104 STAT. 2688 PUBLIC LAW 101-549—NOV. 15, 1990 level, the Administrator shall reduce the amount of the Federal contribution accordingly.". (b) CONFORMING AMENDMENT.— Section 105(a)(l)(C) of the Clean 42 USC 7405. Air Act is amended by striking "(B)" and inserting "(A)". (c) LIMITATION ON GRANTS.—Section 105(b) of the Clean Air Act is amended by— (1) inserting "(1)" immediately after "(b)" (2) striking all that follows "(3) the financial need of the respective agencies."; and (3) redesignating paragraphs (1), (2), and (3) as subparagraphs (A), (B), and (C) respectively. (d) LIMITATION.— Section 105 of the Clean Air Act is amended by redesignating subsection (c) as paragraph (2) of subsection (b) and by striking all that follows "into which such area extends." in the newly designated paragraph (2) and inserting "Subject to the provisions of paragraph (1) of this subsection, no State shall have made available to it for application less than one-half of 1 per centum of the annual appropriation for grants under this section for grants to agencies within such State.". (e) MAINTENANCE OF EFFORT. —Section 105 of the Clean Air Act is amended by inserting the following new subsection after subsection (b): "(c) MAINTENANCE OF EFFORT. — (1) No 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. In order for the Administrator to award grants under this section in a timely manner each fiscal year, the Administrator shall compare an agency's prospective expenditure level to that of its second preced- Regulations. ing fiscal year. The Administrator shall revise the current regulations which define applicable nonrecurrent and recurrent expenditures, and in so doing, give due consideration to exempting an agency from the limitations of this paragraph and subsection (a) due to periodic increases experienced by that agency from time to time in its annual expenditures for purposes acceptable to the Administrator for that fiscal year. "(2) The Administrator may still award a grant to an agency not meeting the requirements of paragraph (1) of this subsection if the Administrator, after notice and opportunity for public hearing, determines that a reduction in expenditures is attributable to a nonselective reduction in the expenditures in the programs of all Executive branch agencies of the applicable unit of Government. No agency shall receive any grant under this section with respect to the maintenance of a program for the prevention and control of air pollution unless the Administrator is satisfied that such a grant will be so used to supplement and, to the extent practicable, increase the level of State, local, or other non-Federal funds. No grants shall be made under this section until the Administrator has consulted with the appropriate official as designated by the Governor or Governors of the State or States affected.". 42 USC 7406. (f) CosTS.—Section 106 of the Clean Air Act is amended by striking "three-fourths of the air quality planning program costs of such agency" and inserting "three-fifths of the air quality implementation program costs of such agency".