property when it is determined a different political jurisdiction can
meet the criteria for replacement properties. Equivalent usefulness and location will be
determined based on the following criteria:

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(1) Property to be converted must be evaluated in order to determine what recreation
needs are being fulfilled by the facilities which exist and the types of outdoor
recreation resources and opportunities available. The property being proposed for
substitution must then be evaluated in a similar manner to determine if it will meet
recreation needs that are at least like in magnitude and impact to the user
community as the converted site. This criterion is applicable in the consideration of
all conversion requests with the exception of those where wetlands are proposed as
replacement property.
Wetland areas and interests therein shall be considered to be of reasonably
equivalent usefulness as compared to the recreational usefulness of the property
proposed for conversion if they have been identified in the wetlands provisions of
the Statewide Comprehensive Outdoor Recreation Plan (SCORP) in accordance
with Section 6(f)(3) of the LWCF Act as amended (36 CFR 59.3) by Section 303 of
the Emergency Wetlands Resources Act of 1986.
(2) Replacement property need not necessarily be directly adjacent to or close by the
converted site. This policy provides the administrative flexibility to determine
location recognizing that the property should meet existing public outdoor
recreation needs. While generally this will involve the selection of a site serving
the same community(ies) or area as the converted site, there may be exceptions.
For example, if property being converted is in an area undergoing major
demographic change and the area has no existing or anticipated future need for
outdoor recreation, then the project sponsor should seek to locate the substitute area
at another location within the jurisdiction.
(3) Should a local project sponsor be unable to replace converted property, the State
would be responsible, as the primary recipient of federal assistance, for assuring
compliance with these requirements and for the substitution of replacement
property.
(4) The acquisition of one parcel of land may be used in satisfaction of several
approved conversions (see Section 6 below) and vice versa.
d. The property proposed for replacement meets the eligibility requirements for LWCF
assisted acquisition (see Chapter 3). The replacement property must constitute or be part
of a viable recreation area. Viability and recreational usefulness is dependent upon the
proposed outdoor recreation development plan and timetable for the development of the
replacement parks. If full development of the replacement site(s) will be delayed
beyond three years from the date of conversion approval, the conversion proposal shall
explain why this is necessary (see Chapter 3.B.7).
For proposed replacement property with a history of contamination, proposals must
address the nature of the contamination, how the contaminated area has been or will be

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remediated, how the area will be developed into a safe, public outdoor recreation area,
and how provisions will be put in place to monitor the new replacement parkland to
ensure public health and safety in perpetuity. Certain contaminated areas may not meet
the equal or greater recreational usefulness prerequisite for replacement land. Early
coordination with NPS for conversion proposals involving contaminated replacement
land, even if remediated, is required (see 3.4 below).
Unless each of the following additional conditions (also see Chapter 3) is met, land
currently owned by another public agency may not be used as replacement land for land
acquired as part of an LWCF project:
(1) The replacement land was not originally acquired by the sponsor or selling agency
for recreation.
(2) The replacement land has not been previously dedicated or managed for
recreational purposes while in public ownership.
(3) No federal assistance was provided in the replacement land’s original acquisition
unless the assistance was provided under a program expressly authorized to match
or supplement LWCF assistance.
(4) Where the project sponsor acquires replacement land from another public agency,
the selling agency must be required by law to receive payment for the land so
acquired (see Chapter 3.A.9).
An exception may be made to this condition only in the case of development
projects for which the project sponsor’s match was not derived from the cost of the
purchase or value of a donation of the land to be converted, but from the value of
the development itself. In this case, public land that has not been previously
dedicated or managed for recreation/conservation use may be used as replacement
land even if this land is currently owned by the project sponsor or is transferred
from one public agency to another without cost.
e. In the case of Section 6(f)(3) protected areas that are partially rather than wholly
converted, the impact of the converted portion on the remaining area shall be
considered. If such a conversion is approved, the unconverted area must remain
recreationally viable or be replaced as well.
f. All necessary coordination with other federal agencies has been satisfactorily
accomplished including, for example, compliance with Section 4(f) of the Department of
Transportation Act of 1966.
g. The guidelines for environmental review under NEPA have been satisfactorily
completed and considered by NPS during its review of the proposed Section 6(f)(3)
action. In cases where the proposed conversion arises from another federal action, NPS

