[Federal Register Volume 62, Number 141 (Wednesday, July 23, 1997)]
[Notices]
[Page 39516]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-19395]



[[Page 39516]]

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ENVIRONMENTAL PROTECTION AGENCY

[FRL-5862-4]


Air Pollution Control; Proposed Action on Clean Air Act Grant to 
the Sacramento Metropolitan 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 Sacramento Metropolitan 
Air Quality Management District (SMAQMD) in Sacramento, California are 
a result of non-selective reductions in expenditures. This 
determination, when final, will permit the SMAQMD 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 August 22, 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 SMAQMD, whose 
jurisdiction includes Sacramento County in California, to aid in the 
operation of its air pollution control programs. In FY-95, EPA awarded 
the SMAQMD $1,272,403 which represented approximately 14% of the 
SMAQMD's budget, and in FY-96 $1,581,581 which represented 
approximately 16% of the SMAQMD'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).
    The SMAQMD is a single-purpose agency whose source of funding 
originates from several different sources as described below. It is the 
``unit of Government'' for section 105 (c)(2) purposes. In its FY-96 
section 105 application, the SMAQMD projected non-recurrent non-Federal 
expenditures (or its maintenance of effort (MOE)) of $8,132,074 which 
included fees collected by SMAQMD for permits it issues under Title V 
of the CAA. 1 In January of 1997, however, the SMAQMD 
submitted to EPA documentation which shows that its actual FY-96 MOE 
was $6,980,263 which is exclusive of Title V. This amount represents a 
shortfall of $1,084,267 from the MOE of the preceding fiscal year (FY-
95). In order for the SMAQMD 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 SMAQMD determined that its MOE would decrease 
because: (1) Revenue from Title V permit fees are not available for MOE 
purposes, (2) revenue from the Department of Motor Vehicles (DMV) 
decreased, (3) contributions from Sacramento, County are no longer 
available, (4) the Small Business Assistance Center is providing less 
funding to the District as well as to other State agencies.
    The SMAQMD's MOE reductions resulted from circumstances beyond the 
District's control. EPA proposes to determine that the SMAQMD'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 35.210, 
this determination will allow the SMAQMD 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 August 22, 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 
August 22, 1997. If no written request for a hearing is received, EPA 
will proceed to a final determination.

    Dated: July 10, 1997.
David P. Howekamp,
Director, Air Division.
[FR Doc. 97-19395 Filed 7-22-97; 8:45 am]
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