Section 306A documentation

MEMORANDUM FOR:

State, Commonwealth and Territory Coastal
Management Program Managers

FROM:

Joseph A. Uravitch, A.I.C.P.
Chief, Coastal Programs Division

SUBJECT:

Revised Section 306A Guidance

Attached is the Office of Ocean and Coastal Resource Management’s
(OCRM’s) revised Coastal Zone Management Act (CZMA) section 306A
guidance. This guidance incorporates some of the suggestions you
provided on the draft guidance, which was sent to you in
September 1998. This guidance takes effect immediately and must
be used with your FY 1999 grant applications.
The guidance clarifies section 306A eligibility requirements;
redefines the procedures for section 306A applications and
approval by the Coastal Programs Division (CPD), and the National
Oceanic and Atmospheric and Administration’s (NOAA’s) Grants
Management Division (GMD); and substantially reduces the amount
of section 306A project information submitted to NOAA for grant
actions. The guidance does not dramatically change existing
section 306A eligibility requirements. This guidance supersedes
all previous section 306A guidance. These changes should reduce
federal, state and local government administrative time and
paperwork; expedite federal approval and state pass-through to
local governments and others; and allow the projects to begin
earlier in the grant cycle.
If you have any questions on the guidance, please contact
David W. Kaiser, CPD, at 301.713.3098, Extension 144,
Fax: 301.713.4367 or Internet: david.kaiser@noaa.gov
Please contact your CPD Coastal Management Specialist when
submitting applications and proposed section 306A projects.
Attachment
cc: Tony MacDonald, CSO
Evaluation Staff, OCRM
Estuarine Reserve Division, OCRM
Ed Sharp, DOC GC
Arlene Porter, NOAA GMD

Coastal Zone Management Act
Section 306A Guidance
Coastal Programs Division
Office of Ocean and Coastal Resource Management
National Ocean Service
National Oceanic and Atmospheric Administration
February 1999

Table of Contents
I.

Introduction . . . . . . . . . . . . . . . . . . . . . . . 1

II.

Objectives and Allowable Uses of Section 306A Funds

. . . 2

III. Section 306A Project Eligibility
. . . . . . . . . . . 3
General Guidance . . . . . . . . . . . . . . . . . . 3
Public Benefit . . . . . . . . . . . . . . . . . . . 5
IV.

V.

VI.

Other Federal Requirements
. . . . . . . . . . . .
National Flood Insurance Program Requirements
Coastal Barriers Resource Act Requirements . .
Endangered Species Act Requirements
. . . . .
National Environmental Policy Act Requirements
Americans with Disabilities Act
. . . . . . .
(Handicapped Accessibility Requirements)
Department of Commerce Environmental
Justice Strategy
. . . . . . . . . . . .

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10

Application Procedures
. . . . . . . . . . . . . .
Application Method . . . . . . . . . . . . . .
Section 306A Project Approval Steps
. . . . .
Budget Information and State Match Requirements
Additional Match Requirements for State CMPs
Approved After 1990 . . . . . . . . . . .

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10
10
11
12

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13

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14

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14

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17

Information Required in Application to NOAA

VII. Information the State Must Retain on File
VIII. Special Award Conditions

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Appendix I - Section 306A Project Checklist
Appendix II - Title Opinion and Certification Examples

CZMA Section 306A Guidance, February 1999

Table of Contents

7
7
7
8
8
9

I.

Introduction

This guidance is issued by the Coastal Programs Division (CPD),
of the Office of Ocean and Coastal Resource Management (OCRM),
National Ocean Service, National Oceanic and Atmospheric
Administration (NOAA). This guidance implements the Coastal Zone
Management Act (CZMA) section 306A. States, Commonwealths and
Territories (hereafter referred to as “states”) with federally
approved coastal management programs (CMPs) shall use this
guidance when developing section 306A projects; negotiating
section 306A projects with other state agencies, local
governments, American Indian tribes and others; and when applying
for federal approval of section 306A projects. The guidance
describes CZMA section 306A eligibility requirements, allowable
uses of section 306A funds, section 306A application
requirements, and information that the state CMP shall retain in
its files. This guidance supersedes all previous OCRM guidance
regarding section 306A.
This guidance delegates to the state CMPs much of the section
306A documentation and record keeping responsibilities. In
addition, the NOAA Grants Management Division (NOAA GMD) has
delegated to CPD federal approval authority for section 306A
projects. The new Section 306A Project Checklist (Appendix I)
should provide sufficient information for CPD approval. These
changes should reduce federal, state CMP and local government
administrative time and paperwork; expedite federal approval and
state pass-through to local governments and others; and allow the
projects to begin earlier in the grant cycle.
The delegation of section 306A responsibilities requires that
state CMPs ensure that section 306A projects meet the eligibility
and use requirements contained in this guidance and that the
section 306A records are adequately maintained. State
documentation and records will be subject to review by OCRM
during periodic CZMA section 312 evaluations and will be
necessary for state and federal audits. Failure by a state CMP
to adhere to section 306A requirements or maintain state CMP
section 306A files may result in one or more of the following
actions: removal of CPD’s delegation of section 306A
requirements to the particular state CMP; deobligation of
improperly used section 306A funds; a finding that the state may
not fund section 306A projects; or other financial sanctions as
authorized by the CZMA.
This guidance is derived from CZMA section 306A; H.R. Rep. No.
1012, 96th Cong., 2d Sess., pp. 18-19, 44-46 (1980); Cong. Rec.

