99-10631. Revised Allotment Formulas for State and Interstate Monies Appropriated Under Section 106 of the Clean Water Act  

  • [Federal Register Volume 64, Number 84 (Monday, May 3, 1999)]
    [Rules and Regulations]
    [Pages 23734-23739]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 99-10631]
    
    
    
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    Part II
    
    
    
    
    
    Environmental Protection Agency
    
    
    
    
    
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    40 CFR Part 35
    
    
    
    Revised Allotment Formulas for State and Interstate Monies Appropriated 
    Under Section 106 of the Clean Water Act; Final Rule
    
    Federal Register / Vol. 64, No. 84 / Monday, May 3, 1999 / Rules and 
    Regulations
    
    [[Page 23734]]
    
    
    
    ENVIRONMENTAL PROTECTION AGENCY
    
    40 CFR PART 35
    
    [FRL-6332-1]
    
    
    Revised Allotment Formulas for State and Interstate Monies 
    Appropriated Under Section 106 of the Clean Water Act
    
    AGENCY: Environmental Protection Agency.
    
    ACTION: Final rule.
    
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    SUMMARY: This regulation revises the formulas for allotting funds 
    appropriated under Section 106 of the Clean Water Act (CWA) to States 
    and to interstate agencies for administering water quality programs. 
    Section 106 of the CWA authorizes the Environmental Protection Agency 
    (EPA) to provide grants to States and interstate agencies, and Indian 
    Tribes qualified under CWA Section 518(e), to assist them in 
    administering programs for the prevention, reduction, and elimination 
    of pollution.
        The allotment formula for the tribal portion of the Section 106 
    Grant Program was revised in 1997 and is not affected by this action.
        The CWA directs EPA to allocate Section 106 funds ``on the basis of 
    the extent of the pollution problem in the respective States.'' The 
    Section 106 allotment formulas were previously based on data more than 
    25 years old, including population data from the 1960s and data on 
    pollution sources from the early 1970s. Reports of current water 
    quality conditions around the country, provided by States under CWA 
    Section 305(b), indicate that the location and nature of the sources of 
    water pollution have changed significantly since the early 1970s. 
    Utilizing the more recent data, EPA revised the CWA Section 106 State 
    and interstate allotment formulas to better comply with the statutory 
    directive to allocate funds to States and interstate agencies based on 
    the ``extent of the pollution problem.'' Notice of revised State and 
    interstate agency allotment formulas for Fiscal Year (FY) 1999 was 
    published in the Federal Register (63 FR 59870 (1998)).
        Based on public comments received on the FY 1999 formulas, EPA has 
    revised the CWA Section 106 State allotment formula to incorporate a 
    perpetual ``hold harmless'' provision, which ensures that all States 
    will receive an allotment at least equal to their FY 2000 allotment 
    level for FY 2001 and beyond unless the appropriation for States under 
    the Section 106 Grant Program decreases from its FY 2000 level.
        These revised Section 106 State and interstate allotment formulas 
    will be effective for Fiscal Year 2000 and beyond.
    
    DATES: This rule is effective May 3, 1999.
    
    FOR FURTHER INFORMATION CONTACT: Carol Crow, Office of Wastewater 
    Management (4201), 401 M Street, S.W., Washington, D.C. 20460; 
    Telephone: (202) 260-6742; Facsimile: (202) 260-1156; E-mail: 
    crow.carol@epa.gov
    
    SUPPLEMENTARY INFORMATION:
    
    Regulated Entities
    
        States, the District of Columbia, Puerto Rico, the Insular Areas, 
    and interstate agencies eligible to receive grants under Section 106 of 
    the Clean Water Act are regulated by this rule.
    
