Document Gm15w0a1VeYXaDOMxyORrx11x

******* ^to sr,, m,"t Ar j^7^cA**ueAs / UNITED STATES ENVIRONMENTAL PROTECTION AGENCY WASHINGTON, D.C. 20460 JUN 4 1985 OFFICE OF AIR AND RADIATION SUBJECT: Allocation of Section 105 Grant Funds and Negotiation of Grant Awards for FY 1986 FROM: Charles L. Elkins, Acting^ Office of Air and Radiation ant, Adrn TO: Regional Administrators, Regions I - X I have outlined below the bases for allocating the section 105 air quality grant funds among Regional Offices in FY 1986. I have also described the general ground rules that Regional Offices should follow in negotiating the final grant awards for FY 1986. The allocations and ground rules Reflect the results of the State and local air program resources study and the impending Agency policy on performance-based grants. The President's FY 1986 budget request for section 105 grants totals $95.0 million. The FY 1986 allocation of the $95.0 million among Regional Offices is based on estimates of the resources needed by State and local agencies to carry out new high national priority requirements, replace worn-out air quality monitors, meet existing high national priority requirements, and maintain base programs. The amounts allocated for each of these general categories of activities are shown below. Category Available Funding Carry out new requirements Replace worn-out monitors Implement existing requirements and maintain base programs 9,690,000 2,000,000 83,344,000 Total $95,034,000 We also intend to reprogram $3.0 million to provide State and local agencies with additional funds to carry out initiatives in the Agency's air toxics strategy. This reprogramming will bring the total funds available to State and local agencies in FY 1986 to $98.0 million. The distribution of the additional funds, as well as the allocation of the $1.5 million already identified for these initiatives, will be announced later this year. Regional allocations for acid rain emission inventories and for visibility monitoring will also be announced later in the year. lam 003688 DPMC-09779 2- - Allocationa to Meet New Requirements In FT.1986 States will have to carry out a number of activities that they generally have not been required to do in the past. These activities and the grant dollers allocated nationally to carry out the activities are shown below. Individual Regional allocations for these new activities are included in Attachment A. Activity Begin development of PM^g SIPa ,Available Funding 2 000,000 Implement air toxics referrals 1.500.000 Implement the NESHAPs for asbestos 1.400.000 Implement compliance strategy for 1,000,000 Class B VOC sources Develop new anti-tampering programs 940.000 Meet stack height requirements* 700.000 Establish visibility monitoring network* 500.000 Develop acid rain emissions inventory 500.000 Develop new vehicle inspection programs 450.000 Establish PMio monitoring networks 400.000 Promulgate court-ordered TSP SIPs* 300.000 Total $9,690,000 Allocations toReolace Monitors Based on a 1984 survey, approximately 20 percent of existing air quality monitoring instruments are in poor condition. Because of the national need for comprehensive, high quality information to manage clean air programs, $2.0 million in grant funds is .being allocated in FY 1986 to help provide for orderly upgrading of monitoring networks. The distribution of these funds among Regional Offices is also shown in Attachment A. Allocations to Implement Existing Requirements and Maintain Base P roq rams A total of $83.3 million will be allocated among Regional Offices in FY 1986 to fund the implementation of existing high national priority requirements and the maintenance of base programs. This amount is approximately 88 percent of the total grant funds requested for FY 1986 and about 92 percent of the grant funds appropriated for FY 1985. The Regional allocations for FY 1986, shown in Attachment A, were made on the basis of the percent of the total grant funds received by each Region in FY 198S. * Activities with mandatory outputs. LAM 003689 DPMC-09780 Negotiating Commitments with State and Local Agencies In negotiating FY 1986 grants. Regional Offices and state and local agencies must agree on specific outputs from certain types of activities and identify the amount of grant funds that will be used to complete these outputs. Specific outputs must be negotiated for three types of activities: new high national priority requirements, monitor replacement, and existing high national priority requirements. The categories of new requirements and monitor replacement are