CZMA Section 306A Guidance, February 1999

Page 1

H 10113-H 10114 (Sep. 30, 1980); 15 C.F.R. part 24
(Administrative Requirements for Grants and Cooperative
Agreements to State and Local Governments); OMB Circular A-87
(cost principles); GAO/OGC 92-13 (Principles of Federal
Appropriations Law), chapter 10 (grants and cooperative
agreements); and OCRM’s former section 306A guidance (May 1990).
State CMPs should contact their CPD Coastal Management Specialist
for any assistance needed to apply for section 306A funding.
II.

Objectives and Allowable Uses of Section 306A Funds

A section 306A project shall meet one or more of the following
objectives:
1.

Preservation or restoration of specific areas that (a) are
designated under a state’s CMP as required by CZMA section
306(d)(9) because of their conservation, recreational,
ecological, or esthetic values, or (b) contain one or more
coastal resources of national significance, or for the
purpose of restoring and enhancing shellfish production by
the purchase and distribution of clutch [sic] material on
publicly owned reef tracts. CZMA § 306A(b)(1);

2.

Redevelopment of deteriorating and underutilized urban
waterfronts and ports that are designated under section
306(d)(2)(C) in the state’s management program as areas of
particular concern. CZMA § 306A(b)(2);

3.

Provision of access to public beaches and other coastal
areas and to coastal waters in accordance with the planning
process required under section 306(d)(2)(G). CZMA §
306A(b)(3); or

4.

The development of a coordinated process among state
agencies to regulate and issue permits for aquaculture
facilities in the coastal zone. CZMA § 306A(b)(4) (added in
1996 for aquaculture planning and regulation processes. The
section does not authorize the use of section 306A funds for
the construction of aquaculture projects).

The use of section 306A funds is limited to:
1.

The acquisition of fee simple or other interest in land,
e.g., purchasing an easement for a public right-of-way to
the beach or to purchase an ecologically important area to
preserve as an area of particular concern.

CZMA Section 306A Guidance, February 1999

Page 2

CZMA § 306A(c)(2)(A);
2.

Low-cost construction projects consistent with the purposes
of CZMA § 306A, including but not limited to paths,
walkways, fences, parks, and the rehabilitation of historic
buildings and structures. CZMA § 306A(c)(2)(B);

3.

The revitalization of deteriorating or underutilized urban
waterfronts or ports for:
a.
the rehabilitation or acquisition of piers for public
use, including compatible commercial activity,
b.
the establishment of shoreline stabilization measures
including the installation or rehabilitation of
bulkheads for the purpose of public safety or increased
public access and use of urban waterfront areas; and
c.
the removal or replacement of pilings where such action
will provide increased recreational use of urban
waterfront areas. CZMA § 306A(c)(2)(C);

4.

Engineering designs, specifications, and other appropriate
reports related to the above (including aquaculture
processes). CZMA § 306A(c)(2)(D); and

5.

Educational, interpretive, and other management costs
(including aquaculture processes). CZMA § 306A(c)(2)(E).

III. Section 306A Project Eligibility
General Guidance
Section 306A provides state CMPs with federal funds to obtain onthe-ground results from state coastal management processes and
enhance the overall effectiveness of state CMPs. Section 306A
projects must be directly linked to a state CMP. A single state
agency shall administer both CZMA sections 306 and 306A in order
to plan activities and projects that complement each other and
result in the overall improvement of a state’s CMP.
Generally, states are eligible for section 306A funds if the
state has a federally approved CMP and the state CMP is making
satisfactory progress in activities designed to result in
significant improvement in achieving the coastal management
objectives specified in sections 303(2)(A) through (K). If CPD
determines that a state CMP is not making satisfactory progress,
CPD will use its discretion to terminate section 306A eligibility
until the problems are remedied. A section 306A project shall
also meet one of the section 306A objectives, and the funds will

CZMA Section 306A Guidance, February 1999

Page 3

be used for one of the section 306A allowable uses.
all described in more detail in this guidance.