    Background
    
        Section 106(a) provides general authority for grants to States, 
    interstate agencies, and Indian Tribes qualified under CWA Section 
    518(e), to assist them in administering programs for the prevention, 
    reduction, and elimination of water pollution. Section 106(b) of the 
    CWA requires the Administrator of the Environmental Protection Agency 
    (EPA) to make allotments from sums appropriated by Congress in each 
    fiscal year ``on the basis of the extent of the pollution problem in 
    the respective States.''
        The Section 106 allotment formulas were previously based on data 
    that is now more than 25 years old, including population data from the 
    1960s and inventory data for large cattle feedlots, industrial and 
    municipal point sources, and power plants dating from the early 1970s. 
    Reports of current water quality conditions around the country, 
    provided by States to EPA under CWA Section 305(b), indicate that the 
    location and nature of the sources of water pollution have changed 
    significantly since the early 1970s.
        For the FY 1999 formula revision process, EPA organized a work 
    group consisting of geographically-balanced representation from the 
    Agency, seven States, and an interstate agency to review the former 
    formula and to consider other approaches. The State representatives 
    were recommended by the Environmental Council of States (ECOS), the 
    Association of State and Interstate Water Pollution Control 
    Administrators (ASIWPCA) and the Ground Water Protection Council 
    (GWPC). The representatives selected by these organizations were 
    encouraged to share information and gather opinions from other States 
    in their region and in their associations. The work group evaluated a 
    wide range of alternative approaches and ultimately developed and 
    recommended revised State and interstate allocation formulas for use in 
    determining Section 106 State and interstate allotments for FY 1999.
        Utilizing the more recent data, EPA revised the allotment formulas 
    for FY 1999 to ensure the allotment of funds to States and interstate 
    agencies based on the ``extent of the pollution problem in the 
    respective States.'' Notice of revised allotment formulas for States 
    and interstate agencies for Fiscal Year (FY) 1999 was published in the 
    November 5, 1998, Federal Register (63 FR 59870).
        Based on a significant increase in the appropriation for the 
    Section 106 Grant Program in FY 1999, the revised formula specifically 
    provided that no State's FY 1999 allotment would be less than its FY 
    1998 allotment. For FY 1999, the funding increase also provided 
    additional resources to most States. In subsequent years, under the FY 
    1999 formula, States would not lose more than 5 percent of their 
    Section 106 allotment in any one year, or more than a total of 20 
    percent from their FY 1998 Section 106 allotment.
        The funding set-aside for interstate agencies was returned to its 
    historical (FY 1976) high level of 2.6 percent of the total State 
    monies appropriated for States under the Section 106 Grant Program.
        EPA published the revised FY 1999 formulas in the November 5, 1998, 
    Federal Register Notice and requested public comments be submitted no 
    later than January 4, 1999. In response to public comments, EPA 
    reconvened an expanded Section 106 Formula work group comprised of EPA 
    and State representatives to develop final Section 106 allotment 
    formulas for FY 2000 and beyond. To ensure that States from each EPA 
    Region were provided with an opportunity to participate directly in the 
    development of the final revised allotment formulas, the membership of 
    the original Section 106 Formula work group was expanded to include 
    four additional State representatives. Work group representatives were 
    encouraged to share information and gather opinions from other States 
    in their regions and in their associations.
        In response to specific concerns raised in the comments, EPA 
    recommended incorporation of a perpetual ``hold harmless'' provision in 
    the final Section 106 State allotment formula. After extensive 
    discussion, the work group members unanimously agreed to implement a 
    perpetual ``hold harmless'' provision in the final State
    
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    formula. This provision will (1) ensure that all States will be 
    eligible to receive an allotment at least equal to their FY 2000 
    allotment for FY 2001 and beyond, provided that the appropriation for 
    States under the Section 106 Grant Program does not decline from its FY 
    2000 level; and (2) all States will be eligible to receive a portion of 
    any increase in the appropriation for States under the Section 106 
    Grant Program. For FY 2000, each of the 21 entities 1 that 
    did not receive an increase in its allotment from FY 1998 to FY 1999 
    (i.e., the entity received the same allotment in FY 1999 that it 
    received in FY 1998) will receive at least its FY 1999 allotment plus 
    an allowance for inflation based on the Consumer Price Index (CPI). 
    Each of the 35 entities 2 that received a funding increase 
    from FY 1998 to FY 1999 will receive its FY 1999 allotment minus a pro 
    rata share of the funds necessary to ensure the inflation allowance for 
    the aforementioned 21 entities.
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        \1\ 17 States, the District of Columbia, Guam, Puerto Rico, and 
    the U.S. Virgin Islands
        \2\ 33 States, American Samoa, and the Northern Mariana Islands
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        Once the work group members reached agreement on the implementation 
    of the ``hold harmless'' provision, accordingly they agreed to maintain 
    the components, data sources, and weights used in the FY 1999 formula 
    as published in the November 5, 1998, Federal Register in the final 
    Section 106 allotment formulas for FY 2000 and beyond.
    
