Air Pollution Control; Proposed Action on Clean Air Act Grant to the Pima County, Arizona, Department of Environmental Quality

ENVIRONMENTAL PROTECTION AGENCY

[FRL-5422-3]

Air Pollution Control; Proposed Action on Clean Air Act Grant to

the Pima County, Arizona, Department of Environmental Quality

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 a

reduction in expenditures of non-Federal funds for the Pima County,

Arizona, Department of Environmental Quality (PDEQ) in Tucson, Arizona

is a result of a non-selective reduction in expenditures. This

determination, when final, will permit the PDEQ to be awarded financial

assistance for FY-96 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 March 18, 1996.

ADDRESSES: All comments and/or requests for a public hearing should be

mailed to: Douglas K. McDaniel, Air Grants Section (A-2-3), Air and

Toxics Division, U.S. EPA Region IX, 75 Hawthorne Street, San

Francisco, California 94105-3901; FAX (415)744-1076.

FOR FURTHER INFORMATION CONTACT: Douglas K. McDaniel, Air Grants

Section (A-2-3), Air and Toxics Division, U.S. EPA Region IX, 75

Hawthorne Street, San Francisco, California 94105-3901 at (415) 744-

1246.

SUPPLEMENTARY INFORMATION: Under the authority of Section 105 of the

CAA, EPA provides financial assistance to the PDEQ to aid in the

operation of its air pollution control programs. In FY-95, EPA awarded

the PDEQ $331,207, which represented approximately 25.4% of the PDEQ's

air pollution control program 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.''

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 January of 1996, the PDEQ submitted to EPA final documentation

which shows that its actual FY-95 expenditures of non-Federal funds for

recurrent expenditures (or its maintenance of effort (MOE)) were

$973,959. In its FY-96 Sec. 105 grant application the PDEQ projected

MOE of $537,821. This amount represents a shortfall of $436,138 from

the MOE for the preceding fiscal year (FY-95). In order for the PDEQ to

be eligible to be awarded its FY-96 grant, EPA must make a

determination under section 105(c)(2).

In December 1995, the PDEQ submitted documentation to EPA

establishing that its reduced expenditures for FY-96 result from a loss

of permit revenue, due to changes to Pima County's air quality rules

mandated by new Arizona state law which required Arizona localities to

amend their air quality rules that were more stringent than state

rules. Rule changes adopted on November 14, 1995

[[Page 6242]]

by the Pima County Board of Supervisors included both raising permit

thresholds and lowering fee schedules to make them identical in

structure to the state program. Due to these changes, there will be a

severe decline in permit revenue in FY-96.

The PDEQ's MOE reduction resulted from a loss of fee revenues due

to circumstances beyond its control. EPA proposes to determine that the

PDEQ'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 section 35.210, this determination will allow the PDEQ to be

awarded Sec. 105 grant funds for FY-96.

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 March 18, 1996 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

March 18, 1996.

If no written request for a hearing is received, EPA will proceed

to a final determination. While notice of the final determination will

not be published in the Federal Register, a copy of the determination

can be obtained by sending a written request to Douglas McDaniel at the

above address.

Dated: February 3, 1996.

David P. Howekamp,

Director, Air and Toxics Division, U.S. EPA, Region 9.

[FR Doc. 96-3582 Filed 2-15-96; 8:45 am]

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