[Federal Register Volume 78, Number 161 (Tuesday, August 20, 2013)]
[Notices]
[Pages 51184-51186]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-20156]


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ENVIRONMENTAL PROTECTION AGENCY

[EPA-R10-OAR-2013-0441, FRL-9900-16-Region 10 ]


Air Pollution Control: Proposed Actions on Clean Air Act Section 
105 Grant to the Lane Regional Air Protection Agency; Proposed 
Determination With Request for Comments; and a Notice of Opportunity 
for a Public Hearing

AGENCY: U. S. 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 EPA has made a proposed determination that a reduction in 
recurring expenditures of non-Federal funds for the Lane Regional Air 
Protection Agency (LRAPA) in Eugene, Oregon is a result of agency wide 
non-selective reductions in expenditures. This determination, when 
final, will permit the LRAPA to continue to receive grant funding under 
Section 105 of the Clean Air Act for the state fiscal year (SFY) 2014. 
This determination will also reset the LRAPA required maintenance of 
effort level for SFY 2012 and 2013 to reflect the non-selective 
reductions made to address reductions in revenue due to adverse 
economic conditions in Lane County, Oregon.

DATES: Comments and/or requests for a public hearing must be received 
by EPA at the address stated below by September 19, 2013.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R10-
OAR-2013-0441, by one of the following methods:
     http://www.regulations.gov, Follow the online instructions 
for submitting comments.
     Email: [email protected]
     Mail: Paul Koprowski, U.S. Environmental Protection 
Agency, Region 10, 805 SW. Broadway, Suite 500, Portland, OR 97205.

FOR FURTHER INFORMATION CONTACT: Paul Koprowski, Region10, Oregon 
Operations Office, 805 SW. Broadway, Portland, OR, 97205, phone: (503) 
326-6363, fax: (503) 326-3399 or email: [email protected].

SUPPLEMENTARY INFORMATION: Section 105 of the Clean Air Act (CAA) 
provides grant support for the continuing air programs of eligible 
state, local and tribal agencies. Section 105 contains two cost-sharing 
requirements agencies must meet to qualify for grants under CAA Sec.  
105(a)(1)(A). Eligible entities must meet a minimum match and a

[[Page 51185]]

