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[Federal Register Volume 77, Number 66 (Thursday, April 5, 2012)]
[Notices]
[Pages 20625-20629]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-8200]

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ENVIRONMENTAL PROTECTION AGENCY

[EPA-R10-OAR-2012-0211; FRL-9655-5]

Air Pollution Control: Proposed Action on Clean Air Act Grants to 
the Idaho Department of Environmental Quality; Proposed Determination 
With Request for Comments; and a Notice of Opportunity for a Public 
Hearing

AGENCY: U.S. Environmental Protection Agency (EPA).

ACTION: Notice; Proposed determination with request for comments; and a 
notice of opportunity for a public hearing.

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SUMMARY: The U.S. EPA has made a proposed determination that reduction 
in expenditures of non-Federal funds for the Idaho Department of 
Environmental Quality (IDEQ) in support of its continuing air program 
under Clean Air Act (CAA) Section 105 for the period of calendar year 
2010 was not selective relative to the expenditures of all other 
executive branch agencies in the State for the same period. This 
determination, when final, will reset IDEQ's required recipient 
maintenance of effort level for 2010 and 2011, retain its federal award 
for the 2010 and 2011 grant years, and allow IDEQ to remain eligible 
for a Sec.  105 grant for 2012 and beyond.

DATES: Comments and/or requests for a public hearing must be received 
by EPA at the address stated below by May 7, 2012.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R10-
OAR-2012-0211, by one of the following methods:
    http://www.regulations.gov, Follow the online instructions 
for submitting comments.
     Email: McGown.Michael@epa.gov Mail: Michael McGown, U.S. Environmental Protection 
Agency, Region 10, 1435 North Orchard, Boise, ID 83706.

FOR FURTHER INFORMATION CONTACT: Michael McGown, Region 10, Idaho 
Operations Office, 1435 North Orchard, Boise, ID 83706, phone: (208)-
378-5764, fax: (208)-378-5744, or email address at 
mcgown.michael@epa.gov.

SUPPLEMENTARY INFORMATION: Section 105 of the Clean Air Act (CAA) 
provides grant support for the continuing air programs of eligible 
state, local and tribal agencies. Section 105 contains two cost-sharing 
provisions to initially qualify for a Sec.  105 grant under Sec.  
105(a)(1)(A). An eligible entity must meet a minimum match and to 
remain eligible for Section 105 grant funds, an eligible entity must 
continue to meet the match as well as meet a maintenance of effort 
(MOE) requirement under Sec.  105(c)(1). The match requires that at 
least \2/5\ of the total costs for approved Sec.  105 program 
activities must be paid by the state/local recipient. Program 
activities relevant to the match consist of both recurring and non-
recurring (unique, one-time only) expenses.
    The MOE provision requires that a state or local agency spend at 
least the same dollar level of funds as it did in the previous grant 
year but only for the costs of recurring activities. Specifically, 
Sec.  105(c)(1) [42 U.S.C. 7405(c)(1)], provides that ``no agency shall 
receive any grant under this section during any fiscal year when its 
expenditures of non-Federal funds for recurrent expenditures for air 
pollution control programs will be less than its expenditures were for 
such programs during the preceding fiscal year. Pursuant to CAA Sec.  
105(c)(2), however, EPA may still award a grant to an agency not 
meeting the requirements of Sec.  105(c)(1), ``if the Administrator, 
after notice and opportunity for public hearing, determines that a 
reduction in expenditures is attributable to a non-selective reduction 
in the expenditures in the programs of all Executive branch agencies of 
the applicable unit of Government.'' These statutory requirements are 
repeated in EPA's implementing regulations at 40 CFR 35.140 through 
35.148.
    EPA issued additional guidance to recipients on what constitutes a 
nonselective reduction on September 30, 2011. In consideration of 
legislative history, the guidance clarified that a non-selective 
reduction does not necessarily mean that each Executive branch agency 
need be reduced in equal proportion. However, it must be clear to EPA, 
from the weight of evidence, that a recipient's CAA-related air program 
is not being disproportionately impacted or singled out for a 
reduction.
    A Sec.  105 recipient must submit a final financial status report 
no later than 90 days from the close of its grant period that documents 
all of its federal and non-federal expenditures for the completed 
period. The recipient seeking an adjustment to its MOE for that period 
must provide the rationale and the documentation necessary to enable 
EPA to make a determination that a non-selective reduction has 
occurred. In order to expedite that determination, the recipient must 
provide details of the budget action and the comparative fiscal impacts 
on all the jurisdiction's executive branch agencies, the recipient 
agency itself, and the agency's air program. The recipient should 
identify any executive branch agencies or programs that should be 
excepted from

