(a) You must use moneys granted under this part to administer your approved reclamation program and to carry out the specific reclamation and other activities authorized in SMCRA as included in your reclamation plan or your grant application.

(b) We award grants for reclamation of eligible lands and water in accordance with sections 404 and 409 of SMCRA and §§874.12 and 875.12 of this chapter, and in accordance with the priorities stated in section 403 of SMCRA and §874.13 of this chapter.

(c) You may use grant funds as established in this chapter for each type of funds you receive in your AML grant. You may use State share funds as provided in §872.16 of this chapter; Tribal share funds as in §872.19 of this chapter; historic coal funds as in §872.23 of this chapter; minimum program make up funds as in §872.28 of this chapter; prior balance replacement funds as in §872.31 of this chapter; and Federal expense funds as in §872.25 of this chapter and in the appropriation.

(d) You may use grant funds for acquisition of land or interests in land, and any mineral or water rights associated with the land, for up to 90 percent of the costs.

(e) You may use grant funds only for costs which are allowable as determined by OMB cost principles in Circular A-87.