[Federal Register Volume 63, Number 125 (Tuesday, June 30, 1998)]
[Notices]
[Page 35586]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-17377]



[[Page 35586]]

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ENVIRONMENTAL PROTECTION AGENCY

[FRL-6117-8]


Air Pollution Control; Proposed Actions on Clean Air Act Grants 
to the Santa Barbara 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 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 Santa Barbara County Air Pollution Control 
District (SBAPCD, or ``District'') in Santa Barbara, California is the 
result of a non-selective reduction in expenditures. This 
determination, when final, will permit the SBAPCD to keep the financial 
assistance awarded to it by EPA for FY-98 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 30, 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 SBAPCD to aid in 
the operation of its air pollution control programs. In FY-97 EPA 
awarded the SBAPCD $328,732, which represented approximately 8% of the 
District's budget. In FY-98, EPA awarded the SBAPCD $307,000, which 
represented approximately 7.6% 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 
section 105(c)(2). These statutory requirements are repeated in EPA's 
implementing regulations at 40 CFR 35.210(a).
    In its FY-98 Sec. 105 application, which EPA reviewed in the fall 
of 1997, the SBAPCD projected expenditures of non-Federal funds for 
recurrent expenditures (or its maintenance of effort (MOE)) of 
$3,678,150. This MOE at the time of the grant award was sufficient to 
meet the requirements of the CAA because it was higher than the 
projected FY97 MOE of $3,570,793. Based on this information, EPA 
awarded SBAPCD its FY98 grant in December, 1997. In January of 1998, 
SBAPCD submitted an actual FY97 MOE of $3,701,408. This resulted in the 
projected FY98 MOE level of $3,678,150 not being sufficient to meet the 
MOE requirements of the CAA because it is lower than the actual FY-97 
MOE, with a shortfall of $23,258 between the MOE for FY-97 and FY98. In 
order for the District to be eligible to keep its FY98 grant and to 
receive the additional EPA funding which has become available to SBAPCD 
for FY98, EPA must make a determination under Section 105(c)(2).
    The SBAPCD is a single-purpose agency whose primary source of 
funding is permit fee revenue. Fees associated with permits issued by 
the SBAPCD go directly to the district to fund its operations. It is 
the ``unit of Government'' for Section 105(c)(2) purposes. The SBAPCD 
submitted documentation to EPA which shows that since FY97 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 SBAPCD's overall 
budget and its MOE decreased. The SBAPCD also submitted documentation 
to EPA which shows that the District lost 12.25 staff positions since 
FY97. These reductions in fees and staff have been non-selective in 
that all programs within SBAPCD have been impacted.
    In summary, the SBAPCD's MOE reductions resulted from budget cuts 
stemming from a loss of fee revenues due to circumstances beyond the 
District's control. EPA proposes to determine that the SBAPCD's lower 
FY-98 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 SBAPCD to keep the funds received 
from EPA for FY-98.
    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 30, 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 30, 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 17, 1998.
David P. Howekamp,
Director, Air Division, Region 9.
[FR Doc. 98-17377 Filed 6-29-98; 8:45 am]
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