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   (a) Grants.-Subparagraphs (A) and (B) of section 105(a)(1) of  the

Clean Air Act are amended to read as follows:

      "(A) The Administrator may make grants to air pollution control

   agencies, within the meaning of  paragraph (1), (2), (3),  (4), or

   (5) of section  302, in an amount  up to three-fifths of  the cost

   of  implementing programs  for the  prevention and  control of air

   pollution  or  implementation of  national  primary  and secondary

   ambient air quality  standards. For the purpose  of this  section,

   `implementing'  means  any  activity  related   to  the  planning,

   developing, establishing, carrying-out, improving, or  maintaining

   of such programs.

      "(B) Subject to subsections (b) and (c) of this section, an air

   pollution   control   agency   which  receives   a   grant   under

   subparagraph  (A) and  which contributes  less  than the  required

   two-fifths minimum  shall have 3 years  following the  date of the

   enactment of  the Clean  Air Act  Amendments of 1990  in which  to

   contribute such  amount.  If such  an  agency  fails to  meet  and

   maintain this required  level, the Administrator shall  reduce the

   amount of the Federal contribution accordingly.".

   (b)  Conforming Amendment.-Section  105(a)(1)(C) of  the Clean 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


      "(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

   preceding 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.

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