1. Responsible Office
   
   
2. Action Offices
   
   
   1. National Office
      
      
   2. Regional Offices
      
      
   3. States
      
      

1. Basic Principles
   
   

1. Documents
   
   
2. Requirements
   
   
   1. General Requirements for All Applications
      
      
   2. 21(d) Requirements
      
      
   3. 23(g) Requirements
      
      

1. Responsible Office. Directorate of Cooperative and State Programs (DCSP), Office of State Programs (OSP) and Office of Small Business Assistance (OSBA) in consultation with the Assistant Secretary.
   
   
2. Action Offices.
   
   
   1. National Office. National Office personnel are responsible for reviewing and approving the applications, and verifying that the applications meet all required financial, operational, and policy requirements.
      
      
      1. Directorate of Administrative Programs (DAP). The Division of Grants Management is responsible for reviewing financial documents, posting funding award levels in the Payment Management System, transmitting the award letters to each recipient and administering all financial aspects of the cooperative agreement/State Plan grant. The Division of Grants Management will provide copies of the application to the Office of Small Business Assistance and the Office of State Programs.
         
         
      2. Directorate of Cooperative and State Programs. The Office of Small Business Assistance and the Office of State Programs are responsible for reviewing the application and discussing any issues with the appropriate Regional Staff. The Office of State Programs has overall responsibility for coordinating comments among DCSP staff and ensuring that DCSP issues are reflected in the award letters transmitted by DAP.
         
         
   2. Regional Offices. Throughout the application and review process, the Regional Administrator remains the point of contact with the State(s). Regional Administrators must grant approval to any State desiring to submit a two-year performance plan based on the quality of prior performance plans and the expectation of reasonable progress toward achievement of outcome/results oriented goals. Regional Offices must coordinate with State Plans and On-site Consultation Project Managers within their jurisdiction and provide assistance in the development, submission and revisions of grant applications. They must discuss and resolve any issues with appropriate staff in DCSP and DAP. By August 15, 2007, the Regional Administrator must submit a transmittal memorandum for each State application, reflecting recommendations for approval or disapproval of the application, a one-year or a two-year performance plan and, if appropriate, changes to the 5-year Strategic Plan. The transmittal package must include two copies of the application with original signatures on the financial documents. In addition, the transmittal memorandum must reflect the Region's assessment of any unresolved issues in the application and any questionable items along with specific suggested language for any restrictions which should be placed on the cooperative agreement/State Plan grant award, if an appropriate State response has not been received prior to processing in the National Office. Regions are urged to resolve all issues prior to submission so that the application may be expeditiously approved. The National Office package must be forwarded to the attention of:

      Arlene Williams
      U.S. Department of Labor
      Occupational Safety and Health Administration
      Division of Grants Management - DAP
      200 Constitution Avenue, NW - Room N-3419
      Washington, DC 20210

   3. State Program and On-site Consultation Project Managers in State Plan States. The Office of Management and Budget (OMB Circulars A-102 and A-110) requires that financial awards be made at least 10 days prior to the beginning of the grant or agreement period. States must follow the instructions detailed in this Notice when submitting the application. States are responsible for coordinating with their Regional Administrator to agree on a schedule that will allow submission of the application package to the National Office by August 15, 2007.
      
      
      1. States wishing to participate in a pilot project to submit their grant applications electronically using the Grants.gov system must coordinate with their Regional Administrator and the Office of Grants Management to agree on a schedule that will allow electronic submission of the final grant package to the National Office by August 15, 2007. States participating in the pilot must also submit a hard copy of their final application to allow assessment of the electronic submission process. Instructions on electronic submission of grants will be provided separately to participating States and Regions.
         
         

1. States must provide more detail in the Supportive Cost Breakout for certain Object Classes (contracts, equipment, other, fringe benefits, indirect costs); a sample Supportive Cost Breakout format is provided in Appendix B ¿ Exhibit IX.
   
   
2. The Tables for Performance Plans and the Salt Lake Technical Center Memorandum of Agreement have been relocated to Appendix B ¿ Exhibit X and Appendix B ¿ Exhibit XI, respectively.
   
   
3. States have the option of submitting a two-year performance plan for FY 2008 and FY 2009. States in the second year of a two-year performance plan in FY 2007 (Iowa) can submit a streamlined application that includes financial documents; a brief, general assessment by the State, based on available data, of the progress made toward its first-year goals; and any resultant updates to the second year of the performance plan previously submitted. Instructions regarding these submissions can be found in Sections VIII and IX.
   
   
4. States will have the opportunity to submit electronic grant applications using Grants.gov as part of a pilot project. Instructions on electronic submission using Grants.gov will be provided to those states that agree to participate in the pilot.
   
   
5. States are required to submit all FY 2008 quarterly and closeout SF 269 ¿ Financial Status Reports electronically using the DOL E-Grants System regardless of whether they participate in the electronic grants submission pilot. (Training will be provided.)
   
   
6. The pages of the grant should be numbered sequentially and the specified forms/format used wherever possible.
   
   
7. States which provide consultation services through their 23(g) grant must separately identify the staffing and total funding devoted to this program.
   
   
8. States developing alternatives or supplements to the Integrated Management Information System (IMIS) must separately identify the contracts and total funding devoted to this project.
   
   
9. OSHA Restrictions and Conditions for 21(d) and for 23(g) have been updated.
   
   

1. Basic Principles. The following basic principles govern States' development of Strategic and annual/biennial Performance Plans.
   
   
   1. Each State Plan must have a five-year Strategic Plan made up of outcome-oriented strategic and performance goals. If a State's five-year Strategic Plan expires in FY 2007, the FY 2008 grant application must also contain a new five-year Strategic Plan.
      
      
   2. In addition to its strategic and performance goals, each State's occupational safety and health program must continue to satisfy the mandated activities of the OSH Act and 29 CFR Parts 1902 and 1908 or 1956 (e.g., standards, enforcement program, prohibition against advance notice) and so certify in its application and demonstrate in actual performance.
      
      
   3. All State Plans must include in their Strategic Plan a goal directed towards the reduction of fatalities, injuries, and illnesses. Although this goal need not include specific percentage rate reduction targets, as in OSHA's goal in the Department of Labor's Strategic Plan, the State's reduction of injury/illness/fatality rates will be included in OSHA's assessment of the achievement of the national goal(s). In addition, States must develop reasonable performance goals that are broad enough to encompass all major components of the State program, including private and public sector enforcement, consultation, compliance assistance, training and cooperative programs even if they choose to adopt only one strategic goal. Support activities, such as laboratories, need not be addressed specifically in strategic goals.
      
