How to Fill Out EPA Form 5700-21 (w/Examples) + FAQs

You fill out EPA Form 5700-21 by reporting the dollar value of contracts and procurements your organization awarded to Minority Business Enterprises (MBEs) and Women’s Business Enterprises (WBEs) during the reporting period. The form is the primary compliance tool used by the U.S. Environmental Protection Agency to track grantee progress against the “fair share” goals set under 40 CFR Part 33.

Every recipient of an EPA financial assistance agreement must file this form, and missing the deadline can trigger a hold on grant drawdowns, a finding of non-compliance, or even debarment in repeat cases. According to EPA’s Office of Small and Disadvantaged Business Utilization, EPA grantees awarded over $1.4 billion in contracts to MBE and WBE firms in a single recent fiscal year, making accurate reporting on Form 5700-21 a major lever for civil rights compliance and environmental equity.

Here is what you will learn in this guide:

• 📝 How to fill out every line of EPA Form 5700-21 step by step
• ⚖️ The legal authority behind the form under the Public Law 102-389 appropriations rider
• 📊 How to calculate fair share goals and good faith efforts using 40 CFR 33.301
• 🚫 The seven biggest mistakes filers make and how to avoid each one
• 💡 Real examples from a small business, a university, and a municipal utility

What Is EPA Form 5700-21?

EPA Form 5700-21 is the federal reporting tool titled MBE/WBE Utilization Under Federal Grants, Cooperative Agreements, and Other Federal Financial Assistance. It is approved under OMB Control Number 2090-0009 and required of every primary recipient of EPA financial assistance, including state agencies, tribes, universities, nonprofits, and municipal utilities. The form captures procurement activity for supplies, equipment, construction, and services funded fully or partially with EPA dollars.

The form was created to enforce the federal commitment to non-discrimination in contracting under Executive Order 11625 and the Women’s Business Ownership Act of 1988. EPA uses the data to verify that grantees are making the “six good faith efforts” required by 40 CFR 33.301 when awarding contracts. The data also feeds into EPA’s annual report to Congress on disadvantaged business participation in environmental programs.

A common misconception is that 5700-21 is only for construction grants. In reality, every EPA grant, cooperative agreement, and continuing environmental program grant requires this form when procurement activity occurs, including the purchase of laboratory equipment, consulting services, and even printed educational materials. Failing to file because you assumed your grant was exempt is one of the most frequent reasons EPA Project Officers issue corrective action letters.

The form replaced earlier paper-only reporting in the 1990s and is now submitted through EPA’s Grantee Reporting Resources portal. While EPA piloted moving some financial reporting to the government-wide SF-425 Federal Financial Report, the MBE/WBE-specific data still flows through Form 5700-21 because SF-425 does not capture demographic procurement data.

Who Must File EPA Form 5700-21?

Any entity that signs an EPA assistance agreement and procures goods or services with those funds must file Form 5700-21. This includes the 50 states, U.S. territories, the District of Columbia, federally recognized tribes, interstate agencies, public and private nonprofit institutions, and for-profit firms receiving EPA cooperative agreements. The duty also extends to subrecipients in many cases, particularly under the Clean Water State Revolving Fund and Drinking Water State Revolving Fund programs.

The reporting trigger is procurement activity, not the size of the grant. Even if your award is only $25,000, if you spent any portion of it on outside contracts, supplies, or equipment, you must file. This is set by the terms and conditions of every EPA assistance agreement issued under 2 CFR Part 1500, which adopt the government-wide Uniform Guidance with EPA-specific additions.

A frequent misconception is that pass-through entities can shift the burden entirely to subrecipients. Under 40 CFR 33.501, the prime recipient remains responsible for compliance and must aggregate subrecipient data into its own filing. The consequence of skipping aggregation is that EPA charges the prime recipient with the violation, not the subrecipient, which can jeopardize future funding eligibility.

