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<br />B. Funds provided under this contract may be obligated and expended before <br />the actions specified in this Section occur only for the following eligible <br />activities: <br /> 1) The payment of reasonable planning and administrative costs <br /> related to the project; <br /> 2) Environmental studies, including environmental clearance <br /> activities required by this Section; and, <br /> 3) The payment or reimbursement of reasonable project engineering <br /> and design costs incurred for this project. <br />C. Contractor shall prepare a written Environmental Assessment on its <br />activities in accordance with 24 C.F.R. Part 58, Subpart F, and the TCDP <br />Project Implementation Manual. Contractor must then follow the steps <br />specified in this subsection to ensure compliance with the National <br />Environmental Policy Act (NEPA). When the Environmental Assessment is <br />completed, Contractor must follow one of the following two (2) procedures. <br />The first is a Finding of Significant Impact, in which the Request for Release <br />of funds for the project is an action which may significantly affect the <br />quality of the human environment. If this is the case, Contractor must then <br />prepare an Environmental Impact Statement in accordance with Subpart H or <br />Subpart I of 24 C.F.R. Part 58. The second and more common procedure must be <br />followed for all projects not requiring an Environmental Impact Statement. <br />Contractor in this instance must publish, in the manner prescribed in 24 <br />C.F.R. Sections 58.43 and 58.44, a combined legal notice in a single <br />publication: A Finding of No Significant Impact, and a Notice of Intent to <br />Request Release of Funds. In the first part of this notice, Contractor <br />certifies that, as a result of the Environmental Assessment, the project is <br />not an action which mayor will significantly affect the quality of the human <br />environment. Contractor shall then provide the public with at least 15 <br />calendar days to comment on this combined notice following its publication <br />date, unless exceptional circumstances exist as specified in 24 C.F.R. Section <br />58.46. If no unresolved problems occur, Contractor must then concurrently <br />submit to Department the following documents: 1) a Publisher's Affadavit and <br />Certification form, for the combined legal notice; and 2) a Request for <br />Release of Funds fonm. Upon receipt of such documents, Department must allow <br />a 15 calendar days comment period to expire before it can fonma11y release any <br />project funds which are subject to the environmental review regulations. <br />Contractor must comply with all other applicable environmental requirements as <br />specified in Exhibit 0 of this contract. Contractor shall document its <br />compliance with such other requirements in its environmental review file. <br />SECTION 21. SPECIAL CONDITIONS <br />A. Department shall not release any funds for any costs incurred by <br />Contractor under this contract until Department has received certification <br />from Contractor that its fiscal control and fund accounting procedures are <br />adequate to assure the proper disbursal of and accounting for funds provided <br />under this contract. Department shall specify the content and fonm of such <br />certifi cation. <br /> PAGE 10 OF 11 <br />