      
   4. As part of the application, each State Plan must develop a one-year or a two-year Performance Plan describing the specific actions to be undertaken by the State to accomplish its strategic and performance goals during the period covered. This Performance Plan will serve as the required grant narrative and must include performance goals that are broad enough to encompass all major components of the State program including public sector enforcement, 21(d) and 23(g) On-site Consultation programs, and compliance assistance. Two-year performance plans should identify specific performance goals for each of the two years.
      
      
   5. State strategic and performance plans must contain one or more outcome/results oriented goals. If performance on a goal is measured only by activities, the lack of an outcome/results oriented goal must be justified. Plans relying solely on activity based goals and measures will not be acceptable.
      
      
   6. OSHA will evaluate each State Plan's performance on whether it makes reasonable progress towards accomplishing the strategic and performance goals contained in the strategic plan and the significance of the actual results achieved. OSHA will review State performance using the methods agreed upon by OSHA and the State in its annual monitoring plan.
      
      
   7. State Plans developing strategic plans with strategic and performance goals that rely on data that differ from those used by Federal OSHA (e.g., targeting reductions based on data from State-based systems, such as workers' compensation) are responsible for identifying the data necessary to establish an appropriate measurement and reporting system. These data are to be agreed upon by the States and Regions. States with goals similar to those of OSHA, such as reductions in injuries and illnesses in specific areas of emphasis, can track their goal-related activity through OSHA's Integrated Management Information System (IMIS).
      
      
   8. The focus of a State Plan's occupational safety and health program, as identified by the State's strategic and performance goals, establishes the parameters within which the State's program operations will be evaluated to determine whether its program is at least as effective as Federal OSHA's. The State will still be expected to continue to meet its mandated responsibilities under the OSH Act and to so certify in the grant application and through demonstrated performance.
      
      

1. States have the option, with approval of the Regional Administrator, of submitting a one-year or two-year Performance Plan. The Performance Plan consists of a narrative section covering basic program information and two tabular sections covering one- or two-year performance goals and projected activities. The Performance Plans must describe the specific activities the State will perform to accomplish its performance goals, must be aligned with the State's five-year Strategic Plan and must identify the expected outcome of these activities. Each Performance Plan must include a section that addresses the data elements and informational needs outlined below. For States submitting a two-year performance plan, the performance plan should include goals for each year of the plan.
   
   
2. Any State desiring to submit a two-year performance plan must notify and obtain the Regional Administrator's approval prior to beginning preparation of the application. Regional Administrators should premise their approval on the State's prior experience in developing and making reasonable progress in achieving outcome/results oriented goals and a review of the outcome/results oriented goals in the State's Strategic Plan.
   
   
3. All State performance plans, whether one- or two-year, must contain one or more outcome/results oriented goals. If performance on a goal is measured only by activities, the lack of an outcome/results oriented goal must be justified. Applications premised solely on activity goals will not be accepted.
   
   
4. In addition to providing information on compliance and consultation staffing and projections as to the number of inspections (separately for private and public sectors) and consultation visits (separately for private sector 21(d) or 23(g) and 23(g) public sector) anticipated during the upcoming year (or each of two years for States choosing to submit two-year performance plans), States must provide projections regarding the following compliance assistance activities: Voluntary Protection Program participants (current number, anticipated growth, and total anticipated at the end of the grant period by general industry, construction and public sector, as applicable); Cooperative Programs similar to OSHA's Partnerships and Alliances or other State developed programs for joint cooperative efforts with employers, employees, groups (current number, anticipated growth, and total at the end of period); Outreach Participants (total number of trainees/participants anticipated to be affected by State Outreach activities during the period, e.g., formal training, workshops, seminars, speeches, conferences, informal worksite training; and Safety and Health Achievement Recognition Programs (SHARP) participants (current number, anticipated growth, and total anticipated at the end of the grant period.)
   
   
5. The following table shows the contents of the State's Performance Plan, depending on whether the State has both 23(g) and 21(d) programs (integrated application), includes private sector consultation under its 23(g) program, or is a Public Employee Only program.
   
   