State and Tribal Recipients

State and tribal recipients carry the heaviest reporting load because they typically pass funds to many subrecipients. A state environmental agency administering the Clean Water SRF may have hundreds of municipal borrowers, and each project’s procurement must roll up into the state’s annual 5700-21. The state must also negotiate “fair share goals” with its EPA Region under 40 CFR 33.302 every three years.

The consequence of failing to negotiate goals is significant. Without approved fair share goals, the state defaults to the EPA national aspirational goals, and any procurement falling short triggers automatic good faith efforts documentation. A real example involves the Ohio EPA, which in past program reviews had to provide extensive corrective action plans after goal negotiations lapsed.

Nonprofit and University Grantees

Universities and nonprofits receiving research grants, environmental education awards, or community action grants must file as well. A common error is assuming that academic procurement (lab supplies, software licenses) does not count toward MBE/WBE goals. Every dollar of procurement counts, including subscriptions, equipment, and subcontracts to other research institutions.

The University of California system and similar large grantees often centralize Form 5700-21 reporting through their sponsored programs offices to avoid double counting. Decentralized filing leads to inflated numbers in some categories and undercounts in others, which Project Officers catch quickly during desk reviews.

When and How to File

EPA Form 5700-21 is filed annually by October 30 for the federal fiscal year ending September 30, unless your specific grant terms require quarterly or semi-annual reporting. Continuing environmental program grants, construction grants, and certain cooperative agreements may require more frequent reporting. The exact frequency is stated in the assistance agreement’s terms and conditions, so review your award document before assuming the annual default applies.

Filing happens through the EPA Grantee Reporting portal or by emailing the completed PDF to your assigned Project Officer and the regional Disadvantaged Business Enterprise Coordinator. Some EPA Regions still accept paper submissions, but electronic filing is strongly preferred and required for most new awards issued after fiscal year 2020.

The consequence of late filing is immediate. EPA places an administrative hold on the Automated Standard Application for Payments (ASAP) drawdown account, meaning the grantee cannot draw down federal cash until the report is accepted. For a city dependent on EPA reimbursements to make payroll on a wastewater project, even a one-week delay can stall construction.

Line-by-Line Walkthrough of EPA Form 5700-21

The current OMB-approved version of EPA Form 5700-21 contains 14 numbered fields divided into four sections: identifying information, procurement totals, MBE/WBE breakdowns, and certification. Each line has a specific purpose, and skipping or misreporting any one of them creates a compliance gap. Below is the full walkthrough using the latest form available from EPA.

Line 1: Federal Fiscal Year

Enter the federal fiscal year you are reporting on, written as the year ending September 30. For example, the period October 1, 2025 through September 30, 2026 is reported as “FY 2026.” Do not use calendar years, because the federal fiscal year is the only valid reporting period under 2 CFR 200.328.

A misconception is that you can use your own organization’s fiscal year. Many universities run on a July-to-June year, and many state agencies use July or April starts. Reporting on those calendars makes your numbers unreconcilable with EPA’s central database, and the form will be returned for correction. The consequence is a missed deadline even though you filed on time.

Line 2: Reporting Quarter (if applicable)

If your grant requires quarterly reporting, indicate the quarter (Q1, Q2, Q3, Q4). Q1 is October through December, Q2 is January through March, Q3 is April through June, and Q4 is July through September. Annual filers leave this line blank or write “Annual.”

Line 3: EPA Grant Identification Number

Write the full EPA assistance agreement number exactly as it appears on your award document. This is typically a 10-character alphanumeric code such as “BG-96000123-0” for a continuing program grant or “CW-12345678-0” for a State Revolving Fund capitalization grant. Reporting under the wrong grant number is one of the top three desk review findings cited by EPA’s Office of Grants and Debarment.

Line 4: Recipient Name and Address

Enter the legal name of the recipient organization, not a “doing business as” name or department subdivision. Use the same name registered in SAM.gov under your Unique Entity Identifier. Mismatched names trigger automatic flags in EPA’s Compliance Services database.

Line 5: Reporting Contact Information

Provide the name, title, phone, and email of the person EPA can contact about the report. This person should know how the data was compiled, not just be a clerical signer. When EPA Regional DBE Coordinators call to verify numbers, an unprepared contact creates a poor impression and often triggers a deeper audit.