These are

The amount of funds spent on any single section 306A project, and
the amount spent on all section 306A projects from a particular
CZMA section 306/306A grant, is negotiated with CPD. CPD
approval depends on the requirements of this guidance and other
state CMP program needs, e.g., state CMP section 306
implementation needs, CZMA section 312 evaluation necessary
actions and recommendations, and CZMA section 309 and Coastal
Nonpoint Pollution Control Program needs. Project costs for a
single section 306A project in excess of $100,000 may require
additional justification and additional National Environmental
Policy Act (NEPA) documentation. See section IV of this guidance
for further discussion on NEPA. A state CMP shall not use more
than 50 percent of its section 306/306A grant for section 306A
low-cost construction projects. CZMA § 306A(c)(2)(B).
Congress declared that section 306A projects shall not be capital
intensive, but instead be minor in scope, and that section 306A
funds shall not be used to finance large-scale erosion-prevention
structures. Consistent with this directive, it is OCRM’s policy
that section 306A funds shall not be used for beach renourishment
or hard structure erosion control projects. Small scale
shoreline stabilization structures are allowed for the
redevelopment of deteriorating or underutilized urban waterfronts
or ports to provide for increased public use and access. (An
urban waterfront is an area that is densely populated and has
historically been developed.) OCRM may approve vegetative
erosion control activities or planning activities for a beach
renourishment project or non-structural erosion control projects
if the project is on public land and the state CMP can show a
substantial public benefit (e.g., the structure protects public
investment that cannot be feasiblely or technically relocated,
protection of a historic structure or other important coastal
resources), these benefits substantially outweigh the costs,
there is a reasonable expectation that the project will last for
a reasonable amount of time, the project is minor in scope and
not capital intensive, and meets other section 306A requirements.
Public Benefit
Public benefit requirements for section 306A projects are:
1.

Section 306A funds shall only be used for projects on
publicly owned or leased land, or land for which an easement
is obtained.

CZMA Section 306A Guidance, February 1999

Page 4

2.

Leases and easements should be in perpetuity. However, a
lease or easement shall, at a minimum, be for the expected
life of the project (a minimum of 20 years). The life of a
project includes expected repairs to a facility. If a deed,
lease or easement conveying property to a public entity for
section 306A purposes contains a reversionary clause, CPD
must approve the reversionary clause. If the property
reverts and is no longer used for its original purpose, then
the state CMP shall reimburse NOAA for the federal funds
received for the project.

3.

Section 306A funds are for public benefit and may not be
used to improve private property or for other private
enterprises (including non-profit property or enterprises).

4.

Indirect benefits to commercial, private or non-profit
activities derived from section 306A projects are allowed so
long as the indirect commercial, private or non-profit
activities do not interfere with the purpose of the project,
the requirements of this guidance, and public use and
benefits are not diminished.

5.

If the land ceases to be available (or the project ceases to
be used) for the intended use at any time during the life of
the project, the state CMP shall reimburse the full amount
of the federal cost of the project to NOAA.

6.

A section 306A public access facility must be open to the
general public. Facilities that restrict use to specific
persons or residents of a community are not eligible for
section 306A funding. Access may be limited or controlled
in an equitable manner at certain times for safety or
resource protection reasons or for other good and reasonable
cause such as: to accommodate special events, educational
outings (e.g., a school group), or for scientific research
(e.g., archaeological excavation).

7.

In general, user fees should not be charged to access
section 306A projects. If user fees are desired the fee
must be described and justified in the Section 306A Project
Checklist submitted to CPD. All user fees, income or other
revenues derived from a section 306A project shall revert to
the maintenance or management of either the federally funded
section 306A project or, if the section 306A project is part
of a larger public project, the larger public project. If a
state or local government proposes to charge a higher fee
for non-state, non-county, or non-city residents, the

CZMA Section 306A Guidance, February 1999

Page 5

Section 306A Project Checklist submitted to CPD shall
clearly demonstrate that the differential non-resident fee
is based on the amount of project subsidization from the
resident tax base. Moreover, non-resident fees shall be
reasonable. OCRM may require additional information on the
necessity or reasonableness of a fee and may deny the use of
a user fee.
8.