[[Page 20626]]

comparison and explain why. The recipient must provide evidence that 
the air program is not being singled out for a reduction or being 
disproportionately reduced. Documentation in two key areas will be 
needed: Budget data specific to the recipient's air program and 
comparative budget data between the recipient's air program, the agency 
containing the air program and the other executive branch agencies. EPA 
may also request information from the recipient about how impacts on 
the its program operations will affect its ability to meet its CAA 
obligations and requirements.
    In the case of IDEQ, EPA provides annual grant funding under the 
authority CAA Sec.  105 to help IDEQ support the operation of its CAA-
related continuing air pollution control program. IDEQ's Sec.  105 
annual grant period is based on the calendar year and as such is always 
impacted by two State budget years since the annual Idaho state budget 
cycle runs from July 1 of the current through June 30 of the following 
year. For the 2010 grant year EPA awarded the IDEQ $1,497,516 in Sec.  
105 funds. This represented 27.8% of the total approved program funding 
based on IDEQ's stated prospective contribution of $3,891,016 in its 
own non-federal funds to cover the costs of both non-recurring and 
recurring activities. The State's portion of the total recurring costs 
was to have been at least $3,842,589. This was the State's final level 
of recurrent expenditures for the 2009 grant year and constituted the 
required MOE level for the 2010 grant year.
    However, on March 8, 2011, IDEQ informed EPA in writing that due to 
continued reductions in the State's overall budget for executive branch 
agencies, particularly in the State's SFY2011 budget (which funded the 
last 6 months of the calendar year 2010 grant), IDEQ would fall short 
of its required MOE level by $452,789. The resulting contribution of 
$3,389,800 would be 11.78% below the required level. EPA examined the 
IDEQ's request and confirmed that its 2010 final financial status 
report indicated a State contribution level of $3,389,800 of recurrent 
expenditures.
    In its March 8, 2011 letter to EPA, IDEQ requested an adjustment of 
its 2010 MOE level based upon a non-selective reduction. IDEQ also 
sought to retain its 2011 Sec.  105 award based on this lowered 
recipient contribution level. In support of its request IDEQ provided 
legislative appropriations information on State general fund levels by 
major departmental categories for the 2009, 2010 and 2011 budget years. 
In June, July and October of 2011, EPA requested additional clarifying 
information from IDEQ on the full range of state-only executive branch, 
IDEQ and air program appropriations and expenses for the 2010 grant 
period. IDEQ supplied additional information to EPA on July 21, July 
25, October 17, October 27, and November 15th that further 
distinguished general fund, dedicated fund and federal stimulus 
resources. On November 28 and November 30, 2011 IDEQ further clarified 
its direct and indirect air program expenditures compared to changes in 
overall IDEQ environmental program expenditure levels, overall State 
general fund levels and overall State appropriations levels for the 
affected period. A summary of this information is shown in the tables 
below.

