[Federal Register Volume 61, Number 33 (Friday, February 16, 1996)]
[Notices]
[Pages 6241-6242]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-3582]



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ENVIRONMENTAL PROTECTION AGENCY
[FRL-5422-3]


Air Pollution Control; Proposed Action on Clean Air Act Grant to 
the Pima County, Arizona, Department of Environmental Quality

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 a 
reduction in expenditures of non-Federal funds for the Pima County, 
Arizona, Department of Environmental Quality (PDEQ) in Tucson, Arizona 
is a result of a non-selective reduction in expenditures. This 
determination, when final, will permit the PDEQ to be awarded financial 
assistance for FY-96 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 March 18, 1996.

ADDRESSES: All comments and/or requests for a public hearing should be 
mailed to: Douglas K. McDaniel, Air Grants Section (A-2-3), Air and 
Toxics Division, U.S. EPA Region IX, 75 Hawthorne Street, San 
Francisco, California 94105-3901; FAX (415)744-1076.

FOR FURTHER INFORMATION CONTACT: Douglas K. McDaniel, Air Grants 
Section (A-2-3), Air and Toxics Division, U.S. EPA Region IX, 75 
Hawthorne Street, San Francisco, California 94105-3901 at (415) 744-
1246.

SUPPLEMENTARY INFORMATION: Under the authority of Section 105 of the 
CAA, EPA provides financial assistance to the PDEQ to aid in the 
operation of its air pollution control programs. In FY-95, EPA awarded 
the PDEQ $331,207, which represented approximately 25.4% of the PDEQ's 
air pollution control program 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.'' 
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 January of 1996, the PDEQ submitted to EPA final documentation 
which shows that its actual FY-95 expenditures of non-Federal funds for 
recurrent expenditures (or its maintenance of effort (MOE)) were 
$973,959. In its FY-96 Sec. 105 grant application the PDEQ projected 
MOE of $537,821. This amount represents a shortfall of $436,138 from 
the MOE for the preceding fiscal year (FY-95). In order for the PDEQ to 
be eligible to be awarded its FY-96 grant, EPA must make a 
determination under section 105(c)(2).
    In December 1995, the PDEQ submitted documentation to EPA 
establishing that its reduced expenditures for FY-96 result from a loss 
of permit revenue, due to changes to Pima County's air quality rules 
mandated by new Arizona state law which required Arizona localities to 
amend their air quality rules that were more stringent than state 
rules. Rule changes adopted on November 14, 1995 

[[Page 6242]]
by the Pima County Board of Supervisors included both raising permit 
thresholds and lowering fee schedules to make them identical in 
structure to the state program. Due to these changes, there will be a 
severe decline in permit revenue in FY-96.
    The PDEQ's MOE reduction resulted from a loss of fee revenues due 
to circumstances beyond its control. EPA proposes to determine that the 
PDEQ's lower FY-96 MOE level meets the section 105(c)(2) criteria as 
resulting from a non-selective reduction of expenditures. Pursuant to 
40 CFR section 35.210, this determination will allow the PDEQ to be 
awarded Sec. 105 grant funds for FY-96.
    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 March 18, 1996 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 
March 18, 1996.
    If no written request for a hearing is received, EPA will proceed 
to a final determination. While notice of the final determination will 
not be published in the Federal Register, a copy of the determination 
can be obtained by sending a written request to Douglas McDaniel at the 
above address.

    Dated: February 3, 1996.
David P. Howekamp,
Director, Air and Toxics Division, U.S. EPA, Region 9.
[FR Doc. 96-3582 Filed 2-15-96; 8:45 am]
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