Line 6: Total Procurement Dollars

Report the total dollar value of all procurements made with EPA funds during the reporting period, including supplies, equipment, services, and construction. Use only the federal share, not the matching share, unless your specific grant terms require total project cost reporting. The Uniform Guidance procurement standards at 2 CFR 200.317-327 define what counts as a procurement.

Line 7: MBE Procurement Dollars

Enter the total dollar value awarded to certified Minority Business Enterprises during the period. An MBE is a for-profit business that is at least 51 percent owned and controlled by one or more socially and economically disadvantaged individuals, as defined in 40 CFR 33.103. Acceptable certifications include those from the Minority Business Development Agency, state DOT DBE programs, the SBA 8(a) program, and tribal certifications.

Line 8: WBE Procurement Dollars

Enter the total dollar value awarded to certified Women’s Business Enterprises. A WBE is at least 51 percent owned and controlled by one or more women, with day-to-day management by women. Certifications from the Women’s Business Enterprise National Council and state agencies are accepted. Self-certification by the firm is not enough under EPA rules.

Line 9: MBE Percentage

Calculate Line 7 divided by Line 6, expressed as a percentage. Round to one decimal place. This number is compared directly to your fair share MBE goal negotiated under 40 CFR 33.302.

Line 10: WBE Percentage

Calculate Line 8 divided by Line 6, expressed as a percentage. Round to one decimal place. Compare this to your fair share WBE goal.

Line 11: Number of MBE/WBE Contracts

Report the count of distinct MBE and WBE awards. EPA uses this to detect “single-firm dependence,” where a grantee meets dollar goals by funneling all minority spending through one favored vendor. The Adarand Constructors v. Peña Supreme Court ruling pushed agencies toward narrowly tailored programs that reach many firms, not just one.

Line 12: Fair Share Goals

Enter the MBE and WBE percentage goals approved by your EPA Region. If you have not negotiated goals, write “Not Negotiated” and attach a corrective action plan. The default national aspirational goals historically cited by EPA are 8 percent MBE and 5 percent WBE, but your actual binding goals come from your tri-annual negotiation.

Line 13: Good Faith Efforts Documentation

Indicate whether you performed all six good faith efforts required by 40 CFR 33.301. The six efforts are: include qualified MBE/WBE firms on solicitation lists, ensure firms are solicited whenever they are potential sources, divide work into smaller tasks to permit MBE/WBE participation, establish delivery schedules that encourage participation, use the services of SBA and MBDA, and require prime contractors to take these same six steps.

Line 14: Authorized Certifying Official Signature

The form must be signed by an official with legal authority to bind the organization, such as a city manager, university grants officer, or tribal council chair. Signing by an unauthorized staff member voids the report. The certification is made under penalty of perjury under 18 U.S.C. § 1001, so false statements carry criminal exposure.

Three Real-World Filing Scenarios

The fastest way to learn Form 5700-21 is to see how different grantees actually fill it out. Below are three named-person scenarios that mirror the most common situations EPA Project Officers encounter.

Scenario 1: Maria’s Small Engineering Firm

Maria Lopez runs a 12-person environmental engineering firm in Albuquerque that received a $300,000 EPA Brownfields Assessment Grant under CERCLA Section 104(k). She procured $180,000 in subcontracts during FY 2026, of which $40,000 went to a certified MBE laboratory and $20,000 went to a WBE drilling subcontractor.

Maria’s Procurement Step	Result on Form 5700-21
Total procurement of $180,000	Line 6 = $180,000
MBE lab subcontract of $40,000	Line 7 = $40,000, Line 9 = 22.2%
WBE drilling subcontract of $20,000	Line 8 = $20,000, Line 10 = 11.1%

Maria exceeds the 8 percent MBE and 5 percent WBE national goals, so she does not need a corrective action plan. She still documents her good faith efforts because EPA can request the underlying solicitation files at any time within the three-year record retention period.