   Performance Plan Elements	21(d) On-site Consultation Project & 23(g) State Plan1	23(g) State Plan only2	Public Employee State Plan3
   Overview: A comprehensive overview of the State's current occupational safety and health program.	YES	YES	YES
   Profile of the State Agency: Provide a detailed organizational chart of the components involved in the State OSHA effort. In addition, the total number of allocated staff and a break out of compliance, compliance assistance, and On-site Consultation staff, expressed in full-time equivalents (FTEs), need to be included. (See Sample of Personnel Breakout Chart, Appendix B ¿ Exhibit VI.) State Demographic Profile. Number of covered employers broken out by major North American Industrial Classification System (NAICS) Division and number of covered employees, by major NAICS Division, including separate identification of State and local government employers and employees. Identification of Covered Issues. List those issues that the State's OSH program covers and those that remain a Federal responsibility.	YES	YES	YES
   Mandated Activities: Activities mandated under the OSH Act (i.e., inspections and citations) are considered core elements of an effective occupational safety and health program. They should be tied to the State's strategic goals where possible. The Performance Plan should discuss the performance of mandated activities as strategic tools wherever appropriate to achieve State goals. For example, issuing standards, conducting inspections, and issuing citations are among the activities which could be used to achieve the strategic goal of reducing injuries and illnesses. Where the mandated activities are neither tied to specific strategic goals nor addressed through the State Activity Mandated Measures report, they are covered by the grant assurances. (See Appendix A, Exhibit IIa/IIb ¿ 23(g) OSHA Restrictions and Conditions ¿ Item 1.)	YES	YES	YES
   Internal Quality Assurance Program for 21(d) On-site Consultation Projects. If a 21(d) On-site Consultation Project has made any significant changes to its Internal Quality Assurance program, those changes must be described in detail. Indicate if no changes have occurred.	YES	NO	NO
   Projected State Plan Activities for one year (One-Year Performance Plan) or each of two years (Two-Year Performance Plan) (See Appendix B, Exhibit X, Part I for 23(g) and Appendix B, Exhibit I for 21(d)). Inspections. Provide total projections broken out by safety and health, as well as by private sector and public sector. Consultation Visits in Private Sector. Provide total projections broken out by safety and health for anticipated number of consultation visits in the private sector. Consultation Visits in Public Sector. Provide projections broken out by safety and health for the anticipated number of consultation visits in the public sector. Compliance Assistance. Provide the current number, the projected growth, and end-of-year total for: Voluntary Protection Programs (by general industry, construction, public sector as applicable). State Cooperative Programs (e.g., Partnerships, Alliances and other similar programs). Outreach Participants/Trainees affected by outreach activities during the period. Safety and Health Achievement Recognition Program (SHARP) participants.	YES	YES	YES
   Performance Goals: For each performance goal in the State¿s Strategic Plan that is to be addressed, the State must: Establish objective and measurable one-year or two-year performance goals to be achieved by the State. For two-year performance plans, goals should be identified separately for each of the two years. Identify the performance indicators (including activity, intermediate outcome, and primary outcome measures) that will be used to assess progress toward achievement of the State's performance goals. (See Appendix B, Exhibit X ¿ Part II.) Succinctly and completely describe the enforcement and compliance assistance strategies and activities (including private and public sector consultation) that will be applied to accomplish the one-year or two-year performance goals. The one-year or two-year performance goals should be presented in the format illustrated in Appendix B, Exhibit X. When enforcement and 21(d) On-site Consultation share a performance goal, the strategy, indicator, data source, and baseline must clearly describe the differences. The submission for the second year of two-year performance goals should include a brief, general assessment, based on available data, of the progress made toward achievement of the first year's goals, and any resultant revisions to the second year of the performance plan. This may be in the form of replacement pages to the previously submitted Appendix B, Exhibit X or other appropriate format.	YES	YES	YES
   Projected 21(d) On-site Consultation Program Activities: In addition to discussing 21(d) On-site Consultation activities as they relate to each performance goal above, the total numbers of projected 21(d) activities also must be provided in the format illustrated in Appendix B, Exhibit I for Year One and Year Two. When enforcement and 21(d) On-site Consultation share a performance goal, the strategy, indicator, data source, and baseline must clearly describe the differences.	YES	NO	NO

   _________________________
   ¹ Alaska, Arizona, California, Hawaii, Indiana, Iowa, Maryland, Michigan, Minnesota, Nevada, New Mexico, North Carolina, Oregon, South Carolina, Tennessee, Utah, Vermont, Virginia, Wyoming. States in the second year of a Two-Year Performance Plan (Iowa) need only provide updates and revisions to the previously submitted documents.
   ² Kentucky, Puerto Rico, Washington.
   ³ Connecticut, New Jersey, New York, Virgin Islands.
   
   

1. Documents. The following tables list the documents to be included in the State's application submission.
   
   

   Application Documents	21(d) On-site Consultation Project & 23(g) State Plan1	23(g) State Plan only2	Public Employee State Plan3	Reference
   Table of Contents	2 copies	2 copies	2 copies
   21(d) Cooperative Agreement	2 copies with original signatures	N/A	N/A	Appendix A ¿ Exhibit I
   OSHA-110 form ¿ 21(d) Cooperative Agreement	2 copies with original signatures	N/A	N/A	Appendix A ¿ Exhibit IIIa
   OSHA-110 form ¿ 23(g) Grant Agreement	2 copies with original signatures	2 copies with original signatures	2 copies with original signatures	Appendix A ¿ Exhibit IIIb
   SF-424 ¿ 21(d) Application for Federal Assistance	2 copies with original signatures	N/A	N/A	Appendix A ¿ Exhibit IV
   SF-424 ¿ 23(g) Application for Federal Assistance	2 copies with original signatures	2 copies with original signatures	2 copies with original signatures	Appendix A ¿ Exhibit IV
   SF-424A ¿ 21(d) Budget Information, Non-Construction Programs	2 copies	N/A	N/A	Appendix A ¿ Exhibit IV
   SF-424A ¿ 23(g) Budget Information, Non-Construction Programs	2 copies	2 copies	2 copies	Appendix A ¿ Exhibit IV
   Combined Assurances & Certifications with: 21(d) OSHA Restrictions & Conditions                       and 23(g) OSHA Restrictions & Conditions	2 copies with original signatures	N/A	N/A	Appendix A ¿ Exhibit IIa
   Assurances & Certifications with: 23(g) OSHA Restrictions & Conditions	N/A	2 copies with original signatures	2 copies with original signatures	Appendix A ¿ Exhibit IIb
   Projected Program Activities ¿ On-site Consultation	2 copies	N/A	N/A	Appendix B ¿ Exhibit I
   Equipment Inventory ¿ 21(d) On-site Consultation	2 copies	N/A	N/A	Appendix B ¿ Exhibit II
   Equipment Procurement Listing ¿ 21(d) On-site Consultation	2 copies	N/A	N/A	Appendix B ¿ Exhibit III
   Annual Training Plan ¿ 21(d) On-site Consultation	2 copies	N/A	N/A	Appendix B ¿ Exhibit IV
   Accompanied Visit Plan ¿ 21(d) On-site Consultation	2 copies	N/A	N/A	Appendix B ¿ Exhibit V
   Personnel Breakout	2 copies	2 copies	2 copies	Appendix B ¿ Exhibit VI
   Supporting Details of Anticipated Costs, Part A ¿ Consultation 21(d)	2 copies	N/A	N/A	Appendix B ¿ Exhibit VII
   Supporting Details of Anticipated Costs, Part B ¿ Administration 21(d)	2 copies	N/A	N/A	Appendix B ¿ Exhibit VIII
   Supportive Cost Breakout 23(g)	2 copies	2 copies	2 copies	See section IX.B.3.c and d; Appendix B-Exhibit IX
   MOA ¿ Salt Lake Technical Center 23(g) State Plans (Only States using SLTC for analysis of all samples are required to submit MOA.)	2 copies with original signatures, if applicable	2 copies with original signatures, if applicable	2 copies with original signatures, if applicable	Appendix B ¿ Exhibit XI
   FY 2008 Annual Performance Plan    or FY 2008/2009 Two-Year Performance Plan with: -    Overview of the Project/State Plan -    Profile of the State Agency -    State Demographic Profile -    Identification of Covered Issues -    Mandated Activities -    Internal Quality Assurance Program for 21(d) Project -    Projected State Plan Activities: Inspections, Consultations, Compliance Assistance, SHARPS -    Performance Goals -    Organizational Chart Or	2 copies, integrated 21(d)/23(g)	2 copies	2 copies	See sections VII, VIII, Appendix B, Exhibit X
   FY 2008 2nd year of Two-Year Performance Plan ¿ assessment of progress, updates and revisions to the above documents	2 copies, integrated 21(d)/23(g)	2 copies	2 copies	See section VIII, Appendix B, Exhibit X
   5-Year Strategic Plan (only if new or updated plan is being submitted)	2 copies, integrated 21(d)/23(g)	2 copies	2 copies	See section VII