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final review of the State's proposal shall not occur until the NPS is assured all
environmental review requirements for the other federal action have been met, e.g.,
Army Corps of Engineer permits.
The environmental review process must analyze not only the Section 6(f)(3) area
proposed for conversion, but also the development of the replacement parkland. The
purpose and scope of the environmental review must focus on the impacts on the
“human environment” resulting from the loss of the Section 6(f)(3) parkland, impacts on
any remaining Section 6(f)(3) parkland for partial conversions, and the development of
new Section 6(f)(3) replacement park(s). The scope of the environmental review should
not include impacts of the action precipitating the conversion on resources beyond the
Section 6(f)(3) boundary, such as impacts of a new housing development or a school on
a neighborhood.
The environmental analysis must be conducted in a neutral and factual manner and
result in statements that reflect this same neutrality so the interested and affected public
can focus on and understand the details of the proposed federal action of converting
parkland including the replacement of new parkland according to 36 CFR 59. The
environmental analysis documents should not include statements that promote or justify
the action precipitating the conversion, such as proclaiming that the subject parkland is
the best location for a new fire station.
For detailed guidance on NEPA and how to conduct environmental reviews for LWCF
conversions, consult Chapter 4 of this manual, and the NPS.
h. Adherence to state intergovernmental review procedures as appropriate (see Chapter 4).
i. The proposed conversion and substitution are in accord with the SCORP.
4. State preparation of conversion proposal for NPS review: To avoid any unnecessary delays,
duplication of effort, and mid-course corrections, the States shall consult with NPS early
when conversions are proposed or discovered to ensure:
a. the extent of impact from the conversion activity on Section 6(f)(3) protected area is
mutually agreed upon; and
b. the acceptability of proposed replacement parkland has been explored prior to State/local
sponsor expenditure of resources on appraisals and the required environmental review
process to be undertaken in accordance with NEPA.
The State shall coordinate the development of the conversion proposal including ensuring
the project sponsor complies with applicable federal, state and local laws, regulations and
permit requirements. As the proposal is developed, the State may enlist the assistance of
NPS to provide technical guidance as needed, especially for complex and controversial
conversions. A State’s submission of a formal conversion request to NPS is a State’s

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endorsement of the conversion. If a State does not concur or endorse the conversion, then
the proposal should not be forwarded to NPS for formal review and decision.
5. NPS review of the State conversion proposal. NPS will conduct an independent review of
the proposal using the conversion prerequisites and any other critical factors that may have
arisen during proposal development. If the State has adequately addressed the prerequisites,
and NPS finds no other reason to deny the request, the NPS administrative record will be
documented as such and an amendment will be signed approving the conversion.
6. Banking excess fair market value of replacement land for future conversions. The
acquisition of one parcel of replacement land may be used in satisfaction of several
approved conversions.
Excess fair market value (FMV) of a replacement property can be “banked” for a period not
to exceed five years from the date of the initial conversion amendment. During this time
period, the same project sponsor may use the remaining value to make up the FMV
difference in cases where the subsequent proposed replacement property satisfies the equal
usefulness criterion but its appraised FMV falls short of the equal fair market value
requirement.
The initial replacement property with the excess fair market value may not be used to satisfy
the equal usefulness criterion for subsequent conversions unless additional conversions are
anticipated by the sponsor at the time of the original conversion request and the
accompanying documentation clearly addresses how the replacement property would satisfy
the equal usefulness criteria for the original conversion as well as those that are anticipated.
7. Conversions on leased land. Should a conversion occur on leased land during the term of
the lease, the State must comply with the conversion requirements of Section 6(f)(3)
including the provision of replacement land. In this instance, the conversion of the original
lease can be replaced with a leasehold interest for a period of time that is not less than the
time remaining on the original lease, and, which fulfills the recreation commitment agreed
to in the original lease agreement.
For existing projects that involve leases, the responsibility for retaining the property in
recreation terminates at the end of the lease period unless the grant agreement calls for some
other arrangement. Lease agreements containing a renewal clause that can be exercised by
the lessee must be reviewed to ensure that Section 6(f)(3) compliance will continue
throughout the duration of the next lease period.
8. Conversion proposal documentation. A conversion requires an amendment to the original
project agreement. Therefore, the amendment should be submitted concurrently with the
formal conversion request or at such time as all details of the conversion have been worked
out with NPS.
The formal conversion proposal submission to NPS must include the following items:

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a. A transmittal letter briefly describing the conversion proposal and requesting NPS
review and approval
b. Standard Form 424 for amendments (see Chapter 7)
c. PD/ESF including Step 4, the environmental screening form, and an environmental
assessment document analyzing the entire conversion proposal (the converted parkland
and the replacement parkland in one document).
d. LWCF project amendment form identifying changes to the original Section 6(f)(3)
boundary caused by the conversion and to establish a new 6(f) boundary around the
replacement site(s)
e. Signed and dated Section 6(f)(3) boundary map for any remaining parkland resulting
from a partial conversion, and for the replacement site(s)
f. Description and Notification Form (DNF)
Once the conversion has been approved by NPS, replacement property should be
immediately acquired and developed according to the replacement proposal timetable. If
development will be delayed beyond three years from the date of NPS conversion approval,
then a request for delayed development beyond three years with a justification for the delay
must be made to NPS (See Chapter 3.B.7.c).
9. Small conversions. Small conversions are composed of small portions of Section 6(f)(3)
protected areas that amount to no more than 10 percent of the 6(f) protected area or five
acres, whichever is less. States should consult with NPS prior to developing the small
conversion proposal.
Because small conversion proposals are less complex, NPS review and decision can be
facilitated when:
a. Minor or no environmental impacts would occur on resources being removed from
Section 6(f)(3) protection, on the remaining Section 6(f)(3) area, and on the contiguous
new replacement parkland by placing it under Section 6(f)(3) protection per the
environmental screening form. This includes consideration of impacts to historic
resources per the Section 106 process of the National Historic Preservation Act. The
entire conversion proposal is categorically excluded from further environmental review
under NEPA (see Chapter 4).
b. The proposed conversion is not controversial.
c. The replacement property is contiguous to the original Section 6(f)(3) area.
.

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The State’s proposal must include:
d. Transmittal letter describing the entire small conversion proposal.
e. Standard Form 424
f. PD/ESF with the portion for conversions completed indicating that a categorical
exclusion is justified.
g. LWCF project amendment form.
h. Description and Notification Form (DNF)
i. Revised 6(f) boundary map indicating the deletion of the small converted area and the
addition of the replacement property.
10. Discovering unauthorized conversions. When it is discovered that a Section 6(f)(3) area has
been converted without NPS approval, a conversion proposal must be submitted and
reviewed by NPS for retroactive action. .The NPS shall notify the State it is in violation of
the grant contract, program regulations, and law, and an immediate resolution of the
unapproved conversion must be expedited.
If it is discovered that an unauthorized conversion is in progress, the State must notify the
project sponsor to cease immediately until the conversion process pursuant to 36 CFR 59.3
has been satisfactorily completed.
Resolution of the conversion will require State and NPS review of the conversion proposal
as previously set forth in Section E.4 above including the provision of suitable replacement
property.
If the sponsor has already provided replacement property without NPS approval, the
eligibility of the replacement land must meet the same Section 6(f)(3) requirements as if it
had not yet been acquired. It is incumbent upon the State to make the case that the
replacement land fully meets these requirements.
Failure by the State to take steps to follow this procedure shall be considered cause for NPS
to apply penalty options described in Section N below.
11. Conversions with delayed parkland replacement. Exceptions to the immediate replacement
requirement (see Section 8 above) will be allowed only when it is not possible for
replacement property to be identified prior to the State's request for the conversion. An
express commitment must be received from the State to satisfy Section 6(f)(3) substitution
requirements within a specified period normally not to exceed one year following
conversion approval.

