available to support control agencies which meet the requirements of § 35.526. Insofar as practicable, these amounts shall be based upon the following criteria or equivalent parameters:

(1) Impact of the air pollution control activities upon the applicable implementation plan and national priorities and objectives.

(2) Population served.

(3) Extent of the actual or potential air pollution problem.

(4) Financial need.

The relative weight of each factor and the specific national priorities will be determined annually by the Administrator. The final allowances will consider actual and expected outputs of control agencies and the applicable implementation plan resources and resource needs.

(d) Allowance limitations. The allotment for any one State may not exceed an amount equal to 10 percent of the funds appropriated for the purposes of section 105(a) of the Clean Air Act in any one fiscal year.

(e) Reallotment. By October 15 of each year, or as soon thereafter as practicable, the Administrator will issue to each Regional Administrator an allowance derived from reallotment of unobligated prior year funds.

[39 FR 7785, Feb. 28, 1974; 39 FR 9439, Mar. 11, 1974]

cy's next budget period. Such tentative allotment shall be made as soon as practicable.

§ 35.510-2 Grant amount.

In determining the amount of support for a control agency, the Regional Administrator will consider: (a) The functions, duties, and obligations assigned to the agency by an applicable implementation plan; (b) the feasibility of the program in view of the resources to be made available to achieve or maintain EPA priorities and goals; (c) the probable or estimated total cost of the program in relation to its expected accomplishments; (d) the extent of the actual or potential pollution problem; (e) the population served within the agency's jurisdiction; (f) the financial need and (g) the evaluation of the agency's performance.

§ 35.510-3 Reduction of grant amount.

(a) The grantee shall submit the proposed program required by § 35.526 no later than 60 days preceding the budget period for which the program application is prepared. If the agency does not meet this deadline, the grant amount may be reduced one-twelth of the tentative allotment for each full month's delay. This money will be available for reallotment to air pollution control agencies within the region. Reductions will not be made for delays of less than a full month.

(b) If the Regional Administrator's annual performance evaluation reveals that the grantee will fail, or has failed, to achieve the expected outputs described in his approved program, the grant amount may be reduced by the approved estimated program cost to produce such outputs. This money will be available for reallotment to air pollution control agencies within the region.

(c) An agency shall be notified prior to any reduction in the amount of Federal support to that agency. This notification should include the reasons for reduction and if appropriate what steps the agency must take to regain funding.

§ 35.510-4 Limitations.

(a) The amount of a grant award to support an air pollution control agency program shall be subject to the grant limits set forth in § 35.507-1.

(b) Not more than 10 percent of the total of funds appropriated or allocated for the purposes of section 105(a) of the Clean Air Act in any one fiscal year shall be granted for air pollution control agencies in any one State. In the case of grants for an agency in an area crossing State boundaries, the Regional Administrator shall determine the portion of such grant that is chargeable to the 10 percent limitation for each State into which such area extends.

(c) Whenever a region's final allowance is not sufficient to meet the funding requirements of qualified air pollution control agencies, the Regional Administrator shall give priority to programs which meet applicable implementation plan commitments, national goals and priorities, and those requesting continuation support.

(d) Grants shall be awarded only from appropriations available at the time of award.

§ 35.515 Control program eligibility.

Any air pollution control agency that meets the criteria for award prescribed in § 35.520 shall be eligible for an air pollution control program assistance grant.

§ 35.520 Criteria for award.

(a) No grant may be awarded unless the program contained in the grant application meets the requirements of § 35.526 and has been approved by the Regional Administrator.

(b) No grant may be awarded until the Regional Administrator has consulted with the official designated by the Governor(s) of the State(s) affected by such award pursuant to section 105(b) of the Clean Air Act. Such consultation should consider the role of the applicant in the enforcement of any applicable implementation plan and confirm that the applicant's program will be generally compatible with the objectives of the applicable implementation plan.

(c) No grant may be awarded for any budget period when the estimated re

current expenditures of non-Federal funds for the agency will be less than the recurrent expenditures of nonFederal funds were for such agency during the preceding budget period.

(d) No grant may be awarded unless the applicant provides assurance satisfactory to the Regional Administrator that such grant will be used to supplement and, to the extent practicable, increase the non-Federal funds that would in the absence of such grant be made available for such agency, and that Federal assistance will in no event supplant such non-Federal

funds.

(e) No grant may be awarded to any air pollution control agency within an air quality control region, or portion thereof, for which there is an applicable implementation plan, unless the applicant has, or will be delegated, substantial responsibility for carrying out the plan.

(f) No grant may be awarded to any interstate or intermunicipal air pollution control agency unless the applicant provides assurance satisfactory to the Regional Administrator in the grant application that the agency provides for adequate representation of appropriate State, interstate, local and (when appropriate) international interests in the air quality control region, and further that the agency has the capability of developing and implementing a comprehensive air quality plan for the air quality control region.