   _________________________
   ¹ Alaska, Arizona, California, Hawaii, Indiana, Iowa, Maryland, Michigan, Minnesota, Nevada, New Mexico, North Carolina, Oregon, South Carolina, Tennessee, Utah, Vermont, Virginia, Wyoming. States in the second year of a Two-Year Performance Plan (Iowa) need only provide updates and revisions to the previously submitted documents.
   ² Kentucky, Puerto Rico, Washington.
   ³ Connecticut, New Jersey, New York, Virgin Islands.
   
   

1. General Requirements for All Applications.
   
   
   1. Funding Level. Funding documents should generally be prepared at the prior year final base award level. (See Appendix C ¿ Exhibit I). If the State does not have the required matching funds for this award level, it should complete the application to reflect the level which it can match.
      
      
   2. DUNS Number. Agreements must include a Dun and Bradstreet (D&B) Data Universal Numbering System (DUNS) number to be considered complete. The revised Application for Federal Assistance (Form SF-424) includes space to enter a DUNS number.
      
      
   3. Administrative Cap. The 25 percent ceiling on administrative costs remains in effect. Administrative costs include the cost of all management staff above first-line supervisors (salaries, fringe benefits, and related support expenses) as well as costs associated with the approved State Indirect Rate. No more than 25 percent of the total funding (Federal award plus State match) may be budgeted for administrative costs without an approved justification. Some additional requirements apply to the 21(d) program. (See Appendix A, Exhibit I, page 3.) Note: Although submission of the approved indirect cost rate agreement is not required, the Regional Administrator should assure that the indirect costs contained in the grant application are based on the approved indirect cost rate agreement.
      
      
   4. OSHANet Participation. State recipients who participate in OSHANet agree to adhere to all requirements for such participation (including hardware and software specifications). All desktops and laptops that connect to the OSHANet must be configured with the OSHA image. Software that is not part of the OSHA standard image must be pre-approved prior to purchase and once approved and received must be approved for installation. All new desktop and laptop computers must be Microsoft (MS) Vista-ready but have MS Windows XP Professional installed as the operating system. All desktops, laptops and servers on the OSHANet are subject to an annual software audit to ensure compliance with E.O. 13103, Computer Software Piracy, the U.S. Copyright Act (Title 17, U.S.C.), USDOL software management and acceptable use policy, and vendor software license agreements. States participating in OSHANet agree to pay OSHA for certain services provided, including an annual service fee and quarterly telecommunication charges. OSHANet States that also choose to use Citrix for remote access will receive annual bills. The fourth quarter payment will be based on an estimated bill. All bills must be paid no later than September 15th. Any adjustments between actual charges and estimates will be made in the first quarter of the following fiscal year, as necessary.
      
      
   5. Integrated Management Information Systems for All States (IMIS). Continued participation in IMIS is a program requirement and includes all its components. All 21(d) On-site Consultation projects and 23(g) State Plans will continue to be charged for mainframe processing services provided through IMIS based on quarterly bills. The fourth quarter payment will be based on an estimated bill. All bills must be paid no later than September 15th. Any adjustments between actual charges and estimates will be made in the first quarter of the following fiscal year, as necessary.
      
      
   6. Computer Equipment Purchases. State recipients not participating in OSHANet are encouraged to consult with the Directorate of Information Technology prior to expending Federal or State matching funds for the purchase of any data processing/computer equipment or software that will be used to connect (locally or remotely) to, or provide information to, OSHA. Desktop or laptop computers and software that will be used to access OSHA systems including the CSHO and On-site Consultation PC Applications, Whistleblower application, web-based applications as deployed, etc., must meet the minimum OSHA specifications. All new computers must be Microsoft (MS) Vista-ready but have MS Windows XP Professional installed as the operating system. (21(d) projects must have written approval from DCSP for all such purchases.)
      
      
   7. Computer Security. All system users (OSHANet and other OSHA applications) must annually sign Rules of Behavior. All OSHA system users must complete the USDOL Annual Computer Security Awareness Training (CSAT) within the required timeframe.
      
      
   8. Program Income. States that are collecting fees associated with grant activities should report the estimated amount of income expected to be generated from the grant on line 7 of the Application for Federal Assistance (SF-424A). States should include a narrative description of the program income, including the nature and source of the income, in the grant application. The program income may be reflected as part of the State's matching funds contribution. Also, States must report program income on the Financial Status Report (SF-269) submitted each quarter. For more information on program income, please refer to OMB Circular A-102, Section 2e. The website is: http://www.whitehouse.gov/omb/circulars/a102/a102.html.
      
      
   9. Professional Certification. State Plan Grant/Cooperative Agreement funds may be used to pay for the costs associated with professional certification for safety and health staff by a certifying organization that has been accredited by a nationally recognized accrediting organization, including such things as a preparation course, the examination, travel and per diem. Grant/Cooperative Agreement funds may not be used to pay for costs associated with preparation for a second attempt for employees who initially fail at a professional certification examination. However, Grant/ Cooperative Agreement funds may be used to pay for the expenses associated with taking the professional certification examination a second time, including travel and per diem. For those who fail to pass a professional certification examination on their second attempt, grant/cooperative agreement funds may not be used for any additional attempts. Certification costs cannot exceed the percent of time for which an employee is dedicated to the grant/cooperative agreement. Grant/Cooperative Agreement funds may also not be used to pay annual fees for maintaining professional certifications.
      
      
2. 21(d) Requirements.
   
   
   1. Salary Target. Each project must devote a minimum of 50 percent of the grant amount (90/10 total) toward consultant salaries and fringe benefits. Project Managers unable to meet this target must provide a written explanation of why they cannot meet this goal and receive prior approval from the Director of DCSP.
      