Scenario 2: David’s University Research Program

Dr. David Chen administers a $2.1 million EPA STAR research grant at a public university studying PFAS contamination. The university procured $850,000 in lab equipment and analytical services, but only $30,000 went to MBE firms and $0 went to WBE firms during the year.

David’s Compliance Issue	Required Response
MBE share = 3.5%, below 8% goal	File good faith efforts narrative
WBE share = 0%, below 5% goal	File good faith efforts narrative
Sole-source equipment purchases	Justify under 2 CFR 200.320

David must attach a written good faith efforts narrative explaining each of the six efforts and why they did not yield MBE/WBE awards. The consequence of skipping the narrative is a finding of non-compliance and a likely special condition on the next year’s award restricting sole-source procurements.

Scenario 3: The City of Riverside’s Water Utility

City Engineer Janet Patel manages a $15 million Clean Water SRF loan to upgrade the city’s wastewater treatment plant. The construction contract is $12 million to a prime contractor, who in turn subcontracts $1.4 million to MBE firms and $900,000 to WBE firms.

Janet’s Reporting Element	Form 5700-21 Entry
Federal share of procurement	Line 6 = $12,000,000
MBE subcontracts at prime level	Line 7 = $1,400,000, Line 9 = 11.7%
WBE subcontracts at prime level	Line 8 = $900,000, Line 10 = 7.5%

Janet must collect the MBE/WBE data from the prime contractor’s monthly progress payment certifications, because the city itself does not directly contract with the subcontractors. Failure to flow down the reporting requirement in the prime contract is a violation of 40 CFR 33.301(f), and the city becomes liable even though the prime contractor caused the gap.

How to Calculate Fair Share Goals

Fair share goals are not picked out of thin air. They are calculated using a two-step methodology required by 40 CFR 33.302, known as Step 1 (relative availability) and Step 2 (adjustment for evidence). Step 1 uses census data, Disparity Studies, or state DOT DBE goals to establish the base availability of ready, willing, and able MBE/WBE firms. Step 2 adjusts that number up or down based on past participation, marketplace evidence, and statistical disparity.

The consequence of skipping the methodology is severe. Goals not based on a defensible methodology violate the strict scrutiny standard of Adarand Constructors v. Peña, which requires race-conscious programs to be narrowly tailored to remedy identified discrimination. Grantees that simply adopt the national aspirational goals without local data risk legal challenge by non-MBE/WBE firms claiming reverse discrimination.

A common misconception is that the EPA national goals of 8 percent MBE and 5 percent WBE are mandatory. They are aspirational defaults only, used when a grantee has not yet negotiated its own goals. Your actual binding number comes from your Region’s approval letter, and that letter is what auditors will compare your Line 9 and Line 10 figures against.

The Six Good Faith Efforts Explained

Every EPA grantee must perform six good faith efforts, in writing, every fiscal year, regardless of whether they meet their fair share goals. These are codified at 40 CFR 33.301 and are non-negotiable. Documenting them is what separates a clean audit from a corrective action plan.

The first effort is to include qualified small, minority, and women’s businesses on solicitation lists. The second is to ensure these businesses are solicited whenever they are potential sources. The third is to divide procurements into smaller tasks or quantities to permit maximum participation by these businesses. The fourth is to establish delivery schedules that encourage participation. The fifth is to use the services of the Small Business Administration and the Minority Business Development Agency. The sixth is to require prime contractors to perform all five preceding efforts when they award subcontracts.

The consequence of missing any one of the six is automatic non-compliance, even if you exceed every dollar goal. EPA’s view is that the six efforts are the means by which fair contracting is achieved, and meeting the goals one year does not exempt you from the process the next year.

Mistakes to Avoid When Filing EPA Form 5700-21

Many filers stumble on the same recurring errors. Below are the seven most common mistakes Project Officers cite, along with the specific consequence of each.

