; and (B) are familiar with national environmental issues and the health and educational needs of students; and (3) include, in the peer review process, appropriate representatives from the Department of Commerce, the Department of the Interior, the Department of Energy, the Environmental Protection Agency, and other appropriate Federal agencies, to provide environmental expertise and background for evaluation of the State environmental literacy plan. (d) Administrative expenses A State receiving a grant under this section may use not more than 2.5 percent of the grant funds for administrative expenses. (e) State educational agency report (1) In general Each State receiving a grant under this section shall prepare and submit an annual report to the Secretary containing information about— (A) the implementation of the environmental literacy plan; and (B) the grant activities supported under this section. (2) Report requirements The report required by this section shall be— (A) in the form specified by the Secretary; (B) based on the State’s ongoing evaluation activities