      
   2. Minimum Staffing. At least four professional, full-time equivalents (FTEs) -- two full-time safety specialists and two full-time industrial hygienists or their equivalents -- must be included in each Project's personnel plan. All of the Project's consultants must be employed at least 50 percent of their time in the On-site Consultation Program and must spend at least 50 percent of their time engaged in consultation activity. Any deviation from this minimum must receive prior approval from the Director of DCSP.
      
      
3. 23(g) Requirements.
   
   
   1. Matching Funds. States will generally be funded, initially, at the prior year's level. States that are unable to match the full amount available to them should complete the application to reflect the level they can match.
      
      
   2. Alternative or Supplement to Integrated Management Information System. States electing to pursue the development of an alternative or supplement to the Integrated Management Information System (IMIS) may use grant funds for this purpose, but there are no additional Federal grant funds available for this purpose.
      
      
      1. The State must identify the funding devoted to such a project either by creating an additional category in the Supportive Cost Breakout for this purpose, or appropriately annotating the specific personnel, contract, equipment, etc., items devoted to this effort.
         
         
      2. The resulting alternative or supplemental system must continue to provide data to OSHA that are identical to that required by the Federal IMIS and that are submitted in the same manner and to the same extent as though continuing to participate in the IMIS system. Data must be timely submitted through download into IMIS and must be provided in a format that meets OSHA's current as well as any future requirements. There may be no interruption in submission of data to meet future requirements. There may be no interruption in submission of data to OSHA during the development of such alternative or supplemental systems.
         
         
   3. Budget Categories. All costs on the Application for Federal Assistance (SF-424A) can be identified under two budget categories, Administration and Program, based on the State's actual organizational structure. (A third category must be added where one hundred percent State funds are used.) States may, however, continue to use the previously required nine categories (general administration; safety inspections; health inspections; consultation and other voluntary programs; training and education; standards; management information systems; laboratories; and review process and non-discrimination) or any others that better reflects the State's actual organizational structure. States that provide private sector consultation services through their 23(g) grant must separately identify the staffing and total funding devoted to this program in a manner that clearly delineates the program. Financial information for all Object Class categories, i.e., personnel, fringe benefits, travel, equipment, supplies, contractual, other, total direct charges, indirect charges, and total object categories must be shown for each of the Budget Categories on the SF-424A.
      
      
   4. Object Classes/Supportive Cost Breakout. States are required to provide detailed financial information for the following six object class categories: personnel, fringe benefits, equipment, contractual, other, and indirect charges, based on either the Administration/ Program budget categories or the categories used based on the State's actual organizational structure, in a Supportive Cost Breakout format. States may use the suggested format in Appendix B, Exhibit IX or a form of their own design provided all information is provided.
      
      
      1. The personnel information provided on the Supportive Cost Breakout Listing must correspond to the organizational chart included in the Performance Plan and should identify the number of on-board staff and the number of vacant positions. All supervisory positions above the first level of supervision must be reflected in Administration. Compliance Assistance position(s), including those funded during the FY 2006 final award process, must be identified. Activities of this staff must be limited to Compliance Assistance which may also include VPP, Partnerships, Alliances, speeches, training and other cooperative program outreach efforts, but not activities directly related to Compliance or Consultation, including SHARPS. Positions devoted to private sector On-site Consultation must be separately identified.
         
         
      2. Fringe benefits should include information on the components and cost formula used.
         
         
      3. Equipment having a useful life of over one year and a unit acquisition cost of $5,000 or more must be separately identified.
         
         
      4. The contractual information should identify the purpose of each contract, the contractor, if known, and the amount of the contract. Contracts for such things as laboratory sample analysis, equipment calibration, and computer services, especially for the development of alternative or substitute IMIS systems, must be clearly identified.
         
         
      5. If not included elsewhere, Other should identify costs associated with such things as equipment calibration, reimbursement to the OSHA Training Institute and associated costs for courses brought to the State, and laboratory sample analysis.
         
         
      6. Indirect Costs should be included under Administration only and should be based on an approved indirect cost rate agreement for the grant period.
         
         
   5. Salt Lake Technical Center (SLTC). States wishing to use the SLTC services for all their industrial hygiene sample analysis in FY 2008 will need to submit a new Memorandum of Agreement (MOA) with their current fiscal year grant application package. The MOA can be downloaded from the State Plans section of the OSHA Limited Access Page and must be modified to include State-specific information. As indicated in an April 3, 2002 memorandum, States without Memoranda of Agreements may send samples to SLTC on a periodic, as-needed basis. The cost per sample for States that wish to use the SLTC laboratory exclusively is $175; the cost per sample for States that use the SLTC laboratory on an occasional basis is $220.00. There will be a special charge for all States for four exceptional sample types ¿ CO Methoxyhemoglobin calculation - $1,150, Explosibility - $710, Gas Chromatograph/Mass Spectrometer Identification - $465, and Materials Failure - $2,820.
      
      
      1. States without Memoranda of Agreement with SLTC must provide the name and address of the laboratory used for sample analysis, identify the funding, and assure its participation in the AIHA Proficiency Analytical Testing (PAT) program. An estimate of the number of samples anticipated for analysis should be provided.
         
         
      2. States should include sufficient funds in their grant application, and identify those funds, to cover payment for an appropriate level of sample analysis whether by a State or private lab with occasional use of SLTC or on an ongoing basis through an MOA with SLTC.
         
         
   6. OSHA Training Institute (OTI). States wishing to have the OSHA Training Institute deliver courses within their State, at the State's request, are expected to reimburse OSHA for the cost of the travel and per diem expenses for OTI instructors, shipping charges, consultant trainer fees, equipment rental and training facility rental related to the training.
      
      
   7. Format. The pages of the grant should be numbered consecutively and the specified forms/format used wherever possible.

1. Pursuant to Sections 21(c) and 21(d) of the Occupational Safety and Health Act of 1970 (hereinafter called the Act), it is hereby agreed that the Assistant Secretary of Labor for Occupational Safety and Health (hereinafter called the Assistant Secretary) and the _________________________________ (hereinafter called the State) which affirms that it has been authorized by the Governor to enter into this agreement with full power to perform the obligations hereunder and to receive and expend Federal funds as well as state funds as required herein will execute all provisions of this agreement.
   