(g) No grant may be awarded unless the Regional Administrator has determined that (1) the agency has the capability, or will develop the capability, to achieve the objectives and outputs described in its EPA-approved program, and (2) the agency has considered and incorporated as appropriate the recommendations of the latest EPA performance evaluation in its program.

(h) Where more than one air pollution control agency exists in a given State, no grant may be awarded to a control agency unless the Regional Administrator has determined that a written agreement has been developed between municipal or intermunicipal agencies and the State air pollution control agency detailing the proce

dures for implementing their responsibilities defined in the applicable implementation plan.

(i) No grant may be awarded unless the Regional Administrator has determined that the agency has adequate air pollution control authority and necessary regulations to implement such authority.

§ 35.526 Agency program preparation.

Each agency shall prepare, in consultation with the Regional Administrator, a program based on the applicable implementation plan and EPA annual guidance. The essence of a program is relating the utilization of available resources-both Federal and non-Federal monies-to the achievement of expected outputs. The program shall describe how each major program element is consistent with any applicable implementation plan and EPA's annual guidance. Information on each major program element shall be presented in summary form and shall include:

(a) The expected outputs to be obtained as discussed in § 35.527,

(b) The total resources to be expended to produce the expected outputs, including anticipated Federal financial and technical assistance; and

(c) An analysis of the efforts during the current budget period.

§ 35.527 Major program elements and outputs.

(a) The major program elements include activities which are necessary to the attainment of national objectives and priorities as described in the annual guidance. The major program elements should include, but not be limited to, the following items as they are outlined in Part 51, Appendix K of this chapter:

(1) Enforcement.

(2) Engineering.

(3) Technical Services.

(4) Administration.

(b) Outputs will be identified in the annual guidance for each major program element. Additional program elements and their associated outputs may be determined as deemed appropriate by the Regional Administrator. The outputs for each major program

element may include but are not limited to the following:

(1) Enforcement. The enforcement outputs should reflect concern for enforcement of applicable implementation plan requirements and also the authorities delegated to a State agency including National Emission Standards for Hazardous Air Pollution Sources (NESHAPS) and New Source Performance Standards (NSPS). The outputs describing enforcement should indicate the agency strategy, including the number of inspections to be performed, number of point sources that will achieve compliance, number of point sources to be put on compliance schedules and for each category of area sources, the percentage not in compliance that are to be brought into compliance.

(2) Engineering. The engineering outputs of the agency should reflect the agency's need for data essential for the enforcement of regulations and for the measurement of progress in achieving and maintaining ambient air quality standards. The mechanism used by an agency to prevent construction, modification, or operation of any source, where emissions from the source will prevent the attainment or maintenance of a national standard or will result in degradation of air quality in violation of approved implementation plans, should be described as part of the agency's major program elements. Outputs should, to the extent possible, quantify this mechanism by identifying measurable units such as the number of permits to be issued. The outputs should indicate the extent of agency engineering efforts required in support of permit systems and/or enforcement operations and may include source testing and compliance data systems. The outputs to be developed by the agency should provide for a current comprehensive emission inventory of air pollutants being discharged. The work performed in this regard should develop emission information compatible with the National Emission Data Systems (NEDS) requirements.

(3) Technical services. Technical services' outputs should support data collection, reporting, planning, and enforcement activities of the agency.

These outputs should reflect those reporting, operational and data gathering functions associated with the operation of air monitoring networks, laboratory facilities and data handling systems. Output schedules should indicate the number and types of air monitors, frequency of sampling, the agency's progress in meeting the minimum federal requirements outlined in Part 51 of this chapter. The output schedules should also reflect changes in the air monitoring network and additional equipment that may be required as a result of revisions or additions to the State implementation plan or through delegated authority. Laboratory outputs should indicate the number and type of samples analyzed, data expected from these samples, and equipment purchases. The data reported from these operations should be analyzed and reported in a manner consistent with the Storage and Retrieval of Aerometric Data (SAROAD) format and supportable of State reporting requirements as outlined in § 51.7 of this chapter, for quarterly and semi-annual reports.

(4) Administrative services. The administrative services should support and provide direction for planning and developing policy for the achievement of agency outputs. These support activities may involve revisions to applicable implementation plans (including indirect source controls and significant deterioration policy); assessment and evaluation of accomplishments relating to implementation plan achievement; and development and implementation of transportation and land use control programs relating to planning and air quality considerations; intergovernmental activities, and liaison with other agencies; and the modification of resource projections. The outputs should provide for training of the agency personnel. Where appropriate, contractual arrangements with other units of the State in implementing provisions of the Clean Air Act should be provided. Plans should be developed and included as required for the attainment of legal authority and acquisition of ordinances, rules and regulations to carry out the applicable implementation plans and revisions.

