PROPOSED U.S. TREASURY RULES
October 7,2013
Sheree T. Keeler, Intergovernmental Affairs Director
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Provide an overview of the proposed RESTORE Act Treasury rule
(rule).
Highlight important issues or concerns based on the way the
proposed Rule is written.
Allow for comments and questions.
Outline immediate next steps.

On Friday, September 6, 2013, the rule 31 CFR Part 34, was
Published in the Federal Register for a 60 day comment period.
Specific comments were requested on: (re: Preamble)
 U.S. Treasury’s application process.
 U.S. Treasury’s proposed approach for evaluating funding
requirements, particularly those elements requiring special
expertise and judgment.
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Comments are due no later than Tuesday, November 5, 2013, via
federal government portal or mail. (re: Preamble)
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All comments are public information and will be published on the
federal government portal.
No date established or available for when the “FINAL” rule will be
issued.
Proposed Rule 31 CFR Part 34 (Rule)
Implementation
•Provides guidance required by the RESTORE Act on accessing and managing
funds. Establishes a “grantee-grantor” relationship.
Requirements
•Prescribes the requirements to be met to access funds. Provides terms and
definitions.
Compliance
•Compliance and accountability measures to be met and maintained for receiving,
spending and managing funds.
Authority
•U.S. Treasury has sole authority to disburse, manage and oversee the funds
allocated and disbursed to entities named in the RESTORE Act.
Auditing
•U.S. Treasury and U.S. Office of Inspector are authorized to audit and coordinate
audits of entities receiving funds.
Clean Water Act Penalties Paid into Trust Fund
20% to Oil Spill
Liability Trust
Fund
80% to the Gulf Coast Restoration Trust Fund
POT 1
DIRECT COMPONENT
(Wakulla County Pot 1)
35% equally divided among the
Gulf States.
In Florida, the 35% is split
between the 23 Gulf Counties:
- 75% to the 8 disproportionately
affected counties Wakulla west
to Escambia County by formula
- 25% to other 15 nondisproportionately
affected
counties from Jefferson south to
Monroe County.
POT 2
COUNCILSELECTED
RESTORATION
COMPONENT
30% + Interest
managed by the
Gulf Coast
Ecosystem
Restoration
Council
POT 3
SPILL IMPACT
COMPONENT
(FL Gulf
Consortium)
POT 4
GULF COAT
ECOSYSTEM
RESTORATION
SCIENCE
PROGRAM
POT 5
CENTERS OF
EXCELLENCE
RESEARCH
GRANT
PROGRAMS
30% divided
among the five
Gulf Coast States
according to a
formula.
2.5% +
Interest
provided to
NOAA for a
monitoring,
observations,
science
technology
program.
2.5% +
interest
allocated to
the Gulf
Coast States
for Centers of
Excellence
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Establishes a grantor-grantee relationship between the U.S. Treasury
and entities named in the RESTORE Act, i.e., Wakulla County-
Pot 1. (re: s. 34.304 Grant Award Process)
 This means that Wakulla County will be a “grantee” required to
follow all federal grant and other applicable laws and policies and
treat projects awarded to non-Wakulla County BoCC organizations
as “sub-awards.” (preamble : affected population and 34.803 (c))
 Under “Affected Population” the Rule says that “state entities can
apply direct to the U.s. Treasury or the Federal Council for grant
funds”: (re: Preamble, Affected Population)
Appears that this specific section allows state agencies to bypass the
County for Pot 1 funds (i.e., Wakulla County) and the Florida Gulf
Consortium for Pot 3 funds.
The Rule does not address this specific allowance under any other section ,
i.e., Direct Components.
This allowance appears to be in conflict with the RESTORE Act.
Definitions important to Wakulla County – Pot 1 (re: 34 A: General Provisions)
Administrative Cost – means indirect cost incurred for general
management functions, general ledger accounting, budgeting,
human resources, general procurement services and general legal
services that are allocable to activities authorized under the Act.
The
Rule appears to not allow funding or reimbursement of planning
and administration activities prior to an executed grant agreement
(Agreement). The Rule seems to envision that no funds will be
awarded prior to the County plan submittal and approval by U.S.
Treasury and the execution of an Agreement.
 Best
Available Science –
means science that maximizes
the quality, objectivity, and integrity of information, including
statistical information; uses peer-reviewed and publicly available
data; and clearly documents and communicates risks and
uncertainties in the scientific basis for such projects.
Cannot use anecdotal data or empirical research.
Definitions important to Wakulla County
 Direct
Component –Wakulla County – Pot 1
Requires Wakulla to submit a multi-year plan and enter into an
Agreement with the U.S. Treasury to access funds.
 Environmental
Review and Compliance
Procedures –entities must follow the procedures under applicable
Federal and State environmental laws.
All projects must be properly permitted by the appropriate federal or
state agency before it can commence.
Rule is silent on expedited permitting and waivers for RESTORE
Act projects.
Rule does not provide the specific laws to be followed.
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Cost incurred, direct or in-direct, must conform with applicable
federal laws, OMB circulars and guidance. (s.34.200(a)(1))
Grant Agreement MAY provide for pre-award costs of environmental
review and compliance in the manner prescribed in applicable OMB
circulars and guidance. (s.34.200(a)(3))
 The Rule
appears to not allow for funding or reimbursement of planning
and administration activities prior to an executed grant agreement. The
Rule seems to envision that no funds will be awarded prior to the County
plan submittal, approval of U.S. Treasury and execution of an Agreement.