   
2. Nothing herein shall preclude the Assistant Secretary from exercising Federal responsibility and authority under the Act or preclude the State from exercising its responsibility and authority under state law when not in conflict with the Federal Act and the terms of this agreement.
   
   

1. Either party may terminate this agreement upon 30 days notice to the other party.
   
   
2. It is agreed by both parties that substantive work and costs incurred under this agreement will be managed and scheduled in a manner to assure adequate program coverage and activity throughout the entire 12-month performance period, without the necessity of requesting a budget modification to increase the amount of Federal funds authorized.
   
   
3. This agreement incorporates the following documents which the State has agreed to submit.
   
   q Application for Federal Assistance (SF-424)
   q Budget Information -- Non-Construction Programs (SF-424A)
   q Certifications, Assurances, Lobbying Restrictions, and OSHA Restrictions and Conditions
   q Cooperative Agreement (Form OSHA-110)
   q Performance Projections
   q Annual Training Plan
   q Accompanied Visit Plan
   q Supporting Details of Anticipated Costs
   
   
4. Any and all substantive modifications to the conditions and terms stated in this agreement shall be reduced to writing as amendments, numbered and signed by both principal parties to this agreement.
   
   

1. The State shall provide consultation services, including training and education, whereby employers, particularly those with smaller businesses and with high hazard workplaces (as defined or approved by OSHA), receive assistance in:

   (1) Identifying any safety and health hazards in their workplaces.
   
   (2) Controlling or eliminating these hazards successfully.
   
   (3) Establishing or improving a workplace safety and health program.
   
   (4) Understanding all requirements of applicable Federal (or State) law and implementing regulations.

2. The statewide project operated under this agreement shall conform fully with the requirements in the Code of Federal Regulations (29 CFR 1908), all related formal directives issued by the Assistant Secretary and the appendices attached to this agreement.
   
   

1. Consultation. Consultation costs consist of all direct costs associated with the immediate delivery of consultative services to employers and employees. Costs include but are not limited to: the salaries and fringe benefits of On-site Consultation staff engaged in promotion, scheduling, visit preparation, hazard identification, program assistance, training and education, off-site assistance, report preparation, correction verification and similar authorized consultative activities; and related materials, supplies, equipment and staff training. They also include the consultation portion of total computer costs. (Computer costs should be distributed between consultation and administration in the proportion to which computer services support each function.) On-site consultation staff include safety consultants, health consultants, consultant trainees and consultant trainers who meet the minimum qualifications defined in 29 CFR 1908.8(b). Also included are costs of immediate first level consultant supervisors, except those costs associated with accompanied visit activity. Additionally, costs of direct clerical support to consultants and first-level consultant supervisors are charged to Consultation.
   
   
2. Administration. Administrative costs consist of all direct costs associated with the management and support of the On-site Consultation program and all indirect costs. These costs include but are not limited to: the salaries and fringe benefits of personnel engaged in executive, fiscal, data collection, personnel, legal, audit, procurement, data processing, communications, maintenance and similar functions; and related materials, supplies, equipment and staff training. They also include the administration portion of total ADP costs. (ADP costs should be distributed between consultation and administration in the proportion to which ADP services support each function.) Additional administrative costs extend to the salaries and fringe benefits of direct program management positions such as project directors, program monitors and program review officers; and costs of direct clerical support to these positions. Indirect costs require an approved rate. The rate must be approved by the authorizing Federal agency and for the grant period covered by the application.
   
   