    Regulatory Flexibility Act
    
        Under the Regulatory Flexibility Act (RFA), 5 U.S.C. 601 et seq., 
    as amended by SBREFA, EPA generally is required to conduct a regulatory 
    flexibility analysis describing the impact of the regulatory action on 
    small entities as part of rulemaking. However, under Section 605(b) of 
    the RFA, if EPA certifies that the rule will not have a significant 
    economic impact on a substantial number of small entities, EPA is not 
    required to prepare a regulatory flexibility analysis. Pursuant to 
    Section 605(b) of the Regulatory Flexibility Act, 5 U.S.C. 604(b), the 
    Administrator certifies that this rule will not have a significant 
    economic impact on a substantial number of small entities.
        This rule imposes no new requirements on small entities, nor does 
    it adversely impact them. It updates existing funding allotment 
    formulas for States and interstate agencies to ensure that the 
    allotments of CWA Section 106 funds to States and interstate agencies 
    are based on the ``extent of the pollution problem in the respective 
    States.'' Based on the incorporation of a perpetual ``hold harmless'' 
    provision in the State allotment formula, all States will receive an 
    allotment at least equal to their FY 2000 allotment level for FY 2001 
    and beyond, unless the appropriation for States under the Section 106 
    Grant Program decreases from its FY 2000 level. The set-aside funding 
    for interstate agencies was restored to its historical high of 2.6 
    percent of the total funds appropriated for States under the Section 
    106 Grant Program.
    
    Unfunded Mandates Reform Act
    
        Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public 
    Law 104-4, establishes requirements for Federal agencies to assess the 
    effects of their regulatory actions on State, local, and tribal 
    governments and the private sector. Under Section 202 of the UMRA, EPA 
    generally must prepare a written statement, including a cost-benefit 
    analysis, for proposed and final rules with ``Federal mandates'' that 
    may result in expenditures by State, local, and tribal governments, in 
    the aggregate, or by the private sector, of $100 million or more in any 
    one year. The UMRA excludes from the definition of ``Federal 
    intergovernmental mandate'' duties that arise from conditions of 
    federal assistance. Thus, today's rule is not subject to the 
    requirements of Sections 202 and 205 of the UMRA.
        Before EPA establishes any regulatory requirements that may 
    significantly or uniquely affect small governments, including tribal 
    governments, it must have developed under Section 203 of the UMRA a 
    small government agency plan. The plan must provide for notifying 
    potentially affected small governments, enabling officials of affected 
    small governments to have meaningful and timely input in the 
    development of EPA regulatory proposals with significant Federal 
    intergovernmental mandates, and informing, educating, and advising 
    small governments on compliance with the regulatory requirements.
        EPA has determined that this rule contains no regulatory provisions 
    that might significantly or uniquely affect small governments, as those 
    are defined at 2 U.S.C. 658(11) (i.e. governments of cities, counties, 
    towns, townships, villages, school districts, or special districts with 
    populations of less than 50,000). The Section 106 allotment formula for 
    the tribal portion of the Section 106 Grant Program is not affected by 
    this rule. Thus, today's rule is not subject to the requirements of 
    Section 203 of UMRA.
    
    National Technology Transfer and Advancement Act
    
        Under Section 12(d) of the National Technology Transfer and 
    Advancement Act of 1995 (NTTAA), EPA is required to use voluntary 
    consensus standards in its regulatory activities unless to do so would 
    be inconsistent with applicable law or otherwise impracticable. 
    Voluntary consensus standards are technical standards (e.g., materials 
    specifications, test methods, sampling procedures, business practices, 
    etc.) that are developed or adopted by voluntary consensus standards 
    bodies. Where available and potentially applicable voluntary consensus 
    standards are not used, the Act requires EPA to provide Congress, 
    through the Office of Management and Budget (OMB), an explanation of 
    the reasons for not using such standards. This action does not involve 
    technical standards. Therefore, EPA did not consider the use of any 
    voluntary consensus standards.
    
