(c) The following expenses may be included for consideration of project funding:

1. (1) Material expenses, including, but not limited to:

   1. (A) Pipe;
   2. (B) Stone;
   3. (C) Fill;
   4. (D) Fabric; and
   5. (E) Aggregate;

2. (2)

   1. (A) Equipment expenses for the use of equipment that is owned by the applicant.
   2. (B) Reimbursement of applicant-owned equipment costs may be considered for project funding if the expense is:

(i) Less than or equal to the current Federal Emergency Management Agency Schedule of Equipment Rates as published by the Federal Emergency Management Agency; or

1. (ii) Supported by a legitimate quote or invoice acceptable to the Department of Agriculture;
2. (3) The cost of contractual labor must be equal to Davis-Bacon Act, 40 U.S.C. § 3141 et seq., wage determinations unless sufficient documentation is provided to the department to justify another amount;

3. (4)

   1. (A) Equipment expenses for the use of equipment that that is rented or leased by the applicant.

   2. (B) Reimbursement for the cost of equipment rented or leased by an applicant may be considered for project funding if the equipment rented or leased was:

      1. (i) Necessary to complete the project for which the applicant applied; and
      2. (ii) Only used on the project for which it was rented or leased;

4. (5)

   1. (A) Expenses for work performed by contractors or subcontractors.
   2. (B) However, the funding shall be paid to the grant recipient and not directly to the grant recipient’s subcontractors; and

5. (6) Expenses for engineering, permitting, or other similar consultant costs, not to exceed ten percent (10%) of the total grant amount between the department and the grant recipient.

   1. (d) Grant funds shall not be used to purchase or maintain equipment.