   	Consultation	Administration
   Positions Covered	Safety consultant (S), safety consultant trainee (TS), safety supervisor (S/S), industrial hygiene consultant (H), industrial hygiene consultant trainee (TH), industrial hygiene supervisor (H/S) and direct clerical support (SEC) to these positions.	Salaries of positions for management (MGT) and direct clerical support (SEC) to these positions.
   Personnel	Salaries for positions listed in Consultation: Positions covered. For consultants and first level consultant supervisors who also serve in a managerial capacity for the project, salary costs shall be distributed between Administration and Consultation in proportion to the percent of time spent in performing (1) program management and (2) consultant and/or (3) consultant supervisory activities. Salaries reflecting (a) consultant time should be listed separately from salaries reflecting (b) time providing first level supervision to consultants and salaries of clerical staff that provide direct support to consultants and consultant supervisors.	Salaries for positions listed in Administration: Positions covered. For management personnel who also serve as consultants and/or consultant supervisors, salary costs must be distributed between Administration and Consultation in proportion to the percentage of time spent in performing (1) program management, (2) consultant duties, and/or (3) supervision of consultants.
   Fringe Benefits	Fringe Benefits for positions listed in Consultation: Positions covered. Costs include payments for retirement, Social Security, workers' compensation, life insurance, medical insurance, etc. Include the cost formula for each fringe benefit. For consultants and first level consultant supervisors who also serve in a managerial capacity for the project, fringe benefit costs shall be distributed between Administration and Consultation in proportion to the percent of time spent in performing (1) program management and (2) consultant and/or (3) consultant supervisory activities. Fringe benefits reflecting (a) consultant time should be listed separately from fringe benefits reflecting (b) time providing first-level supervision to consultants and fringe benefits of clerical staff that provide direct support to consultants and consultant supervisors.	Fringe benefits for positions listed in Administration: Positions covered. Costs include payments for retirement, Social Security, workers' compensation, life insurance, medical insurance, etc. Include the cost formula for each fringe benefit. For management personnel who also serve as consultants and/or first level consultant supervisors, fringe benefit costs shall be distributed between Administration and Consultation in proportion to the percentage of time spent in performing (1) program management, (2) consultant duties, and/or (3) supervision of consultants.
   Certification Costs: Contact Henry Payne at Payne.Henry@dol.gov with questions regarding certification.	For Consultants seeking professional certification in safety or health, Cooperative Agreement funds may be used to pay for the costs associated with a professional certification examination preparation course approved by the project manager, including travel and per diem. Additionally, if needed, a Project Manager may use Cooperative Agreement funds to pay for the costs associated with applying for and taking a professional certification examination, including travel and per diem. Project Managers may not use Cooperative Agreement funds to pay for costs associated with a second preparation course for those Consultants who fail on their first attempt at a professional certification examination. However, a Project Manager may use Cooperative Agreement funds to pay for the travel and/or per diem related to taking the professional certification examination a second time, and if needed, costs associated with taking of the professional certification examination a second time. For those Consultants who fail to pass a professional certification examination on their second attempt, a Project Manager may not use Cooperative Agreement funds to pay for any additional costs related to that employee seeking that specific professional certification. A Project Manager may not use Cooperative Agreement funds to pay for any costs associated with seeking professional certification from any certifying organization that is not accredited by a nationally recognized accrediting organization. Additionally, Project Administrators are not authorized to pay annual maintenance fees for maintaining professional certifications from Cooperative Agreement funds. Project Managers must use 90/10 funds for employee preparation or certification; the Cooperative Agreement cannot pay for certification costs that exceed the percent of time for which that employee is dedicated to the Cooperative Agreement. For example, if a safety professional is dedicated at 0.5 FTE, then no more than 50% of the cost of the examination preparation or examination fees may be charged to the Cooperative Agreement.	For Project Managers seeking professional certification in safety or health, Cooperative Agreement funds may be used to pay for the costs associated with a professional certification examination preparation course approved by the employee¿s supervisor, including travel and per diem. Additionally, if needed, Cooperative Agreement funds may be used to pay for the costs associated with applying for and taking a professional certification examination, including travel and per diem. Cooperative Agreement funds may not be used to pay for costs associated with a second preparation course for those Managers who fail on their first attempt at a professional certification examination. However, Cooperative Agreement funds may be used to pay for the travel and/ or per diem related to taking the professional certification examination a second time, and if needed, costs associated with taking of the professional certification examination a second time. For those Managers who fail to pass a professional certification examination on their second attempt, Cooperative Agreement funds may not be used to pay for any additional costs related to that employee seeking that specific professional certification. Cooperative Agreement funds may not be used to pay for any costs associated with seeking professional certification from any certifying organization that is not accredited by a nationally recognized accrediting organization. Additionally, Project Administrators are not authorized to pay annual maintenance fees for maintaining professional certifications from Cooperative Agreement funds. Projects must use 90/10 funds for Managerial preparation or certification; the Cooperative Agreement cannot pay for certification costs that exceed the percent of time for which that Manager is dedicated to the Cooperative Agreement. For example, if a Manager is dedicated at 0.5 FTE, then no more than 50% of the cost of the examination preparation or examination fees may be charged to the Cooperative Agreement.
   Travel	Travel for positions listed in Consultation: Positions covered. Costs shall include travel required to conduct promotional visits, On-site Consultation visits, off-site assistance, travel to OTI courses, regional and national On-site Consultation Program meetings. Intra-agency travel, such as that related to flexi-place programs, must have prior approval from the Regional Administrator. Appropriate supporting details for out of state travel (per diem, airfare, registration fees, miscellaneous, etc.) must be reported in the Annual Training Plan. Deviations from this plan involving out of state travel to courses and/or locations other than those proposed must be approved in writing by the Regional Administrator prior to the actual travel. Travel for the purpose of performing accompanied visits shall be charged to Administration. Attendance at professional development conferences such as Voluntary Protection Program Participants¿ Association (VPPPA), American Industrial Hygiene Association (AIHA), American Society of Safety Engineers (ASSE), and National Safety Council (NSC) are not considered OSHA-required training and, therefore, may not be funded with 100% Federal funds. A Project Manager may use cooperative agreement funds to provide an opportunity for each professional safety or health employee to attend a professional development conference of three-to-five days duration generally once every two years. However, the percentage of cooperative agreement funds used to pay for the individual¿s attendance at such a conference may not exceed the percentage of time for which that employee is dedicated to the cooperative agreement. For example, if a safety professional is dedicated at 0.5 FTE, then no more than 50% of the cost of attending the conference may be charged to the cooperative agreement. Costs associated with attendance and travel to professional development conferences of individuals in positions that are not funded by the cooperative agreement may not be allocated to the cooperative agreement. See Administration for the Annual On-site Consultation Training Conference.	Travel for positions listed in Administration: Positions covered and for all personnel conducting accompanied visits. Costs shall include travel required to attend safety and health conferences (subject to the restrictions in V.A.3., above), regional and national On-site Consultation program meetings and professional development/training courses. Appropriate supporting details for out of state travel (per diem, airfare, registration fees, miscellaneous, etc.) must be reported in the Annual Training Plan. Deviations from this plan involving out of state travel to courses and/or locations other than those proposed must be approved in writing by the Regional Administrator prior to the actual travel. Attendance at the Annual On-site Consultation Training Conference is required for all Project Managers, and to the extent that funds are available for the safety/ health supervisors and senior consultants. The conference is considered required Federal travel and, therefore, may be funded with 100% Federal funds. The cost of travel for all participants to the Annual On-site Consultation Training Conference must be charged to administration.
   Equipment	Includes the costs of consultant technical equipment having a useful life of more than one year and a unit acquisition cost of $5,000 or more, except as defined in Special Provisions VI.B. All equipment so defined shall be listed in the Approved On-site Consultation Equipment Procurement Listing.	Includes the costs of office equipment and machinery having a useful life of more than one year and a unit acquisition cost of $5,000 or more, except as defined in the Special Provisions VI.B. All equipment so defined shall be listed in the Approved On-site Consultation Equipment Procurement Listing.
   Supplies	Includes the costs of all tangible consultant technical property and materials other than equipment as defined above. Please itemize and describe all supply costs.	Includes the costs of all tangible office property and desktop materials other than equipment as defined in this section. Please itemize and describe all supply costs.
   Contracts	Includes the costs of contracts with all sources, whether non state government, state government or private sources, for the provision of services associated with consultant field activities (e.g., occupational health consultation, laboratory sample analysis in states having a Plan approved under Section 18 of the Act, and consultant health monitoring and medical examinations). The detail for laboratory sample analysis costs shall include the number of samples projected for the fiscal year.	Include the costs of contracts with all sources, whether non state government, state government or private sources, for the provision of administrative support services (e.g., service contracts for maintenance of office equipment, leasing of photocopiers, fiscal services, etc.).
   Other	Includes the costs of equipment calibration and repair services for equipment which cannot be serviced by the OSHA Cincinnati Laboratory (list all equipment), non travel costs of required or approved training for consultants (limited to tuition fees, registration fees, textbooks, course materials, etc.) and costs of all other miscellaneous consultative items which are not allocated above. Miscellaneous costs include but are not limited to: the proportion of rent, utilities, communications, data processing, postage, freight, etc. associated with the delivery of consultative services by On-site Consultation staff; subscriptions to safety and health journals; and training aids, instructional programs and promotional materials which are used by consultants to perform On-site Consultation activities.	Includes non travel costs of required or approved training for management personnel (limited to tuition fees, registration fees, textbooks, course materials, etc.) and costs of all other miscellaneous administrative items that are not allocated above. These costs include but are not limited to: the proportion of rent, utilities, communications, data processing, postage, freight, etc. associated with the management of the On-site Consultation program by administrative staff.
   Total Direct Charges	The total of all of the costs for Consultation.	The total of all of the costs for Administration.
   Indirect Charges	N/A	Includes charges based on an approved indirect cost rate agreement for the grant period.

