(a) An eligible applicant is:
(1) A designated recipient (designated recipient has the same meaning as in 49 U.S.C. 5307(a)(2)); or
(2) A recipient for an urbanized area with a population of less than 200,000 (smaller urbanized area). The State in which the smaller urbanized area is located shall act as the recipient.
(b) An eligible applicant, as defined in paragraph (a) of this section, shall operate in an area that is either:
(1) An ozone or carbon monoxide nonattainment area as specified under section 107(d) of the Clean Air Act (42 U.S.C. 7407(d)); or
(2) A maintenance area for ozone or carbon monoxide. [72 FR 15052, Mar. 30, 2007]