40 C.F.R. § 46.210 – Termination.

(a) EPA may terminate your fellowship agreement in whole or in part in accordance with the following:
1. (1) If you fail to submit the “Fellowship Activation Notice” as required by § 46.185.
2. (2) If you fail to comply with the terms and conditions of the fellowship agreement.
(b) You may voluntarily terminate your fellowship by sending the award official written notification setting forth the reasons for termination and the effective date. In that case, the EPA project officer may discuss the terms of the termination with you, and EPA may send you a letter or other document which states any termination conditions.
(c) Costs resulting from obligations you incur after termination of an award are not allowable unless EPA expressly authorizes them in the notice of termination or subsequently approves them. Costs after termination which are necessary and not reasonably avoidable are allowable if:
1. (1) The cost results from obligations which you properly incurred before the effective date of termination, were not in anticipation of the termination, and are noncancellable; and
2. (2) The cost would be allowable if the award expired normally.