a) Prior approval by the Agency is required for project changes that may:

1. 1) increase the amount of assistance award funds needed to complete the project;
2. 2) alter the design or scope of the project; or
3. 3) extend any contractual completion date for the project.

b) The assistance award recipient shall promptly notify the Agency, in writing, of all proposed project changes. Failure by the award recipient to give notice of proposed project changes or the Agency's disapproval of a proposed project change may result in:

1. 1) disallowance of costs incurred that are attributable to the change; or
2. 2) termination of the assistance award.