Section 306A funds shall not be allocated to a non-profit
organization. A state CMP may allocate section 306A funds
to local governments, area-wide agencies, regional agencies
and interstate agencies, so long as the funds so allocated
further the state’s CMP. CZMA § 306A(e). Section 306A
funds shall not be used to purchase property for a nonprofit organization or to otherwise directly or primarily
benefit the organization. The term “non-profit
organization” includes land trusts, development
corporations/quasi-governmental units and other non-public
not-for-profit entities. A state CMP, or other public
entity, may, if permissible under state or local contracting
authorities, contract with a non-profit organization to
perform some or all of the tasks for a particular section
306A project, providing that: the non-profit organization is
identified in the Section 306A Project Checklist (section
7.g.) and the project meets all section 306A requirements
including the other public benefit requirements discussed
above. A non-profit organization cannot be identified in
the grant as a sub-awardee.
A state CMP, or other public entity, may enter into a
partnership with a non-profit organization to purchase
property, for preservation purposes only, so long as the
federal section 306A funds are allocated to the public
entity and the public entity retains ownership (title) and
control of the property. If a land trust is involved, the
land trust may retain an interest in the property consistent
with the purpose of preserving coastal uses or resources,
e.g., a conservation easement, but not fee simple ownership.

IV.

Other Federal Requirements

National Flood Insurance Program Requirements
Any coastal community listed by the Federal Insurance
Administration (FIA) in its most current National Flood Insurance
Program Community Status Book as being a community which is not
participating in the Flood Insurance Program will not be eligible

CZMA Section 306A Guidance, February 1999

Page 6

for any section 306A projects which include the acquisition or
construction of buildings in special flood hazard areas shown on
an FIA map. State CMPs should so notify such non-participating
communities. This does not preclude the community from proposing
section 306A projects both in the flood plain or outside of it,
that are not acquisition for construction or actual construction
projects, e.g., acquisition of wetlands.
Coastal Barriers Resource Act Requirements
Projects proposed for funding under section 306A must conform to
the requirements of the Coastal Barrier Resources Act (CBRA).
CBRA requires that federal funds shall only be used for projects
on undeveloped coastal barriers designated in the CBRA system if
they are consistent with the three purposes of the Act--to
minimize: 1) the loss of human life, 2) wasteful federal
expenditures, and 3) damage to fish, wildlife and other natural
resources. If a project is to be located in a designated
undeveloped coastal barrier, OCRM is required to consult with the
relevant regional office of the U.S. Fish and Wildlife Service
(USFWS). The USFWS consultation process requires that OCRM
provide the USFWS with up to 30 days to render an opinion that
the project is consistent with CBRA. Thus, some delays in
awarding the grant may be expected or some projects may be
conditioned pending the results of the consultation process.
Therefore, early coordination by the applicant with the USFWS is
advisable. While OCRM has the authority to make the final
determination if a project is consistent with the purposes of the
CZMA and CBRA, the USFWS opinion will be given deference.
Endangered Species Act Requirements
A state CMP shall indicate whether it believes that a proposed
section 306A project may adversely affect threatened or
endangered species or critical habitat as defined by the
Endangered Species Act (ESA). If a proposed section 306A project
may have minor and temporary effects CPD will request that the
state CMP informally consult with the relevant federal
agency(ies) (either the USFWS or the National Marine Fisheries
Service (NMFS)). If a proposed section 306A project may
significantly affect threatened or endangered species or critical
habitat, CPD will request that the state CMP withdraw the
proposed project. If the state CMP still wants to proceed CPD
will enter into ESA section 7 consultation with the USFWS or
NMFS. However, CPD will not approve a proposed section 306A
project that the USFWS or NMFS has determined will adversely and
significantly affect threatened or endangered species or critical