maintenance of effort (MOE) requirement under CAA Sec.  105(c)(1). The 
match requires that at least two-fifths (40%) of the total costs for 
approved Section 105 program activities must be paid by the state/local 
recipient. Program activities relevant to the match consist of both 
recurring and non-recurring (unique, one-time only) expenses. The LRAPA 
is currently meeting the two-fifths (40%) match requirement. The MOE 
provision requires that a state or local agency spend at least the same 
dollar level of funds as it did in the previous grant year for 
recurring activities. Specifically, CAA Sec.  105(c)(1) [42 U.S.C. 
7405(c)(1)], provides that ``no 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.'' Pursuant to CAA Sec.  105(c)(2), 
however, the EPA may award a grant to an agency not meeting the 
requirements of CAA Sec.  105(c)(1), ``if the Administrator, 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.'' These statutory requirements are 
repeated in the EPA's implementing regulations at 40 CFR 35.140 through 
35.148.
    The EPA issued additional guidance to recipients on what 
constitutes a non-selective reduction on September 30, 2011. In 
consideration of legislative history, the guidance clarified that a 
non-selective reduction does not necessarily mean that each executive 
branch agency or units of a single-purpose local air district need be 
reduced in equal proportion. However, it must be clear to the EPA, from 
the weight of evidence, that a recipient's CAA-related air program is 
not being disproportionately reduced or singled out for a reduction.
    No later than 90 days after the close of its grant period a CAA 
Sec.  105 recipient must submit a Federal Financial Report (FFR) that 
documents all of its federal and non-federal expenditures for the 
completed period. A recipient seeking an adjustment to its MOE for that 
period must provide the rationale and the documentation necessary the 
EPA to make a determination that a non-selective reduction has 
occurred. To expedite that determination, the recipient must provide 
details of the budget action and the comparative fiscal impacts on all 
the jurisdiction's executive branch agencies, the recipient agency 
itself, and the agency's air program. The recipient should identify any 
executive branch agencies or programs that should not be included in 
the comparison and explain why. The recipient must provide evidence 
that the air program is not being singled out for a reduction or being 
disproportionately reduced. Documentation in two key areas is required: 
Budget data specific to the recipient's air program and comparative 
budget data between the recipient's air program, the agency containing 
the air program and the other executive branch agencies. The EPA may 
also request information from the recipient about how impacts on its 
program operations will affect its ability to meet its CAA obligations 
and requirements.
    The LRAPA is a single purpose local air agency authorized to 
implement most aspects of the federal Clean Air Act in Lane County, 
Oregon. The chief executive is the LRAPA Executive Director and the 
fiscal decision-making body is the 9-member LRAPA Board of Directors.
    The EPA provides annual grant funding under the authority of CAA 
Section 105 to help the LRAPA support the operation of its CAA-related 
continuing environmental program for air quality. The LRAPA's annual 
grant period is based on the state fiscal year from July 1 through June 
30. For the SFY 2012 grant year, the EPA allocated $275,609 in CAA 
Section 105 funds to the LRAPA. The LRAPA's contribution to the total 
approved program funding for this period was $935,855. This represents 
a match of 78% for the period ending June 30, 2012.
    The LRAPA's FFR for SFY 2011 indicated that the LRAPA's MOE level 
was $1,068,396. This was the LRAPA's final level of recurrent 
expenditures for the SFY 2011 grant period and constituted the required 
MOE level for the SFY 2012 grant year. However, the LRAPA's FFR dated 
November 8, 2012 showed the actual SFY 2012 MOE was $935,855. On 
December 31, 2012 the LRAPA informed the EPA in writing that due to 
continued reductions in the state and local contributions to the 
LRAPA's budget the LRAPA fell short of its required MOE level by 
$132,541 for the SFY 2012 grant year. The LRAPA also projected a 
shortfall of an additional $135,542 in SFY 2013. As a result, the LRAPA 
requests the EPA adjust the MOE level to $935,855 for SFY 2012 and to 
$800,313 for SFY 2013.
    In the letter submitted on December 31, 2012 the LRAPA provided the 
rationale and essential documentation necessary to support approval of 
a non-selective reduction to the LRAPA's MOE level. The documentation 
includes details of the actions LRAPA took to address the shortfall 
including comparative fiscal impacts. The shortfall stems from budget 
actions taken to reduce state and local general funds available to the 
LRAPA due to adverse economic conditions in Oregon.
    The Oregon Department of Environmental Quality (ODEQ) is 
responsible for passing on state general funds to the LRAPA for air 
quality management in Lane County. For the SFY 2011-2013 biennial 
budget the Oregon Legislature reduced the amount of general funds 
available to the ODEQ by about 24% overall. The general fund resources 
available to manage ODEQ air and water quality programs were cut by 31% 
each while land quality program funds were cut by 44%. ODEQ then 
reduced the amount of general fund passed through to the LRAPA to 
manage air quality programs in Lane County by 31%, from $364,929 to 
$252,385. To address the general fund reductions to executive branch 
agencies in Oregon, the Governor imposed across-the-board unpaid 
furlough leave for state employees, wage and spending freezes and other 
agency-specific budget cuts necessary to address the shortfall to each 
agency.
    Since 2008 Lane County and the cities (Eugene, Springfield, Cottage 
Grove and Oakridge) that contribute locally to the LRAPA's budget have 
been subject to adverse economic conditions. These conditions are 
primarily due to the recession, reduced timber sales and property tax 
limitations. The Lane County general fund budget overall declined by 
11% in SFY 2012 and 17% in SFY 2013 primarily due to a decrease in 
revenue from timber sales on federal land in Lane County. These overall 
reductions were applied to other executive branch agencies in Lane 
County and were passed on to the Lane Regional Air Protection Agency. 
The following table illustrates the overall impact of local budget 
reductions on the local contribution to the LRAPA budget between SFY 
2011 and SFY 2013.

------------------------------------------------------------------------
                                                Total local    Percent
                 Fiscal year                   contribution   reduction
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SFY 2011.....................................      $333,440  ...........
SFY 2012.....................................       159,360           52
SFY 2013.....................................       121,670           23
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    Examples of reductions to the budgets of other programs or 
departments in Lane County include:

[[Page 51186]]



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                      Department/program                              Fiscal year           Percent reduction
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Justice Courts Program........................................                SFY 12-13                     53.7
Animal Services Program.......................................                SFY 12-13                     71.3
Health and Human Services.....................................                SFY 12-13                     26.3
Public Safety.................................................                SFY 12-13                     16.9
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    To operate within the limits of the reduced budgets for SFY 2012 
and SFY 2013, the LRAPA reduced recurring expenditures by imposing 
unpaid furlough days, work schedule reductions, and other systematic 
across-the-board reductions in materials and services, as well as not 
filling positions vacated due to retirements or resignations.
    For the LRAPA to be eligible to receive its SFY 2014 CAA Section 
105 grant, the EPA must make a determination (after notice and an 
opportunity for a public hearing and comment) that the reduction in 
expenditures is attributable to a non-selective reduction in the budget 
of the Lane Regional Air Protection Agency. Accordingly, consistent 
with criteria set forth in CAA Section 105(c)(2) and consistent with 
the Agency's September 30, 2011 guidance on qualifying for a non-
selective reduction, the EPA has determined that it is appropriate to 
approve the LRAPA's request for a non selective reduction in its level 
of recurring expenditures for the SFY 2012 and SFY 2013 grant budget 
period. The revised MOE level for SFY 2012 is $935,855 and the level 
for SFY2013 is $800,313.
    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 September 19, 2013 on this proposal will 
be considered. The EPA will conduct a public hearing on this proposal 
only if a written request for such is received by the EPA at the 
address above by September 19, 2013. If no written request for a 
hearing is received, the 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 Paul Koprowski at the above address.

    Dated: August 6, 2013.
Dennis J. McLerran,
Regional Administrator, Region 10.
[FR Doc. 2013-20156 Filed 8-19-13; 8:45 am]
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