    Paperwork Reduction Act
    
        Under the Paperwork Reduction Act (PRA), as amended, 44 U.S.C. 3501 
    et seq. information collection requirements contained in rules must be 
    approved by OMB before they are effective. An agency may not conduct or 
    sponsor, and a person is not required to respond to a collection of 
    information unless it displays a current valid OMB control number. This 
    rule does not contain any collection of information requirements. Since 
    this action imposes no information collection, reporting or record-
    keeping requirements, this rule is not subject to the PRA.
    
    Executive Order 12866
    
        Under Executive Order 12866, [58 FR 51735 (October 4, 1993)] 
    ``Regulatory Planning and Review,'' the Agency must determine whether 
    the regulatory action is ``significant'' and is therefore subject to 
    OMB review and the requirements of the Executive Order. The Order 
    defines ``significant regulatory action'' as one that is likely to 
    result in a rule that may:
        (1) Have an annual effect on the economy of $100 million or more or 
    adversely affect in a material way the economy, a sector of the 
    economy, productivity, competition, jobs, the environment, public 
    health or safety, or State, local, or tribal governments or 
    communities;
        (2) Create a serious inconsistency or otherwise interfere with an 
    action taken or planned by another agency;
        (3) Materially alter the budgetary impact of entitlements, grants, 
    user fees, or loan programs or the rights and obligations of recipients 
    thereof; or
    
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        (4) Raise novel legal or policy issues arising out of legal 
    mandates, the President's priorities, or the principles set forth in 
    the Executive Order.
        It has been determined that this rule is not a ``significant 
    regulatory action'' under the terms of Executive Order 12866 and is 
    therefore not subject ot OMB review.''
    
    Executive Order 13045
    
        Executive Order 13045 ``Protection of Children from Environmental 
    Health Risks and Safety Risks'' (62 FR 19885, April 23, 1997), applies 
    to any rule that is: (1) determined to be ``economically significant'' 
    as defined under Executive Order 12866, and (2) concerns an 
    environmental health or safety risk that EPA has reason to believe may 
    have a disproportionate effect on children. If the regulatory action 
    meets both criteria, EPA must evaluate the environmental health or 
    safety effects of the planned rule on children and explain why the 
    planned regulation is preferable to other potentially effective and 
    reasonably feasible alternatives considered by the Agency.
        EPA interprets Executive Order 13045 as applying only to those 
    regulatory actions that are based on health or safety risks, such that 
    the analysis required under Section 5-501 of the Order has the 
    potential to influence the regulation. EPA has determined that the 
    proposed rule is not a covered regulatory action because it is not 
    economically significant as defined under Executive Order 12866, and it 
    does not establish an environmental standard to mitigate health or 
    safety risks. As a result, this rule is not subject to the requirements 
    of the Executive Order 13045.
    
    Executive Order 12875
    
        Under Executive Order 12875, Enhancing the Intergovernmental 
    Partnership, EPA may not issue a regulation that is not required by 
    statute and that creates a mandate upon a State, local or tribal 
    government, unless the Federal government provides the funds necessary 
    to pay the direct compliance costs incurred by those governments, or 
    EPA consults with those governments. If EPA complies by consulting, 
    Executive Order 12875 requires EPA to provide to the OMB a description 
    of the extent of EPA's prior consultation with representatives of 
    affected State, local and tribal governments, the nature of their 
    concerns, any written communications from the governments, and a 
    statement supporting the need to issue the regulation. In addition, 
    Executive Order 12875 requires EPA to develop an effective process 
    permitting elected officials and other representatives of State, local 
    and tribal governments ``to provide meaningful and timely input in the 
    development of regulatory proposals containing significant unfunded 
    mandates.'' This rule does not create a mandate on State, local or 
    tribal governments. The rule does not impose any enforceable duties on 
    these entities. The rule merely establishes formulas for the allotment 
    of Federal funds to States and interstate agencies. Accordingly, the 
    requirements of Section 1(a) of Executive Order 12875 do not apply to 
    this rule.
    