                        Table 1--IDEQ General Fund Changes From SFY 2009 Through SFY 2010
                                              [Final amounts in $s]
----------------------------------------------------------------------------------------------------------------
                IDEQ budget unit                       2009            2010         Difference       % Change
----------------------------------------------------------------------------------------------------------------
Administration (Recurring Appropriation)*.......       3,115,800       2,823,700        -292,000           -9.37
Administration (One Time Appropriation)*........          47,700               0         -47,700         -100.00
Air Program (Recurring Appropriation)...........       3,075,700       2,769,200        -306,500           -9.97
Air Program (One Time Appropriation)............       1,023,700          32,000        -991,700          -96.87
Water Program (Recurring Appropriation).........       7,847,700       6,012,700       -1,835000          -23.38
Water Program (One Time Appropriation)..........          36,000         120,000          84,000          233.33
Waste Program (Recurring Appropriation).........       2,769,200       2,450,500        -318,700          -11.51
Waste Program (One Time Appropriation)..........               0               0               0             n/a
INL Oversight Program...........................         164,500         103,400         -61,100          -37.14
Coeur D'Alene Basin Commission..................          98,400         104,300           5,900            6.00
                                                 ---------------------------------------------------------------
    Total: Recurring Appropriation..............      17.071,300      14,263,800      -2,807,500          -16.45
    Total: One Time Appropriation...............       1,107,400         152,000        -955,400          -86.27
    Total: IDEQ.................................      18,178,700      14,415,800      -3,762,900          -20.70
----------------------------------------------------------------------------------------------------------------
Notes: Table reflects comparison of general funds only. Dedicated state funds (e.g., non-Title V permit fees)
  are not included. Administration costs also need to be attributed to the various other program units. Addition
  of these funds would bring state recurring air totals for 2009 and 2010 to $3,842,589 and $3,389,800,
  respectively. Federal funds including ARRA funds are not included.

    Table 1 compares overall IDEQ general funds expenses for years 2009 
and 2010. While this table only shows general fund dollars, the 
inclusion of other dedicated funds by program unit shows similar 
results. As noted earlier, maintenance of effort is based solely on 
recurring program expenditures. The decline in recurring air program 
costs of just under 10% is less than the overall IDEQ budget decline of 
about 16.5% as well as the other individual program units of 
administration, water and waste. Only the smaller Coeur D'Alene Basin 
Commission showed any increase. Based on this information, a comparison 
of air program funding levels to other IDEQ programs shows that the air 
program was not singled out for a disproportionate or selective 
reduction. Table 2 compares both IDEQ and IDEQ Air program funding 
levels to the balance of other state agencies and programs. With only a 
few exceptions, the change in the IDEQ air program general funding 
level is consistent with changes in the budgets other state agencies 
and programs from 2009 to 2010. Comparison with all state agencies' 
aggregate budgets--totals that also include dedicated sources of funds, 
i.e., inclusion of revenue streams or sources that may not be subject 
to direct executive branch control--shows a more variable picture. EPA 
considered the relative size of the agencies and their budgets, their 
mission (e.g., public safety, health, education) and their sources of 
funding. Based upon these considerations, EPA concluded that neither 
the air program nor IDEQ overall was singled out for a disproportionate 
or selective reduction when compared to all the other executive 
agencies from 2009 to 2010.

[[Page 20627]]

    Accordingly, consistent with criteria set forth in CAA Sec.  
105(c)(2) and consistent with the Agency's September 30, 2011 Guidance 
on qualifying for a non-selective reduction, EPA has determined that it 
is appropriate to approve IDEQ's request for a non selective reduction 
in its level of recurring expenditures for the 2010 grant year for its 
air program grant. The revised MOE level for 2010 and 2011 grant years 
is $3,389,800.
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[GRAPHIC] [TIFF OMITTED] TN05AP12.000

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    This notice constitutes a request for public comment and an 
opportunity for public hearing as required by the Clean Air Act. All 
written comments received by May 7, 2012 on this proposal will be 
considered. EPA will conduct a public hearing on this proposal only if 
a written request for such is received by EPA at the address above by 
May 7, 2012. If no written request for a hearing is received, EPA will 
proceed to the final determination. While notice of the final 
determination will not be published in the Federal Register, copies of 
the determination can be obtained by sending a written request to 
Michael McGown at the above address.

    Dated: March 22, 2012.
Michelle L. Pirzadeh,
Deputy Regional Administrator, Region 10.
[FR Doc. 2012-8200 Filed 4-4-12; 8:45 am]
BILLING CODE 6560-50-P
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