SANTA ANA WATERSHED PROJECT AUTHORITY

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Grant Agreement No. 4600011889 Page 2 of 32 2) Environmental Documentation: 1) Grantee submits to the State all applicable environmental permits, ii) Documents that satisfy the CEQA process are received by the State, ill) State has completed its CEQA compliance review as a Responsible Agency, and iv) Grantee receives written concurrence from the State of Lead Agency's CEQA documents and State notice of verification of environmental permit submittal. State's concurrence of Lead Agency's CEQA documents is fully discretionary and shall constitute a condition precedent to any work (i.e., construction or implementation activities) for which it is required. Once CEQA documentation has been completed, State will consider the environmental documents and decide whether to continue to fund the project or to require changes, alterations or other mitigation. Grantee must also demonstrate that It has complied with all applicable requirements of the National Environmental Policy Act by submitting .copies of any environmental documents, including environmental impact statements, Finding of No Significant Impact, and mitigation monitoring programs as may be required prior to beginning construction/implementation. 6. DISBURSEMENT OF FUNDS. State will disburse to Grantee the amount approved, subject to the availability of funds through normal State processes. Notwithstanding any other provision of this Grant Agreement, no disbursement shall be required at any time or in any manner which is in violation of, or in conflict with, federal or state laws, rules, or regulations, or which may require any rebates to the federal government, or any loss of tax-free status on state bonds, pursuant to any federal statute or regulation. 7. ELIGIBLE PROJECT COST. Grantee shall apply State funds only to Eligible Project Costs in accordance with applicable provisions of the law. Work performed on the project after January 22, 2016, shall be eligible for reimbursement. Costs that are not eligible for reimbursement Include, but are not limited to the following items: a) Operation and maintenance costs, Purchase of equipment that is not an integral part of a project. b) Establishing a reserve fund. c) Purchase of water supply. d) Replacement of existing funding sources for ongoing programs. e) Support of existing agency requirements and mandates (e.g., punitive regulatory agency requirement). f) Purchase of land in excess of the minimum required acreage necessary to operate as an integral part of a project, as set forth and detailed by engineering and feasibility studies. g) Payment of principal or interest of existing indebtedness or any interest payments unless the debt is incurred after execution of this Grant Agreement, the State agrees In writing to the eligibility of the costs for reimbursement before the debt is incurred, and the purposes for which the debt is incurred are otherwise eligible costs. However, this will only be allowed as Grantee Cost Share (i.e., Funding Match). h) Payment of stipends i) Application preparation costs for other funding opportunities not consistent with IRWM. j) Meals not directly related to travel. k) Acquisition of real property (land or easements).