CZMA Section 306A Guidance, February 1999

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habitat.
National Environmental Policy Act Requirements
Section 306A projects are, generally, categorical exclusions
under NEPA. See OCRM, Generic Environmental Assessment of the
CZMA Section 306A Land Acquisition and Construction Projects
(Nov. 1989). This determination was based on the “small scale”
nature of section 306A projects and that the environmental
impacts from section 306A projects are minimal when performed
separately or cumulatively. Small scale projects are defined as
costing less than $100,000. States are required to complete a
categorical exclusion checklist for each section 306A project.
The categorical exclusion checklist has been subsumed into the
attached Section 306A Project Checklist (Appendix I).
Some section 306A projects may not be eligible for a categorical
exclusion. Section 306A projects costing more than $100,000 (in
federal and matching funds) or that may significantly affect the
environment (regardless of cost) must be reviewed to determine if
an Environmental Assessment (EA) or an Environmental Impact
Statement (EIS) is required. CPD may, on a case-by-case basis,
require a state CMP to submit additional information to determine
if an EA or EIS is required.
In order to reduce the environmental impacts of section 306A
projects, a state CMP shall ensure that best management practices
that conform with its approved Coastal Nonpoint Pollution Control
Program be used at section 306A project sites.
Americans with Disabilities Act -- Handicapped Accessibility
Requirements
Handicapped access requirements for section 306A projects are
based on the requirements of the Americans with Disabilities Act
of 1990 (ADA), 42 U.S.C. §§ 12101 et. seq. (Pub. L. No. 101-336),
and the U.S. Architectural and Transportation Barriers Compliance
Board (Board). As a general rule, no qualified individual with a
disability shall, by reason of such disability, be excluded from
participation in or be denied the benefits of the services,
programs, or activities of a public entity, or be subjected to
discrimination by any such entity. ADA § 202. However, the ADA
does not address handicapped accessibility issues for outdoor
recreation projects and public access projects that are needed to
reduce harm to natural resources. The following guidance is
based on OCRM’s previous section 306A handicapped accessibility
requirements. These requirements may change if the Board

CZMA Section 306A Guidance, February 1999

Page 8

publishes a rule on handicapped accessibility to outdoor areas.
Section 306A public access projects shall be handicapped
accessible unless the construction of a handicapped accessible
structure would damage coastal resources or resource damage would
occur in the absence of the section 306A project. In these
instances the section 306A project shall be handicapped
accessible to the extent that conditions allow. A state may not
use increased cost as a reason to not construct a handicapped
accessible section 306A project. A project is not eligible for
section 306A funds unless it meets this criteria.
The section 306A handicapped accessible requirement applies to
federally funded construction projects and any state funded
construction projects used to match the section 306/306A awards.
Also, any federally funded construction improvements to an
existing public access project shall be handicapped accessible
regardless of the source of funds used to construct the original
project.
Department of Commerce Environmental Justice Strategy
Consistent with the President’s Executive Order on Environmental
Justice (Feb. 11, 1994) and the Department of Commerce’s
Environmental Justice Strategy, state CMPs shall ensure that
their section 306A projects will not have disproportionately high
and adverse human health or environmental effects on minority or
low income populations.
V.

Application Procedures

Application Method
A state CMP shall submit one application for a combined section
306/306A grant. The section 306/306A grant application should
include all required section 306A information (i.e., a completed
and signed Section 306A Project Checklist, title opinions and
other required information). If this is not possible, the
section 306/306A grant application shall identify the portion of
the grant that will be used for section 306A projects. In the
latter case, the state CMP shall submit the required section 306A
information within the first 120 days of the grant period.
Submission at one time of section 306A project information for
all section 306A projects results in an expedited and more
efficient approval process. Submission of all section 306A
project information with the section 306/306A grant application

CZMA Section 306A Guidance, February 1999

Page 9

further speeds the section 306A project approval process.
Section 306A projects should be completed within the grant
period. If a project will take longer to complete, it should be
submitted in phases. Approval of a project for one grant does
not guarantee that federal funds will be available for future
phases or projects. Thus, each proposed section 306A project
shall be a functional, stand alone project.
Section 306A Project Approval Steps
This guidance and the attached Section 306A Project Checklist are
intended to expedite NOAA’s approval of section 306A projects.
The section 306A Project Approval Steps are:
1.

State CMP submits section 306/306A application.
a. State includes, if possible, completed section 306A
checklists, title opinions and any other information that
may be required.
b. If projects are not finalized by the time of the final
grant application, state CMPs identify in the section
306/306A grant application an amount of federal funds to be
used for section 306A projects and, if possible, the name
and type of section 306A projects proposed.