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Such proposals are not routine and must include sufficient evidence to justify why such a
delay is necessary.
F.

Underground Utility Easements and Rights-of-Way

The State may allow underground utility easements within a Section 6(f)(3) area as long as the
easement site is restored to its pre-existing condition to ensure the continuation of public outdoor
recreational use of the easement area within 12 months after the ground within the easement area
is disturbed. If restoration exceeds the 12 month period, or the easement activities result in
permanent above-ground changes, NPS shall be consulted to determine if the changes will
trigger a conversion. If present or future outdoor recreation opportunities will be impacted in the
easement area or in the remainder of the Section 6(f)(3) area, a conversion will be triggered.
G.

Commercial Signage in Section 6(f)(3) Areas

Commercial signs are only allowable within Section 6(f)(3) boundaries when the advertising is
attached to allowable park structures such as benches, fencing, walls, and buildings and are not
inconsistent with the park setting and/or the built environment in which it is located (e.g., athletic
fields). Signs may face either outside or inside the park. Commercial advertising in the form of
a stand-alone structure such as a billboard that creates a footprint in the park, or commercial
signage permanently affixed to a natural feature within the 6(f) area, is a conversion regardless of
which direction it faces.
H. Proposals to Construct Public Facilities
Public facility requests will only be approved if the public facility clearly results in a net gain in
outdoor recreation benefits or enhances the outdoor recreation use of the entire park, and the
facility is compatible with and significantly supportive of the outdoor recreation resources and
opportunities of the Section 6(f)(3) protected area. The State shall use the PD/ESF to document
its public facility proposal using the following criteria and submit it along with a project
amendment and a recommendation for federal approval for NPS review and decision.
The NPS will consider requests to construct sponsor-funded public facilities when the following
criteria have been met:
1. Uses of the facility will be compatible with and significantly supportive of outdoor
recreation resources and uses at the rest of the site and recreation use remains the overall
primary function of the site. The proposed public facility will includes a recreation
component and will encourage outdoor recreation use of the remaining Section 6(f) area.
2. All design and location alternatives have been adequately considered, documented and
rejected on a sound basis.
3. The proposed structure is compatible and significantly supportive of the outdoor recreation
resources of the site, whether existing or planned. The park's outdoor recreation use must

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continue to be greater than that expected for any indoor uses, unless the site is a single use
facility, such as a swimming pool building, which virtually occupies the entire site.
Examples of uses which would not ordinarily be approved include, but are not limited to, a
community recreation center which takes up all or most of a small park site, clinics, police
stations, restaurants catering primarily to the general public, fire stations, professional sports
facilities or commercial resort or other facilities which: (1) are not accessible to the general
public; or, (2) require memberships; or, (3) which, because of high user fees, have the effect
of excluding elements of the public; or, (4) which include office, residential or elaborate
lodging facilities.
Restaurant-type establishments with indoor dining/seating that cater primarily to the outdoor
recreating public must be reviewed under this public facility policy. Other park food service
operations such as snack bars, carry-out food service, and concession stands with outdoor
dining including pavilions and protected patios are allowable without further NPS if the
primary purpose is to serve the outdoor recreating public.
4. Potential and future benefits to the total park's outdoor recreation utility must be identified in
the proposal. Any costs or detriments should be documented and a net recreation benefit
must result.
5. The proposed facility must be under the control and tenure of the public agency that
sponsors and administers the original park area.
6. The proposal has been analyzed pursuant to NEPA, including providing the public an
opportunity to review and comment on the proposal if required as part of the NEPA review.
7. All applicable federal requirements for approval are met.
8. The proposal has been adequately reviewed at the state level and has been recommended by
the SLO.
I.

Requests for Temporary Non-Conforming Uses Within Section 6(f)(3) Areas

All requests for temporary uses for purposes that do not conform to the public outdoor recreation
requirement must be submitted to and reviewed by the State. The State, in turn, will submit a
formal request to NPS describing the temporary non-conforming use proposal.
Continued use beyond six-months will not be considered temporary, but will result in a
conversion of use and will require the State/project sponsor to provide replacement property
pursuant to Section 6(f)(3) of the LWCF Act.

