[Federal Register Volume 63, Number 87 (Wednesday, May 6, 1998)]
[Notices]
[Page 25032]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-12031]


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ENVIRONMENTAL PROTECTION AGENCY

[FRL-6009-5]


Air Pollution Control; Proposed Action on Clean Air Act Grant to 
the South Coast Air Quality Management District

AGENCY: Environmental Protection Agency (EPA).

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

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SUMMARY: The U.S. EPA has made a proposed determination that reductions 
in expenditures of non-Federal funds for the South Coast Air Quality 
Management District (SCAQMD) in Diamond Bar, California are a result of 
non-selective reductions in expenditures. This determination, when 
final, will permit the SCAQMD to be awarded financial assistance for 
FY-98 by EPA, under section 105(c) of the Clean Air Act (CAA).

DATES: Comments and/or requests for a public hearing must be received 
by EPA at the address stated below by June 5, 1998.

ADDRESSES: All comments and/or requests for a public hearing should be 
mailed to: R. Michael Stenburg, Grants and Program Integration Office 
(Air-8), Air Division, U.S. EPA Region IX, 75 Hawthorne Street, San 
Francisco, California 94105-3901; FAX (415) 744-1076.

FOR FURTHER INFORMATION CONTACT: R. Michael Stenburg, Grants and 
Program Integration Office (Air-8), Air Division, U.S. EPA Region IX, 
75 Hawthorne Street, San Francisco, California 94105-3901 at (415) 744-
1182.

SUPPLEMENTARY INFORMATION: Under the authority of Section 105 of the 
CAA, EPA provides financial assistance (grants) to the SCAQMD, whose 
jurisdiction includes Los Angeles and Orange Counties in southern 
California, to aid in the operation of its air pollution control 
programs. In FY-97, EPA awarded the SCAQMD $4,844,967, which 
represented approximately 5.1% of the SCAQMD's budget.
    Section 105(c)(1) of the CAA, 42 U.S.C. 7405(c)(1), provides that 
``[n]o 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. 
In order for [EPA] to award grants under this section in a timely 
manner each fiscal year, [EPA] shall compare an agency's prospective 
expenditure level to that of its second preceding year.'' EPA may still 
award financial assistance to an agency not meeting this requirement, 
however, if EPA, ``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.'' CAA 
section 105(c)(2). These statutory requirements are repeated in EPA's 
implementing regulations at 40 CFR 35.210(a).
    In its FY-98 Sec. 105 grant application the SCAQMD projected MOE of 
$63,763,496. This amount represents a shortfall of $11,450,587 from the 
actual FY-97 MOE of $75,214,083. In order for the SCAQMD to be eligible 
to be awarded its FY-98 grant, EPA must make a determination under 
Sec. 105(c)(2).
    The SCAQMD is a single-purpose agency whose primary source of 
funding is emission fee revenue. It is the ``unit of Government'' for 
Sec. 105(c)(2) purposes. The SCAQMD submitted documentation to EPA 
which shows that over the last six years emission reductions brought on 
by a combination of regulated and voluntary emission reductions and 
actions to minimize fee increases on businesses have reduced fee 
revenues from stationary sources from a high of $66,914,362 in 1991-
1992 to approximately $50,724,900 in 1997-1998. As a result, the SCAQMD 
has instituted hiring/salary freezes, furloughs, and layoffs, has 
reduced its equipment purchases and contract expenditures, and has 
instituted new programs to reduce costs such as permit streamlining, 
computer-assisted permit processing, and privatization efforts.
    Therefore, the SCAQMD's MOE reduction resulted from a loss of fee 
revenues due to circumstances beyond its control. EPA proposes to 
determine that the SCAQMD's lower FY-98 MOE level meets the 
Sec. 105(c)(2) criteria as resulting from a non-selective reduction of 
expenditures. Pursuant to 40 CFR 35.210, this determination will allow 
the SCAQMD to be awarded financial assistance for FY-98.
    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 June 5, 1998 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 
June 5, 1998.
    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 R. 
Michael Stenburg at the above address.

    Dated: April 20, 1998.
Steven Frey,
Acting Director, Air Division, U.S. EPA, Region 9.
[FR Doc. 98-12031 Filed 5-5-98; 8:45 am]
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