2. Where the state CMP submits all section 306A information with
the final section 306/306A grant application, CPD, the Department
of Commerce’s Office of General Counsel (OGC) and the NOAA GMD
review the section 306/306A grant application. If the section
306A information is complete and approved, the state may begin
the approved section 306A projects on the grant start date.
3. If the section 306A information was not complete in the
approved section 306/306A application or award, the state CMP
shall submit, within 120 days of the award date, the Section 306A
Project Checklists, title opinions and any other required
information for CPD approval.
4. When CPD receives the section 306A project information CPD
will send the title opinion to OGC to review and approve. This
is an OGC review and not a NOAA GMD “grant action.” If OGC
determines that the title opinion is adequate, CPD will continue
to process the checklist. If OGC determines that the title
opinion is inadequate, CPD will stay its review of the project

CZMA Section 306A Guidance, February 1999

Page 10

until the state CMP remedies the inadequate title. Once the
title opinion is cleared by OGC, CPD will either approve or deny
the project or request additional information. If CPD approves,
CPD will send the checklist to the state and NOAA GMD with CPD’s
approval signature (see first page of checklist). Once the state
CMP receives a Section 306A Project Checklist with CPD’s
approval, the applicable special award condition is satisfied,
federal funds are released, the section 306A funds may be
allocated to the project proponent and work may commence.
5. OCRM monitors the delegation of section 306A documentation to
the states and the section 306A projects through CPD oversight
and CZMA section 312 reviews.
6. Any
require
section
will be

reprogramming of funds between sections 306 and 306A will
NOAA GMD approval. Section 306A Project Checklists for
306A projects using funds reprogrammed from section 306
processed by NOAA GMD as a grant action.

Budget Information and State Match Requirements
The section 306A construction and acquisition project totals
shall be entered under “construction” in Section B of the section
306/306A grant application’s Standard Form 424A.
A state CMP may use any eligible state or local funds and/or inkind services to match both the sections 306 and 306A portions of
its grant. A state CMP is required to match its section 306/306A
grant on a 1 to 1 basis (except for newly approved states, see
below). A state CMP is not required to match federal section
306A funds with matching funds or services from section 306A
projects. All that is required is that the entire section
306/306A grant is matched on a 1 to 1 basis and the match is from
eligible sources. Requirements for eligible matching funds or
services are contained in the Uniform Administrative Requirements
for Grants and Cooperative Agreements to State and Local
Governments. See 15 C.F.R. part 24.
Additional Match Requirements for State CMPs Approved After 1990
[NOTE: This section is subject to change if a statutory change is
made to section 306A to address the match discrepancy]
CZMA section 306 funds awarded to states whose programs were
approved after 1990 are to be matched in a federal to state ratio

CZMA Section 306A Guidance, February 1999

Page 11

of 4 to 1 for the first fiscal year, 2.3 to 1 for the second
fiscal year, 1.5 to 1 for the third fiscal year, and 1 to 1 for
each year thereafter. CZMA § 306(a)(2). Section 306A funds,
however, must be matched 1 to 1, since there is not currently a
“phase-in” for section 306A match. See CZMA § 306A(d)(1).
Thus, state CMPs approved after 1990 must show the appropriate
match for section 306 funds (4 to 1, 2.3 to 1, 1.5 to 1, or 1 to
1) and a 1 to 1 match for section 306A funds (but the match can
still come from eligible non-section 306A sources).
An example of how a recently approved state CMP’s first section
306/306A award would be matched is (section 306 match of 4 to 1
and section 306A match of 1 to 1):
Total Federal Award (306/306A combined):
306 (4 to 1 ratio)
$800,000 federal
$200,000 state/local match
from 306 or 306A sources

$1,000,000

306A (1 to 1 ratio)
$200,000 federal
$200,000 state/local match
from 306 or 306A sources

Total match: $400,000 (2.5 to 1 ratio)
For state CMPs approved after 1990 the grant application shall
show separate matching funds for section 306 and section 306A.
The state’s internal record keeping should also show separate
matching funds for each section. After CPD reviews the state’s
final section 306/306A grant application, CPD will verify the
final combined section 306/306A matching ratio. (In the example
above, the final combined ratio is 2.5 to 1.) The final ratio
will depend on the amount of federal funds a state chooses to
expend on section 306A projects. NOAA must agree to the final
combined match ratio to eliminate the need for a state CMP to
submit separate Financial Status Reports on section 306 and
section 306A funds. Any reprogramming of funds between section
306 and section 306A would require a state CMP to recalculate the
combined section 306/306A match ratio and submit it to NOAA for
approval. A Special Award Condition will be added to these
grants explaining this requirement.
VI.

