A significant increase to state and local programs in the Obama administration's proposed U.S. EPA programs would help implement permitting programs to improve air quality and curb climate-related emissions -- in a year when the agency may need it most.

Despite a $105 million overall decrease from last year's enacted budget of $8.4 billion, the administration is proposing $302 million -- a 28 percent increase -- for EPA state and local grants. The budget proposal for EPA's climate change and clean air programs has increased to $249 million under the science and technology budget, a slight increase over the $246 million that was enacted for fiscal 2012.

"It addresses resources our states would need for greenhouse gas permitting," said Gina McCarthy, EPA assistant administrator for the Office of Air and Radiation. The increases were requested for the fiscal 2011 budget and are now restored for 2013, she added.

This would provide much-needed support to states still reeling from an ailing economy, said Bill Becker, executive director of the National Association of Clean Air Agencies.

"This is a time when funding at the state and local levels has been decimated," he said. "It's important we get some gap-filling assistance from the federal government."

With steady drops in funds from Washington, states and local communities have needed to devote an increasing percentage of their budgets to match federal contributions.

Cutting clean technology program

"We are having a very difficult time meeting federal responsibilities," said Becker, whose organization represents air pollution control agencies in 53 states and territories.

Congress appropriated $236 million for local and state agencies for fiscal 2012. This year, the increase in greenhouse gas permitting activities, propelled by the agency's mandate to regulate the climate-changing gases under the Clean Air Act, will benefit from a 47 percent increase in federal funds. But the increase could come under the knife of a fiercely anti-EPA House.

"We could use all of the money we could get," said Becker. "It is certainly helpful, but it's Congress that will need to make the final decision."

Under the proposed budget, EPA would discontinue its Clean Automotive Technology program, one of several programs whose closure would result in a $50 million in savings for the agency. Staff from the programs would shift to related programs within the agency, said McCarthy.

Funding to implement and enforce the upcoming New Source Performance Standards for greenhouse gases from stationary sources increased from $5.41 million to just under $7.37 million -- a 36 percent jump. The agency is expected to unveil its first-ever proposals for standards for new power plants this month.