described above. The existing require ments that require special attention include: 0 Correct deficient Part D SIPs* Implement Part D commitments* -- Regulations and strategies for VOCs and carbon monoxide -- Upgrading of vehicle inspection programs Correct major TSP SIP deficiencies identified through litigation* Complete lead SIPs reguired by settlement agreement* Specific types of outputs are identified in Attachment B. Certain categories of outputs are mandatory. These include three categories of new requirements that are the result of litigation: stack heights, visibility monitors, and court-ordered TSP SIPs. These also include all categories of outputs for existing high priority national requirements. These outputs are all necessary to respond to litigation, meet statutory deadlines, or complete EPA administrative actions. Mandatory outputs categories are identified by the asterisk in the two lists in this memo and in Attachment B. If State and local agencies do not agree to complete the mandatory outputs, then Regional Offices must arrange to complete the outputs using contractor assistance. The contract work will be funded using the money that would otherwise have gone to the grantee. Report on Outputs Regional Offices will be required to report the outputs negotiated with State and local grantees and the status of these outputs on a quarterly basis. Reporting requirements will be described in a separate memo and will be based on discussions with your staff. Regional Offices may also negotiate outputs, in addition to those in Attachment B, to implement Region-specific priorit ies. * Requirements with mandatory outputs. ... LAM 00369U DPMC-09781 -4Because these allocation and negotiation procedures are new, I expect that there will be questions about their implementation. Please call Jack Hidinger at 382-7415 for assistance in answering these questions and resolving any issues that may arise. cc: Gerald Emison Richard D. Wilson John Wise law 003691 DPMC-09782 oooooooooco oo(oooooooo*o* OoionovoO^(jr\ooounoo VO o co (N ^ ^ CM co co o o o o O m iOcnO nOu<ir CM o o o o O* in om min cn * co CM VO co CM Mr*3 rC*O in in r* V^Or CM crro-- o o oo ffl CM - ro o i co o o o in r* o CO co in CrD- m co CM r* CM ro CM r* co ro in in r* vcoo CM CO o o in vo CM r- in REGIONAL ALLOCATIONS OF SECTION 105 GRANT FUNDS FOR FY 1986 (D o lla rs in thousands) A llo c a tio n to be determii>ed a t a la te r o VO o CM o i c* I m V m CM in 1 ro | CM VO ro in <n co or O o CM co in in r* o o o o o ^ * 1 co CO in r* o co in CM o r* o r* CM ^r VO CO *r O o vo r- m vo vO in in c* r* o * CM o 1 id o m CM in uo o co CM o ^4 CM CM VO CO *r 1 CM l ro o r* in vo CM 1 vo 1 VO CM CM <N O o 1 CM lO in co O ro CM CM vo CO in Oo ro ~4 CO o 0* CO vO CO CM CM CO *-- ^4 O r CM 0"4 --* O CO m vo vo vO C-O 0X *O<<-TfJl <T3 2*o -OX C*O-> &--->W-* T3 <O W VO T2 2g 0 .w *s CO L CJ 3o <TJ T3 <o Li c. L c. 0 8 8 c <55 S - "S (fl fT3 O <0 O 83L D in x P f 3 Li Cj 2 G* DPMC-09783 LAM 003692 Attachment B OUTPUTS TO BE NEGOTIATED WITH STATES FOR FY 1986 CATEGORIES QP NEW REQUIREMENTS SPECIFIC OUTPUTS PM10 SIPs Schedule of commitments leading to an approved SIP Completed commitments Air toxics referrals To be determined Asbestos NESHAPs Total number of notifications Total number of inspections Total number of enforcement actions Class B VOC source compliance Inventory of significant Class B VOC sources New anti-tampering programs New programs established Stack height requirements* Approved SIP- revision Visibility monitoring* "To be determined Acid rain emissions inventory To be determined New I/M programs Schedule of commitments leading to an approved operating program Completed commitments PM^o monitoring network Total number of instruments purchased Total number of sites in operation Court-ordered TSP SIPs* Schedule of commitments leading to an approved SIP Completed commitments LAM 003693 DPMC-oyvo-q REPLACE MONITORS 2- - SPECIFIC OUTPUTS Total number of ozone and carbon monoxide instruments purchased Total number of new instruments in operation CATEGORIES OF EXISTING REQUIREMENTS V Correct deficient Part D SIPs* Implement Part D commitments* Regulations and strategies for VOCs and carbon monoxide Upgrading of vehicle inspection programs Correct major TSP SIPs* Complete lead SIP* SPECIFIC OUTPUTS Approved SIP revision Completed commitments Completed commitments Completed upgrading to correct deficiencies found in program audits Schedule of commitments leading to an approved SIP Completed commitments Approved SIP revision `Categories with mandatory outputs LAM 003694