Information Required in Application to NOAA

A State CMP, proposing section 306A projects, shall include a
section 306A section in its combined section 306/306A grant
application. The application shall list the proposed section
306A projects by name and federal funds for each project or, if

CZMA Section 306A Guidance, February 1999

Page 12

individual projects are not identified in the grant application,
show the amount of federal funds to be allocated for section 306A
projects. As discussed above, state CMPs approved after 1990
must also show a 1 to 1 match for the section 306A projects.
The only other information required, unless otherwise notified by
CPD, is a completed and signed Section 306A Project Checklist,
title information for each proposed section 306A project and
other information required by the checklist. The Section 306A
Project Checklist shall be signed by the state CMP’s Program
Manager. See Attachment I (Section 306A Project Checklist).
VII. Information the State Must Retain on File
The information retained by the state will vary depending on the
type of section 306A project. The state CMP shall retain this
information for at least three years after the grant has been
closed-out by NOAA. CPD reserves the right to require submission
of any or all of the information listed below for a project if
the complexity of the project or other reasons indicates a need
to review the project in more detail. The state CMP shall retain
in its files the following information:
1.
2.
3.
4.
5.
6.
7.
8.

A copy of the completed and CPD approved Section 306A
Project Checklist.
Site location map.
Site plan.
Title opinion or certification.
Appraisal.
State Historic Preservation Officer’s clearance.
Floodplains/Wetlands notice.
Copies of required state and federal permits.

Each of these items are described below:
1. Section 306A Project Checklist. The checklist provides (1)
the necessary section 306A information for CPD review and
approval, and (2) state certification that the state has in its
files the necessary information, the information meets the
section 306A requirements as set forth in the CZMA and this
guidance, that the state CMP attests to the truth of the
information, and that the state CMP understands the consequences
of noncompliance with the checklist and this guidance. See
Appendix I.
2. Site location map. The site location map shows the exact
location of the section 306A project.

CZMA Section 306A Guidance, February 1999

Page 13

3. Site plan. The site plan is a detailed drawing of the
proposed construction project (or other physical alteration or
acquisition) on the project site showing the relationship of the
project to other facilities and significant natural features
(slope, access points, wetlands, dunes, floodplains, etc.). The
site plan shall also show how structures will be handicapped
accessible.
4. Title opinion or certification. A title opinion,
certification (or affidavit), or title insurance showing public
ownership or control is required for any section 306A
construction project (or other physical alteration), land
acquisition project, or any other type of section 306A project
which has a physical relationship to land, water or submerged
lands. The title document must be signed by a state or local
government official attesting that the property is in public
ownership or control consistent with this section 306A guidance.
It is in the state’s or local government’s interest to ensure
that a public entity has clear title to property proposed for
section 306A projects. See Appendix II for examples of a title
opinion and certification. See also section VIII of this
guidance regarding special award conditions.
5. Appraisal. Before purchasing a piece of property with
section 306A funds, a state CMP shall obtain an independent
appraisal by a state approved appraiser to determine fair market
value. State CMPs shall adhere to the following steps in
negotiating acquisition price (adapted from 49 C.F.R. part
24.102):
a.
Secure independent property appraisal.
b.
Present appraisal to land owner and negotiate price
based on appraisal. Property owner shall be given a
reasonable opportunity to consider the offer and
present material which the owner believes to be
relevant to determining the property’s value.
c.
If the property owner will not sell for the appraised
price or lower, and the state wishes to pursue the
acquisition, a second independent appraisal shall be
done, or the original appraisal updated to account for
changed circumstances, e.g., extensive time passage,
natural disaster.
d.
If, after negotiations and a second or revised first
appraisal, the purchase price still exceeds the
appraised value, the state may be allowed to pay more
than the appraised value (with federal section 306A

CZMA Section 306A Guidance, February 1999

Page 14

funds) if the state demonstrates reasonable efforts to
negotiate at the appraised value and if the state
provides CPD with a written justification for the
higher price, based on reasonableness, prudence, public
interest, appraisals, estimated condemnation/trial
costs, and/or valuation supports a settlement.
6. State Historic Preservation Officer’s (SHPO’s) clearance.
SHPO clearance is required before work can commence on all
section 306A construction projects and before land can be
purchased for all section 306A acquisition projects. However,
SHPO clearance is not required for CPD approval. The state CMP
Program Manager must certify, in the Section 306A Project
Checklist, that the state CMP is seeking SHPO clearance and that
work will not begin and land will not be purchased until SHPO
clearance is received by the state CMP. The State CMP should
resolve any National Historic Preservation Act section 106 issues
with the SHPO.
7. Floodplains/Wetlands notice. Any state or federal notices
regarding a section 306A project on impacts to floodplains or
wetlands shall be retained by the state.
8. Copies of required permits. The state CMP shall place in the
file for a section 306A project copies of any required local,
state, tribal and federal permits. Required local, state, tribal
and federal permits must be obtained before work can commence on
all section 306A construction projects and before land can be
purchased for all section 306A acquisition projects. However,
the state CMP is not required to have the permits in hand for CPD
approval. The state CMP Program Manager must certify, in the
Section 306A Project Checklist, that the state CMP (or other
public entity) is seeking the required local, state and federal
permits and that work will not begin and land will not be
purchased until the permits have been issued and received by the
state CMP.
VIII.

