Effective June 24, 2013, EPA has approved an interim determination to defer offset and highway sanctions which were imposed due to the disapproval of the South Coast PM2.5 SIP. The sanctions would have resulted in an increase in emissions offsets required for new and modified stationary sources, and would have also limited approvals and funding of highway projects. Taking into consideration the significant improvements made in PM2.5 air quality in the South Coast air basin, EPA is proposing to fully approve the PM2.5 SIP for South Coast. Offset and highway sanctions that would have been imposed July 9, 2013 and January 9, 2014, respectively, have been deferred. EPA is currently providing a 30-day comment period on this action. If no submitted comments alter EPA's current assessment, the deferred sanctions will terminate permanently and all applicable requirements and regulations will remain unchanged. However, if any comments change EPA's assessment and sanctions are re-imposed, it will affect future offset and highway projects.