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EPA Grants


Indirect Cost Guidance for Recipients of EPA Assistance Agreements

Notification Date:  August 21, 2018

Purpose:  This Recipient/Applicant Information Notice (RAIN) informs recipients and applicants of a new policy that aligns indirect costs (IDCs) under EPA assistance agreements (grants and cooperative agreements) with 2 CFR Part 200, while providing consistency and flexibility for EPA assistance agreement recipients.

Background:  The implementation of the Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards at 2 CFR Part 200 revised IDC flexibilities and requirements. This policy seeks to align EPA and recipient practices with 2 CFR Part 200, while balancing the need for flexibility.

Policy Summary:  Prior to drawing down EPA funds for IDCs, and/or using unrecovered IDCs as cost-share, recipients must have an approved rate and an EPA-approved budget that includes IDCs. The policy defines different approved IDC rate types, and includes regulatory exception opportunities, that require EPA approval, on a case-by-case basis that can increase recipient options, such as:

  • Use of the 10% de minimis rate, even if a recipient has had an IDC rate in the past;
  • Continued use of fixed rates with carry-forward for up to four years past expiration;
  • (Institutions of Higher Education Only) Use of current negotiated rate, rather than using the same rate for the life of the grant; and
  • General exceptions if a recipient has been out of compliance with the IDC requirements set forth in 2 CFR Part 200.

Related Resources:

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Training Resources

Indirect Cost Rate Proposal Information

Indirect Cost Policy Online Training Course

Indirect Cost Policy Tribal Consultation WebinarExit
Note:  To request a 508-compliant version of the webinar presentation, contact Julie Milazzo (Milazzo.Julie@epa.gov415-972-3687)

An additional recorded training webinar will be available here soon.