    Executive Order 13084
    
        Under Executive Order 13084, Consultation and Coordination with 
    Indian tribal governments, EPA may not issue a regulation that is not 
    required by statute, that significantly or uniquely affects the 
    communities of Indian tribal governments, and that imposes substantial 
    direct compliance costs on those communities, unless the Federal 
    government provides the funds necessary to pay the direct compliance 
    costs incurred by the tribal governments, or EPA consults with those 
    governments. If EPA complies by consulting, Executive Order 13084 
    requires EPA to provide to the OMB, in a separately identified section 
    of the preamble to the rule, a description of the extent of EPA's prior 
    consultation with representatives of affected tribal governments, a 
    summary of the nature of their concerns, and a statement supporting the 
    need to issue the regulation. In addition, Executive Order 13084 
    requires EPA to develop an effective process permitting elected and 
    other representatives of Indian tribal governments ``to provide 
    meaningful and timely input in the development of regulatory policies 
    on matters that significantly or uniquely affect their communities.''
        This rule does not affect the communities of Indian tribal 
    governments, because Tribes are covered under 40 CFR Part 35, 35.265, 
    which remains in effect as published. Accordingly, the requirements of 
    Section 3(b) of Executive Order 13084 do not apply to this rule.
    
    Congressional Review Act
    
        The Congressional Review Act, 5 U.S.C. Section 801 et seq., as 
    added by the Small Business Regulatory Enforcement Act of 1996, 
    generally provides that before a rule may take effect, the agency 
    promulgating the rule must submit a rule report, which includes a copy 
    of the rule, to each House of the Congress and to the Comptroller 
    General of the United States. EPA will submit a report containing this 
    rule and other required information to the U.S. Senate, the U.S. House 
    of Representatives, and the Comptroller General of the United States 
    prior to publication of the rule in the Federal Register. A major rule 
    cannot take effect until 60 days after it is published in the Federal 
    Register. This action is not a ``major rule'' as defined by 5 U.S.C. 
    Section 804(2). This rule will be effective May 3, 1999.
    
    List of Subjects in 40 CFR Part 35
    
        Environmental protection, Administrative practices and procedures, 
    Evaluation of performance, Grant programs--environmental protection, 
    Work plan requirements.
    
        Dated: April 20, 1999.
    Carol M. Browner,
    Administrator.
    
        EPA amends 40 CFR part 35 as follows:
    
    PART 35--STATE AND LOCAL ASSISTANCE
    
        1. The authority citation for part 35, subpart A continues to read 
    as follows:
    
        Authority: Secs. 105 and 301(a) of the Clean Air Act, as amended 
    (42 U.S.C. 7405 and 7601(a)); Secs. 106, 205(g), 205(j), 208, 319, 
    501(a) and 518 of the Clean Water Act, as amended (33 U.S.C. 1256, 
    1285(g), 1285(j), 1288, 1361(a) and 1377); secs. 1443, 1450, and 
    1451 of the Safe Drinking Water Act (42 U.S.C. 300j-2, 300j-9 and 
    300j-11); secs. 202(a) and 3011 of the Solid Waste Disposal Act, as 
    amended by the Resource Conservation and Recovery Act of 1976 (42 
    U.S.C. 6912(a), 6931, 6947, and 6949); and secs. 4, 23, and 25(a) of 
    the Federal Insecticide, Fungicide and Rodenticide Act, as amended 
    (7 U.S.C. 136(b), 136(u) and 136w(a)).
    
        2. Subpart A is amended by adding Sec. 35.251 and Sec. 35.252 to 
    read as follows:
    
    
    Sec. 35.251  Definitions.
    
        As used herein, the following words and terms shall have the 
    meaning set forth below:
        (a) The term allotment means the sum reserved for each State or 
    interstate agency from funds appropriated by the Congress. The 
    allotment is determined by formula based on the extent of the water 
    pollution problem in the respective States. It represents the maximum 
    amount of money potentially available to the State or interstate agency 
    for its program grant.
        (b) The term program grant means the amount of federal assistance 
    awarded to a State or interstate agency under Section 106 of the Clean 
    Water Act to assist in administering programs for the prevention, 
    reduction and elimination of water pollution.
    