• Reporting calendar year data instead of federal fiscal year, which causes the report to be rejected and re-filed late.
• Counting matching funds in Line 6 when only federal share is required, which inflates the denominator and lowers your MBE/WBE percentages artificially.
• Accepting self-certification from a vendor as proof of MBE or WBE status, which is not allowed under 40 CFR 33.204.
• Forgetting to flow down reporting duties to subrecipients and prime contractors, which transfers liability for their gaps to you.
• Skipping the good faith efforts narrative when below goal, which converts a minor shortfall into a formal non-compliance finding.
• Signing the form with a junior staff member rather than an authorized official, which voids the certification and exposes the signer to 18 U.S.C. § 1001 liability.
• Filing under the wrong EPA grant number, which makes the data unreconcilable and triggers a desk review.

Do’s and Don’ts of EPA Form 5700-21

These do’s and don’ts come directly from EPA Regional DBE Coordinator guidance and Office of Inspector General audit findings.

• Do verify each MBE/WBE certification at the time of the award, not after the fact, because expired certifications do not count.
• Do retain all solicitation files, bid logs, and certification copies for at least three years under 2 CFR 200.334.
• Do reconcile your Line 6 total to your SF-425 Federal Financial Report so EPA sees consistent numbers across forms.
• Do submit even a “zero report” if you had no procurement activity, because silence is treated as non-filing.

• Do contact your EPA Regional DBE Coordinator before the deadline if you anticipate filing late.

• Don’t combine multiple grants into one form unless your terms and conditions specifically permit it.

• Don’t round dollar figures to the nearest thousand; report exact numbers to ensure auditability.
• Don’t rely on prime contractor numbers without verification, because their certifications can lapse mid-project.
• Don’t omit subrecipient procurement, because the prime recipient is always responsible.
• Don’t sign the certification block without reviewing the underlying procurement file.

Pros and Cons of the Form 5700-21 Reporting System

Form 5700-21 has both strengths and weaknesses as a compliance tool, and understanding both helps grantees prepare more effectively.

• Pro: It creates a single, standardized data set across all EPA grantees, allowing apples-to-apples comparison.
• Pro: The form is short (one page), so administrative burden is lower than many other federal reports.
• Pro: It surfaces “single-firm dependence” through the contract count on Line 11.
• Pro: Filing creates a documentary record that protects grantees in future audits or litigation.

• Pro: The data feeds EPA’s annual report to Congress, giving grantees visibility for their efforts.

• Con: The form does not capture subcontract data below the prime level, missing significant procurement.

• Con: Self-certification ambiguity at the firm level forces grantees to do their own verification.
• Con: The annual filing cycle means problems may go undetected for up to 12 months.
• Con: Goal negotiation under 40 CFR 33.302 is resource-intensive for small grantees.
• Con: Late filing penalties (drawdown holds) can disrupt cash flow disproportionate to the violation.

Key Entities and Authorities Behind the Form

Several federal entities play a role in EPA Form 5700-21 compliance. The EPA Office of Small and Disadvantaged Business Utilization sets policy and supports grantees. The EPA Office of Grants and Debarment issues the Grants Policy Issuance documents that interpret 40 CFR Part 33. Each of EPA’s ten Regions has a Disadvantaged Business Enterprise Coordinator who reviews submitted forms and negotiates fair share goals.

The legal foundation includes Public Law 102-389, which authorized EPA’s MBE/WBE program; Section 129 of Public Law 100-590, the Small Business Administration Reauthorization Act; and the Clean Air Act and Safe Drinking Water Act provisions that create grant authorities. The Adarand Constructors v. Peña Supreme Court ruling shapes how race-conscious goals must be designed, while City of Richmond v. J.A. Croson Co. requires evidence of past discrimination before adopting goals.

External certifiers also matter. The Women’s Business Enterprise National Council, the National Minority Supplier Development Council, and state DOT DBE programs all issue certifications EPA accepts. Tribal governments may issue their own MBE certifications for member-owned firms, which EPA recognizes under 40 CFR 33.205.

State Nuances in EPA MBE/WBE Reporting

While 40 CFR Part 33 is federal, several states layer additional requirements on top. California requires recipients of state-administered EPA SRF funds to also report under the California Public Contract Code Section 2000, which sets state-specific small business participation goals. New York’s Article 15-A program requires separate MBE and WBE certifications by the Empire State Development division.

