[Federal Register Volume 61, Number 55 (Wednesday, March 20, 1996)]
[Notices]
[Pages 11403-11404]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-6722]



=======================================================================
-----------------------------------------------------------------------

ENVIRONMENTAL PROTECTION AGENCY

[FRL-5444-3]


Air Pollution Control, Proposed Action on Clean Air Act Grant to 
the Monterey Bay Unified Air Pollution Control District

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

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

-----------------------------------------------------------------------

SUMMARY: The U.S. 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 Air Pollution Control 
District (MBUAPCD or ``district'') in Monterey, California is a result 
of a non-selective reduction in expenditures. This determination, when 
final, will permit the MBUAPCD to keep the financial assistance awarded 
to it for FY-95 by EPA under section 105(a) of the CAA.

DATES: Comments and/or requests for a public hearing must be received 
by EPA at the address stated below by April 19, 1996.

ADDRESSES: All comments and/or requests for a public hearing should be 
mailed to: Roy T. Ford, 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: Roy T. Ford, 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) 744-1233.

SUPPLEMENTARY INFORMATION: Under the authority of Section 105 of the 
CAA, EPA provides financial assistance to the MBUAPCD to aid in the 
operation of its air pollution control programs. In FY-94 EPA awarded 
the MBUAPCD $347,863, which represented approximately 10% of the 
MBUAPCD's budget. In FY-95 EPA awarded the MBUAPCD $292,856, which 
represented approximately 8% of the MBUAPCD's budget.
    Section 105(c)(1) of the CAA, 42 U.S.C. Section 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 its FY-95 Section 105 application, which EPA reviewed in early 
1995, the MBUAPCD projected recurrent expenditures (or its maintenance 
of effort (MOE)) of $3,254,272. This MOE would have been sufficient to 
meet the MOE requirements of the CAA because it was not lower than the 
FY-94 MOE of $2,967,502. In January of 1996, however, the MBUAPCD 
submitted to EPA documentation which shows that its actual FY-95 MOE 
was $2,828,502. This amount represents a shortfall of

[[Page 11404]]

$139,352 from the FY-94 MOE. In order for the MBUAPCD to be eligible to 
keep its FY-95 grant, EPA must make a determination under Section 
105(c)(2) that the reduction in expenditures is attributable to a non-
selective reduction in the programs of all agencies of the applicable 
unit of government.
    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 Section 105(c)(2) purposes. The MBUAPCD 
submitted documentation to EPA which shows that in 1994 and 1995 air 
permit fee revenues decreased because of declining economic conditions 
which caused the business community to curtail operations, resulting in 
fewer permits issued and fees collected. As a result, the MBUAPCD's 
overall budget and its MOE decreased. The MBUAPCD also submitted 
documentation to EPA which shows that over the last three years the 
district instituted a number of cost cutting measures, including the 
elimination of a position and reductions in hiring, equipment 
purchases, and contract costs.
    The MBUAPCD's MOE reductions resulted from budget cuts stemming 
from a loss of fee revenues due to circumstances beyond its control. 
EPA proposes to determine that the MBUAPCD's lower FY-95 MOE level 
meets the Section 105(c)(2) criteria of a non-selective reduction. 
Pursuant to the CAA and 40 CFR 35.210, this determination will allow 
the MBUAPCD to keep the funds received from EPA for FY-95.
    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 April 19, 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 
April 19, 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 the 
above address.

    Dated: March 6, 1996.
David P. Howekamp,
Director, Air and Toxics Division.
[FR Doc. 96-6722 Filed 3-19-96; 8:45 am]
BILLING CODE 6560-50-P