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        (c) The term State means a State, the District of Columbia (DC), 
    the Commonwealth of Puerto Rico (PR), the U.S. Virgin Islands (VI), 
    Guam (GU), American Samoa (AS), and the Commonwealth of the Northern 
    Mariana Islands (CNMI).
        (d) The term interstate agency means an agency that meets the 
    requirements of Section 502(2) of the Clean Water Act (CWA) and which 
    is determined to be eligible for receipt of a grant under CWA Section 
    106 and these regulations by the Administrator.
        (e) The term component refers to one of the six factors selected 
    for use in the Section 106 State allotment formula. Each component of 
    the formula was selected based on its potential contribution to the 
    extent of water pollution problems within the respective States and to 
    the workload of State water pollution control programs.
        (f) The term element refers to one of the constituent factors used 
    to provide greater specificity to a component in the Section 106 State 
    allotment formula. Certain components are composed of two or more 
    ``elements.'' For example, the nonpoint source component of the Section 
    106 State allotment formula is composed of an agricultural element, a 
    logging element, and an abandoned mine element.
        (g) The term sub-element refers to one of the constituent factors 
    used to provide greater specificity to an element in the Section 106 
    State allotment formula. Certain elements are composed of two or more 
    ``sub-elements.'' For example, the abandoned mine element of the 
    nonpoint source component is composed of a soft-rock mining sub-element 
    and a hard-rock mining sub-element.
        (h) The term funding floor refers to the minimum amount of funding 
    that a State will be allotted in any fiscal year.
        (i) The term maximum level of funding refers to the ceiling on the 
    amount of funding that a State can be allotted in any fiscal year.
    
    
    Sec. 35.252  State and interstate allotments.
    
        (a) Allotments. Each fiscal year funds appropriated for States 
    under Section 106 will be allotted to States and interstate agencies on 
    the basis of the extent of the pollution problems in the respective 
    States. A portion of the funds available to States under the Section 
    106 Grant Program will be set-aside for allotment to eligible 
    interstate agencies. For FY 2000 and subsequent years, the interstate 
    set-aside will be set at the level of 2.6 percent of the total funds 
    appropriated for States under the Section 106 Grant Program.
        (b) State allotment formula. The Section 106 State allotment 
    formula establishes an allotment ratio for each State based on six 
    components selected to reflect the extent of the water pollution 
    problem in the respective States. A funding floor is established for 
    each State with provisions for periodic adjustments for inflation. The 
    formula also provides for a maximum funding level that a State can 
    receive in any fiscal year (150% of its previous fiscal year 
    allotment).
        (1) Components and component weights. (i) Components. The six 
    components used in the Section 106 State allotment formula are: Surface 
    Water Area; Ground Water Use; Water Quality Impairment; Point Sources; 
    Nonpoint Sources; and Population of Urbanized Area. The components for 
    the formula are presented in Table 1 of this section, with their 
    associated elements, sub-elements, and supporting data sources.
    
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        (ii) Component weights. To account for the fact that not all of the 
    selected formula components contribute equally to the extent of the 
    pollution problem within the States, each formula component is weighted 
    individually. Final component weights will be phased-in by FY 2004, 
    according to the schedule presented in Table 2 of this section:
    
                         Table 2.--Component Weights in the Section 106 State Allotment Formula
    ----------------------------------------------------------------------------------------------------------------
                                                                          FY 2000         FY 2001        FY 2004+
                                Component                                (percent)       (percent)       (percent)
    ----------------------------------------------------------------------------------------------------------------
    Surface Water Area..............................................              13              13              12
    Ground Water Use................................................              11              12              12
    Water Quality Impairment........................................              13              25              35
    Point Sources...................................................              25              17              13
    Nonpoint Sources................................................              18              15              13
    Population of Urbanized Area....................................              20              18              15
                                                                     -----------------------------------------------
        Total.......................................................             100             100             100
    ----------------------------------------------------------------------------------------------------------------
    
