[Federal Register Volume 64, Number 44 (Monday, March 8, 1999)]
[Notices]
[Pages 11004-11005]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-5666]


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ENVIRONMENTAL PROTECTION AGENCY

[FRL-6238-2]


Air Pollution Control; Proposed Actions on Clean Air Act Grants 
to the San Diego County Air Pollution Control District

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice; 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 San Diego County Air Pollution Control 
District (SDAPCD, or ``District'') in San Diego County, California is 
the result of a non-selective reduction in expenditures. This 
determination, when final, will permit the SDAPCD 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 April 7, 1999.

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 SDAPCD to aid in 
the operation of its air pollution control programs. In FY-97 EPA 
awarded the SDAPCD $1,354,056, which represented approximately 11% of 
the District's budget. In FY-98, EPA awarded the SDAPCD $1,201,811, 
which represented approximately 9% of the District's budget.
    Section 105(c)(1) of the CAA, 42 U.S.C. 7405(c)(1), provides that 
``[n]o

[[Page 11005]]

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 section 105 application, which EPA reviewed in the 
fall of 1997, the SDAPCD projected expenditures of non-Federal funds 
for recurrent expenditures (or its maintenance of effort (MOE)) of 
$12,361,507. This MOE at the time of the grant award was sufficient to 
meet the requirements of the CAA because it was higher than the actual 
FY97 MOE of $12,356,625. Based on this information, EPA awarded SDAPCD 
its FY98 grant in February, 1998. In December of 1998, SDAPCD reported 
an actual FY98 MOE of $12,050,625. This MOE level is not sufficient to 
meet the MOE requirements of the CAA because it is lower than the 
actual FY97 MOE, with a shortfall of $306,000 between the MOE for FY97 
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 SDAPCD for FY99, EPA must make a determination under 
section 105(c)(2).
    The SDAPCD is a single-purpose agency whose primary source of 
funding is permit fee revenue. Fees associated with permits issued by 
the SDAPCD go directly to the district to fund its operations. It is 
the ``unit of Government'' for section 105(c)(2) purposes. The reason 
for the lower MOE level in FY98 is a series of efficiencies that SDAPCD 
has implemented over the past three years, resulting in decreased 
district costs while maintaining service levels. The SDAPCD submitted 
documentation to EPA which states that the district MOE reductions 
resulted from agency process streamlining and automation improvements. 
As a result, the SDAPCD's overall budget and its MOE decreased. The 
District shows that it has been able to reduce its administrative 
expenditures in its programs through cost saving measures which do not 
affect the performance of its air programs or reduce its expenditures 
for substantive environmental program activities. For example, San 
Diego has reduced its expenditures by $630,600 through streamlining 
measures including elimination of positions not required to perform 
these jobs. These cost saving measures were taken not because fee 
revenues had declined, but because San Diego wanted to operate more 
efficiently. This budget reduction has been non-selective in that all 
programs within SDAPCD have been impacted.
    In summary, the SDAPCD's MOE reductions resulted from agency 
process streamlining, automation improvements, and position reductions, 
leading to decreased district costs while maintaining service levels. 
EPA proposes to determine that the SDAPCD's lower FY-98 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 SDAPCD to keep the funds received from EPA 
for FY-98.
    This document 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 7, 1999 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 7, 1999.
    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: February 25, 1999.
Matthew Haber,
Acting Director, Air Division, Region 9.
[FR Doc. 99-5666 Filed 3-5-99; 8:45 am]
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