   
   
   

1. A listing of approved positions is contained in Appendix B ¿ Exhibit VI, Staffing Chart for this agreement. Key personnel include project managers, supervisors, and consultants. Any changes in these positions must be approved by the Regional Administrator.
   
   
2. Microcomputer equipment (hardware and software), regardless of unit cost, requires the written prior approval of DCSP and must be listed in Appendix B ¿ Exhibit III, On-site Consultation Equipment Procurement Listing.
   
   
3. Unless a State has made special provisions for such, substantive programmatic work may not be transferred to another agency (sub-recipient) under this agreement.
   
   
4. Unless a State having a Plan approved under Section 18 of the Act has designated a State agency/facility for this purpose, the laboratory designated by OSHA to provide analysis of samples for all projects shall be:
   
   Wisconsin Occupational Health Laboratory
   2601 Agriculture Drive
   Madison, WI 53718
   Telephone 608-224-6210
   Fax 608-224-6213
   Contact: Mr. Terry Burk
   
   
5. The Federal cost principles applicable to this project are:
   
   
   1. Cost Principles for State and Local Governments (OMB Circular A 87)
      
      
   2. Cost Principles for Educational Institutions (OMB Circular A 21)
      
      
6. Financial reporting forms required of all projects and their frequency of submission are:
   
   
   1. Department of Health and Human Services - Payment Management System Federal Cash Transactions Report (PSC 272, PSC 272 A through E) is due in the Regional Office 30 days after the end of each Federal fiscal quarter. Recipients are to submit two signed copies of the report.
      
      
   2. Financial Status Report (SF-269) is due 30 days after the end of each Federal fiscal quarter with the close-out report due 90 days after the end of the performance period. All reports will be electronically submitted using the DOL E-Grants System to report the status of all funds awarded.
      
      (a) Quarterly Reporting. Recipients that have accounting systems which prohibit them from meeting the Office of Management and Budget (OMB) requirements on the submission of financial reports, as outlined in this section, must have written approval from the Regional Administrator to establish an alternative schedule for submission of financial reports. The approved state-specific schedule must also be submitted to the National Office for inclusion in the official file.
      
      (b) Close-out Reporting. All agreements must be closed 90 days after the end of the performance period (generally December 31) using the DOL E-Grants system for electronic transmittal.
      
      (c) Close-out Extensions. Recipients unable to close out by December 31 are required to request a close-out extension in writing by December 1, providing an explanation of why they cannot close out in a timely manner. An interim (preliminary) Financial Status Report (covering October - December) is due in the Regional Office on January 31, even when a close-out extension has been approved. All close-out extensions must be coordinated in advance with, and transmitted to, the National Office for inclusion in the official file, and any extensions beyond February 28 must be approved by the National Office.
      
      
   3. Cooperative Agreement (Form OSHA-110) must accompany the Application for Federal Assis¬tance (SF-424). This is the only time this form is completed.
      
      
   4. Other performance reports and copies of forms that may be required for program management purposes will be distributed as necessary.
      
      
7. Unless different instructions are provided by the Director of Cooperative and State Programs or through the OSHA Directives system, all reports required under this agreement, and all requests for agreement modification, shall be delivered (or mailed) to the Regional Administrator.
   
   
8. It is agreed that OSHA may unilaterally modify this agreement whenever necessary to conform to new regulations, new applications, or official interpretations of DOL or OMB regulations.
   
   

1. Approval of this agreement is contingent upon Congressional action on the Department of Labor's appropriation for FY 2008.
   
   
2. It is hereby certified by the State that matching state funds are or will be available during the tenure of this agreement.
   
   
3. In no case shall the State be liable for more than 10 percent of actual expenditures (exclusive of one hundred percent [100%] Federal funds) under this agreement.
   
   
4. Where appropriate, restrictions to the agreement may be added by the Assistant Secretary to ensure that the recipient fully complies with specific terms and condi¬tions of the Cooperative Agreement, DOL administrative requirements set forth at 29 CFR Parts 95 and 97 (Institutions of Higher Education), or provisions set forth in 29 CFR 1908. When an agreement is approved subject to the inclusion of one or more restrictions, it is hereby understood by the recipient that such approval is granted contingent upon meeting the conditions specified within the prescribed timeframe.
   
   
5. Recipients shall prepare their agreement packages for the maximum amount they can match within the authorized amount. If a recipient is unable to match the authorized award, the award amount will be reduced to reflect the amount the recipient is able to match. These reductions will carry over into subsequent years. Additionally, cost-of-living increases will be based on executed award amounts, not proposed funding levels.
   
   

(1) The dangers of drug abuse in the workplace;
(2) The grantee's policy of maintaining a drug free workplace;
(3) Any available drug counseling, rehabilitation, and employee assistance programs; and
(4) The penalties that may be imposed upon employees for drug abuse violations occurring in the workplace;

(1) Abide by the terms of the statement; and
(2) Notify the employer of any criminal drug statute conviction for a violation occurring in the workplace no later than five days after such conviction;

(1) Taking appropriate personnel action against such an employee, up to and including termination; or
(2) Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State, or local health, law enforcement, or other appropriate agency;

(1) The dangers of drug abuse in the workplace;
(2) The grantee's policy of maintaining a drug free workplace;
(3) Any available drug counseling, rehabilitation, and employee assistance programs; and
(4) The penalties that may be imposed upon employees for drug abuse violations occurring in the workplace;

(1) Abide by the terms of the statement; and
(2) Notify the employer of any criminal drug statute conviction for a violation occurring in the workplace no later than five days after such conviction;

Taking appropriate personnel action against such an employee, up to and including termination; or

Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State, or local health, law enforcement, or other appropriate agency;