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1. Criteria. NPS will use the following criteria to evaluate each request:
a. The size of the parkland area affected by any temporary non-recreation use shall not
result in a significant impact on public outdoor recreation use. This means that the site of
the temporary activity should be sufficiently small to restrict its impacts on other areas of
a Fund-assisted park.
b. A temporary use shall not result in permanent damage to the park site, and appropriate
mitigating measures will be taken to ensure no residual impacts on the site once the
temporary use is concluded.
c. No practical alternatives to the proposed temporary use exist.
d. All applicable federal requirements for approval are met.
e. The proposal has been adequately reviewed at the state level and has been recommended
by the SLO.
2. Required proposal documentation. The State’s formal proposal to NPS shall include:
a. SLO recommendation;
b. PD/ESF providing a complete description of the proposed temporary use, including:
(1) start and completion dates;
(2) identification of the portion of the site affected, including a map showing the
relationship of the temporary use site to the full area protected under 6(f)(3) and a
justification of why the area needed is the minimum necessary for the proposed use;
(3) an analysis of the alternatives to the proposed use that were considered;
(4) a description of both immediate impacts on the site as a result of the temporary use
and any residual or long-term impacts on the site's environment or on recreation use;
(5) a description of any appropriate mitigation actions that may be necessary and a
schedule for their implementation; and,
c. An acknowledgement by the SLO a full conversion will result if the temporary use has
not ceased after the maximum six-month period allotted.
J. Sheltering Facilities within Section 6(f)(3) Areas
NPS approval is required to shelter an existing facility located within a Section 6(f)(3) protected
area. See Section 3.C.7 for further guidance.

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K. Obsolete Facilities
Project sponsors are not required to continue operation of a particular recreation area or facility
beyond its useful life. However, Section 6(f)(3) of the LWCF Act requires project sponsors
maintain the entire area within the Section 6(f)(3) boundary in some form of public outdoor
recreation use.
Notwithstanding neglect or inadequate maintenance on the part of the project sponsor, a
recreation area or facility may be determined to be obsolete if:
1. reasonable maintenance and repairs are not sufficient to keep the recreation area or facility
operating;
2. changing recreation needs dictate a change in the type of facilities provided;
3. park operating practices dictate a change in the type of facilities required; or,
4. the recreation area or facility is destroyed by fire, natural disaster, or vandalism.
States may determine a facility is obsolete and permit its use to be discontinued or allow a
particular type of recreation use of the LWCF assisted area to be changed provided that the
project record maintained by the State is documented by the sponsor with a justification
statement for determining obsolescence and the State concurs in the change. However, NPS
approval must be obtained prior to any change from one LWCF allowable use to another when
the proposed use would significantly contravene the original plans for the area. See Section L
below for further guidance.
If, in the judgment of the State, the facility is needed and was lost through neglect or inadequate
maintenance, then replacement facilities must be provided at the current value of the original
investment.
LWCF assistance may be provided to renovate outdoor recreation facilities that have previously
received LWCF assistance if the State determines the renovation is not required as a result of
neglect or inadequate maintenance and the State documents the project record to that effect.
L. Significant Change of Use
Section 6(f)(3) of the LWCF Act requires project sponsors maintain the entire area defined in the
project agreement in some form of public outdoor recreation use. NPS approval must be
obtained prior to any change from one eligible use to another when the proposed use would
significantly contravene the original plans or intent for the area as described in the original
LWCF project(s).
NPS approval is not required, however, for each and every facility use change. Uses within a
Section 6(f)(3) protected area should be viewed in the context of overall use and should be