§ 35.528 Agency program submission.

Each agency shall submit to the Regional Administrator, generally no later than 90 days prior to the end of its budget period, a program pursuant to § 35.526 which satisfies the requirements of these regulations and the narrative requirements of Part IV of the grant application. A reduction in the grant amount may be made in accordance with § 35.510-3 for programs submitted late.

§ 35.529 Program approval.

(a) The program submission shall be approved only if the program satisfies all terms, conditions, and limitations set forth in these regulations.

(b) The Regional Administrator may award a grant based on conditional approval of a program which requires minor changes to qualify for approval. In the event conditional approval is granted, the Regional Administrator shall include in the grant agreement a statement of the conditions which must be met to secure final approval and the date by which such conditions shall be met.

§ 35.530 Grant conditions.

In addition to any other requirements herein, each air pollution control grant shall be subject to the following conditions:

(a) Direct cost expenditures for the purchase of real estate or construction of a fixed structure are unallowable, except that costs of monitoring stations may be allowed as direct costs.

(b) The sum of the non-Federal recurrent expenditures by the grantee in the budget period for which the grant is awarded shall be equal to or greater than the sum of grantee's recurrent expenditures during the fiscal year immediately preceding the beginning of the current budget period.

(c) The grantee shall provide such information as the Regional Administrator may from time to time require to carry out his functions. Such information may contain, but is not limited to: Air quality data, emission inventory data, data describing progress toward compliance with regulations by specific sources, data on variances granted, quality assurance informa

tion related to data collection and analysis and similar regulatory actions, source reduction plans and procedures, real time air quality and control activities and other data related to air pollution emergency episodes, and similar regulatory actions.

(d) The Regional Administrator may refuse to award a grant or may terminate in whole or in part, a grant awarded under this subpart pursuant to § 30.920 of this chapter when a period of federally assumed enforcement defined in section 113(a)(2) of the Clean Air Act is in effect with respect to such agency.

(e) The Regional Administrator may terminate a grant awarded under this subpart pursuant to § 30.920 of this chapter where the Administrator has not approved, or has revoked approval, of the applicable implementation plan and any other specific authorities delegated to the agency.

[39 FR 7785, Feb. 28, 1974, as amended at 40 FR 20083, May 8, 1975]

§ 35.535 Assignment of personnel.

(a) The Administrator may detail personnel of the Environmental Protection Agency to an`air pollution control agency pursuant to section 301(b) of the Clean Air Act.

(b) The Regional Administrator, with the concurrence of the grantee, may reduce grant payments by the amount of pay, allowances, travel, training, and other expenses related to the detail of any EPA officer or employee pursuant to section 105(d) of the Clean Air Act. The amount of the reduction shall be deemed to have been paid to the grantee in determining the amount of any grant.

§ 35.538 Agency evaluation and reports.

§ 35.538-1 Agency evaluation.

Agency evaluation is primarily a grantee responsibility and should be continuous throughout the budget period. It is EPA policy to limit EPA evaluation to that which is necessary for responsible management of regional and national efforts to control air pollution. The Regional Administrator shall conduct an agency performance evaluation annually in accordance with § 35.410. The evaluation shall in

clude the review and assessment of the agency's effectiveness in meeting objectives and outputs, and in carrying out related activities, as set forth in the grantee's approved program. An exit interview will be conducted following an agency evaluation to inform the grantee of preliminary findings and recommendations.

§ 35.538-2 Reports.

No later than 150 days prior to the beginning of a new budget period, the Regional Administrator shall prepare a summary of evaluation findings. The report prepared by the Regional Administrator should outline deficiencies in program performance through the time of the evaluation. When appropriate, the report shall contain recommendations for upgrading current agency operations as well as provide guidance for the development of the upcoming grant application. The grantee shall be allowed 15 working days from the date of receipt to concur with or comment on the findings.

GRANTS FOR STATE PUBLIC WATER SYSTEM SUPERVISION PROGRAMS AUTHORITY: Sec. 1443, 1450, Safe Drinking Water Act (42 U.S.C. 300j-2 and 300j-9).

SOURCE: Sections 35.600 to 35.630, 41 FR 2912, Jan. 20, 1976, unless otherwise noted. § 35.600 Scope and purpose.

Sections 35.600 through 35.630 establish regulations and procedures for providing program grant funds to the States for the development and administration of public water system supervision programs as authorized by Section 1443(a) of the Public Health Service Act. These regulations are intended to foster development of State program plans and programs to assist in implementing Title XIV of the Act (added by the Safe Drinking Water Act). This subpart supplements EPA General Grant Regulations and procedures set forth in Part 30 of this chapter.