        (2) Funding floor. A funding floor is established for each State. 
    Each State's funding floor will be at least equal to its FY 2000 
    allotment in all future years unless the appropriation for States under 
    the Section 106 Grant Program decreases from its FY 2000 level.
        (3) Funding decrease. If the appropriation for the State Section 
    106 Grant Program decreases in future years, the funding floor will be 
    disregarded and all States allotments will be reduced by an equal 
    percentage.
        (4) Inflation adjustment. Funding floors for each State will be 
    adjusted for inflation when the appropriation for the State Section 106 
    Grant Program increases from the preceding fiscal year. These 
    adjustments will be made on the basis of the cumulative change in the 
    Consumer Price Index (CPI), published by the U.S. Department of Labor, 
    since the most recent year in which State Section 106 funding last 
    increased. Inflation adjustments to State funding floors will be capped 
    at the lesser of the percentage change in appropriated funds or the 
    cumulative percentage change in the inflation rate.
        (5) Cap on annual funding increases. The maximum allotment to any 
    State will be 150 percent of that State's allotment for the previous 
    fiscal year.
        (6) Cap on component ratio. A component ratio is equal to each 
    State's share of the national total of a single component. The cap on 
    each of the six State formula components ratios is 10 percent. If a 
    State's calculated component ratio for a particular component exceeds 
    the 10 percent cap, the State will instead be assigned 10 percent for 
    that component. The component ratios for all other States will be 
    adjusted accordingly.
        (7) Update cycle. The data used in the State formula will be 
    periodically updated. The first update will impact allotments for FY 
    2001, and will consist of updating the data used to support the Water 
    Quality Impairment component of the State formula. These data will be 
    updated using the most currently available CWA Section 305(b) reports. 
    After this initial update, the data used to support all six components 
    of the Section 106 State allotment formula will be updated in FY 2003 
    (for use in the determination of FY 2004 allotments). Thereafter, all 
    data will be updated every five years (i.e., in FY 2008 for FY 2009 
    allotments, in FY 2013 for FY 2014 allotments, etc.) Note there will be 
    an annual adjustment to the funding floor for all States, based on the 
    appropriation for the Section 106 Grant Program and changes in the CPI.
        (c) Interstate allotment formula. EPA will set-aside 2.6 percent of 
    funds appropriated for States under the Section 106 Grant Program for 
    interstate agencies. The Section 106 interstate allotment formula 
    consists of two parts: a base allotment; and a variable allotment.
        (1) Base allotment. Each eligible interstate agency is provided 
    with $125,000 as a base allotment to help fund coordination activities 
    amongst its member States. However, no more than 50 percent of the 
    total available interstate set-aside may be allocated as part of the 
    base allotment. If, given the 50 percent limitation placed on the base 
    allotment the amount of interstate set-aside funds is insufficient to 
    provide each interstate agency with $125,000, then each interstate 
    agency will receive a base allotment equal to 50 percent of the total 
    interstate set-aside divided by the total number of eligible interstate 
    agencies.
        (2) Variable allotment. The variable allotment provides for funds 
    to be distributed to interstate agencies on the basis of ``the extent 
    of the pollution problems in the respective States.'' Funds not 
    allotted under the base allotment will be allotted to eligible 
    interstate agencies based on each interstate agency's share of their 
    member States' Section 106 formula allotment ratios. Updates of the 
    data for the six components of the Section 106 State allocation formula 
    will automatically result in corresponding updates to the variable 
    allotment portion of the interstate allotments. The allotment ratios 
    for those States involved in compacts with more than one interstate 
    agency will be allocated amongst such interstate agencies based on the 
    percentage of each State's territory that is situated within the 
    drainage basin or watershed area covered by each compact.
    
    [FR Doc. 99-10631 Filed 4-30-99; 8:45 am]
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Document Information

Effective Date:
5/3/1999
Published:
05/03/1999
Department:
Environmental Protection Agency
Entry Type:
Rule
Action:
Final rule.
Document Number:
99-10631
Dates:
This rule is effective May 3, 1999.
Pages:
23734-23739 (6 pages)
Docket Numbers:
FRL-6332-1
PDF File:
99-10631.pdf
CFR: (2)
40 CFR 35.251
40 CFR 35.252