[Federal Register Volume 62, Number 109 (Friday, June 6, 1997)]
[Notices]
[Page 31097]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-14854]



[[Page 31097]]

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ENVIRONMENTAL PROTECTION AGENCY

[FRL-5837-3]


Air Pollution Control; Proposed Action on Clean Air Act Grant to 
the Bay Area 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 EPA has made two proposed determinations that reductions 
in expenditures of non-Federal funds for the Bay Area Air Quality 
Management District (BAAQMD) in San Francisco, California are a result 
of non-selective reductions in expenditures. These determinations, when 
final, will permit the BAAQMD to keep the financial assistance awarded 
to it by EPA for FY-96 and to be awarded financial assistance for FY-97 
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 July 7, 1997.

ADDRESSES: All comments and/or requests for a public hearing should be 
mailed to: Valerie Cooper, 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: Valerie Cooper, 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-
1237.

SUPPLEMENTARY INFORMATION: Under the authority of Section 105 of the 
CAA, EPA provides financial assistance to the BAAQMD, whose 
jurisdiction includes Alameda, Contra Costa, Marin, Napa, San 
Francisco, San Mateo, Santa Clara, and part of Solano and Sonoma 
Counties in California, to aid in the operation of its air pollution 
control programs. In FY-95, EPA awarded the BAAQMD $1,320,885 which 
represented approximately 5% of the BAAQMD's budget, and in FY-96 
$1,768,617 which represented approximately 7% of the BAAQMD'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-96 section 105 application, which EPA reviewed in August 
1995, the BAAQMD projected expenditures of non-Federal funds for 
recurrent expenditures (or its maintenance of effort (MOE)) of 
$24,778,132 which included fees collected by BAAQMD for permits it 
issues under Title V of the CAA.1 In January of 1997, 
however, the BAAQMD submitted to EPA documentation which shows that its 
actual FY-96 MOE was $23,273,665, which is exclusive of Title V. This 
amount represents a shortfall of $489,518 from the MOE of the preceding 
fiscal year. In addition, the projected FY-97 MOE of $21,555,635 
represents a shortfall of $1,718,030 from the FY-96 MOE of $23,273,665. 
In order for the BAAQMD to be eligible to keep its FY-96 grant and to 
be awarded an FY-97 grant, EPA must make a determination under section 
105(c)(2).
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    \1\ A CAA section 105 grantee's MOE may be reduced to reflect 
the transfer of activities to an EPA approved Title V program 
previously funded through section 105 grants. See 60 FR 366, 368 
(January 4, 1995) and 40 CFR 35.205(b).
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    In FY-96, the BAAQMD determined that its MOE would decrease because 
revenues from property taxes and permit fees decreased. For FY-97 the 
BAAQMD once again determined that there would be continued reductions 
in these revenue sources and, in addition, the State of California 
Retirement System (PERS) mandated that the District use the credit in 
their account in lieu of payment to PERS. Therefore, the usual 
contribution to PERS for 105 programs (which is a ``recurrent 
expenditure'') was not made and could not be counted towards the MOE. 
The reductions resulted in the loss of 12.5 full time permanent 
positions. In addition to the reduction in revenues, a general reserve 
and fund balance account were no longer available (because they had 
been depleted) to make up for shortages as they had in previous years. 
These were the contributing factors to a reduction in BAAQMD's FY-96 
and FY-97 MOE level.
    The BAAQMD's MOE reductions resulted from a loss of revenue from 
property taxes and permit fees. This loss of revenue and MOE reduction 
resulted from circumstances beyond the District's control. EPA proposes 
to determine that the BAAQMD's lower FY-96 and FY-97 MOE level meets 
the section 105(c)(2) criteria as resulting from a non-selective 
reduction of expenditures. Pursuant to 40 CFR 35.210, this 
determination will allow the BAAQMD to keep the funds received from EPA 
for FY-96 and to be eligible for an FY-97 award.
    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 7, 1997 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 7, 1997. If no written request for a hearing is received, EPA will 
proceed to a final determination.

    Dated: May 21, 1997.
David P. Howekamp,
Director, Air Division.
[FR Doc. 97-14854 Filed 6-5-97; 8:45 am]
BILLING CODE 6560-50-P