Grant funds CAN be used to satisfy the non-FEDERAL cost-share of
a project or program that is an eligible activity and authorized by
Federal law. (s.34.200(b))
Rule is silent on use of funds being used as match for State grants.
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Eligible activities allowed by the Gulf RESTORE Act program. (s.34.201)
 For Wakulla, this means the criteria in the RESTORE ACT, section 1603
(3) (B) (i) – which are:
1.
Restoration and protection of the natural resources, ecosystems, fisheries,
marine and wildlife habitats, beaches, and coastal wetlands of the Gulf
Coast Region.
2.
Mitigation of damage to fish, wildlife and natural resources.
3.
Implementation of a federally approved marine, coastal, or comprehensive
conservation management plan, including fisheries monitoring.
4.
Workforce development and job creation.
5.
Improvements to or on State parks located in coastal areas affected by the
Deepwater Horizon oil spill.
6.
Infrastructure projects benefitting the economy or ecological resources,
including port infrastructure.
7.
Coastal flood protection and related infrastructure.
8.
Planning assistance.
Administrative costs of complying with this section (cannot be greater than 3
9.
percent, see definition in Rule).
10.
Promotion of tourism and seafood in the Gulf Coast Region:
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Promotion of tourism in the Gulf Coast region, including recreational fishing.
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Promotion of the consumption of seafood harvested from the Gulf Coast Region.
Direct Component – Wakulla County:
 Multi-year plan is required describing the projects, programs,
activities to fund/implement: (s. 34.303)

The Plan, must be made available for public comment for a
minimum of 30-days before submitting to the U.S. Treasury.
(Preamble: Direct Components)

Rule is silent on date for Plan submittal to the U.S.
Treasury or how long the U.S. Treasury has to approve the Plan.
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Rule does not address Plan updates or revisions.
Applications for projects will need to embrace all Multi-year
Plan requirements.
Direct Component – Wakulla County – Pot 1:
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U.S. Treasury “may” prescribe a standard format for the multi-year
plan. (s. 34.303 (a))
Not knowing if the U.S. Treasury will prescribe a standard
format makes it difficult to develop the Multi-year Plan,
requires clear direction from U.s. Treasury
Plan, must describe each planned “program, project and activity”
(s. 34.303
(a))
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Narrative description showing need, purpose objectives.
Identify the eligible activity – RESTORE Act Criteria
Budget - detailed
Milestones
Projected completion dates
Criteria to be used to evaluate success of each activity in helping to
restore and protect the Gulf Coast region impacted by the spill.
Identify if other funding for the program project or activity has
been requested under other sections of the RESTORE Act.
Applications for projects will need to embrace all Plan requirements.
The Plan Must Also(D.34.003)
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Provide supporting information that proposed activities:
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Meet the statutory requirements for the activities.
 Implementation Plan was made available for public review and
comment for at least 30 days.
 Each program, project and activity is adopted after consideration
of all meaningful input from individuals, business, Tribal
nations and non-profit organizations.
 Provide supporting information that each program, project and
activity that is designed to protect or restore natural resources is
based on the best available science.
Demonstrate compliance with applicable environmental laws. (Preamble:

Direct Components)
Applications for projects will need to embrace all Plan requirements.
Grant Agreement
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If the US Treasury determines that the Plan meets all of the
“requirements”, they will offer a Grant Agreement, with a beginning
and ending date. (s. 34.304)
Sub-grantee will be required to enter into a sub-grant
Agreement that includes all of the requirements of the
Agreement between Wakulla County and the U.S. Treasury.
Sub-grant Agreement can only be “offered” once the Plan and
the specific project, activity or program is approved by the U.S.
Treasury.
Grant Agreement
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Any unspent funds at the end of the grant period or conclusion of
the project, must be returned to the U.S. Treasury. (s. 34.305 (a))
Rule does not address rolling funds over to another project or
Plan amendments.
 This will also apply to sub-grantees. Wakulla County will need to
perform fiscal monitoring of sub-grantees.
Timely reporting is a must! (34.306)
 Wakulla County will be responsible for submitting timely reports of
all approved and funded projects, activities and programs.
 Wakulla County will be responsible for ensuring that sub-grantees
submit reports to Wakulla County timely or take corrective actions.
 Rule does not describe all reporting requirements, it appears that the
Grant Agreement will provide more specificity.
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Grant Agreement
The Grant Agreement will have mandatory certifications that
must be certified (by the BoCC) and signed by the Chairman.
 Certifications with the Agreement to attest that projects, activities,
program meet the RESTORE Act , the Rule and all other federal and
state law and policy requirements; and, that funds will be managed
according to such requirements.
 Certifications at the conclusion of the grant period, or other period
specified by the Agreement, will also be required, i.e., grant funds
spent only for purposes identified in the Agreement, documentation
to demonstrate accuracy of statements, etc.
 Sub-grantees will also be required to complete Certifications.
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Grant Agreement
Rule allows preference to State vendors for project activities
awarded under the Grant. (34.305)
 Does not appear to allow local preference.
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Wakulla, as a Direct Component, must comply with all Federal Grant
and other applicable laws and policies.
 U.S. Treasury may withhold funds or request repayment of funds if it is
determined that RESTORE Act funds were used for an unauthorized
purpose or if a condition of the use of funds is violated.
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Entities awarded a project are considered a “sub award” and are
required to enter into an Agreement containing all requirements of
the Agreement between the U.S. Treasury and the BoCC.
 There is NO requirement that Direct Components (i.e., Wakulla) sub-grant
any of the funds or solicit for projects to be funded.
 Wakulla County will be responsible for sub-grantees performance,
compliance, and accountability of funds.
 Wakulla County will have to monitor sub-grantees to evaluate compliance,
performance and fiscal management and take corrective actions if not in
compliance.
 U.S. Treasury may withhold funds or request repayment of funds if it is
determined that that a sub-grantee used RESTORE Act funds for an
unauthorized purpose or if a condition of the use of funds is violated.
Approve plans and the expenditure of RESTORE Act funds.
 U.S. Treasury or the U.S. Inspector General MAY withhold funds or
request repayment of funds if it is determined that RESTORE Act
funds were used for an unauthorized purpose or if a condition of the
use of funds is violated.
 Wakulla County will be responsible for any sub-grantees failure to
perform, comply with terms of the Agreement or for any
unauthorized purpose or condition of the use of the funds.
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Wednesday, October 10th: RESTORE Act Advisory Committee
Meeting Scheduled to hear citizens, discuss Rules and propose
Comments for BoCC consideration.
Monday, October 21st: Staff will present proposed official response
to U.S. Treasury on proposed Rule for BoCC for approval.
Tuesday, November 5th or before: Staff will transmit BoCC official
response to Rule via the federal government portal.
 WAIT
for U.S. Treasury to issue final Rule.
 WAIT for BP Trial to be over.
 WAIT to find out how much $$ we will receive.
Questions
or
Contact:
Sheree T. Keeler
Intergovernmental Affairs Director
e-mail: skeeler@mywakulla.com
Office phone: 850-926-0919 X 705