(a) Each State shall provide cash, in kind contributions, or both for SEP activities in an amount totaling not less than 20 percent of the financial assistance allocated to the State under §420.11(b).

(b) Cash and in-kind contributions used to meet this State matching requirement are subject to the limitations on expenditures described in §420.18(a), but are not subject to the 20 percent limitation in §420.18(b).

(c) Nothing in this section shall be read to require a match for petroleum violation escrow funds used under this subpart.

[61 FR 35895, July 8, 1996, as amended at 64 FR 46114, Aug. 24, 1999]