Texas, by contrast, prohibits race-conscious goal-setting under Texas Government Code Chapter 2161 but still requires gender-conscious WBE outreach. The consequence for a Texas grantee is dual-track reporting: race-neutral methods for MBE outreach but conventional WBE goals. A common mistake is applying the federal 40 CFR Part 33 framework verbatim in Texas, which can violate state law.

Florida and Michigan have streamlined reciprocity agreements that recognize each other’s MBE/WBE certifications, reducing paperwork for multi-state grantees. Always check your state’s reciprocity status with the National Association of State Procurement Officials before assuming a certification from one state counts in another.

Recap of Key Court Rulings

Adarand Constructors v. Peña, 515 U.S. 200 (1995) held that all federal race-conscious programs must satisfy strict scrutiny, meaning they must be narrowly tailored to a compelling government interest. EPA responded by requiring evidence-based goal-setting under 40 CFR Part 33 rather than fixed national quotas.

City of Richmond v. J.A. Croson Co., 488 U.S. 469 (1989) struck down a 30 percent MBE set-aside that lacked evidence of past discrimination. The case is why EPA grantees must reference disparity studies or census data when setting goals, not just adopt a number.

Western States Paving Co. v. Washington State DOT, 407 F.3d 983 (9th Cir. 2005) extended the Adarand framework to state DOT DBE programs and is often cited by EPA Regions when reviewing state SRF fair share goal proposals. The lesson for filers is that goals not backed by local evidence are legally vulnerable.

Frequently Asked Questions

Is EPA Form 5700-21 still required in 2026?

Yes. The form remains required under 40 CFR Part 33 and the terms and conditions of every EPA assistance agreement, even as some grantees pilot integrated reporting through SF-425 for non-demographic financial data.

Do I have to file if my grant had no procurement activity?

Yes. EPA requires a “zero report” filing so the agency can confirm no activity occurred rather than infer non-filing, and skipping the zero report can trigger a drawdown hold.

Can I count self-certified MBE/WBE vendors?

No. EPA accepts only certifications from approved third-party certifiers such as state agencies, MBDA, SBA 8(a), WBENC, or recognized tribal governments under 40 CFR 33.204 and 33.205.

Are the 8% MBE and 5% WBE goals mandatory?

No. Those are national aspirational defaults that apply only when a grantee has not negotiated its own fair share goals with its EPA Region under 40 CFR 33.302.

Do subrecipients file their own Form 5700-21?

No. The prime recipient files a single consolidated form that aggregates subrecipient procurement, although subrecipients must report up to the prime under flow-down clauses.

Will late filing freeze my grant payments?

Yes. EPA places an administrative hold on the ASAP drawdown account until the overdue Form 5700-21 is filed and accepted by the Project Officer.

Can I include matching funds in Line 6?

No. Only the federal share of procurement is reported on Line 6 unless your specific assistance agreement terms and conditions explicitly require total project cost reporting.

Do tribal-owned businesses count as MBEs?

Yes. Federally recognized tribal governments may certify member-owned businesses as MBEs, and EPA accepts those certifications under 40 CFR 33.205 without further review.

Must I document good faith efforts even if I meet my goals?

Yes. All six good faith efforts under 40 CFR 33.301 must be documented every fiscal year, regardless of whether you meet or exceed your fair share goals.

Can a state prohibit race-conscious EPA MBE goals?

Yes. States like Texas restrict race-conscious goal-setting, and grantees there must use race-neutral methods to comply with both state law and federal MBE outreach expectations.

Is electronic filing required?

Yes. Most EPA Regions require electronic submission through the Grantee Reporting portal for awards issued after FY 2020, with paper filing accepted only on a case-by-case basis.

Does EPA Form 5700-21 replace SF-425?

No. The two forms serve different purposes: SF-425 captures financial expenditures while 5700-21 captures MBE/WBE procurement demographics, and most grantees must file both.