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[Federal Register Volume 63, Number 121 (Wednesday, June 24, 1998)]
[Notices]
[Page 34381]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-16769]

[[Page 34381]]

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ENVIRONMENTAL PROTECTION AGENCY

[FRL-6115-6]

Air Pollution Control; Proposed Actions on Clean Air Act Grants 
to the Monterey Bay Unified Air Pollution Control 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 EPA has made a proposed determination under section 105(c) 
of the Clean Air Act (CAA) that a reduction in expenditures of non-
Federal funds for the Monterey Bay Unified County Air Pollution Control 
District (MBUAPCD, or ``District'') in Monterey, California is the 
result of a non-selective reduction in expenditures. This 
determination, when final, will permit the MBUAPCD to keep the 
financial assistance awarded to it by EPA for FY-97 under section 
105(c) of the CAA.

DATES: Comments and/or requests for a public hearing must be received 
by EPA at the address stated below by July 24, 1998.

ADDRESSES: All comments and/or requests for a public hearing should be 
mailed to: Sara Bartholomew, Grants and Program Integration Office 
(AIR-8), Air Division, U.S. EPA Region 9, 75 Hawthorne Street, San 
Francisco, California 94105-3901; FAX (415) 744-1076.

FOR FURTHER INFORMATION CONTACT: Sara Bartholomew, Grants and Program 
Integration Office (AIR-8), Air Division, U.S. EPA Region 9, 75 
Hawthorne Street, San Francisco, California 94105-3901 at (415) 744-
1250.

SUPPLEMENTARY INFORMATION: Under the authority of Section 105 of the 
CAA, EPA provides financial assistance (grants) to the MBUAPCD to aid 
in the operation of its air pollution control programs. In FY-96 EPA 
awarded the MBUAPCD $272,869, which represented approximately 7% of the 
District's budget. In FY-97, EPA awarded the MBUAPCD $255,265, which 
represented approximately 8% of the District'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 
Sec. 105(c)(2). These statutory requirements are repeated in EPA's 
implementing regulations at 40 CFR 35.210(a).
    In its FY-97 Sec. 105 application, which EPA reviewed in early 
1997, the MBUAPCD projected expenditures of non-Federal funds for 
recurrent expenditures (or its maintenance of effort (MOE)) of 
$2,888,803. This MOE would have been sufficient to meet the MOE 
requirements of the CAA because it was not lower than the FY-96 MOE of 
$2,701,629. In October of 1997, however, the MBUAPCD submitted to EPA 
documentation which shows that its actual FY-97 MOE was $2,561,303. 
This amount represents a shortfall of $140,326 from the MOE for FY-96. 
In order for the District to be eligible to keep its FY-97 grant, EPA 
must make a determination under Sec. 105(c)(2).
    The MBUAPCD is a single-purpose agency whose primary source of 
funding is permit fee revenue. Fees associated with permits issued by 
the MBUAPCD go directly to the district to fund its operations. It is 
the ``unit of Government'' for Sec. 105(c)(2) purposes. The MBUAPCD 
submitted documentation to EPA which indicates that the reduction of 
actual expenditures is primarily composed of declining fee revenues. 
Due to shortfalls in revenues, the Board has directed the district to 
control costs and reduce the existing fund balance.
    In summary, the MBUAPCD's MOE reductions resulted from budget cuts 
stemming from a loss of revenues due to circumstances beyond the 
District's control. EPA proposes to determine that the MBUAPCD's lower 
FY-97 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 MBUAPCD to keep the funds received 
from EPA for FY97.
    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 July 24, 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 
July 24, 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 Sara 
Bartholomew at the above address.

    Dated: June 11, 1998.
David P. Howekamp,
Director, Air Division, U.S. EPA, Region 9.
[FR Doc. 98-16769 Filed 6-23-98; 8:45 am]
BILLING CODE 6560-50-U
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