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monitored in this context. A change from a swimming pool with substantial recreational
development to a less intense area of limited development such as a passive park, or vice versa,
would, for example, require NPS approval.
States shall notify NPS in writing of proposals to significantly change the use of Section 6(f)(3)
areas in advance of their occurrence. NPS will expedite a determination of whether a formal
review and approval process will be required. A primary NPS consideration in the review will
be the consistency of the proposal with the Statewide Comprehensive Outdoor Recreation Plan.
If the change in use proposal requires a formal review and decision by NPS, the State shall
complete the Proposal Description and Environmental Screening Form (PD/ESF) found in
Chapter 4.
Changes to other than public outdoor recreation use constitute a conversion and will require NPS
approval and the substitution of replacement land in accordance with Section 6(f)(3) of the
LWCF Act
M. Post-Completion Inspections
1. Purpose. In order to determine whether properties acquired or developed with LWCF
assistance are being retained and used for outdoor recreation purposes in accordance with the
project agreement and other applicable program requirements, a state post-completion
inspection is to be made within five years after final billing and at least once every five years
thereafter.
The following points should be taken into consideration during the inspection of properties
that have been developed for public use:
a. Retention and use. Is the Section 6(f)(3) boundary in tact and the property being used for
outdoor recreation purposes including those intended through the projects funded with
LWCF assistance?
b. Appearance. Is the property attractive and inviting to the public?
c. Maintenance. Is upkeep and repair of structures and improvements adequate? Is there
evidence of poor workmanship or use of inferior quality materials or construction? Is
vandalism a problem? Is the area being maintained?
d. Management. Does staffing and servicing of facilities appear adequate?
e. Availability. Is there evidence of discrimination? Is the property readily accessible and
open to the public during reasonable hours and times of the year?
f. Signing. Is the area properly signed to allow for user information and safety, and proper
acknowledgement of the federal Land and Water Conservation Fund?

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g. Interim use. Where lands have been acquired but not yet developed, the inspection
should determine whether the interim uses of the property are in accordance with
agreements with the NPS.
2. Reporting. Within 90 days of completion of an on-site inspection, States shall submit to NPS
a post-completion inspection report for only those projects which have compliance problems.
The report should include the date of inspection, description of the finding, and a summary
report of corrective actions taken or to be taken.
For all other sites inspected with no compliance problems, the State shall only report to NPS
the project number and date of inspection, and shall retain the actual inspection report with
the State LWCF project file. States shall submit a report of all LWCF project sites inspected
at least annually and by September 30.
Post-completion inspection reports shall also be completed for those projects in which the
facilities have been deemed obsolete. The report should include certification by the State
Liaison Officer that the facility is obsolete and that such obsolescence is not a result of
neglect or inadequate maintenance on the part of the project sponsor.
3. Applicability. The provisions of this section apply to the Section 6(f)(3) area encompassing
the area or facility assisted by the LWCF, regardless of the extent of LWCF assistance in that
area or facility. That is, in cases where assistance is provided only for an acquisition, the
entire park or recreational area involved, including developments on the lands so acquired,
are subject to the provisions of this section. Where development assistance is given, the
lands of the park or recreation area identified on the Section 6(f)(3) boundary map are subject
to this section.
4. State responsibility. Responsibility for enforcement of the provisions of this chapter rests
with the State. The NPS will inspect LWCF assisted areas and facilities from time to time,
but it shall conduct such visits in concert or through consultation with the State agency or
State Liaison Officer.
5. Costs. The costs of making post-completion inspections by the State are allowable overhead
charges for LWCF assistance and are allowable costs covered by the indirect cost rate.
6. NPS inspections. Properties acquired or developed with LWCF assistance shall be available
for inspection by the NPS Director or other NPS representatives.
N. Penalties for Failure to Comply with Federal Laws and Regulations
Pursuant to 43 CFR Part 12.83, when the NPS determines a State has violated or failed to
comply with applicable federal law, or the regulations governing this program with respect to a
project, NPS may withhold payment of federal funds to the State on account of such project,
withhold funds for other projects of the State, withhold approval of further projects of the State,

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and take such other action deemed appropriate under the circumstances, including debarment and
suspension pursuant to Executive Order 12549 at 43 CFR 12.100-.510, until compliance or
remedial action has been accomplished by the State to the satisfaction of NPS.

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File Type	application/pdf
File Title	Microsoft Word - LWCF Manual Master Final.doc
Author	aps2688
File Modified	2008-09-16
File Created	2008-09-08