Special Award Conditions

All NOAA section 306/306A grants will contain the following
special award conditions regarding section 306A projects:
In the event there are title discrepancies or encumbrances
that NOAA deems interfere with the purpose for which the
306A funds were granted, or if NOAA determines that project

CZMA Section 306A Guidance, February 1999

Page 15

or property is no longer used for its original purpose, the
Recipient shall reimburse NOAA for the Federal funds
received for the project.
Federal funds are not permitted to be expended on any
section 306A awards until NOAA/OCRM reviews and approves the
projects in conformance with OCRM’s section 306A Guidance.
Specifically, no federal funds may be expended and no work
may commence on a section 306A project until the state has
submitted to CPD a complete and signed Section 306A Project
Checklist (and any other required information) for each
section 306A project and CPD approves. If, for any reason,
a section 306A project ceases to be used as approved by
NOAA, the state shall reimburse to NOAA the federal share.
The recipient shall cause to be erected at the site of any
construction project, and maintained during the
construction, signs satisfactory to NOAA/OCRM that identify
the project and indicate that the project is being funded
under the Coastal Zone Management Act, by NOAA’s Office of
Ocean and Coastal Resource Management, in conjunction with
the State Coastal Management Program. The recipient shall
also maintain a permanent plaque or sign at the project site
with the same information.

OMB Control # 0648-0119, expires 11/30/2004. OCRM requires this information in order to
adequately assess the eligibility of proposed CZMA section 306A projects. Public reporting
burden for this collection of information is estimated to average 5 hours per response, including
the time for reviewing instructions, searching existing data sources, gathering and maintaining
the data needed, and completing and reviewing the collection of information. Send comments
regarding this burden estimate or any other aspect of this collection of information, including
suggestions for reducing this burden, to John King, Chief, Coastal Programs Division, OCRM, 1305
East-West Hwy., 11t h Floor, Silver Spring, Maryland 20910. This reporting is required under and
is authorized under 16 U.S.C. § 1455a. Information submitted will be treated as public records.
Notwithstanding any other provision of the law, no person is required to respond to, nor shall
any person be subject to a penalty for failure to comply with, a collection of information
subject to the requirements of the Paperwork Reduction Act unless that collection displays a
currently valid OMB Control Number.

CZMA Section 306A Guidance, February 1999

Page 16

Appendix I
Section 306A Project Checklist

Appendix II
Title Opinion and Certification
Examples

TITLE OPINION (EXAMPLE)
April 1990
Date
RE:

Inlet Park Boardwalk
Project Name on Section 306A Checklist

I hereby certify that I am a member in good standing of the bar of
Maryland

(state) and have been requested to determine record

ownership for the parcel(s) of property on which the above-referenced
project will be constructed,
Ocean City Inlet

Inlet Boardwalk - along North Jetty at
(name and brief description of land).

After thoroughly examining the public land records or other
appropriate records in accordance with the laws of

Maryland

(state), I hereby certify that record title to the parcel is held by
U.S. Army Corps of Engineers/United States of America

in (check one)

fee simple absolute
other (specify)
I have determined that there are (check one)
no easements or other encumbrances on the property
X

easements or other encumbrances on the property (list below or

attach a list.
Other Comments:

Easement to Town of Ocean City for construction of

Boardwalk.

/S/
Signature

XXXXXXX
Bar number (must include)

Guy R. Ayres III
Name
5200 B Coastal Highway

(XXX) XXX-XXXX
Telephone number

Ocean City, MD
Address

21842

SUGGESTED AFFIDAVIT OR CERTIFICATION FORM

I solemnly affirm upon personal knowledge that the following
statements are true:
I

being first and duly sworn state that:
(print name of official)

1.
Official must state what his/her title is and what authority
he/she has to say that the property is publicly owned.
2.
Official must state that the property is owned or leased by
the state or local government (in accordance with OCRM’s CZMA
Section 306A Guidance, February 1999) and there are no
encumbrances on the property that interfere with the proposed
section 306A project.

Signed
(name of official)
Subscribed and affirmed before me this
(month),
(year).

day of

Notary Public

My Commission expires:

Note: This form should be revised in accordance with state law.