44291.  (a) The state board shall assist districts with developing
procedures to monitor whether the emission reductions projected in
successful grant applications are actually achieved. Monitoring
procedures may include project audits, and may also include
requirements, as part of the contract between the state board or
districts and the grant recipients, that each grant recipient provide
information about the project on an annual basis. Information
required from grant recipients should be minimized and the format for
reporting the information should be made simple and convenient.
   (b) As soon as practicable, the state board, in consultation with
the districts, shall publish procedures to monitor and audit
infrastructure projects. These procedures shall ensure that the
amount of qualifying fuel dispensed annually is greater than or equal
to the amount upon which the grant award is based and that any
project qualifying for funding on the basis of public accessibility
or limited public accessibility is, in fact, providing that
accessibility.
   (c) The monitoring and auditing procedures shall be sufficient to
allow emission reductions generated to be fully credited to air
quality plans. The monitoring procedures shall contain provisions for
recapturing grant awards in proportion to any loss of emission
reductions or underachievement in dispensing qualifying fuel compared
with the reductions and fuel dispensing projected in the grant
application. Monitoring and auditing procedures shall be revised as
appropriate to enhance program effectiveness.
   (d) The state board shall monitor district programs to ensure that
participating districts conduct their programs consistent with the
criteria and guidelines established by the state board and the
commission pursuant to this chapter. The monitoring procedures shall
contain provisions for return of funds not yet awarded to approved
projects if a district fails to show that they are implementing a
program consistent with the approved program. If the state board
determines, pursuant to this subdivision, that moneys from the fund
allocated to a district should be returned, the state board shall
hold at least one public meeting to consider public comments prior to
requiring the return of the allocated funds. The state board shall
make every effort to assist districts to implement programs in an
approved manner and shall only require the return of allocated funds
if these efforts fail to address problems adequately. Returned funds
shall be deposited in the fund. The state board shall not require the
return of funds already awarded to approved projects.
   (e) Program funds recaptured as a result of a settlement agreement
executed by the state board shall be returned to the district that
provided the funds to the grant recipient. A penalty resulting from a
settlement agreement executed by the state board with a grant
recipient or from a civil action brought by the Attorney General
shall be deposited in the fund.