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B-209872-O.M. 1 (1984-03-23)

handle is hein.gao/gaobadprk0001 and id is 1 raw text is: 


UNITED STATES GOVERNMENT           GENERAL ACCOUNTING OFFICE

Memorandum                                   March 23, 1984


TO        Senior Group Director, RCED - Sam A. Mad  ia
THRU:     Senior Attorney, OGC - Gary L. Kepplinier'

FROM      Attorney-Adviser, OGC -    een S. iol nb e.



SUBJECT:  State Maintenance of Effort Requirements and Carry-
          over of Federal Grant Funds Under Section 105(b) of
          the Clean Air Act (File B-209872; Code 089242)


     At the request of the Chairman, Subcommittee on Over-
sight and Investigations, House Committee on Energy and Com-
merce, you are reviewing the Environmental Protection
Agency's (EPA's) actions in monitoring State funding and
expenditures under section 105(b) of the Clean Air Act (CAA),
42 U.S.C. S 7405(b). You asked for our views on two areas of
concern: (1) maintenance of effort (MOE) requirements for
State and local grantees and (2) carryover of unexpended
grant funds to subsequent fiscal years. We discuss these
issues below in the order presented.

                              I.

              Maintenance of Effort Requirements

     Section 105 of the Clean Air Act, 42 U.S.C. S 7405,
authorizes the EPA Administrator to make grants to State and
local air pollution agencies to assist them in carrying out
programs for the prevention and control of air pollution.
EPA awards section 105 grants annually. In order to receive
grant funds in subsequent years, State and local governments
must maintain their level of spending on air pollution pro-
grams for prior fiscal years (MOE requirement). In this
regard, section 105(b) of the CAA provides in pertinent part
as follows:

          No agency shall receive any grant under
          this section during any fiscal year when
          its expenditures of non-Federal funds for
          other than nonrecurrent expenditures for
          air pollution control programs will be less
          than its expenditures were for such pro-
          grams during the preceding fiscal year,
          unless the Administrator, after notice and