40 CFR §35.4080

1. (a)EPA pays your group by reimbursing you for “allowable” costs, which are costs that are:
   1. (1)Grant related;
   2. (2)“Allocable”;
   3. (3)“Reasonable”; and
   4. (4)Necessary for the operation of the organization or the performance of the award.
2. (b)You will be reimbursed for the allowable costs up to the amount of the TAG if your group incurred the costs during the approved “project period” of the grant (except for allowable costs of incorporation which may be incurred prior to the project period), and your group is legally required to pay those costs.